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Financial Times: UK owners may be forced to sell homes
WTF?_2
Posts: 4,592 Forumite
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http://www.ft.com/cms/s/04b1b092-a50b-11dc-a93b-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F04b1b092-a50b-11dc-a93b-0000779fd2ac.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fwww.housepricecrash.co.uk%2Fforum%2Findex.php%3Fshowtopic%3D63327&nclick_check=1
Homeowners may be forced to sell next year and join the ranks of renters when lenders tighten terms for borrowers with poor credit histories, the Council of Mortgage Lenders warned yesterday.
..
His warning came just days after the Financial Services Authority, the City watchdog, warned mortgage lenders to brace for “very difficult” market conditions next year. Some 1.4m homeowners face a sharp jump in loan repayments – up to 60 per cent in some cases.
http://www.ft.com/cms/s/04b1b092-a50b-11dc-a93b-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F04b1b092-a50b-11dc-a93b-0000779fd2ac.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fwww.housepricecrash.co.uk%2Fforum%2Findex.php%3Fshowtopic%3D63327&nclick_check=1
Homeowners may be forced to sell next year and join the ranks of renters when lenders tighten terms for borrowers with poor credit histories, the Council of Mortgage Lenders warned yesterday.
..
His warning came just days after the Financial Services Authority, the City watchdog, warned mortgage lenders to brace for “very difficult” market conditions next year. Some 1.4m homeowners face a sharp jump in loan repayments – up to 60 per cent in some cases.
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Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
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Comments
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Read it in Saturday's edition. Further rate cuts on the cards for 2008, possibly as early as February.BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
free4440273 wrote: »Read it in Saturday's edition. Further rate cuts on the cards for 2008, possibly as early as February.
Quite how they will justify that with inflation edging further away from the magic 2% mark I don't know.0 -
Originally Posted by free4440273
Read it in Saturday's edition. Further rate cuts on the cards for 2008, possibly as early as February.dannyboycey wrote: »Quite how they will justify that with inflation edging further away from the magic 2% mark I don't know.
Agreed, but they will. You can always rely on the stupidity of the BofE. Fed also to cut today by .25.
Factory gate inflation hits 16-year high
and bad news for chocolate addicts
BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
I don't want to register. You usually have to click on something sent by email, which involves me getting another PC fired up and on the internet.0
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PasturesNew wrote: »I don't want to register. You usually have to click on something sent by email, which involves me getting another PC fired up and on the internet.
Have you tried using something like http://www.mailinator.com/ ?
It's a 'disposable' email address that can be accessed over the web.
I use it quite a bit when registering for one-off stuff that isn't going to need future email communication. A few services won't accept the domain as an email address though....--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Ermmm, sorry for being negative here... but.
If they are forced to sell their homes due to being unable to find credit...
Who are they going to sell too? Wont most potential buyers have the same issues?0 -
dannyboycey wrote: »Quite how they will justify that with inflation edging further away from the magic 2% mark I don't know.
Simple! They'll just continue to fiddle the CPI figures.
Out: Food
In: more 42" plasma TVs and whatever cheap Chinese-produced tat they can think of.
At the end of the day, inflation is the 'easy way out' in that its effects won't be immediately obvious and it gets a lot of debtors off of the hook, to an extent. It may prevent a severe recession from developing and will certainly help keep nominal property prices higher than they would otherwise have been.
Longer term, it's devastating to the economy and will have to be tackled with severe interest rate rises to get it back under control ... but that's longer term. This government doesn't think in periods of time longer than the immediate future (or maybe until they next have to call an election).--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
^Indeed, which is why I think we will be witnessing a deflationary economic collapse (not an inflationary one).Ermmm, sorry for being negative here... but.
If they are forced to sell their homes due to being unable to find credit?
Who are they going to sell too? Wont most potential buyers have the same issues?BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
Ermmm, sorry for being negative here... but.
If they are forced to sell their homes due to being unable to find credit...
Who are they going to sell too? Wont most potential buyers have the same issues?
Thats when prices start to drop (as they have been) until such time that people feel that a property they want is worth paying for. It's those that dont have a property to sell that kick start the recovery often.
If house prices go down, rental yields will increase again and that would begin to interest many of the landlords that have sold up as rental yields have become so low. So, they could re-enter the market at some point.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Simple! They'll just continue to fiddle the CPI figures.
Out: Food
In: more 42" plasma TVs and whatever cheap Chinese-produced tat they can think of.
At the end of the day, inflation is the 'easy way out' in that its effects won't be immediately obvious and it gets a lot of debtors off of the hook, to an extent. It may prevent a severe recession from developing and will certainly help keep nominal property prices higher than they would otherwise have been.
Longer term, it's devastating to the economy and will have to be tackled with severe interest rate rises to get it back under control ... but that's longer term. This government doesn't think in periods of time longer than the immediate future (or maybe until they next have to call an election).
Surely they can't get rid of food from the CPI. That would be receive massive media attention accusing the government of manipulating inflation figures?0
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