Tonight with Trevor McDonald

F_T_Buyer

If anyone missed this, a HPC member has added the video so you can download it:

http://www.housepricecrash.co.uk/forum/index.php?s=&showtopic=36924&view=findpost&p=471600

ginger_nuts

ts_aly2000 wrote:

There's a saying;

"You come into the world with nothing, you leave with nothing."

But in betweeen I would like something .

ginger_nuts

Just my view but there is not much difference between interest only and the options used in the 1980's & 1990's when we where sold useless endowment policys . I just wonder how many FTB's buy there furniture on credit .I wonder how many FTB's have seen a council tax ,phone ,or electric bill before they ever bought .Did there family ever show them how to budget for essential bills .
Do they realise sky TV is not essential .

david29dpo

i found the whole program quite amusing, the short sighted,ness of the buyers and lenders makes me wonder if they have thought about tomorrow.

Angela_D_3

The que starts here - to buy Martin a pint

ginger_nuts

in Ireland people have been borrowing 10 times there income to get on the housing ladder . It looks like the UK is following there lead .

Pobby

One fact revealed in the program was that 750,000 households have missed payments on their mortgages this year.With ever increasing indications that an interest rise is on the horizon in November this problem will get worse.

Interest only mortgages are a complete waste of time unless a repayment vehicle is setup for the capital.I have never understood what the attraction is.However many people have signed up for this.

Sadly,a whole generation of folks are being squeezed out from property ownership.Although there is nothing wrong with renting in principal the regulations in this country are in favour of the landlord.This was set up in Thatcher times as she sold off council houses cheaply.I for one would not want to start a family if subject to a shorthold tenancy agreement.

In my family we have young people that not only cannot buy,they cannot leave home because of the rental values in the South East.So far they havn`t realised the implications but a short while down the road when reality hits them they are going to get pretty disgruntled.

ukbondraider

The problem in my opinion is the notion that everybody should have the right to buy their own house.

All I hear is that we pay our taxes so we should get this and that...and because we are brits we should get council houses first etc etc.

The basic facts are that owning houses is a luxury and not the norm and should be treated this way. I'm sorry but it makes me cringe when I read here about people who earn £20K for e.g and want to buy a house. If I was earning £20K I wouldnt even be thinking about a house but instead be looking to improve my job prospects or simply concentrating on saving and living in cheap accomodation to be able to provide for the future. However instead alot of these people rent out nice flats because they want to live a lifestyle. Why should some live a lesser lifestyle and save whilst over carelessly spend and then expect to go on the housing ladder.

People on £20K for e.g should be living life on a very strict budget a situation I have experienced being raised this way by my parents. No holidays, No sky TV, no going out. You can bltch and moan but the fact remains that you havent been as lucky or as hardworking as others to get to a step where you afford this new luxury of a house.

Its hard for me to put across this post without sounding like a c*nt but britain is a nation of careless spenders and buying houses is an example. Financing cars is another example and not only are you paying lots of interest but you lose a bundle on the immediate depreciation.

At the end of the day, people shouldnt be moaning about house prices going up etc but instead kicking themselves because they didnt get straight A's at school or didnt have the motivation to start their own business etc etc. Its very easy to blame others but alot of people need to look at themselves. Life is about competition and this competition is now global so dont expect to be spoon fed and to have a super efficient NHS system simply because you pay your taxes. Work hard and get ahead. Of course I know many start off more fortunate than others but there are always opportunities to direct you life down a different path something I know about 1st hand.

I am fourtunate in that I earn significantly more that what statistics say is the average national wage but I still drive a £8K car yet people on the same street as me who have houses half the size are pulling out in their new £50K Bmws and Mercs etc. Why should I only drive a £8K car when I earn alot more than them? The answer is because I treat house ownership as a luxury and have thus focused life that way.

With interests rates slowly going up and the economy well into its boom cycle it is only a matter of time for the bust cylcle to emerge something that economist feel is only a few yrs away. People struggling now will only find things tougher in the yrs ahead and in a way have no one to blame for their careless behaviour.

wibble68_2

The bit that cracked me up was when the advisor told the young women that the housing market has crashed in the past. The reply was "Ye but that was years ago" lol

Gorgeous_George

Even scarier. On the TV this morning some 'expert' was recommending that people fix their mortgages for no more than 2 or 3 years.

In 2 or 3 years' time, they will need to remortgage. Their house could be worth less than they owe. Interest rates could be 8% or more.

I don't see lenders falling over themselves to remortgage.

I do see lenders repossessing to limit their losses.

Surely, it is better to fix for the life of the mortgage or as close to that as possible. I'm tied at base rate + 0.75% for life on a flexi mortgage. Any savings effectively earn BR+0.75% tax free. I don't believe that there is a better mortgage for my circumstances and I didn't need an expert to advise me.

The problem, just as some people are too thick to be parents, there are far too many people too thick to have a mortgage. As well as affordability perhaps there ought to be a financial qualification that people need before they can take on debt.

EDIT: I'm not actually tied as I can leave if I wish, penalty free.



GG