Would it be a good idea for lenders to buy back mortgages?

Thrugelmir

silvercar wrote: »

Coventry BS did it, someone posted about it on the mortgage board (possibly 2009) and people didn't believe. IIRC they ended up posting the letters they had received to prove it.

Sub prime lenders were also doing it, but the problem was most of their customers couldn't get a mortgage elsewhere.

BOI are offloading their mortgage book. Offering some fixed term product customers an ERC free option. Though some 14,000 mortgages are being transferred to the Mortgage Works. Those on low rate trackers seem to be stuck where they are. The problem then arises that if you want to move the options may be limited.

Pimperne1

chucknorris wrote: »

Why are you thinking about it? Personally I like the long term benefit of these low margin trackers. Is it because you are thinking of selling up in any case and what to get a windfall before you do so?

Just toying with the idea really. I haven't made up my mind whether to stay or sell when we move back in but if I was likely to have my lender give me some dosh too then that might have some influence on what I do. Even if I don't redeem the mortgage I might have some difficulty porting it if I sell as I am now retired and they might decide not to lend me the same amount on my pension as they did on a wage (I'm not sure they will say "Okay, (SAY) 35% LTV we will ignore your lack of income").

Yes the low margin trackers are great but I have always wanted the place to be mine and I might let my heart rule my head in any case.

Incidentally, could you please provide that link again to the Rightmove advertiser for circa £50? Seem to have deleted it.

chucknorris

Pimperne1 wrote: »

Just toying with the idea really. I haven't made up my mind whether to stay or sell when we move back in but if I was likely to have my lender give me some dosh too then that might have some influence on what I do. Even if I don't redeem the mortgage I might have some difficulty porting it if I sell as I am now retired and they might decide not to lend me the same amount on my pension as they did on a wage (I'm not sure they will say "Okay, (SAY) 35% LTV we will ignore your lack of income").

Yes the low margin trackers are great but I have always wanted the place to be mine and I might let my heart rule my head in any case.

Incidentally, could you please provide that link again to the Rightmove advertiser for circa £50? Seem to have deleted it.

http://www.visum.co.uk/refer.aspx

geneer

robmatic wrote: »

For how many years have you been posting justifications of your decision to rent instead of buy on the basis that you will benefit (eventually!) from economic turmoil and the ensuing house price falls?

Loving the astonishing lack of self-awareness.

You are of course incorrect.

The only time I'm inclined to justify my decision to wait until after the crash is on the multiple occasions this decision is attacked by a handful of obsessive posters. In general I do not choose to discuss the same at all.

Your lack of awareness is quite apparent.
You appear to be unaware of the difference between

a) those who predicted a house price crash and then witnessed the house price crash

and

b) those did not and now choose to gloat about their random luck in benefiting from the emergency measures brought in to counteract the financial collapse they utterly failed to see coming.

geneer

Pimperne1 wrote: »

Yep, thanks for the world the bears wished upon us.

Bubble came before bust pimp.

Thanks again bulls.

geneer

RenovationMan wrote: »

What is your motivation then?

To express the opinions detailed in my first post.

wotsthat

geneer wrote: »

You appear to be unaware of the difference between

a) those who predicted a house price crash and then witnessed the house price crash

and

b) those did not and now choose to gloat about their random luck in benefiting from the emergency measures brought in to counteract the financial collapse they utterly failed to see coming.

There's no point in predicting a house price crash correctly if you don't do something about it. Someone could have shorted a house price index or even bought a house to take advantage of their superior knowledge. If a house price crash was predicted, no action taken, and the market largely recovered then any credit is purely intellectual and has been said before that's not the type of credit that pays the rent.

Those people who are, say, enjoying random luck haven't really been randomly lucky at all. They just chose to keep paying a mortgage because they thought, long term, buying is better than renting. Anyway wouldn't anyone expect the government to introduce emergency measures in an emergency?

It seems to me the 'winners' are those who just got on with their sheltered lives and didn't try to bet against a market that people desire to get in to.

Some people can be too clever for their own good and are out-witted by simple common sense.

geneer

wotsthat wrote: »

There's no point in predicting a house price crash correctly if you don't do something about it.

Of course. Because making a rational decision not buying at peak prices doesn't count as doing something about it.

