UK home repossessions up in Q3, arrears down-CML

Thrugelmir

HAMISH_MCTAVISH wrote: »

Fixed that for you.

Those of us with existing mortgages on deals far better than can be obtained today are largely exempt from the current bout of lender greed.

Ah. Are you refering to the lack of remortgaging activity, as borrowers fall back onto their lenders SVR to reduce outgoings. Thereby leaving themselves to the risk of interest rate increases in the future.

chucky

lemonjelly wrote: »

Nail and head.

We all need to wake up. What is happening isn't a solution, it is a deferrment of a problem.

We're in danger of sleepwalking towards a disaster. The road ahead poses a great deal of risk, & for what is happening to be a recovery, we need a blooming huge amount of luck!

deferrment or a slow implementation of solutions is the only choice that we have - whoever expects one big solution to all of these economic issues is in dreamland.

it will take a number of years to correct - some areas of the economy will self correct and give an impression that the whole economy is fixed but it isn't. we're in a fragile state (better than 6-12 months ago) but we are getting better all the time. no-one can deny that

chucky

Thrugelmir wrote: »

Ah. Are you refering to the lack of remortgaging activity, as borrowers fall back onto their lenders SVR to reduce outgoings. Thereby leaving themselves to the risk of interest rate increases in the future.

do you mean high, medium or low risk of rate rises?

i was under the impression that the risk of rates going up were extremely remote in the next 9-12 months. not the worst situation to be in by any means...

Graham_Devon

chucky wrote: »

deferrment or a slow implementation of solutions is the only choice that we have - whoever expects one big solution to all of these economic issues is in dreamland.

it will take a number of years to correct - some areas of the economy will self correct and give an impression that the whole economy is fixed but it isn't. we're in a fragile state (better than 6-12 months ago) but we are getting better all the time. no-one can deny that

We are not just deferring things though are we. We are now actively adding further pressure, in terms of debt, onto the deffered stuff, making it a bigger problem than before, just stored for the future.

kennyboy66_2

Thrugelmir wrote: »

N

Frustrated maybe. As we seem to be in a void politically at the moment due to the impending election. Whilst repossessions are low, the actual problems still need to be addressed on a case by case basis at a personal level. The cost of such will fall on every other mortgage holder as lenders recoup their costs.

Twas ever thus though.

Arguably however we are in a golden age were smart, solvent borrowers with decent deposits can get very competetive deals on mortgages.

The same applies to insurance, credit cards, savings, domestic fuel etc etc

The flip side are the people whose options are reduced to Kensington mortgages, 69% APR credit cards, and pre payment for gas and leccy.

Someone mentioned Easington in the north east. Plenty of people live there, 25% unemployment. Nearest supermarket 7 miles away. Fine if you work and have a car, not so great if you rely on public transport.

chucky

Graham_Devon wrote: »

We are not just deferring things though are we. We are now actively adding further pressure, in terms of debt, onto the deffered stuff, making it a bigger problem than before, just stored for the future.

see here is the thing - the Government needed to provide stimulas to kick-start the economy again (we all agree on that).

the economy is still finding it's feet and it seems to be going ok (not excellent just ok) over the last few months. (again i think that we all agree on that)

what would be the point of the government taking actions now to reduce the debt when we're still finding our feet - if anything that will bigger blow and maybe put us back to September 2008. until the current issues are behind us the deferrment will have to continue - i don't think we have a choice.

Graham_Devon

chucky wrote: »

see here is the thing - the Government needed to provide stimulas to kick-start the economy again (we all agree on that).

the economy is still finding it's feet and it seems to be going ok (not excellent just ok) over the last few months. (again i think that we all agree on that)

what would be the point of the government taking actions now to reduce the debt when we're still finding our feet - if anything that will bigger blow and maybe put us back to September 2008. until the current issues are behind us the deferrment will have to continue - i don't think we have a choice.

I agree.

But the point that is being missed, seems to be that in this process of deferrment, and radical record breaking spending, we are creating some sort of mini boom it seems, at least in house prices. It was the previous boom which caused so many of todays problems. Regardless of whether you blame america, creidt etc, if there wasnt the boom, there wouldn't have been the problems.

So, I agree with deferrment. I don't agree that we should create some sort of boom while we defer the pain from the last one.

I think it would be a little silly to pretend a lot of the recent (over the last year) spending and nicities have not been politically motivated.

Huge difference between politically motivated deferrment and spending, and actual, required, spending. Spending to keep people in their homes they cannot afford, is nice, but it isn't actually needed, and it's only adding to the problems later, as lets face it. If they can't afford their homes now at these levels of interest rates, they aint going to be able to in 2-5 years time. Yes, it's harsh, yes, its cruel to think that. But when you buy a house, you do have to factor in the prospect of how you are going to pay if you lose your job or anything goes wrong in life.

chucky

Graham_Devon wrote: »

I agree.

is everything ok Graham, are you feeling ok?

Graham_Devon wrote: »

But the point that is being missed, seems to be that in this process of deferrment, and radical record breaking spending, we are creating some sort of mini boom it seems, at least in house prices. It was the previous boom which caused so many of todays problems. Regardless of whether you blame america, creidt etc, if there wasnt the boom, there wouldn't have been the problems.

So, I agree with deferrment. I don't agree that we should create some sort of boom while we defer the pain from the last one.

I think it would be a little silly to pretend a lot of the recent (over the last year) spending and nicities have not been politically motivated.

Huge difference between politically motivated deferrment and spending, and actual, required, spending.

the mini boom in house prices is a side story. maybe they are correcting to normal value, we just don't know. house prices go up, house prices will go down...

even though it may be the most visible and very useful politically in the overall scheme of things the price of a house isn't the biggest economic issue that has to be fixed...

Generali

chucky wrote: »

the mini boom in house prices is a side story. maybe they are correcting to normal value, we just don't know. house prices go up, house prices will go down...

even though it may be the most visible and very useful politically in the overall scheme of things the price of a house isn't the biggest economic issue that has to be fixed...

Everyone that reads this should thank it IMO.

There are a lot more important things than asset prices. The biggest problems the UK faces are that there is a massive pension bill that has been promised to be paid from future earnings and that future earnings seem to be falling due to a lack of productive investment.

Thrugelmir

kennyboy66 wrote: »

Twas ever thus though.

Arguably however we are in a golden age were smart, solvent borrowers with decent deposits can get very competetive deals on mortgages.

The same applies to insurance, credit cards, savings, domestic fuel etc etc

The flip side are the people whose options are reduced to Kensington mortgages, 69% APR credit cards, and pre payment for gas and leccy.

Someone mentioned Easington in the north east. Plenty of people live there, 25% unemployment. Nearest supermarket 7 miles away. Fine if you work and have a car, not so great if you rely on public transport.

Not smart. If you were fortunate to earn a decent wage then you had the opportunity to become wealthier without having to "earn" it.

So in effect there has been a wealth transfer between generations. A point made by the Chief Economist at the BOE in a speech recently.

Yes we are in debt. But someone somewhere has the money. Say someone that bought their 4 bed detached house 30 years ago and is now downsizing. They are realising a huge tax free windfall. No wonder the stock markets are rising. As this gain is invested.

Like the party game pass the parcel. The music has stopped. We now have the people who gained, took the profit and banked it. And those left holding debts that will take the majority of their working lives to clear meaning that they will have little spare capital to invest, for retirement etc.