What Makes Someone Cheer On And Support House Price Inflation?

CRASH_BANG_WALLOP

spare a thought for all those first time buyers dudes who bought at the height of the market! suckered in and now working their butts off to pay the mortgage. what kind of life do these dudes have? they should be enjoying life and spending their hard earned pay on other things in life besides a sky high mortgage

shortchanged_2

FTBFun wrote: »

I have a mortgage. Not sure that make's me a "debt-junkie" - maybe it does?

I have a mortgage as well and thankfully not a massive one like some people have taken out over the past few years.

The debt junkie concept is based around the fact that many of the property bulls on here want people to take out ever bigger mortgages etc to fuel the HPI that they so desperately need because they have probably overpaid for their little asset in the first place.

FTBFun

shortchanged wrote: »

The debt junkie concept is based around the fact that many of the property bulls on here want people to take out ever bigger mortgages etc to fuel the HPI that they so desperately need because they have probably overpaid for their little asset in the first place.

Is this actually true though or is it a perception that this is the case (bar a couple of the nuttier ones who I probably don't need to mention?)

shortchanged_2

FTBFun wrote: »

Is this actually true though or is it a perception that this is the case (bar a couple of the nuttier ones who I probably don't need to mention?)

Well what would your explanation be FTBFun?

FTBFun

shortchanged wrote: »

Well what would your explanation be FTBFun?

For the use of debt-junkie?

My explanation would be that it is a buzzword used by people who can't be arsed or are too lazy to argue their points properly.

wotsthat

shortchanged wrote: »

The debt junkie concept is based around the fact that many of the property bulls on here want people to take out ever bigger mortgages etc to fuel the HPI that they so desperately need because they have probably overpaid for their little asset in the first place.

UK mortgage holders are currently sitting on an LTV of 60% so, on average, there's probably not that much desperation on their part.

Increased lending, especially combined with an increase in supply, isn't likely to lead to massive HPI but would allow renters to become owners and reduce their accomodation costs.

The current system is pushing people into BTL's owned by people that more broadly fit into the 'debt junkie' definition by virtue of the increased use of IO.

It's another bear paradox. Reduced lending is actually benefitting the 'debt junkies'.

JonnyBravo

homelessskilledworker wrote: »

actually don't bother telling me johnybravo

ok...................

shortchanged_2

wotsthat wrote: »

UK mortgage holders are currently sitting on an LTV of 60% so, on average, there's probably not that much desperation on their part.

Increased lending, especially combined with an increase in supply, isn't likely to lead to massive HPI but would allow renters to become owners and reduce their accomodation costs.

The current system is pushing people into BTL's owned by people that more broadly fit into the 'debt junkie' definition by virtue of the increased use of IO.

It's another bear paradox. Reduced lending is actually benefitting the 'debt junkies'.

You assume that every time that someone talks about people wanting HPI it is talking about all homeowners.
I know perfectly well that not everyone is mortgaged to the hilt yet to counter an argument you assume this is how people think.

The people that are most likely in trouble are the ones who bought from 2004 to the present because they are the ones who would have paid high prices for their houses. Hence the reason why we saw a huge rise in the number of IO mortgages during this period as that was the only way many people could 'afford' to buy during this time.

Other people who are included in this group are close to retiring people who may have had IO mortgages and have Mewed over the years and are now looking down the barrel of a gun.

wotsthat

shortchanged wrote: »

The people that are most likely in trouble are the ones who bought from 2004 to the present because they are the ones who would have paid high prices for their houses. Hence the reason why we saw a huge rise in the number of IO mortgages during this period as that was the only way many people could 'afford' to buy during this time.

Quite small numbers in the scheme of things but let's call them debt junkies for the sake of argument.

There seems to be an attitude that 'debt junkies' should be punished - the lack of lending seems to be widely supported by the anti-debt junkie brigade as a method of doing this.

However, it's forcing people who would otherwise be considered creditworthy into the arms of BTL landlords. Can you can see the irony?

shortchanged_2

wotsthat wrote: »

Quite small numbers in the scheme of things but let's call them debt junkies for the sake of argument.

There seems to be an attitude that 'debt junkies' should be punished - the lack of lending seems to be widely supported by the anti-debt junkie brigade as a method of doing this.

However, it's forcing people who would otherwise be considered creditworthy into the arms of BTL landlords. Can you can see the irony?

Are they being punished anymore than FTB's now who are struggling to get on the [STRIKE]pyramid[/STRIKE] ladder just to bail out those who have overstretched themselves?