HPC bears waking up to reality

Thrugelmir

HAMISH_MCTAVISH wrote: »

It's our very own daddytroll....

And he borrowed three times joint income.



The average FTB mortgage never crossed 3.5 times income even at peak.

And the average 2TB mortgage never crossed 3 times income even at peak.

The concept of "millions overextending" is a myth..... At least on house purchases. Can't comment on other debt they may well have also run up.

I'm not refering to averages.

Let's talk about a high % of mortgages that were issued by A&L, HBOS, NR, RBS, Chelsea BS, Dunfermline BS, Abbey National and B&B......

So my question to you is what do all these lenders have in common, and which one is the odd man out?

Turnbull2000

A post from the thread.

I bought at the end of last year. Interest on my STR savings had dropped and were only just covering rent, also getting worried about inflation. I certainly can't see prices dropping here in the SE.

You have to hand it to Brown and the BoE. They certainly achieved what they set out to do - stimulate house price growth, discourage holding cash and encourage a flight back towards property.

Rinoa

libspero wrote: »

I recognise these posters.. Jajaja

This is like the HPC Raggy Doll thread!

Hi Libspero.

Lance

The rateing agencies will get bored with kicking Euro !!! and start on us. We Brits are so conceited that we believe our bankrupt nation is out of recession and we can never be forced to cut like the PIIGS. Unemployment is over 10 millin if you count the 8,000000 who are on benefits but not looking for work and the millions on invaliditity benefits. The 'poly's' are full of 'students' learning how to read or 'music' 'design' etc to keep them off the dole. The banks are holding back on many repossessions and interest rates are kept low despite savers suffering and inflation booming. If the rateing agencies turn the spotlight on us we are screwed!

Thrugelmir

Turnbull2000 wrote: »

A post from the thread.



You have to hand it to Brown and the BoE. They certainly achieved what they set out to do - stimulate house price growth, discourage holding cash and encourage a flight back towards property.

Um. That's a very narrow minded view. But if you are obessed with property I guess its perfectly rational.

When it all goes belly up will you be in the chorus blaming the Establishment for misleading you.

HAMISH_MCTAVISH

Lance wrote: »

The rateing agencies

Is that the same as a rating agency?

will get bored with kicking Euro !!! and start on us.

Ah, I see. They're doing it for entertainment only. Nothing to do with the fact that Eurozone countries are monumentally more screwed than we are.

Glad you cleared that up.

We Brits are so conceited that we believe our bankrupt nation is out of recession

It is.

and we can never be forced to cut like the PIIGS.

We can't. We have our own currency, and control our own monetary policy. Something the PIIGS cannot do.

It takes a special kind of stupid to fail to understand the difference.;)

Unemployment is over 10 millin if you count the 8,000000 who are on benefits but not looking for work and the millions on invaliditity benefits. The 'poly's' are full of 'students' learning how to read or 'music' 'design' etc to keep them off the dole.

It does seem the educational system would be far better employed teaching people the basics, like how to spell.... Your post being a case in point.

The banks are holding back on many repossessions

Because it makes economic sense to do so. That won't change.

and interest rates are kept low despite savers suffering

Low rates cost savers 18 billion pounds last year. But borrowers gained 24 billion pounds.

The net gain to society was therefore 6 billion pounds.

Excellent work, and long may it continue.

and inflation booming.

But not as much as house price inflation.;)

If the rateing agencies turn the spotlight on us we are screwed!

:rotfl:

But :T for a good rant anyway.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Low rates cost savers 18 billion pounds last year. But borrowers gained 24 billion pounds.

The net gain to society was therefore 6 billion pounds.

I'd be interested to know your logic.

As savers earn income and borrowers incur expenditure.

So unsure how society benefits.

HAMISH_MCTAVISH

Thrugelmir wrote: »

I'd be interested to know your logic.

As savers earn income and borrowers incur expenditure.

So unsure how society benefits.

Incurring less expenditure increases disposable income.

DaveyDave_3

HAMISH_MCTAVISH wrote: »

And without realising why, you've just perfectly described why it takes an event on the scale of the global financial crisis, the biggest recession in a century, and the withdrawal of 70% of mortgage funding, to get house prices to fall just 20%......

Almost everybody thinks like you do. And that won't change.

For the majority of people, buying a house eventually becomes a necessity, not a luxury, and no matter what the price (provided it's payable within a lifetime), sacrifices will be made to ensure it happens.

But the cards are not in your hands. Most people have to borrow to buy a house, If the credit is not there, then they can't buy at today's prices. Those, that *need* to sell will have to drop their prices. As for being a necessity, I think you'll find that many of our european cousins have very worth while existences whithout ever buying a house. Certainly a better option than taking on an unaffordable mortgage IMO.