Thank goodness for Mervyn King!

drbeat

trulysaintly wrote: »

However, what it would do is ease the current pain that many homeowners are feeling with the cost of living as it is.

But of course, as advisers we don't know anything do we?

Clearly you don't! You want to sacrifice the whole economy for the "homeowner" - even though they don't ACTUALLY OWN THEIR HOMES - who overstretched themselves in the first place! Is that what you're saying? If only these people had done their maths and read up on history eh?

And here's question: how many self certs and 100% mortgages and mortgages that exceed x 3.5 salary have you sold in your entire career?

ruggedtoast

drbeat wrote: »

That's all I hear from you people - estate agents and mortgage advisors - is the same old rubbish..the "Rate Cut" is the answer to all our problems? The party is OVER - time for you to learn a new profession/trade!

Ironically they're sort of right, though I doubt very many of them realise why. In a closed economy reliant on fractional reserve banking if people are unable to borrow then the money supply shrinks, debts are defaulted on as there isnt enough new cash to repay the growing burden of interest and most liquid reserves end up trapped in hedging.

Our economy cant just have people pay down their debts and save because if we stop borrowing then there wont be enough new money created to do either of these things.

So it would make sense to allow inflation to reduce peoples level of proportional debt and the banks level of risk and get them borrowing again by making their savings worth less (or worthless if it all goes wrong).

Unfortunately theres that pesky Rest Of The World selling all those things we need to trade in in currencies other than pounds.

Actually maybe fractional reserve banking doesnt make any sense, maybe it would make sense for our own governments to control our own money supply and then we wouldnt have cycles of boom and bust at all. Maybe the cadre of free market capitalists who have made themselves unbeliavably rich out of lending us our own money should be brought down a peg or too.

Maybe.

drbeat

trulysaintly wrote: »

No I was posting on here because I have sod all to do but hope for a rate cut

Corrected. :money:

trulysaintly

drbeat wrote: »

Clearly you don't! You want to sacrifice the whole economy for the "homeowner" - even though they don't ACTUALLY OWN THEIR HOMES - who overstretched themselves in the first place! Is that what you're saying? If only these people had done their maths and read up on history eh?

And here's question: how many self certs and 100% mortgages and mortgages that exceed x 3.5 salary have you sold in your entire career?

Happy to provide your answer.

Self Certs - 2 - both to S/Emp clients who could show affordability through bank statements.

100% Mortgages - 2 - both through professional schemes for FTB's who were doctors, and the second one was a referral from the first one.

Exceeding 3.5 x Salary - estimate - 150. If you had any knowledge of the mortgage market you would already understand that 3.5x Salary was no longer the norm around 10 years ago.

Lenders when considering who to lend to, also take into account what existing credit and mortgages are being maintained. This then gets used in an Affordability assessment.

My clients are, on the norm, the average person from the street with no credit history problems - the clients I have spent time with from this area of mortgage business have proven to be:

a) Head in the Sand regarding their problems;
b) Dishonest.

You tend to find that dishonest people go to dishonest brokers.

There are rogues in every walk of life - dodgy policemen, dodgy builders, dodgy MP's.

I wouldn't call you a dodgy accountant just because that's what you do, unfortunately many of the posters on here like to tarnish every adviser who takes time to try and assist others with the same brush.

Some of you need to get a life.

trulysaintly

ruggedtoast wrote: »

Ironically they're sort of right, though I doubt very many of them realise why. In a closed economy reliant on fractional reserve banking if people are unable to borrow then the money supply shrinks, debts are defaulted on as there isnt enough new cash to repay the growing burden of interest and most liquid reserves end up trapped in hedging.

Our economy cant just have people pay down their debts and save because if we stop borrowing then there wont be enough new money created to do either of these things.

So it would make sense to allow inflation to reduce peoples level of proportional debt and the banks level of risk and get them borrowing again by making their savings worth less (or worthless if it all goes wrong).

Unfortunately theres that pesky Rest Of The World selling all those things we need to trade in in currencies other than pounds.

Actually maybe fractional reserve banking doesnt make any sense, maybe it would make sense for our own governments to control our own money supply and then we wouldnt have cycles of boom and bust at all. Maybe the cadre of free market capitalists who have made themselves unbeliavably rich out of lending us our own money should be brought down a peg or too.

Maybe.

At last, someone who thinks before they type, and not trying to be clever by re-writing other people's posts.

Thank you sir.

drbeat

trulysaintly wrote: »

Re-read the post....SLOWLY....

If you bought now, moved in, had a happy life, wonderful.

12 months later, you found out that the value had dropped £15k. Oh dear. But never mind, you're not looking to move anyway so you won't need to realise what equity you have.

Two years later (i.e after these current problems have relaxed) you decide to move home - potentially your property has increased in value - yippee!!

