House price correction - Taking the hard route

TruckerT

HAMISH_MCTAVISH wrote: »

What does that have to do with the "melt down"?

It was obvious to me, and most ordinary people, that mortgage lenders were artificially stoking the fires of house price inflation, and that their days were numbered.

I used the situation to engineer my escape, others used it to try to generate a profit.

TruckerT

HAMISH_MCTAVISH

TruckerT wrote: »

It was obvious to me, and most ordinary people, that mortgage lenders were artificially stoking the fires of house price inflation, and that their days were numbered.

I used the situation to engineer my escape, others used it to try to generate a profit.

TruckerT

How did uk mortgage lending cause the melt down?

What is your definition of melt down?

TruckerT

HAMISH_MCTAVISH wrote: »

How did uk mortgage lending cause the melt down?

What is your definition of melt down?

Those would be good questions to ask of an economics student.

The answer would be 'it depends...'

TruckerT

wotsthat

TruckerT wrote: »

I took out a self-certificated mortgage about 8 years ago which I needed in order to sort out my life. I gave a completely fictitious story about my income etc, and walked away with an offer.

So the bankers are to blame because they didn't uncover (or care about) your lies?

You're blameless of course.

grizzly1911

wotsthat wrote: »

So the bankers are to blame because they didn't uncover (or care about) your lies?

You're blameless of course.

IF bankers CBA to undertake due diligence on the people they lend to then I consider that reckless.

It is one thing to take a punt on a credit scored £2K credit card at Mcsilly %, quite another for a transaction such as a mortgage or a commercial proposition.

The applicant isn't blameless but there will always be those willing to take advantage of the weak in a whole host of circumstances -google spring to mind.

HAMISH_MCTAVISH

TruckerT wrote: »

Those would be good questions to ask of an economics student.

The answer would be 'it depends...'

TruckerT

I see.

So basically, you don't really understand the mechanism through which you think self-cert and I/O residential mortgage lending in the UK market caused a "melt down", nor can you explain what you mean by "melt down".

But because you once lied on a loan application you're quite sure that when a member of the BOE's MPC and former Goldman Sachs economist says that UK residential mortgage lending had nothing to do with the financial crisis it must not be right.

Just... Wow.

wotsthat

grizzly1911 wrote: »

IF bankers CBA to undertake due diligence on the people they lend to then I consider that reckless.

I don't disagree.

If it was up to me Trucker would be able to have his philosophical conversations direct with whoever decided that his application shouldn't be checked - they'd both be in a cell together.

TruckerT

wotsthat wrote: »

So the bankers are to blame because they didn't uncover (or care about) your lies?

You're blameless of course.

Blameless for what? - they lent me the money and four years later I repaid it in full, having never been so much as a day late with any monthly payment.

It was the lenders who (mis)calculated that making checks on borrowers' creditworthiness was a waste of time and money. They managed to convince themselves that the property itself would never fail to cover the debt, and that therefore they did not need to concern themselves with the creditworthiness of the borrower. They actively wanted to avoid having to turn away business because of the unsuitability of the borrower - they were only interested in the property. They were wrong.

HAMISH_MCTAVISH wrote: »

I see.

So basically, you don't really understand the mechanism through which you think self-cert and I/O residential mortgage lending in the UK market caused a "melt down", nor can you explain what you mean by "melt down".

But because you once lied on a loan application you're quite sure that when a member of the BOE's MPC and former Goldman Sachs economist says that UK residential mortgage lending had nothing to do with the financial crisis it must not be right.

Just... Wow.

Are you saying that if the banks' only mistake had been to continue to offer 110% mortgages and uncertificated loans, we would all still be experiencing untold increases in our property-based wealth?

There is still a school of thought on this forum that the bank failures were caused singlehandedly by Gordon Brown because he failed to realise that the banks, after centuries of experience, didn't actually know what they were doing. Like all the rest of us, he wouldn't have been able to make up a story like the story of the banks' stupidities.

Like I said - the answer to your earlier questions would be 'it depends...' or 'it's a matter of opinion...' - that's Economics!

TruckerT

CLAPTON

TruckerT wrote: »

Blameless for what? - they lent me the money and four years later I repaid it in full, having never been so much as a day late with any monthly payment.

It was the lenders who (mis)calculated that making checks on borrowers' creditworthiness was a waste of time and money. They managed to convince themselves that the property itself would never fail to cover the debt, and that therefore they did not need to concern themselves with the creditworthiness of the borrower. They actively wanted to avoid having to turn away business because of the unsuitability of the borrower - they were only interested in the property. They were wrong.




Are you saying that if the banks' only mistake had been to continue to offer 110% mortgages and uncertificated loans, we would all still be experiencing untold increases in our property-based wealth?

There is still a school of thought on this forum that the bank failures were caused singlehandedly by Gordon Brown because he failed to realise that the banks, after centuries of experience, didn't actually know what they were doing. Like all the rest of us, he wouldn't have been able to make up a story like the story of the banks' stupidities.

Like I said - the answer to your earlier questions would be 'it depends...' or 'it's a matter of opinion...' - that's Economics!

TruckerT

I took out a self-certificated mortgage about 8 years ago which I needed in order to sort out my life. I gave a completely fictitious story about my income etc, and walked away with an offer.

When I sold the house I was in negative equity.

TruckerT

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TruckerT

CLAPTON wrote: »

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OK, I give in - what's your point?

You like house price increases, but you don't like the mechanisms which the banks were using to generate those increases?

TruckerT