In the pursuit of alethiology (look it up), I have to say that if I hear one more thing about the bubble about to be caused by this week’s early launch of Phase 2 of the Government’s Help-To-Buy scheme, I may choose to discover that the life of a Trappist monk has its advantages (sorry Tatiana). Whilst it is admirable that banks are staying open -to much fanfare and self-congratulation – to deal with the huge influx of applications, I think that the media are missing the point somewhat. The true measure of success will be how many of these applications turn into actual mortgages. I am reminded of the 4000 people who earlier this year applied for a job at Costa Coffee (other coffee outlets are available), but only one job was available and therefore only one person would be successful. I am not saying that only one person will be successful in obtaining a mortgage, but having worked for many years for a banking organisation that likes to, ‘give a little extra help’, I am more than aware that the slightest tweak to the underwriting criteria negates 95% of applications. If a bank doesn’t want to lend, they won’t. Banks love the pursuit of plutology and are very keen on argyrothecology (you have the internet-use it) but wholly on their terms. If anywhere in the underwriting process a hint of ptochology (you don’t pronounce the ‘p’) is attributed to the applicant, it is game over. Whilst we all subscribe to pisteology, time will tell whether this is just a political stunt or a genuine stimulant injected into the veins of the housing market.
