Pryor's pissed
Property hotshot Henry Pryor is pissed off with Northern (c)Rock. According to Rat & Mouse, Pryor - who owns the Primemove search engine - is claiming that the banks are "liar, liar, pants on fire" and that they're doing consumers a disservice by
"withdrawing their products so that even if someone finds something to buy they now find that some banks don't have a single mortgage product to sell!"
Pryor admonishes NR to "get back to work" and start offering mortgages. Question for Henry, where are they supposed to get the money from? Another BoE loan?
1 comments:
"Question for Henry, where are they supposed to get the money from?"
My point is that those banks that have withdrawn their products say that they have got loads of money to lend - it's just that they are being overwhelmed and don't want to provide a poor service!
Do you believe that or can you smell the burning Calvins too?
3 month LIBOR is currently 6% and the BoE auction of £13.4Bn was 100% over subscribed. There's money available it's just that lenders don't want to lend any of it. Our new national bank could get access to funds and could start lending to this queue of buyers who can't get either a mortgage let alone one with good customer service.
I don't welcome high interest rates but at the bottom of the market houses are not worth what someone will pay but what someone can borrow. They need to be able to borrow and they need a reasonable multiple. By withdrawing mortgages they have neither.
I think that the market is on a life-support system at present and at the banks have just refused to provide any more blood!
If you can't borrow, you can't bid. No bids and your home is worth-less!
Best,
Hclp
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