Housing Market about to implode!

TTMCMschine

epz wrote: »

rates like that always jump up a lot because you arnt paying all the interest off.

there is a place for such loans eg if you are likely to earn more in a few years time, anyone who took out one of these loans expecting to keep paying the same is a moron, even without the recent rate rises they would be paying 6.49% and should have budgeted acordingly

I think people will probably have taken them out because they had the lowest monthly repayment & they were ager to get on "the ladder" to make sure they made full benefit of "capital appreciation" on "their" property

Gorgeous_George

What percentage of homes do you think were bought using the aforementioned Portman mortgage? 0.1% maybe - or less. Hardly significant in isolation. However, there have been many low start deals from lenders eager to attract business and the cumulative effect may be more significant.

I have never liked these offset deals.On the brighter side, income multiples were tighter 2/3/5 years ago so people on these deals will hopefully not have over-borrowed. The shock of mortgage payments trebling overnight will lead to cutbacks elsewhere (easing inflationary presures). Some may need to take on extra jobs to meet their bills.

Maybe, they will be able to sue their mortgage advisers for failing to look after them.

I hope anybody caught in this trap take suitable remedial action early. Clear any credit cards/loans and rein in the spending now.



GG

mystic_trev

nelly wrote: »

Btw its a cannon mvx35i and its brilliant

Got any moving images of Bus stops Nelly? :rotfl:

nelly_2

mystic_trev wrote: »

Got any moving images of Bus stops Nelly? :rotfl:

I dissagree with those who dissagree with me

If your adult enough to work

and adult enough to get a mortgage

then your adult enough to look into it thoroughly

thesaint

TTMCMschine wrote: »

You sure about that?

Quite sure.:D

Just how many millions of British homeowners do you believe have a mortgage with one of these two lenders on this deal?

Do you honestly believe the market will come crashing down due to this, come on, answer honestly.

Ad

Theres one word for that mortgage: EVIL

TTMCMschine

thesaint wrote: »

Quite sure.:D

Just how many millions of British homeowners do you believe have a mortgage with one of these two lenders on this deal?

Do you honestly believe the market will come crashing down due to this, come on, answer honestly.

Yes, because you can't just consider it in isolation. You have loads of other deals in the same vein that will give the borrowers similar problems, and it doesn't need to be a large percentage to effect the whole market.

We also have rising interest rates & rapidly rising bond yields - that one on its own guarantees reduced asset prices, add them all together & you have a number of undesireable (depending on your circumstances) economic factors which make the future look less than rosy in general.

Besides in August the space aliens are apparently invading.

Pobby

The bitter sting of ``creative`` financing!

dwsjarcmcd

Ad wrote: »

Theres one word for that mortgage: EVIL

No it's not, sometime people need to take responsibility for their own actions and not blame 'evil' banks and building societys and just about everyone else rather than themselves.

No-one forced people to buy this mortgage, the Portman is (was) a perfectly reputable lender, as is the Nationwide. If someone bought this product without reading what would happen after the 2 years were up, whose fault is that then?

Ad

dwsjarcmcd wrote: »

No it's not, sometime everyone has to take responsibility for their own actions and not blame 'evil' banks and building societys and just about everyone else rather than themselves.

No-one forced people to buy this mortgage, the Portman is (was) a perfectly reputable lender, as is the Nationwide. If someone bought this product without reading what would happen after the 2 years were up, whose fault is that then?

I agree 100% with you. It pretty much sums up the situation with the UK housing market. Utter madness...