Property crash, just maybe it really is different this time (Part 2)

[BoSon]

14 hours ago, Rare Bear said:

Even assuming the borrower has found the secret of eternal youth and can extend the term to infinity, the interest rate sets the payment. The payment cannot be less than the interest rate.

It can if they follow the credit card minimum payment route, to roll over the excess so the debtor is on the hook forever due to compound interest on the debt interest.

Those wanting some leeway are hoping things improve by time the leeway runs out. Good luck with that.

[BoSon]

4 hours ago, spygirl said:

They are trying to put in place a trading/commercial banking system in place that does not use the $ in any form, to get around US laws on using the $.

It will be interesting to see how far they  get.

 

 

They'll end up like the EU, can do whatever they like with their new currency but still need to get it valued against other currencies including the dollar to trade elsewhere.

[HousePriceMania]

Hunt has played his ace

Keep People in debt and even if they can't pay it make sure their credit report allows them to get more debt

 

Anyone think the bankers are not in charge ?

[JoeDavola]

2 hours ago, HousePriceMania said:

Keep People in debt and even if they can't pay it make sure their credit report allows them to get more debt

[Bus Stop Boxer]

12 hours ago, MrXxxx said:

I think points made in this video chime well with the points you are making:

 

Looks as they they are about to introduce it [see video clip posted above].

 

[One percent]

7 hours ago, Boon said:

Another funny sob story which just doesn't add up.

https://12ft.io/proxy?q=https%3A%2F%2Finews.co.uk%2Finews-lifestyle%2Fmortgage-doubled-trapped-flat-cant-afford-no-one-buy-2426415%3Ffbclid%3DIwAR347-djZ-74ZdS7rsX2B0Coyiud6CxC9b6UNTM1ZiS1KIxtKyV-DyCOo0M

So wait, a mortgage going from £800 to £1500 means that you can't buy food? Sure, maybe.

But how did they get a £290,000 mortgage on your own, what level of earnings? Even pushing it to the max gives a wage of around £65k, where's all the money going?

It is fucking amazing how much people are trying to exaggerate. I mean just look at the headline. Mortgage doubling and can't sell the flat??

The reality is her mortgage went from £800 to £1200, and she must have had a sub 1% deal to start with. She only can't sell the flat because she isn't willing to take the price the market offered, and she has to scrimp around because her husband isn't paying his share of upkeep.

Absolute bollocks story. 

What she means is that she can’t affect a takeaway every night.  

[Napoleon Dynamite]

US based story, but doubtless similar happened here.

https://www.wsj.com/articles/fraudulent-covid-aid-drove-up-u-s-house-prices-report-says-bfef67fa

Quote

Fraudulent Covid Aid Drove Up U.S. House Prices, Report Says

Researchers found that people who defrauded the government for pandemic relief poured money into housing markets, driving inflation in some areas

 

[sancho panza]

12 hours ago, Boon said:

Another funny sob story which just doesn't add up.

https://12ft.io/proxy?q=https%3A%2F%2Finews.co.uk%2Finews-lifestyle%2Fmortgage-doubled-trapped-flat-cant-afford-no-one-buy-2426415%3Ffbclid%3DIwAR347-djZ-74ZdS7rsX2B0Coyiud6CxC9b6UNTM1ZiS1KIxtKyV-DyCOo0M

So wait, a mortgage going from £800 to £1500 means that you can't buy food? Sure, maybe.

But how did they get a £290,000 mortgage on your own, what level of earnings? Even pushing it to the max gives a wage of around £65k, where's all the money going?

It is fucking amazing how much people are trying to exaggerate. I mean just look at the headline. Mortgage doubling and can't sell the flat??

The reality is her mortgage went from £800 to £1200, and she must have had a sub 1% deal to start with. She only can't sell the flat because she isn't willing to take the price the market offered, and she has to scrimp around because her husband isn't paying his share of upkeep.

Absolute bollocks story. 

I suspect she was on a 3% IO mrotgage whoich comes out at £725, and £1451@6% which sounds about what she says in the article

2% repayment on £290,000=£1229 @2% £1375 @3% and £1869@6%

[sancho panza]

Leicestershire update for new thread.Inventory jsut slowly builds and builds

 

Leicestershire county

                                     Available                                 Inventory

Date                            Inventory                                  incl SSTC    

14/8/22                       3950

10/10/22                    4885                                             10416             

14/11/22                    5417                                             10188

25/1/23                      5664                                                9295

15/2/23                      6007                                                 9597

22/3/23                     6168                                                10002            

20/4/23                     6399                                               10494

14/5/23                      6624                                               10958

9/6/23                        6706                                               11332

23/6/23                      6795                                               11483

[HousePriceMania]

21 minutes ago, sancho panza said:

Leicestershire update for new thread.Inventory jsut slowly builds and builds

 

 

  Reveal hidden contents

 

Leicestershire county

                                     Available                                 Inventory

Date                            Inventory                                  incl SSTC    

14/8/22                       3950

10/10/22                    4885                                             10416             

14/11/22                    5417                                             10188

25/1/23                      5664                                                9295

15/2/23                      6007                                                 9597

22/3/23                     6168                                                10002            

20/4/23                     6399                                               10494

14/5/23                      6624                                               10958

9/6/23                        6706                                               11332

23/6/23                      6795                                               11483

 

 

Keeps going up... what can we surmise from this?

