which equates to £127,500 plus the deposit so say £140,000.  So when the FTB gets in to a bidding war with another £30k p.a. FTB the price shoots up.  As long as the FTB couple don’t come along with their £50k combined salary and push the bid up to £200k (which was happening in 2006/7!) then one of the FTBs will get the property.

 

You my friend being the investor do not get a look in!  Your £100k is so last season’s price.

 

The surveyor is the only person that can stop this foolery.  Will they stop it?  Yes for a while.  However banks will apply pressure to these surveyors subtly (like threatening to take their business elsewhere if they do not value them up!) to put the FTB’s value on the property so they can lend.

 

The reason why I am saying all this is because HSBC has announced it is going to lend £1.5bn to FTB before the YEAR END on its 90% LTV product!  They have called the bottom of the market.  HSBC think prices have bottomed out.  Considering the cautious of this lender I would listen up and take note.

 

I am sure the rest of the banks have taken note but they are still licking their wounds.  Too bad.  HSBC is about to take massive market share.  They are already the biggest net lender this year.  Not bad for a bank who did not participate hardly at all in the UK property market back pre-2007.

 

It is funny how things change.  Things can really swing with lightening pace.

 

If you want to get in before the FTBs realise get in contact.

 

Ajay

 

   

Posted on: 5th Oct 2009

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