Credit deflation and the reflation cycle to come (part 3)

[Axeman123]

Dave casually drops a bombshell in the replies...

With German attitudes to inflation and mediteranean countries attitude to borrowing a reckoning must be near for the Eurozone

[ThoughtCriminal]

10 minutes ago, Axeman123 said:

Dave casually drops a bombshell in the replies...

With German attitudes to inflation and mediteranean countries attitude to borrowing a reckoning must be near for the Eurozone

Love how he he just casually drops it in the replies.

 

Yeah Dave, how much will the euro be at?

 

"Zero"

[spygirl]

30 minutes ago, Don Coglione said:

Bollocks.

No.

Banks operate in the happy medium.

Tgey avoid poor people without money.

And swerve people with money trying to be 'clever'.

They wsnt people buying houses under 4.5 LTE and paying off the mortgage around 20years.

 

[Don Coglione]

1 minute ago, spygirl said:

No.

Banks operate in the happy medium.

Tgey avoid poor people without money.

And swerve people with money trying to be 'clever'.

They wsnt people buying houses under 4.5 LTE and paying off the mortgage around 20years.

 

Get @Starsend to agree with that...

[spygirl]

1 hour ago, JimmyTheBruce said:

The banks definition of affordability means that a multimillionaire taking a 6 month sabbatical wouldn't qualify for a 300k loan.  It's moronic, and just another example of how regulation/legislation, in seeking to "protect" the lowest common denominator, fucks everything up for everyone.

Why would a multi millionaire need to borrow 300k from a high street lender?

If you have v different finances to 90% of mortgage borrowers then you can go to a specialist lender, wholl charge you a big fee.

Banks dont want to think or work for their money.

Do you meet MMR?

Yes or no? If no, fuck off elsewhere,

[Don Coglione]

More bollocks.

Why wouldn't you borrow at sub-1%, if you could?

[JimmyTheBruce]

3 minutes ago, spygirl said:

Why would a multi millionaire need to borrow 300k from a high street lender?

If you have v different finsnces to 90% of mortgage borrowers then you can go to a specialist lender, wholl charge you a big fee.

Banks font want to think or work for their money.

Do you meet MMR?

Yes or no? If no, fuck off elsewhere,

Why he might want to do it is neither here nor there.  The fact that state imposed regulations deem him to be a bad bet is stupid.  Those same regulations have allowed lending to people who are going to be fucked when it all goes tits up, because they were "clever" and lied about their monthly outgoings.

[MrXxxx]

7 hours ago, DoINeedOne said:

Same i go to pay in £1000 cash and they think im Pablo Fucking Escobar and yet in the FT today

:-))))...yet walk in looking like 'Huggy Bear' [80s TV] in a fur coat/pimpesque wanting to deposit £100k and they wouldn't 'turn a blind eye'!

[spygirl]

16 minutes ago, JimmyTheBruce said:

Why he might want to do it is neither here nor there.  The fact that state imposed regulations deem him to be a bad bet is stupid.  Those same regulations have allowed lending to people who are going to be fucked when it all goes tits up, because they were "clever" and lied about their monthly outgoings.

No. You cannot lie with MMR.

Everything is checked.

[spygirl]

23 minutes ago, Don Coglione said:

More bollocks.

Why wouldn't you borrow at sub-1%, if you could?

I dont think anyone borrowed at sub 1% levels.

And it's a case of why would the banks lend at low rated.

[spygirl]

19 minutes ago, JimmyTheBruce said:

Why he might want to do it is neither here nor there.  The fact that state imposed regulations deem him to be a bad bet is stupid.  Those same regulations have allowed lending to people who are going to be fucked when it all goes tits up, because they were "clever" and lied about their monthly outgoings.

The state cares cos the bulk of that mortgage money is coming from the state via draw down from BoE by banks.

[Don Coglione]

1 minute ago, spygirl said:

I dont think anyone borrowed at sub 1% levels.

'And it's a case of why would the banks lend at low rated.

@Starsend just did; had I got my story straight, I would have done so too.

[wherebee]

6 hours ago, Ma2 said:

Depends on what happens to Coventry Building Society...

At the end of the affordability discussion the guy asked me if I had any questions and I said yeah "what happens if you can no longer afford my mortgage?" 

Needless to say he didn't have an answer. I hope it's ringfenced.

I can't have it both ways, I was angry with the government bailing people when cheap energy providers went bust when I got a fix to 2024 with an energy producer (Shell), but would be quite happy if my mortgage stayed the same if Coventry went bust!

Unless the rules have changed, if your lender goes under and is taken over by another lender, unless you sign a new contract, the terms of the existing contract port across.

I had a mate in HK who's father had a very low rate fixed mortgage with a lender.  Lender went bust.  Another local bank took them over, tried every method in the book including sending goons round to try to get him to resign a new contract.  Father refused and refused, and after a couple of years the hassle just stopped.  Saved him hundreds of thousands in interest.

[JimmyTheBruce]

12 minutes ago, spygirl said:

No. You cannot lie with MMR.

Everything is checked.