 

The sstc are something's else, where have these people been, on a submersible visiting the Titanic ?

 

If they read the news they'd not be buying...or visiting the Titanic 

Edited June 23, 2023 by HousePriceMania

[spygirl]

New n old idiots  -

https://www.bbc.co.uk/news/uk-england-norfolk-65761233

Richard, 61, from Cambridge, had to use all of his £50,000 of savings to get the costs down when his fixed-rate mortgage ended last month.

The IT worker is now on a tracker mortgage, which cost £1,000 in fees to switch to. His monthly interest payments were due to increase from £260 per month to £803 but he managed to get that down to £765 using his savings.

"Why is the Bank of England still raising interest rates?' We got the message to curb our spending months ago.

"The government is concentrating on food prices and fuel. I appreciate that it affects a lot of people very badly. For me, a few pence on the price of a box of eggs is a drop in the ocean compared to a monthly interest payment rise of £500 and everything else to follow."

[XswampyX]

6 minutes ago, spygirl said:

New n old idiots  -

https://www.bbc.co.uk/news/uk-england-norfolk-65761233

Richard, 61, from Cambridge, had to use all of his £50,000 of savings to get the costs down when his fixed-rate mortgage ended last month.

The IT worker is now on a tracker mortgage, which cost £1,000 in fees to switch to. His monthly interest payments were due to increase from £260 per month to £803 but he managed to get that down to £765 using his savings.

"Why is the Bank of England still raising interest rates?' We got the message to curb our spending months ago.

"The government is concentrating on food prices and fuel. I appreciate that it affects a lot of people very badly. For me, a few pence on the price of a box of eggs is a drop in the ocean compared to a monthly interest payment rise of £500 and everything else to follow."

Eh? He saved £40 a month by using his £50,000 savings... he would get £125 a month in interest on £50,000 ?

[BoSon]

10 hours ago, HousePriceMania said:

Keeps going up... what can we surmise from this?

 

The sstc are something's else, where have these people been, on a submersible visiting the Titanic ?

 

If they read the news they'd not be buying...or visiting the Titanic 

Perhaps they were trying to buy before the mortgage rates shot up when 5 year+ fixes made sense, and are now stuck with mortage valuations below what the property is being sold for (seller "not going to give it away" ), so have to re-apply for a different mortgage to remain affordable as the rates creep up, or throw in the towel and the sale falls through and it's back on the market.

[JoeDavola]

45 minutes ago, spygirl said:

New n old idiots  -

https://www.bbc.co.uk/news/uk-england-norfolk-65761233

Richard, 61, from Cambridge, had to use all of his £50,000 of savings to get the costs down when his fixed-rate mortgage ended last month.

The IT worker is now on a tracker mortgage, which cost £1,000 in fees to switch to. His monthly interest payments were due to increase from £260 per month to £803 but he managed to get that down to £765 using his savings.

"Why is the Bank of England still raising interest rates?' We got the message to curb our spending months ago.

"The government is concentrating on food prices and fuel. I appreciate that it affects a lot of people very badly. For me, a few pence on the price of a box of eggs is a drop in the ocean compared to a monthly interest payment rise of £500 and everything else to follow."

I'm guessing the 61 year old fellow must have been divorce-raped - how else do you get to 61 with presumably on OK income yet still be in such a bad financial position?

[Axeman123]

1 hour ago, spygirl said:

"The government is concentrating on food prices and fuel. I appreciate that it affects a lot of people very badly. For me, a few pence on the price of a box of eggs is a drop in the ocean compared to a monthly interest payment rise of £500 and everything else to follow."

(from your quote)

That seems to be a prepared talking point IMO, ie that everyone should suck up inflation on essentials to preserve leveraged speculators positions. I have seen a fair few variations of it pop up in various places online in a matter of days. It reminds me of the post referendum co-ordinated social media narratives of claiming we should ignore the vote by claiming it was motivated solely by the racism or red busses.

[AlfredTheLittle]

57 minutes ago, JoeDavola said:

I'm guessing the 61 year old fellow must have been divorce-raped - how else do you get to 61 with presumably on OK income yet still be in such a bad financial position?

Could well be, but funny things happen in life. Imagine if you don't buy a house for another 20 years, but inflation wipes out the value of your savings. You'll be in a similar position to him but without the house. (Could very well happen to me too, and I've already had the divorce).

[Boon]

The media needs to come with its own fact checker. 

Because it's not just a few pence on a box of eggs is it? Using a rough measure they have gone up by about 50%.

Averaged out over the whole country I bet the increase in people's food and energy costs have gone up more than mortgage costs. The people being featured in these articles are just outliers with a backstory that is never covered.

