What steps will gov take if 35%+ HPC?

AG47

If Mark Carney is correct in his 35% house price crash predictions over the next few years then what steps will the government take to cope with all the repossessed properties?

HTB 1 was quite effective helping the bubble, then help to bubble 2 was less effective but still helped to keep the bubble inflated.

Maybe help to bubble 3 will be 50% gov backed loan interest free for ten years even available for poor credit low income families?

Sanctioned_Parts_List

None. Negative equity doesn't automatically lead to foreclosure. Next.

AG47

Sanctioned_Parts_List wrote: »

None. Negative equity doesn't automatically lead to foreclosure. Next.

The issue is interest rates going back to near more normal levels at the same time the interest free period is up on all those who bought using help to bubble 1&2, all at the same time as brexit uncertainty fallout.

Mortgage defaults are going to go through the roof, repossession numbers are going to be a real problem over the next few years.

worried_jim

Maybe we could join the world's biggest trading block and increase our tariff free access to 500m potential customers and work force. I know common sense.......

AG47

worried_jim wrote: »

Maybe we could join the world's biggest trading block and increase our tariff free access to 500m potential customers and work force. I know common sense.......

The EU is going down the toilet why would we not want to distance from the unsustainable debts. The question should be will the EU even survive not if we should distance the uk from the fallout.

The issue now is how to cope with the looming house price crash and flood of repossessed properties.

HTB was quite good at keeping the bubble inflated

Then help to bubble 2 was increased percentage of loan interest free for longer,

Now these interest free periods are coming to an end just when interest rates can’t be held down for much longer,

Help to bubble three needs to be 50% interest free loan for ten years available to low income families with 1% deposits

51mm5

This board is is now a hpc fantasy wish list. Someone sure is getting over excited about Brexit.

AG47

51mm5 wrote: »

This board is is now a hpc fantasy wish list. Someone sure is getting over excited about Brexit.

Yes brexit is no big deal, don’t know why there is so much talk about it.

MobileSaver

AG47 wrote: »

The issue is interest rates going back to near more normal levels ... Mortgage defaults are going to go through the roof,

Do you somehow think that if you keep repeating the same end of the world fake news it will magically become true? :rotfl:

For years now, mortgage affordability tests have been using up to 8.75% as a worst case scenario. Interest rates have not been above this for almost 30 years so what exactly are you classing as "normal" that will mean disaster for mortgagees?

Mortgage defaults are NOT going to go through the roof.

51mm5

The potential economic consequences of Brexit will hurt potential FTB'ers more than existing homeowners. Banks are not interested in repossessing and is a last resort. They'd rather rearrange the terms and get you paying something rather than being lumbered with a house to sell if prices fell. Correct me if I'm wrong but repossession figures have fallen have they not.

The often quoted 35% drop has two important qualifiers:

1. If
2. Up to

AG47

MobileSaver wrote: »

Mortgage defaults are NOT going to go through the roof.

Do you somehow think that if you keep repeating the same fake news it will magically become true? :rotfl:

Help to bubble was 4 or 5 years of interest free loans and most of those interest free period re coming to end just at a time of unable to hold down emergency low interest rates.

MobileSaver

AG47 wrote: »

Do you somehow think that if you keep repeating the same fake news it will magically become true?

No not fake news but based on actual facts, something your posts are decidedly lacking in....

The average UK SVR is currently 3.87% and lenders check affordability by assuming rates will worst case increase by up to 3.25% above this; meaning affordability tests are based on 7.12%. When was the last time rates were above this?

Add in to this that today many people could fix at 2.49% for 10 years and your dreams of mass repossessions are revealed as nothing more than complete and utter fantasy. :cool: