House Price Revison (2003) - This is why we are going to have a 50%+ Crash

Conrad

The FSA released a statement some time ago as follows;
"Brokers may reasonably rely upon verbal statements provided by clients".

I constantly advise clients to 'lower thier sights' to which the majority take great exception (how dare I question thier ability to think for themselves and work out thier own budget). Then sure enough when they subsequently cant afford the mortgage, guess who those very same indignant folk blame...

lostinrates

re graduate professionals, I wonder how the market of mortgages geared specially towards them is doing? DH was offered less on that deal than he was on the high street, interestingly. As people have gonein that position has we pressed ahead with purchasing earlier this year we would gone interest only, banking on DH's contracted ay increase, and then started repayments when salary increased. (and adding any bonuses and addition lumpsum income). Still, very glad we didn't.

Conrad

The other point repeatedly missed is that 99% of people do not get repossessed. Are we to disbar huge numbers of legitimate self cert applicants on the basis a tiny percentage get into arrears?

That will onlt widen the gap between the haves and have nots longer term.

Lotus-eater

Conrad wrote: »

I constantly advise clients to 'lower thier sights' to which the majority take great exception (how dare I question thier ability to think for themselves and work out thier own budget). Then sure enough when they subsequently cant afford the mortgage, guess who those very same indignant folk blame...

The fact is that there is some who are good with money and some who aren't. You only have to look at the DFW forum for a few days to get that. Or talk to your friends, we all have some who haven't a clue.

To stop the ones who haven't a clue getting into difficulty, we used to have bank managers and then strict lending controls. This has been thrown out of the window and those that allowed it, banks and ministers, are going to have to pay somehow. Those that borrowed it might pay, or they might choose to go bankrupt, after all its pretty easy.

Either we have those controls again, or this isn't going to stop. GB seems to want this to continue. Some people cannot be allowed to borrow what they want, for their own good.

carolt

Sadly, banks and ministers are NOT going to have to pay - in the banks' case, because they can't.

We shall pay - the great British taxpayer.

adr0ck

!!!!!!? wrote: »

It's not really helpful to continually berate someone about some minor indiscretion their son may have committed half a decade ago.

As the show illustrated, for quite some time it has only been possible to get a mortgage in many expensive areas by inflating your claimed income. The practice was encouraged by brokers and the FSA looked the other way. Eventually, restrictions were eased to allow official >3.5x multiples rather than any action being taken.

yes because we should all congratulate everyone that helped cause the house price bubble in the first place by lying on their mortgage application and got us into this mess in the first place

lets not stop there lets also congratulate all the BTL landlords and 2nd home purchasers as well

job well done

totally agree with you !!!!!!

WTF?_2

adr0ck wrote: »

yes because we should all congratulate everyone that helped cause the house price bubble in the first place by lying on their mortgage application and got us into this mess in the first place

lets not stop there lets also congratulate all the BTL landlords and 2nd home purchasers as well

job well done

totally agree with you !!!!!!

No-one said anything about congratulating anyone.

I'm just saying what is the point of heckling someone because her son inflated his salary on a mortgage application five years ago?

adr0ck

!!!!!!? wrote: »

No-one said anything about congratulating anyone.

I'm just saying what is the point of heckling someone because her son inflated his salary on a mortgage application five years ago?

i wasn't heckling

i simply asked a question

they got all shirty because i asked a simple question

note - they have since edited their comments back to me so it doesn't look as shirty - you have probably only read the edited comments

kennyboy66_2

I would think most of the people who did a self-cert knew what they were doing.
There is the mix of legitimate (self employed), those who lied to get a better deal and those who wanted their "dream house".

Why is it everyone else's fault rather than the people who took out the loans.
Remember for the vast majority of these loans it is the person who took it out who will be saddled with the debt. It will be a small fraction that end up in repossession.

hethmar

ard, what a sad person you are, I have not edited any comments about you at all.

I must get on with earning my living - I hope you will do the same as you have nothing of any import to share on this discussion.

I have now deleted my comments so as not to detract from the main discussion.