Mortgage Repos go through the roof

John_M_Business

Phonix wrote:

The world is full of ignorance, it's often a cultural thing. Those most vulnerable are those least savvy.

Those fortunate enuogh to be part of a culture that that doesn't breed such ignorance can be viewed as fortunate.

It's not always a question of whether people are responsible for their own actions but how far their culture goes toward meeting your ideals imo.

Do you really think that those doing 5x or 6x mortgages (or even self-cert) are not one of these 'fortunates'? IMHO they know what they're doing, they know the risks, but are choosing to take them.

Additionally, the legislation passed in the last few years in the financial sector are some of the most stringent in the world - accurate APRs, indication of commissions taken, cooling off periods etc.

There are some people taken for a ride, but most in the UK are those that can't afford properties... those that can afford properties are taking risks that they are fully aware of.

meanmachine_2

John_M_Business wrote:

There are some people taken for a ride, but most in the UK are those that can't afford properties... those that can afford properties are taking risks that they are fully aware of.

But those borrowing 6 times their salary CAN'T afford property, imo.

They've only bought because, stupidly, they thought property would keep going up and up and up and in six months' time they would have to borrow seven times their income.

And what'll happen to the economy when a whole generation have borrowed six times their income? The answer is a recession, or worse.

What goes around, comes around and I can think of no greater waste of resources than spending it on a bunch of non-productive bricks.

ivegotabig1

Random_bloke wrote:

Which is only a problem if you need to buy this year and sell next year. The vast majority of people buy a house to live in, not turn a quick profit.

so if the property you intend to buy may be say £20k cheaper nxt yr, you would say,...hey go & but it anyway....ofcourse not !!! not everyone can afford to wait for a home...but there again....many cannot afford a home at all.......see my point

hobbesandco

Does anyone know where to get accurate information on house prices in the last crash of early 90's? I believe some areas suffered more than others but I don't know which ones and what kind of houses (terraced, semi-detached) declined the most. I bought a house last year which incredibly went up by another 20k before decreasing by about 5k in value. (I convinced myself I bought at the peak but needed to settle down badly). I'm asking because I want to move either next year or 2007. I'm hoping house prices will crash so moving up the chain will be a lot easier. If detached houses declined the most in the last crash, I think it's reasonable to assume the same would happen and therefore I wouldn't need to go for a much higher mortgage.

Mr_Proctalgia

Newbie Warning!!!

In the spirit of fairness, haven't they also said that they have/are changing the way they now count repossesions. Also look carefully at the graph! The amount of actions entered is much higher than the amount of orders made, meaning that the lenders are not getting it all their own way - contrast and compare with what it was like 10 years ago. Maybe the lenders will be more careful in future (but I doubt it)

I have to declare an interest - My home goes on sale shortly and I need all the money I can get from it.

Random_bloke_2

ivegotabig1 wrote:

so if the property you intend to buy may be say £20k cheaper nxt yr, you would say,...hey go & but it anyway....ofcourse not !!! not everyone can afford to wait for a home...but there again....many cannot afford a home at all.......see my point

A lot of people thought that last year too. Did you give out bad advice last year? And are you now saying people wait another year for this guaranteed £20k discount you speak of.

As said earlier, if someone can service the debt and have assessed the risks, they should buy whenever they want.

Too many here seem to be after a quick paper profit. These are the ones who generally get bitten. A more long term view is required, especially if you think of your home as just an investment.

John_M_Business

meanmachine wrote:

But those borrowing 6 times their salary CAN'T afford property, imo.

They've only bought because, stupidly, they thought property would keep going up and up and up and in six months' time they would have to borrow seven times their income.

Firstly, most people are not borrowing at this level, the vast majority are more sensible than this.

Secondly, if people are borrowing at this level, then there are some with legitimate reasons to do so (i.e. they have a low salary, but a bonus structure - or are expecting a promotion or similar).

The discussion was not whether this was a good idea - I was responding to someone who was quick to blame the finance industry first before looking at the main culprits for people in tight financial situations carrying a load of risk - themselves!

nelly_2

People are borrowing at that level cos they have too, because house prices are massively over valued,

and were not talking about sensible people were talking about the general public of Britain. The Sun and the Mirror are the top selling newspapers, and Eastenders and Coronation street are the most watch tv, when descibing most people in this country the word that springs to mind is stupid, closely followed by thick and morons

John_M_Business

nelly wrote:

People are borrowing at that level cos they have too, because house prices are massively over valued,

No. However it is a symptom of the consumeristic culture that we live in. We HAVE to own a home and it HAS to be a certain size and NEEDS to be in the right area and we HAVE to have the right mobile phone.

Most of the time people have options that would not open them up to so much risk - however their inner consumer voice is whispering 'you deserve it', or, 'you'll get a pay rise' or whatever...

nelly wrote:

and were not talking about sensible people were talking about the general public of Britain. The Sun and the Mirror are the top selling newspapers, and Eastenders and Coronation street are the most watch tv, when descibing most people in this country the word that springs to mind is stupid, closely followed by thick and morons

The Sun and Mirror are the top selling newspapers to those people that have time to read the news and are still prepared to pay for it. Eastenders is dropping like a stone and I expect Corrie to do the same in the future. Intelligent people are known to watch these kinds of soaps... even Big Brother...

FJSRiDER

nelly wrote:

People are borrowing at that level cos they have too, because house prices are massively over valued,

And they are 'massively over valued' because....?

Entirely because people are willing to 'borrow at that level'.