Banks to face stricter supervision

[Deleted User]

I'm going shortly but while we are on the subject my own business was turned down for a property loan at the end of 2008 which I got at auction. I have no bad credit, healthy income, being trading over 10 years at the time and thankfully (as at auction you are committed when you win) I had the money to buy it outright.

When asked why I was told they'd stopped lending against certain SIC codes. I explained I was going to convert the property and it already had consent for same. After some arguing they came back about a week later with they thought 'I had too much on my plate' when I laughed at him he privately said they were just not lending at the moment. Santander would lend but the rates were 4% above base (not too bad traditionally for business loans, but not worth it.)

So I ended up buying it outright. Since then I have laughed every time I hear the phrase 'the banks want to lend but businesses are not wanting to borrow'.

debtistheft

ninky wrote: »

"the banks" is a bit of a vague term don't you think? what do you actually mean by it? surely we are all part of the society that creates and sustains "the banks" and the banking system.

i would like to see much stricter limits on lending and agree that lax mortgage lending has driven prices up. however with my current mortgage at under 1 percent interest a year i'm not sure i can hand on heart accuse my lenders of usury. at this rate they are paying me.

You won't be saying that in a couple of years when we see 15% to 20% rates. The banks saw that their ability to trick people to get ever larger mortgages was coming to an end and so they lowered interest rates to trick the foolhardy into over-extending themselves, thinking that low rates are the new norm. These people will be working for the banks for the rest of their lives.

Leviticus 25:39 "If one of your countrymen becomes poor among you and sells himself to you, do not make him work as a slave."

ninky_2

debtistheft wrote: »

You won't be saying that in a couple of years when we see 15% to 20% rates. The banks saw that their ability to trick people to get ever larger mortgages was coming to an end and so they lowered interest rates to trick the foolhardy into over-extending themselves, thinking that low rates are the new norm. These people will be working for the banks for the rest of their lives.

Leviticus 25:39 "If one of your countrymen becomes poor among you and sells himself to you, do not make him work as a slave."

loving the biblical quotes. is leviticus the bit where we also get told not to eat shrimp or things that chew the cud but don't have cloven hooves?

btw what do you think of the parable of the workers in the vineyard? that basically teaches us that if we have enough we should be happy and not be jealous of those who have more.

i agree our debt system leaves a lot to be desired.

i don't have a crystal ball but i think if rates rise to 15 to 20 percent paying my mortgage will be the least of my worries. the total economic devastation that would reap will probably see me looking for kalashikovs to defend me and mine and eating rats for survival.

debtistheft

ninky wrote: »

loving the biblical quotes. is leviticus the bit where we also get told not to eat shrimp or things that chew the cud but don't have cloven hooves?

i agree our debt system leaves a lot to be desired.

i don't have a crystal ball but i think if rates rise to 15 to 20 percent paying my mortgage will be the least of my worries. the total economic devastation that would reap will probably see me looking for kalashikovs to defend me and mine and eating rats for survival.

The UK has seen those interest rates in the past without insurrection. Look at my signature and just imagine if that level of debt and those debt repayments were invested in industry in the form of company shares and corporate bonds instead of going to one sector (banking), how much better would our economy be, how much wealthier would we be as a nation?

ninky_2

debtistheft wrote: »

The UK has seen those interest rates in the past without insurrection. Look at my signature and just imagine if that level of debt and those debt repayments were invested in industry int he form of company shares instead of going to one sector (banking), how much better would our conomy be, how much wealthier would we be as a nation?

all prior to the rise of lie-to-buy and massive income multiple mortgages.

Conrad

debtistheft wrote: »

Leviticus 25:39 "If one of your countrymen becomes poor among you and sells himself to you, do not make him work as a slave.

"

The COE is one of the largest landlords in the country. Where I live the clergy get a prime property in many a village - hmm, and certainmly do not sell those £1m homes to give cash to the poor. Wake up mate.

Conrad

debtistheft wrote: »

how much better would our economy be, how much wealthier would we be as a nation?

We are already one of the richest nations on Earth, whilst billions are dirt poor, yet you want us to be even richer? How very un Christian.

The average Brit spends just 10% of net income on food whereas the figure is 50%+ for third world peoples. We are rich, stop being so greedy.

Conrad

Greedy Christians;

CHRISTCHURCH Priory’s vacant vicarage is still lying empty following a review of the building last year.
Christchurch vicarage
The Diocese of Winchester conducted a survey of the Quay Road property after the Reverend Canon Hugh Williams left to ensure it was appropriate for future ministry needs and to identify any maintenance issues.
But more than six months on, with the large 19th century building still lying empty, concerns have been raised by Christchurch MP Christopher Chope, about the house which has nine bedrooms, a double garage and large garden.
The Conservative backbencher asked second church estates commissioner Tony Baldry MP to ‘drum some common sense and economic sense into the diocese’.
He asked whether they should be paying £2,000 a month to rent alternative accommodation, several miles from the Priory, when the vicarage lies empty.

ninky_2

debtistheft wrote: »

The UK has seen those interest rates in the past without insurrection. Look at my signature and just imagine if that level of debt and those debt repayments were invested in industry in the form of company shares and corporate bonds instead of going to one sector (banking), how much better would our economy be, how much wealthier would we be as a nation?

we don't have to imagine. there are countries where debt is far more regulated. my OH's homeland of iran for example. debt is seen through far more moral, religious eyes there. issuing a bouncing cheque lands you in jail. you can't charge interest as such and you have to have far more track record of money in the bank before you will be lent to. there is a lot less misery from debt but plenty of misery nonetheless.

debtistheft

ninky wrote: »

all prior to the rise of lie-to-buy and massive income multiple mortgages.

Exactly. Just think what will happen if rates approach anything like those levels with so many people ordinary people carrying a lifetime of debt around their necks.