Housing Market about to implode!

ManAtHome

KingKenny wrote: »

Gordy boy wonder still has some tricks up his sleeve to keep the party going me thinks

I'm sure you're right on that - he certainly won't want to lose the next election (shades of "we only stayed in due to TB"... aaaaagh!!). However, he knows he'll only need around a third of those who can be a$$ed to vote, so whether he gives a toss about FTBs, BTLs, people coming off 2-year fixes in the next 18 months is an unknown (pretty sure he'll carry on favouring the rich and/or powerful though...).

KingKenny

Ad wrote: »

The social consequences are already incalculable. Two more years and Britain will be a wasteland.

You have to think, its not just the UK, its global, so is it Gordy's fault, it would have happened anyway. If you were the Chancellor, it would have happened.

Global events determine national events. If you are under 40, you are too young too have been burned. If you are over 40, you probably do not give a !!!!!!.

Cycles, highs, lows, they will never end, but how long who know's, but Gordy has no say so, its the markets, the real players. Gordy just puts up with our moaning?:beer:

michaels

Is it such a poor deal - 2yrs at ~ 2.5 below base then 4 at 2 above base = average of about .75 over base for 5 years - ie better than a lot of normal mortgage deals

bandraoi

I really don't see how one mortgage deal from one lender coming to the end of its introductory deal spells financial ruin for everyone owning a house in the UK with a housing market implosion.

Ad

KingKenny wrote: »

You have to think, its not just the UK, its global, so is it Gordy's fault, it would have happened anyway. If you were the Chancellor, it would have happened.

Global events determine national events. If you are under 40, you are too young too have been burned. If you are over 40, you probably do not give a !!!!!!.

Cycles, highs, lows, they will never end, but how long who know's, but Gordy has no say so, its the markets, the real players. Gordy just puts up with our moaning?:beer:

The reason lies here -

Bank of England Takes Property Blame

The group that decides the interest rate deliberately fuelled a consumer boom to boost house prices and personal debt so that "UK Plc" could avoid recession.

http://news.sky.com/skynews/article/...56664,00.html/


This some had already realised but to hear the previous governor of the Bank of England admit to it was just breathtaking and sickening at once.

The social disease of rampant house price inflation has been created from interest rates kept artificially low in order to avoid a recession. This inturn created an era of cheap credit, and a speculative asset boom. We now have a society addicted to credit.

The independence of the Bank of England is a complete falsehood.

I don't remember this story reaching the evening news I wonder why.

I hope this finally enlightens some of you who refuse to acknowledge the reality of NuLabours so called miracle economy. I rest my case.

ManAtHome

KingKenny wrote: »

You have to think, its not just the UK, its global, so is it Gordy's fault, it would have happened anyway. If you were the Chancellor, it would have happened.

Well it would have happened, but the last 10 years of borrowing like you'd be dead/bankrupt or in a few cushy directorships (cross out prole/MP as applicable) when the !!!!!! hit the fan haven't exactly helped...

manhattan

dwsjarcmcd wrote: »

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?

Too right, i hope no one manages to sue these lenders if things do hit the fan. Why go in blind to the biggest purchase of their life its their own fault! :T

Sapphire

nelly wrote: »

Irresponsible borrowing I say!¬

What person, these days, given the easy access to information, that we have at our finger tips litterally.............. does'nt fully research anything?

I spent a few hours researching the video camera I was about to buy and that was only 400 quid.....never mind mega thousands on a house!

Btw its a cannon mvx35i and its brilliant

I also spend a lot of time researching anything I buy, especially for when it comes to expensive home improvements.

However, I think there are many clueless people out there who are definitely not as careful and prudent as many of the posters to this site are. They live for today, and don't realize that buying property is not an easy or cheap proposition and that there are many pitfalls. They feel they absolutely HAVE to be on the property 'ladder' - at any cost - because they think everyone around them is, and they are influenced by advertising, including property !!!!!! on TV. :rolleyes:

Sapphire

ManAtHome wrote: »

I'm sure you're right on that - he certainly won't want to lose the next election (shades of "we only stayed in due to TB"... aaaaagh!!). However, he knows he'll only need around a third of those who can be a$$ed to vote, so whether he gives a toss about FTBs, BTLs, people coming off 2-year fixes in the next 18 months is an unknown (pretty sure he'll carry on favouring the rich and/or powerful though...).

Don't forget, also, that many MPs (our representatives) also have a vested interest in properties going up and won't want to see a HPC, since they own BTL properties themselves. :cool:

wolvoman

What is the big deal here?

If someone took out this loan in July 2005 they will have had an interest rate of:

2.46% below base from Jul 05 to Aug 05
2.21% below base from Aug 05 to Aug 06
2.46% below base from Aug 06 to Nov 06
2.71% below base from Nov 06 to Jan 07
2.96% below base from Jan 07 to May 07
3.21% below base from May 07 to July 07
1.99% above base from Jul 07 to Jul 11

That's an average rate of 0.49% above base rate for a 6-year tracker.
Indeed it's effectively lower than that because during the fixed period, the savings would have gained interest too.