2007-12-06 07:00:34 · 14 answers · asked by starbrite74♥♥ 3 in Business & Finance ➔ Renting & Real Estate
Ease up how? The mortgage companies don't control the interest base rate.
2007-12-06 07:08:52 · answer #1 · answered by ? 7 · 0⤊ 1⤋
You aren't quite clear on what you mean by 'easing up'. If you're referring to being able to qualify for a mortgage, that's not about to change soon, if ever. Lenders have learned the hard way what happens when you give mortgages to borderline credit/income buyers. The result is the current fiasco we have with foreclosures.
If you're referring to current owners who are facing spiking interest rates on ARM's, an agreement is in the works to freeze for five years the current rates of some of those folks. The details of the program have yet to be released.
2007-12-06 15:27:16 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
If they dont ease up on buyers, they'll be sitting on foreclosed homes that they can't sell becuase they have tightened their lending criteia. What they should do, offer to refinance current adjustable rate mortgage's at current market rate of the home turning them into fixed mortgages. Ganted the banks will be taking a loss in the short term but they wont be slapped with empty homes that they cant sell and these will provide relief to homeowners.
The problem is that banks and investors dont want to let go.
2007-12-06 15:47:20 · answer #3 · answered by SUPERFLY SNUKA 2 · 0⤊ 0⤋
I would not consider taking out a mortgage and buying a house at the present time the fact is property in the UK is over valued. It was obvious that the constant rise in house prices could not continue for ever and they will probably fall further over the next year or so. Anyone who has or is about to take out a minimum deposit mortgage will likely find that they owe more than their house is currently worth ( negative equity ) The boom in property looks to be over so with the decline in bussines the mortgage companies will take as much as they can.
2007-12-06 15:46:31 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Mortgage companies never came down on buyers. Buyers choose to enter into legal contracts with adjustable rate mortgages because they wanted a bigger house.
2007-12-06 15:44:41 · answer #5 · answered by Matt K 4 · 0⤊ 0⤋
You mean for qualifications? The answer is no. Many people rec'd loan approvals over the past 5 years who really weren't qualified for the loan. That is part of the reason for the current housing mess. The industry is in a corrective state and should remain so for years to come. They may loosen qualification standards slightly in the next 3 years but they won't (at least they shouldn't) revert back to the prior system of approving almost anyone.
2007-12-06 15:07:58 · answer #6 · answered by thinking-guru 4 · 1⤊ 0⤋
It isn't the mortgage companies, it is the investors who have tightened up qualifying criteria and, no, I don't think we're going to see a loosening of those standards soon. We have only seen the tip of the iceberg in the current mortgage crisis. The worst is yet to come.
2007-12-06 15:05:23 · answer #7 · answered by mazziatplay 5 · 1⤊ 0⤋
when the buyers have good credit and put more down on a home and get a fixed rate, it's not just the mortgage companies fought
2007-12-06 22:17:04 · answer #8 · answered by jeanniep 5 · 0⤊ 0⤋
After today's Bank of England announcement of a cut in the base rate, mortgages will come down this month. NOT A LOT.
2007-12-06 15:15:16 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Things really aren't all that tight for people that can afford to buy a house and can prove it with w-2's and bank statements.
Still plenty of 100% financing available.
Wallstreet reacted too late to their irresponsible guidelines and they pulled back pretty hard. They will stay tight on the Stated Income and other crazy loans. But the Full Doc loans are closing everyday.
2007-12-06 16:27:28 · answer #10 · answered by DallasLoanGuy 2 · 0⤊ 0⤋