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this is how bad it is out there....
Comments
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The way that I understand it (and it's a layman understanding), Carlyle are 32x leveraged.
When you consider the amount of UK homeowners who zero leverage (100% mortgages) and 20x leverage (5% mortgages) then it starts to look quite scary in the current climate.
I'm fairly sure that banks have the option to margin call those who have mortgages with them. I don't think many people understand this.
Example: you put a 5% deposit down on a £300k house (£15k) but get a northern crock 125% and spend it on a new car and a holiday.
Your home falls 20% in value to £240k. The bank can now call in the shortfall plus an additional 5% on the new value. You now owe the bank £57k in cash and are paying interest on a loan of £375k
Probably got my maths all wrong tho.
Probably got the whole thing wrong but I am sure about one thing. Ain't no way, no how that I am buying a house when I can rent one for less than half the cost of a mortgage.
That is a very uncomplicated calculation...
I understand that there are a small number of BTL mortgages that have margin calls in the contracts. However, I've been trying to find a mortgage that has margin calls in the TnCs and I've yet to find one despite looking for about a year.0 -
FIFYI understand that there are a small number of BTL mortgages that have margin calls in the contracts. However, I've been trying to find a mortgage that has margin calls in the TnCs and I've yet to find one despite looking for about a year and despite what SquatNow says.
What do you mean it's too short a message?A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0
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