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FSA warns on levels of UK mortgage debt
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Mmmm, Conrad's obvious VI shines through every single post he/she makes. The credit boom is indeed at an end. If you 'made hay while the sun shined' in the boom years and put money aside as a broker, good luck to ya, if on the other hand you blew it and are waiting for some mug to walk through your door to 'pedal your wears' to, then I'm afraid they have all but dried up.
So indeed, suck it up.
Know where you are coming from. Some of my family are in construction and spend to the hilt. Newphew has taken on a £200k mortgage for a rabbit hut. 22 odd, and partner is about to have a baby.
They ain`t building houses any more. My lad is freaking out. Bought a house which is costing him just under a grand a month. Works for a total madman that pays good money but is on his back all the time. They have a daughter of 2 years old. Loads of stress from there. At 62 about to lose my income. My wife will be the main worker.
Oh the joys of HPI.0 -
Know where you are coming from. Some of my family are in construction and spend to the hilt. Newphew has taken on a £200k mortgage for a rabbit hut. 22 odd, and partner is about to have a baby.
They ain`t building houses any more. My lad is freaking out. Bought a house which is costing him just under a grand a month. Works for a total madman that pays good money but is on his back all the time. They have a daughter of 2 years old. Loads of stress from there. At 62 about to lose my income. My wife will be the main worker.
Oh the joys of HPI.
Get some sleep pobby.
You aint doing yourself any good coming back in here reminding yourself of the ills in the world.... especially at 2am.
You need to be concentrating on the positives in life. If you're not careful this negativity will get a grip that you can't shake and it's at a time where you need to be as positive as possible.
Wish you well.0 -
RenovationMan wrote: »I had a pal who had this approach. He bought a 2 bed terrace cottage pretty much at the same time I bought my first home, though he was older and earned quite a bit more than I did back then. While I borrowed to the max and moved up the housing ladder, pretty much like all of our peers, friends and work colleagues, he stayed in his 2 bed home and paid down his mortgage. For years as we all plodded up the housing ladder, he sat back in his mortgage free home and kept telling us that the 'end is nigh' and we will lose it all when the party ends.
He then got married and had two kids, quite late in life so I guess he always thought he would be a dedicated batchelor (I know we all did), and he realised that he needed a larger home. The trouble was that even with owning his terrace house outright, the price of family homes had moved on so far that he couldnt afford to move.
To be fair to him, he held his hands up and conceeded that he had made an almighty mistake. He ended up having to move to a larger house eventually (his kids were not same sex and couldnt share a room forever) and ended up getting an almighty mortgage to do so.
He is now in a precarious financial position at an age when his salary is pretty static and his career has peaked. His determination to avoid risks in his late 20's and early 30's when he was young, building his career and when we had full employment has simply pushed the risk to his late 40's and early 50's when he is older, has peaked in his career and we are in a recession.
I cant begin to describe how embittered he is about house prices, to the point where many of our mutual friends now avoid him, especially if he has had a few beers. However, as he is the first to point out, he had the same opportunities as everyone else and he 'blew it, big time', thinking he would be the one to (in his words) 'sit back and laugh watching the whole pack of cards come falling down around you all'.
Isnt he the normal one when the others (ex friends) are not?
I mean if you are paying 3or 4x the price for something simply because of deliberate market manipulation. Isnt anger the more normal approach?0 -
Isnt he the normal one when the others (ex friends) are not?
I mean if you are paying 3or 4x the price for something simply because of deliberate market manipulation. Isnt anger the more normal approach?
Yes, I can sense that frustration born out of bad decision making within many posters on this board.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
RenovationMan wrote: »I had a pal who had this approach. He bought a 2 bed terrace cottage pretty much at the same time I bought my first home, though he was older and earned quite a bit more than I did back then. While I borrowed to the max and moved up the housing ladder, pretty much like all of our peers, friends and work colleagues, he stayed in his 2 bed home and paid down his mortgage. For years as we all plodded up the housing ladder, he sat back in his mortgage free home and kept telling us that the 'end is nigh' and we will lose it all when the party ends.
He then got married and had two kids, quite late in life so I guess he always thought he would be a dedicated batchelor (I know we all did), and he realised that he needed a larger home. The trouble was that even with owning his terrace house outright, the price of family homes had moved on so far that he couldnt afford to move.
To be fair to him, he held his hands up and conceeded that he had made an almighty mistake. He ended up having to move to a larger house eventually (his kids were not same sex and couldnt share a room forever) and ended up getting an almighty mortgage to do so.
He is now in a precarious financial position at an age when his salary is pretty static and his career has peaked. His determination to avoid risks in his late 20's and early 30's when he was young, building his career and when we had full employment has simply pushed the risk to his late 40's and early 50's when he is older, has peaked in his career and we are in a recession.
I cant begin to describe how embittered he is about house prices, to the point where many of our mutual friends now avoid him, especially if he has had a few beers. However, as he is the first to point out, he had the same opportunities as everyone else and he 'blew it, big time', thinking he would be the one to (in his words) 'sit back and laugh watching the whole pack of cards come falling down around you all'.
In other words..... borrow as much as you can, climb the ladder as high as you can, otherwise you'll regret it.
I suspect that the above quote is from a person who has taken this approach, and because it has, or might work for them, they suggest everyone else should do the same. Yes, there are folk who will say "I wish I'd have taken on a bigger mortgage", but I suspect there are a some who would say "I wish I hadn't taken on such a big mortgage".
I suppose it depends what you want out of life. If you want a large house, then by all means give it a go. A word of caution though..... Those that promote "borrow and climb as much as you can" have done so themselves during 2 or 3 decades of rapidly expanding credit provision. They have rode the wave of large increases in the availability and range of mortgage deals on offer, while not having to have worked in times of global competition that we now live in. My father was a working man, who paid £2500 for his first and only home. That same home has multiplied in value by nearly 100 in less than 50 years. I doubt I'll see that kind of increase on my property in 50 years, it has "only" trebled in 17 years. Even though my father has seen a large rise in the value of his property, he never did tell me to put lots of eggs into the property basket. I think he counts himself fairly lucky, and knows that the next generation will generally not have it so good.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
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Fully agree, but the timing is mearly an issue with protectionism.
If anyone can argue the case for deliberate price fixing in any market, they are by definition hypocritical.
Do you mean by market manipulation, setting interest rates to fight off a potentially disastrous deflationary environment? or maybe assisting some of our citizens who find themselves without a job, and a mortgage to pay, in the aftermath of the worst recession in many a year?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Do you mean by market manipulation, setting interest rates to fight off a potentially disastrous deflationary environment? or maybe assisting some of our citizens who find themselves without a job, and a mortgage to pay, in the aftermath of the worst recession in many a year?
No the price fixing is based on planning laws. The rest is to do with paying back debt, not the root cause.
Do you think there could be a boom in something we have too much of?0 -
I’m not sure what people want with planning laws do they believe that every available green space should be built on.0
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I’m not sure what people want with planning laws do they believe that every available green space should be built on.
Of course not!
Don't be silly!
What most people believe is they should be allowed to build what they have in mind but if someone wants to build anything near them then :mad:. "Grrr. How unreasonable of them! I don't want it near me" etc
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