How long can FTB-s afford to wait?

julieq

The OP is a bit of a troll, but can we please nail the myth that mortgage payments somehow end up in bankers' pockets?

Actually where a lot of them end up is as savings interest. You know, those above interest savings rates everyone is complaining about having lost.

Then some of it goes in profit. And where does the profit go exactly? To pension funds. To pay crinkly old people a living.

And then the bankers take some of it in salary and bonuses. And where does that go? Well about half of it goes immediately in tax and NI. And then a good proportion of it is sprayed into the economy where it generates more tax. Bankers are great actually, one banker can pay for 8-10 nurses or teachers just from bonuses.

There are loads of good reasons to sit out a market, but the idea that if you go in you're giving your hard earned to a banker isn't one of them.

ruggedtoast

julieq wrote: »

The OP is a bit of a troll, but can we please nail the myth that mortgage payments somehow end up in bankers' pockets?

Actually where a lot of them end up is as savings interest. You know, those above interest savings rates everyone is complaining about having lost.

Then some of it goes in profit. And where does the profit go exactly? To pension funds. To pay crinkly old people a living.

And then the bankers take some of it in salary and bonuses. And where does that go? Well about half of it goes immediately in tax and NI. And then a good proportion of it is sprayed into the economy where it generates more tax. Bankers are great actually, one banker can pay for 8-10 nurses or teachers just from bonuses.

There are loads of good reasons to sit out a market, but the idea that if you go in you're giving your hard earned to a banker isn't one of them.

Thankyou for explaining to us Julie, how massively overcompensating one person, can then go on to indirectly fund a much larger number, of much more useful, vastly more poorly paid people.

The fact you did it without apparent irony is also quite special.

The end.

Graham_Devon

julieq wrote: »

The OP is a bit of a troll, but can we please nail the myth that mortgage payments somehow end up in bankers' pockets?

Actually where a lot of them end up is as savings interest. You know, those above interest savings rates everyone is complaining about having lost.

Then some of it goes in profit. And where does the profit go exactly? To pension funds. To pay crinkly old people a living.

And then the bankers take some of it in salary and bonuses. And where does that go? Well about half of it goes immediately in tax and NI. And then a good proportion of it is sprayed into the economy where it generates more tax. Bankers are great actually, one banker can pay for 8-10 nurses or teachers just from bonuses.

There are loads of good reasons to sit out a market, but the idea that if you go in you're giving your hard earned to a banker isn't one of them.

Which makes me wonder why banks have bad debt provisions at all.

Wonder why that frannie mac place went under. Maybe all the mortgage income was going into tea and buscuits?

julieq

You missed the point Ruggedtoast, which is that if you buy a house, you're not giving money to a banker to any great degree. If you sit out the market for that reason which a number of people have said recently, you're cutting your nose off to spite your face, nothing more, nothing less.

It's an absolute masterpiece of hubris to pay rent for 60 years in revenge for bankers getting bonuses. Far better to get on with your life and accept that other people earn more than you do really.

julieq

LOL, was just thinking to myself that the pack was about to arrive, and right on schedule Graham turns up to join the attack.

Geneer next? Wonder if he can get in before I post this.

Graham, I have no idea what you are talking about or how you think it affects UK first time buyers which is the subject of this thread. Care to explain? Or have you already edited your post so it makes some sort of sense?

And where do you think above interest savings returns came from exactly?

julieq

And WTLF do bad debt provisions have to do with anything I was saying?

Jimmy_31

julieq wrote: »

You missed the point Ruggedtoast, which is that if you buy a house, you're not giving money to a banker to any great degree. If you sit out the market for that reason which a number of people have said recently, you're cutting your nose off to spite your face, nothing more, nothing less.

It's an absolute masterpiece of hubris to pay rent for 60 years in revenge for bankers getting bonuses. Far better to get on with your life and accept that other people earn more than you do really.

Top bankers dont earn their bonuses, why should somebody who is already on a vast salary then recieve a massive bonus. why dont i get a bonus from the government seeing as i helped out the banks when they were about to go bust?

chucky

Graham_Devon wrote: »

Which makes me wonder why banks have bad debt provisions at all.

Wonder why that frannie mac place went under. Maybe all the mortgage income was going into tea and buscuits?

errr not nothing to do with mortgage income but because the MBS market closed itself down and they both couldn't fund themselves directly.

greenbubble

julieq wrote: »

The OP is a bit of a troll, but can we please nail the myth that mortgage payments somehow end up in bankers' pockets?

Actually where a lot of them end up is as savings interest. You know, those above interest savings rates everyone is complaining about having lost.

Then some of it goes in profit. And where does the profit go exactly? To pension funds. To pay crinkly old people a living.

And then the bankers take some of it in salary and bonuses. And where does that go? Well about half of it goes immediately in tax and NI. And then a good proportion of it is sprayed into the economy where it generates more tax. Bankers are great actually, one banker can pay for 8-10 nurses or teachers just from bonuses.

There are loads of good reasons to sit out a market, but the idea that if you go in you're giving your hard earned to a banker isn't one of them.

so at a rough guess a bank will earn approx. 90% of the principle amount borrowed in interest payments just for sitting there and creating a few numbers on a computer. FRB at its finest.

that cash looks to be in the bankers pockets to me , and lets not get into how they set up there corporate tax structures.

i agree its no reason to not get a mortgage if its the only game in town , but to try and deflect any criticism away from bankers is laughable.

greenbubble

julieq

Jimmy_31 wrote: »

Top bankers dont earn their bonuses, why should somebody who is already on a vast salary then recieve a massive bonus. why dont i get a bonus from the government seeing as i helped out the banks when they were about to go bust?

you're going to look peculiar without a nose, but it's your decision