OMG cash is back

The word we are getting from mortgage advisers is that cash is back. We are repeatedly hearing stories about what's been offered and it's seems just like the old days. 

In many ways it is no surprise, not just because Spring is around the corner, but more so because the housing market has slowed considerably and lenders need to drive as much volume as they can in this market environment. 

I suspect it also shows that lending margins aren't necessarily as bad as they are made out to be. 

ASB and Sovereign took the view a while back that they would stop cash, but the price of that has been a fall in lending volumes. It just goes to show that cash does work. It's also, someone described as a case of Prisoner's dilemma.