Taylor Wimpey Share Discussion Threads

[sr2day] 28/11/2013 12:32

give it time, we may finish where we started today.

[bobsidian] 28/11/2013 12:17

The share prices of house builders have had a great run. But this kind of policy change could curtail any further upside momentum.

Actively encouraging house buyers to effectively take out 95% mortgages when mortgage rates are near historic lows just seems reckless.

The normalisation of interest rates would see the Bank of England base rate rise by an additional 4%. The Bank of England would doubtless have a preference to stagger such a move over a lengthy period of time in the hope that wages growth is sufficient to absorb its impact. Better to deflate a bubble before it forces a premature move in interest rates. Household balance sheets are hardly in a position to deal with a 100%+ rise in mortgage interest.

[jugears] 28/11/2013 12:14

This is extremely over done & will have little impact on the housing market, IMHO this will not stop people buying houses & neither would an intersest rate rise which i doubt will be more than 3% in the next ten years & can not see it rising by more than a 1/4-1/2% at a time, which is not really going to be a major monthly impact on home owners(And any sensible person buying a house at the moment should be factoring in a future rate rise as should the lenders when lending the money in the first place

[tradejunkie2] 28/11/2013 12:13

BOE knows there is a bubble.

[2breakout] 28/11/2013 12:12

Martyn9 only get shafted if you have borrowed too much or paid too much in the first place.

[justwondering] 28/11/2013 12:06

Trade junkie, watch out, you will end up with muck on your shorts.

[knocknock] 28/11/2013 11:56

Could see a blue finish today!

[tradejunkie2] 28/11/2013 11:51

GAME OVER CHAPS - STRONG SELL !!!
BoE reduces mortgage lending support scheme


The Bank of England is to scale back a scheme to boost mortgage loans, focusing instead on business lending.

The Funding for Lending Scheme, launched last year, will no longer be aimed at householders, said the Bank's governor Mark Carney on Thursday.

An overheated housing market would be a risk to the economy, he said, presenting the Bank's Financial Stability Report.

Supporting mortgage lending was "no longer necessary".

[martyn9] 28/11/2013 11:47

The help to buy scheme should have been on a regional basis imo.London and surrounding areas always overheat.So as usual the rest of the country north of watford gap get SHAFTED.

[knocknock] 28/11/2013 11:45

Lovly ,anyone would think builders only built for first time buyers lol!

[bobsidian] 28/11/2013 11:42

"FLS is a big factor but housing has enough momentum so FLS support is overkill at the moment"

Strip out the influence of the FLS and you run the risk of indirectly returning to prospective house buyers struggling to meet lending criteria. Doubtless there will be a dash to conclude house purchases before the year end which will benefit house builders. But you cannot help but get the impression that earnings visibility for house builders has suddenly been eroded.

[aran26] 28/11/2013 11:41

Is the FLS related to the government lending to the banks to improve credit conditions. But people can still get funding for Help to Buy?

The withdrawal of the Funding for Lending scheme won't impact the separate Treasury Help to Buy scheme, which guarantees parts of a mortgage, meaning house buyers with a small deposit can meet lenders borrowing requirements and get on the housing market. This has also been cited as a driver of the recent sharp increase in house prices.

[keane16] 28/11/2013 11:40

the BOE are been very vague with this news, obviously need more information.

[el1te] 28/11/2013 11:24

Thanks IC, but I'm sure we are all capable of making our own decisions.

[koetser] 28/11/2013 11:24

Will be buying more in a day or two ... once the dust has settled. FLS is a big factor but housing has enough momentum so FLS support is overkill at the moment IMHO.

[itchycrack] 28/11/2013 11:23

The party is over!
When interest rates start rising next year the bear trend will have well and truly set it. Take your profits while you still have them! Nothing on the immediate horizon justifies existing levels, its all in the price and the future is looking less rosy day by day.
All IMHO of course, DYOR etc.

[el1te] 28/11/2013 11:19

I have to say that I've missed a few price target/broker changes of the recent weeks:

- Deutsche Bank upped to 151p
- Barclays Capital initiates with an overweight rating and 146.8p
- Goldman Sachs with conviction buy rating at 166p

[battue2] 28/11/2013 11:17

daz14
Yes the likes of TW and BDEV have placed great store in the government scheme it must be worth a fair percentage of the share price If you look at the other builders
the bigger value property developers are not down nearly as much.
I was rather caught out that the BOE anounced this, i would have thought it was more a government decision and therefore they would announce it but not before the next election......

[daz14] 28/11/2013 11:04

Aran26
28 Nov'13 - 11:00 - 12873 of 12873 0 0
What has fundamentally changed? Overdone!

In recent market trading updates, all house builders cited support from the Government scheme in forward projections of performance. This announcement clearly moves the goal. That's rather fundamental.

[aran26] 28/11/2013 11:00

What has fundamentally changed? Overdone!

[jugears] 28/11/2013 10:57

Yes Just topping up as I expect these to be up to 1.15 again tomorrow, Seen this happen many time, The only losers are the sellers.

[battue2] 28/11/2013 10:56

So much for the 115.8 high at this rate it could close the gap at 100p.Top up chance tomorrow.Let the heard follow each other first.