House Price Crash Discussion Thread

lil_lady_2

i know with my job ill always have work , u can reckon all u want to how the industry will be affected, but just take a look at all the magazines and tv programs to do with size and looks people will do any thing for a quick fix , i dont think many people on here will understand how much people spend on beauty no matter how poor they are this site is for penny pinchers (like me ) so most will probably disaagree.

neverdespairgirl

John_Pierpoint wrote: »

I'm not sure that is true; looking back at 1930 and 1980, personal grooming became more important.

Perhaps, but not necessarily in beauty salons. Women, for example, can wax legs at home, do facial treatments, etc.

lil_lady_2

well most young people can do there lower leg but preganant women older woman and people like me with joint problems find it hard to do them things , plus try waxing the back of your own legs or further in then your bikini line and more and you'll leave your self bruised , and the facial treatments that u can do at home like home glycolic peel kits only have 2 % in them where as beauty salons have 50%...........

nightwatchman

lil_lady
IMO it is unimportant that your present job is vulnerable to recession. More important is to have the will to work, and be sensible with your money. Whatever happens you can always find another job if you really want. The hard working and frugal individuals will always make it.
I do understand that employment will take a hit from the recession. However at present in UK are working millions of eastern Europeans and many of them they will go back when jobs dry out.
I am not feel very secure in my job either, however if I become unemployed I am sure that I would be able to get a job, any job. If tomorrow I have to sweep the streets to make a living so be it.
What I would not do though, is to get into the Property Ladder (Snake?) within the next year or two. I will sit tight for the time, and I will try to pile up my savings until the storm is over. In three years, who knows, maybe I will manage to get a house, if not who cares, if like me you have nothing then you have nothing to loose.

brit1234

British sub prime properties repossessions rise dramatically (Northern Rock, Bradford & Bingley and Britannia). It seems the majority of properties being repossessed are via sub prime lenders like the 3 above and 2 American companies. They represent a significant amount compared to the other lenders. On top of that Bradford & Bingley is likely to collapse according to reports aka Northern Rock style.:eek:

http://news.bbc.co.uk/1/hi/business/7242311.stm

Generali

brit1234 wrote: »

British sub prime properties repossessions rise dramatically (Northern Rock, Bradford & Bingley and Britannia). It seems the majority of properties being repossessed are via sub prime lenders like the 3 above and 2 American companies. They represent a significant amount compared to the other lenders. On top of that Bradford & Bingley is likely to collapse according to reports aka Northern Rock style.:eek:

http://news.bbc.co.uk/1/hi/business/7242311.stm

I think that securitisation is resonsible for this. Whereas in the past, lenders have had some discretion over whether or not to bring reposession orders, and generally will do everything short of losing money to avoid reposessing, if a mortgage is securitised there will be a contract stating what has to be done at any stage of an individual mortgage being in arears.

I seem to be missing the paragraph that talks about a NRK-style blow-up. Perhaps you could highlight it for me.

brit1234

Generali wrote: »

I seem to be missing the paragraph that talks about a NRK-style blow-up. Perhaps you could highlight it for me.

There is a lot of chatter about Bradford & Bingley halving of profits in a year. It looks like they are the most exposed big lender at the moment with major funding issues. Mortgage Express one of their lending arms and the favourite of buy to let investors has suddenly restricted mortgages and re mortgages especially on new builds. This is their core business and unless they get funding from elsewhere they are sunk just like Paragon.:j

Generali

brit1234 wrote: »

There is a lot of chatter about Bradford & Bingley halving of profits in a year. It looks like they are the most exposed big lender at the moment with major funding issues. Mortgage Express one of their lending arms and the favourite of buy to let investors has suddenly restricted mortgages and re mortgages especially on new builds. This is their core business and unless they get funding from elsewhere they are sunk just like Paragon.

Bradford and Bingley's profits have halved. Overall though not that bad a set of results.

Their capital adequacy looks good, costs are under control, total customer deposits funded 60% of customer loans (2006: 61%).

http://www.bbg.co.uk/bbg/ir/news/releases/groupnews/pressrelease/?id=4483819

There are some positives in there. Certainly nothing that looks like customers should be running to get their money out. And certainly the BBC piece has nothing in it suggesting that.

adr0ck

sorry well confused now

wheres the reports that,

"Bradford & Bingley is likely to collapse according to reports"

thanks

brit1234

The problem is not the profits even though they are likely to fall as house prices come down and repossessions go up. The problem is finance for new mortgages. Northern Rock was in big trouble before the run and it is only the government keeping it afloat. Bradford and Bingley is at about the same stage as the rock before the run. The credit crunch continues means they can't get the funding from elsewhere which they did before. With out the external funding they will be forced to stop lending. There dodgy practice has caught up with them and repossessions and falling assets will hurt them bad.