For balance, the GFC would have decreased mortgage payments by £500 for the same amount of borrowing, nobody points this out.

[JoeDavola]

44 minutes ago, AlfredTheLittle said:

Could well be, but funny things happen in life. Imagine if you don't buy a house for another 20 years, but inflation wipes out the value of your savings. You'll be in a similar position to him but without the house. (Could very well happen to me too, and I've already had the divorce).

Absolutely - but that won't be happening.

I guess the chap in question might have had expensive rent for many years, perhaps went through periods of unemployment during recessions too.

If he's 61 then he'd have been about my age when house prices really started to shoot up. Hopefully I won't emulate the same life path.

[Frank Hovis]

1 hour ago, AlfredTheLittle said:

Could well be, but funny things happen in life. Imagine if you don't buy a house for another 20 years, but inflation wipes out the value of your savings. You'll be in a similar position to him but without the house. (Could very well happen to me too, and I've already had the divorce).

 

Inflation only wipes out the value of your savings if they are adversely affected by inflation, which primarily means: cash.

That the 61 year old had life savings of £50k, not "about £50k", tells me that he had them in cash.

In a similar position I would say about £50k as I don't usually know the current valuation.

 

[Bornagain]

3 hours ago, JoeDavola said:

I'm guessing the 61 year old fellow must have been divorce-raped - how else do you get to 61 with presumably on OK income yet still be in such a bad financial position?

A liking for exotic holidays, BMWs or white Range Rovers might be part of the problem ?

[JoeDavola]

1 hour ago, Bornagain said:

A liking for exotic holidays, BMWs or white Range Rovers might be part of the problem ?

Nah he doesn't look the type.

Maybe he spent it all on hookers.

[spygirl]

It  takes a special kind of moron journo at the telewag

The retirements left in ruins by interest rate chaos

Retirees’ pension payouts at risk due to rising rates and mortgage bills

Airline pilot Matthew Colwell, 58, is currently making £645 interest-only repayments each month on a £1.4 million family home in Dorset. 

The Captain locked into a 1.86pc rate with Halifax five years ago, but the rate is up for renewal at the end of this year on the remaining £415,000 of the loan. 

Mr Colwell’s plan was to eventually downsize, with his career requiring him to retire by 65. 

He said : “I have six years until I retire and always believed I was reasonably safe from market fluctuations. However, I’m now looking at a minimum of 6pc, moving payments from £645 per month to £2,100 per month. 

“Lots of people I know are reluctantly reducing their pension contributions. If I reduced my pension contributions to zero, which I intend to do, I’d benefit to the tune of £750 a month.”

As part of his new retirement plan, Mr Colwell intends to take away his tax-free allowance and use it to decrease the capital still tied up in his interest-only mortgage. 

He added: “No matter your position, if you have a mortgage you’re going to be hit hard. I understand it might seem like a first world problem, but we’ve established a lifestyle we’re content with. 

“We’re lucky enough to have horses, our children have enjoyed private education, and we’ve been able to buy one of them a car. Now we’re looking to downsize. We’ll have to get rid of the horses.” 

[spygirl]

Eat the horses.

If that's his  risk management then I'd want to avoid his Airline.

1.4m House.. kid in private school.. horrse ... IO mortgage and only 750/m pension ffs.

 

 

 

[spygirl]

Right I've googled  easyjet.

Glorified bus driver.

 

[One percent]

3 minutes ago, spygirl said:

It  takes a special kind of moron journo at the telewag

The retirements left in ruins by interest rate chaos

Retirees’ pension payouts at risk due to rising rates and mortgage bills

Airline pilot Matthew Colwell, 58, is currently making £645 interest-only repayments each month on a £1.4 million family home in Dorset. 

The Captain locked into a 1.86pc rate with Halifax five years ago, but the rate is up for renewal at the end of this year on the remaining £415,000 of the loan. 

Mr Colwell’s plan was to eventually downsize, with his career requiring him to retire by 65. 

He said : “I have six years until I retire and always believed I was reasonably safe from market fluctuations. However, I’m now looking at a minimum of 6pc, moving payments from £645 per month to £2,100 per month. 

“Lots of people I know are reluctantly reducing their pension contributions. If I reduced my pension contributions to zero, which I intend to do, I’d benefit to the tune of £750 a month.”

As part of his new retirement plan, Mr Colwell intends to take away his tax-free allowance and use it to decrease the capital still tied up in his interest-only mortgage. 

He added: “No matter your position, if you have a mortgage you’re going to be hit hard. I understand it might seem like a first world problem, but we’ve established a lifestyle we’re content with. 

“We’re lucky enough to have horses, our children have enjoyed private education, and we’ve been able to buy one of them a car. Now we’re looking to downsize. We’ll have to get rid of the horses.” 

15 years of historically low interest rates.  Almost zero and the clown is on an io mortgage. He deserves everything coming down the line at him.   Yet, he’ll be the first in line squealing for government to bail him out.  Crash and fucking burn mate.