Do you really want me to make it any simpler for you?

IF YOU ARE NOT LOOKING TO MOVE HOME OR SELL UP IT YOU PROPERTY WILL RECOVER - IT DOES NOT MAKE ANY DIFFERENCE HOW LONG IT TAKES

You still don't get it? Is that how you sell your products? That was exactly the same kind of spin fed to "homeowners" in the late 80s and was it all back to normal after 2 years??? NO!

But I suppose you also say the following to your "customers" - do you remember them? -

"It's different this time..."
"The govt won't let it happen..."
"They'll just cut rates..."
"No more boom and bust..."
"Things can only get better..."
"Property prices only ever go up..."

I'd suggest you spend your newly found free time looking for alternative employment! I'm serious! And get rid of the signature too...it singles you out for abuse!

drbeat

trulysaintly wrote: »

At last, someone who thinks before they type.

Yes you ought to try it some day.

drbeat

trulysaintly wrote:

Exceeding 3.5 x Salary - estimate - 150. If you had any knowledge of the mortgage market you would already understand that 3.5x Salary was no longer the norm around 10 years ago. [/qoute]

:T

Well done...for being part of the problem! You're a true genius -setting yourself up like that - and I hope you've saved those comissions...you'll be quids in when the rates go up!

harbinger13

ruggedtoast wrote: »

Ironically they're sort of right, though I doubt very many of them realise why. In a closed economy reliant on fractional reserve banking if people are unable to borrow then the money supply shrinks, debts are defaulted on as there isnt enough new cash to repay the growing burden of interest and most liquid reserves end up trapped in hedging.

Our economy cant just have people pay down their debts and save because if we stop borrowing then there wont be enough new money created to do either of these things.

So it would make sense to allow inflation to reduce peoples level of proportional debt and the banks level of risk and get them borrowing again by making their savings worth less (or worthless if it all goes wrong).

Unfortunately theres that pesky Rest Of The World selling all those things we need to trade in in currencies other than pounds.

Actually maybe fractional reserve banking doesnt make any sense, maybe it would make sense for our own governments to control our own money supply and then we wouldnt have cycles of boom and bust at all. Maybe the cadre of free market capitalists who have made themselves unbeliavably rich out of lending us our own money should be brought down a peg or too.

Maybe.

Sorry - I dont agree with you - there are 2 types of growth - healthy and unhealthy.

We all know, we have to live with in our means - if that is not forgotten yet. Get into debt responsibly - where as currently people are living on 3 or 4 Credit Cards maxed out! Infact US itself living under a huge debt just based on its influence and name - it is going to crack soon.

We have moved from an economy of buying things from cash to just swiping and moving on. I dont understand people earning by the hour or month, need to buy an expensive Iphone and its expensive service for a year or two. It is the same case, if one cannot afford to pay for the palace they chose as home for the FULL duration of the loan, then they just under priced their risk and now they are suffering.

Same with the Banks. They need to suffer for their sins; no point in helping them out. Yes if the interest rates are not cut there will be gloom around - but is not the prudent saver not prepared for it? What you lose as expensive things to live with (commodities, break, milk etc) you will gain in terms of latent wealth when you buy a deep discounted house. Just because those who spent brash during good times - and bought palaces - are suffering to pick their tabs for food and basic necessities, it does not mean we give them another opportunity to borrow and live for tomorrow.

If you do so - tomorrow is going to be even worse for the Saver and even more tipsy for Borrower who will demand more. Same policy as you follow for a demand by Terrorists - you cannot give in.

But hey, the Politicians want the vote so that they can vote for their John Lewis list and veto other tax saving proposals.

morg_monster

I can't believe the vitriol being spewed at saintly here by drbeat. Even the more vociferous everyday bear posters would stop short of the way this poster (drbeat) is behaving. Even if you disagree - you've surely got to show a basic level of respect for other people's opinions?! If we all had the same opinions would would be the f-ing point of this forum?!

And suggesting that saintly removes his signature?! hello - they are required by the MSE code of conduct to have that signature on there. Yes it does single them out - but it is only a select few posters like drbeat who choose to use it as an excuse to throw a whole load of baseless abuse at them.
Drbeat - If you really like to abuse mortgage advisers - why not head over to the mortgages forum, there are plenty over there with their signature on full display, and probably you'll find that all of them have issued the same kinds of mortgages over their careers as saintly has. Go on, why not take all of them on at once, it seems unfair to pick on one who has been brave enough to stray out of their usual habitat! You are saying mortgage advisers have played a large part in building up to this crash, well I would say your anger is misdirected - surely you'd be better off harrassing estate agents and banks - after all it isn't the mortgage adviser who makes the final decision on whether a bank will lend an 125% mortgage! He just facilitates it. Isn't it a bit like having a go at conveyancing solicitors for doing the legal work for a house purchase?!