[JimmyTheBruce]

10 minutes ago, spygirl said:

The state cares cos the bulk of that mortgage money is coming from the state via draw down from BoE by banks.

If the state cared they'd prioritise lending to those who can best pay it back, but I'm not sure millionaires buy shite HTB houses on the council estates of the future.

[sleepwello'nights]

44 minutes ago, spygirl said:

No.

Banks operate in the happy medium.

Tgey avoid poor people without money.

And swerve people with money trying to be 'clever'.

They wsnt people buying houses under 4.5 LTE and paying off the mortgage around 20years.

 

And even then my daughter who was well within all their criteria for LTV, income multiples, affordability, large deposit is still having to jump through their hoops.

Absolute bunch of prats, still working to computer says no. 

I can't be bothered to go through the rigmarole @WICAO went through by writing to the CEO to see how they could circumvent the nonsensical rules they follow.

[Axeman123]

I suspect the issue many are discussing is akin to asking the tobacco-counter staff in Tesco to recommend a fine Cuban cigar to accompany a specific sipping rum!

Volume lenders will make a lot of small loans, with rigid lending formulas applied by cheap staff. The banking services used by high net worth individuals to manage their assets will have much better quality staff with a lot more lattitude to make intelligent judgements on lending.

[SpectrumFX]

1 minute ago, Axeman123 said:

I suspect the issue many are discussing is akin to asking the tobacco-counter staff in Tesco to recommend a fine Cuban cigar to accompany a specific sipping rum!

Volume lenders will make a lot of small loans, with rigid lending formulas applied by cheap staff. The banking services used by high net worth individuals to manage their assets will have much better quality staff with a lot more lattitude to make intelligent judgements on lending.

One of my remortgages a few years back we ended up in the bank being interviewed by a mortgage advisor. I remember that I had to help her with some of the maths.

[sleepwello'nights]

11 minutes ago, Axeman123 said:

I suspect the issue many are discussing is akin to asking the tobacco-counter staff in Tesco to recommend a fine Cuban cigar to accompany a specific sipping rum!

Volume lenders will make a lot of small loans, with rigid lending formulas applied by cheap staff. The banking services used by high net worth individuals to manage their assets will have much better quality staff with a lot more lattitude to make intelligent judgements on lending.

Problem I have is getting to the £5 million or so to make it worthwhile using that level of service.

[Sugarlips]

11 minutes ago, Axeman123 said:

I suspect the issue many are discussing is akin to asking the tobacco-counter staff in Tesco to recommend a fine Cuban cigar to accompany a specific sipping rum!

Volume lenders will make a lot of small loans, with rigid lending formulas applied by cheap staff. The banking services used by high net worth individuals to manage their assets will have much better quality staff with a lot more lattitude to make intelligent judgements on lending.

Agreed and as far as the lenders are concerned it’s up to the individual to figure out which bucket they sit in and choose the banking relationship accordingly. The hsbc’s are unlikely to want to assign a dedicated loan manager to anyone who isn’t high net worth or has global business requirements 

[Phil]

Don’t want to throw the topic off, but, subbies in construction have a hell of a time last I heard getting a mortgage as proof of earnings along with not being “ employed “ ( chained into slavery paying their massive taxes) with stability ( BoE, in fact ALL banks are wank) in a stable industry, they don’t like, but, normally they have the ability to pay back a loan yet are looked upon as super high risk. May account for the new van outside the slumlords house. Just saying.

[Axeman123]

14 minutes ago, SpectrumFX said:

One of my remortgages a few years back we ended up in the bank being interviewed by a mortgage advisor. I remember that I had to help her with some of the maths.

Not at all surprising. The modern high street bank bank branch is staffed more like a mobile phone or sofa shop, after all the sales staff in Carpet Right can sign you up to several grand of credit with Hitachi Finance!

15 minutes ago, Sugarlips said:

Agreed and as far as the lenders are concerned it’s up to the individual to figure out which bucket they sit in and choose the banking relationship accordingly. The hsbc’s are unlikely to want to assign a dedicated loan manager to anyone who isn’t high net worth or has global business requirements 

Sadly they won't want to offer anything beyond vanilla to ordinary joes, as regulators have regularly sided with treating adults like children and sparing them the bitter fruit of their choices. Sophisticated banking needs without vast assets puts us right in no man's land.

[MrXxxx]

Anyone got the Aclara share distribution from holding HOC?...what is the best approach with these i.e Sell or Hold?....I am assuming a couple of things:-

1. If your broker allows you to hold these any divis will a) be subject to Canadian withholding tax [unless you fill in a W-8ben] AND also unless they allow multi-currencies will also be subject to a Forex exchange charge on any divid paid in the future.

2. In the next week or so the price will initially drop due to those brokers who cannot/will not hold them for clients automatically selling them off for their clients.

Be interesting to get some feedback [not investing advice! DYOR Etc] on this one.

[mcdongle]

Just posting this to give Sancho a chuckle...

[Starsend]

4 hours ago, Don Coglione said:

Get @Starsend to agree with that...

I was trying to be clever to be fair but fortunately they never swerved me.