Cheap Mortgages Dead

From the Scotsman:

Financial experts said the UK government's decision to nationalise Bradford & Bingley was the final nail in the coffin of the "pile 'em high, sell 'em cheap" mortgage market. "Widespread expectations that house prices will continue to fall markedly for some considerable time is significantly limiting housing market activity, as is heightened concern over the economic outlook and job prospects."

The housing slump already looks set to deepen further, with the number of mortgages approved for house purchase sliding to a record new low of 32,000 during August. "Mortgage lending has come to a near-standstill. And the housing market woes do not end there. The bank was the country's biggest buy-to-let lender, with 18 per cent of the market last year.

Case Studies

'I think it's safe if you buy sensibly'

MONICA Gibb has bought two Scottish properties in the last few months.

Ms Gibb bought the two properties after selling her mid-market house in Newington, Edinburgh, at the end of July.

She said: "I sold my old house because I wanted a change of lifestyle. "Both properties need absolutely everything done to them, but I love doing up houses, it's a real passion of mine. I've done up flats, cottages and houses before and both these properties need work done to them including new bathrooms, kitchens, windows, electricity, plumbing, absolutely everything."

Ms Gibb, who has just turned 60, didn't think the housing slump would greatly affect the price of her properties and decided to buy because the time was right.

So lucky to have sold when we did'

KATE Clark, 46, and her husband David, 48, bought a four-bedroom house in Duthil near Carrbridge, Inverness-shire, in early August.

"The market we were buying in has not changed greatly. We sold our house for £295,000 last year. Mr Clark works within the property department of a retailer based in Edinburgh.

Together with the combined sums, they bought their new house through Strutt & Parker.

Mr Buchanan said they put their house on the market in January and were not too concerned about falling property prices.