A spurious position frequently taken by those who failed to predict a house price crash, even weeks before the event.
I don't have to consult my ladybird book of psychology to figure out why.

wotsthat wrote: »

Someone could have shorted a house price index or even bought a house to take advantage of their superior knowledge. If a house price crash was predicted, no action taken, and the market largely recovered then any credit is purely intellectual and has been said before that's not the type of credit that pays the rent.

An argument so familiar its seemingly Cut and pasted from the Bull meme-pool. “the timing game”. (C)2008 onwards. Not all that original I have to say.


Again its absolutely shocking that those who utterly failed to see it coming would attempt to dismiss the intellectual credit of, y'know, being right.

wotsthat wrote: »

Those people who are, say, enjoying random luck haven't really been randomly lucky at all. They just chose to keep paying a mortgage because they thought, long term, buying is better than renting.

Correct me if I'm wrong, but those who buy after a crash will also benefit from those rates.
In any event, if you didn't see it coming, its random happenstance. Its that simple.

wotsthat wrote: »

Anyway wouldn't anyone expect the government to introduce emergency measures in an emergency?

You mean the emergency you didn't see coming.

wotsthat wrote: »

It seems to me the 'winners' are those who just got on with their sheltered lives and didn't try to bet against a market that people desire to get in to.

Its surprising how many of those “winners” decided to buy in 2007 months from absolute peak isn't it?


Though I'm sure this has nothing to do with the logical acrobatics your forced to go through.

wotsthat wrote: »

Some people can be too clever for their own good and are out-witted by simple common sense.

Your right of course. It is indeed common sense not to buy when a crash is imminent and inevitable.

robmatic

geneer wrote: »

You are of course incorrect.

The only time I'm inclined to justify my decision to wait until after the crash is on the multiple occasions this decision is attacked by a handful of obsessive posters. In general I do not choose to discuss the same at all.

Your lack of awareness is quite apparent.
You appear to be unaware of the difference between

a) those who predicted a house price crash and then witnessed the house price crash

and

b) those did not and now choose to gloat about their random luck in benefiting from the emergency measures brought in to counteract the financial collapse they utterly failed to see coming.

I'm incorrect because the only time you seek to justify your decision is on the multiple occasions that you've debated this with other posters on here? Try making sense geneer!

You seem a little bitter about the people you lump into the second option and their 'random luck'. I mean, I do get it, kind of. 5 years ago you were engaged in oh so profound online debates with randoms from the internet and it turned out that you were right that the housing market would go pop. Well done, give yourself a medal. But you did **** all with your conviction and now five years later, you're still having the same tedious debates whilst the sheeple that you feel superior to have the temerity to feel comfortable with their lives.

Life's so unfair, eh?

wotsthat

geneer wrote: »

Of course. Because making a rational decision not buying at peak prices doesn't count as doing something about it.

A spurious position frequently taken by those who failed to predict a house price crash, even weeks before the event.
I don't have to consult my ladybird book of psychology to figure out why.

An argument so familiar its seemingly Cut and pasted from the Bull meme-pool. “the timing game”. (C)2008 onwards. Not all that original I have to say.

Again its absolutely shocking that those who utterly failed to see it coming would attempt to dismiss the intellectual credit of, y'know, being right.

Correct me if I'm wrong, but those who buy after a crash will also benefit from those rates.
In any event, if you didn't see it coming, its random happenstance. Its that simple.

You mean the emergency you didn't see coming.

Its surprising how many of those “winners” decided to buy in 2007 months from absolute peak isn't it?

Though I'm sure this has nothing to do with the logical acrobatics your forced to go through.

Your right of course. It is indeed common sense not to buy when a crash is imminent and inevitable.

Like I said some people are too clever by half.

My point is that, in general, those who simply got on with life and kept paying the mortgage are better off than those who had/ have a big idea. It hardly drives a coach and horses through this theory by pointing out that some people bought houses in 2007. If someone is horrified by a house losing value after purchase then there's a rental market for them.

There are no logical acrobatics, no need to worry about absolute peaks, randomness, soft or hard landings, memes, bulls, bears or anything else.

It can be quite a stress free life just getting on with it (or in forum talk being a bull meme).