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TV Tonight
Comments
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Well, I've watched it and it thought it was a pretty reasonable program.
Best entertainment is the young guy who's remortgaged 3 times in order to pay for his lifestyle, and seems to realise that it's a big gamble, but somehow doesn't want to stop the good times. About 34 minutes into the program.Happy chappy0 -
That guy must realise he's heading for so much trouble.
And he has to remortgage in Jan at 8%! Christ that *is* sub-prime.Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson0 -
FWIW, my thought is that the prime/subprime thing is a bit of a red herring.
In reality, it isn't binary like that, there are different levels of risk ranging from a street drunk wanting money to a dentist borrowing a small amount secured.
Ultimately, if you pay back the money you're prime, if you don't you're subprime.I love the way you say property speculators. everything we do is speculation its called investing. Just because you havmt obviously made any money doesn't mean that no one has. When you buy a share or invest in a investment fund all your doing is speculating.
IMO, a speculator is someone that buys an asset purely for a short-term capital gain. An investor is someone that buys for future income stream.0 -
Melissa177 wrote: »Actually i had Peggy Mitchell from Eastenders in mind
I don't watch it so that's gone straight over my head!
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Melissa177 wrote: »I don't either, but apparently the latest storyline is that she has a massive debt problem....
Yes, I hear the price of wigs is going through the roof!Everything that is supposed to be in heaven is already here on earth.
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I borrowed 4.5 times my salary (now less than 4 times, thanks to a pay rise). This is pretty high.. Am I sub-prime? My credit record is good, and I have no problems paying my mortgage and putting extra away. I got a competitive grad loan, and didn't go for a "sub-prime" lender.
I disagree that high salary multiples are sub-prime in the way that a lot of US loans have been to NINJAs
Sub-prime borrowers are defined as those people who have less than good credit and therefore can only qualify for mortgages at a higher interest rates. Usually, they manage to qualify for an ARM (Adjustable Rate Mortgage), with an initial rate which they can just about afford at time of the purchase...(or are persuaded to believe they can afford), but which usually kicks in at a higher rate after about 2 years. This is where the problem lies....they default after the rate increase. They cannot afford that increase, which is significantly higher.
The mortgage borkers who sold these loans, had no interest whatsoever in their clients ability to pay, all they were interested in was making the commision on the loan at the time. These loans were then sold on by these brokers and then bundled with all the other mixed bags of mortgages (some good, some bad), to the markets, hence the current credit problems.
Now the banks don't know what's in their bundles, hence them not lending to each other.
From the details of the quote above, this lady is not a sub-prime borrower. She states she has good credit, and the ability to pay. So long as she was not sold a loan with an interest rate reflecting a poor credit rating, and one that will adjust to a much higher rate after a certain term, (and she read and understood the terms of the small print), she is not sub-prime IMO.
Many of these sub-prime loans were lent to people who didn't understand the lending terms, because they didn't ask since they weren't savvy enough to understand the jargon. They put all their faith in the corrupt mortgage borkers...who were only after the commisions.
My guess is there could be several 'class action' law suits brought against these brokers in the future, from 'No Win No Fee' lawyers, dying to make money on the backs of the irresponsible and naive borrowers, citing misrepresentation by the brokers.0 -
It's on again in 10 minutes (new episode).
No excuse watching Eastenders.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Christ. £37k to £565k.
And people wonder why there are so many extreme views about RTB.0 -
Is it just me or is the presenter talking to me like I'm seven years old?
"thats called downsizing" :rolleyes:0
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