There will not be a crash

SquatNow

Jorgan wrote: »

Sub prime lenders will usually start repossession proceedings when a borrower is three months behind with payments. High street lenders usually start after six months, I have known cases that have gone twelve months without payments before proceedings have started.

You are 100% correct. In the boom times,with prices rising 10-20% per year, banks are happy to wait as overdue charges rack up and hte property values rise.

But the contract says they CAN reposess after 2.5 months overdue.

In the 80s/90s the banks were very flexible in the hope that people would find a way to pay due to high wage inflation and plummeting interest rates... peoples wages vs their mortgage were skyrocketing, meanwhile with IRs plummeting their re-payments were dropping.

Rising wages, dropping payments = meeting payments gets easier each month.

But as people keep telling us... it's different this time.

With IRs rising and wages dropping, each month the payments get harder.

And here's the kicker... unlike the last crash, this time most loans have either been sold on or re-insured, so the banks have less flexibilty.

You see, you mortgage/loan isn't really with your bank, it's with whoever they sold the mortgage to... the bank are simply following the instructions on the T&Cs to collect payments or seize the asset.

Generali

I've been actively hunting for BTL mortgages that have margin calls attached to them since I read that they were a possibility about a year ago. I've never managed to find one and SquatNow simply ignores all posts that (s)he finds unable to contradict through coherent argument (not a strong suit to start with) and so has been unable or unwilling to provide any examples either.

BobProperty

SquatNow wrote: »

In the 80s/90s the banks were very flexible in the hope that people would find a way to pay due to high wage inflation and plummeting interest rates... peoples wages vs their mortgage were skyrocketing, meanwhile with IRs plummeting their re-payments were dropping....

Where do you get these "facts" from S**tNow? The early 90s wages were flat and that was the worst point for house price falls and repossessions. There weren't any big wage rises to cover mortgages. There were significant job losses.

pickles110564

geoffky wrote: »

3 kids is for poor people.

We have three loverly children, hang on let me check, phew I still can raise a couple of quid.;)

Generali

SquatNow wrote: »

You are 100% correct. In the boom times,with prices rising 10-20% per year, banks are happy to wait as overdue charges rack up and hte property values rise.

But the contract says they CAN reposess after 2.5 months overdue.

In the 80s/90s the banks were very flexible in the hope that people would find a way to pay due to high wage inflation and plummeting interest rates... peoples wages vs their mortgage were skyrocketing, meanwhile with IRs plummeting their re-payments were dropping.

Rising wages, dropping payments = meeting payments gets easier each month.

But as people keep telling us... it's different this time.

With IRs rising and wages dropping, each month the payments get harder.

And here's the kicker... unlike the last crash, this time most loans have either been sold on or re-insured, so the banks have less flexibilty.

You see, you mortgage/loan isn't really with your bank, it's with whoever they sold the mortgage to... the bank are simply following the instructions on the T&Cs to collect payments or seize the asset.

That's one of the interesting things and also one of the reasons why 'This time it's different'.

The bank has to reposess under certain conditions written into the contract of the debt that has been sold on. However, as with most contracts, it is only enforced if one or both sides wish it to be enforced. If reposessions rise and sold on mortgages become worth less then you can expect to see conflict between different owners of the mortgage - some whose business model sees profit from early reposession and others that prefer to negotiate a new payment regimen with the debtor.

pickles110564

SquatNow wrote: »

With IRs rising and wages dropping, each month the payments get harder.

.

Here you go again nothing to back your facts up, unlike the ones I have provided for you.

Sorry to have to *iss on your matches but house prices not falling in our area, still solid employment, our company taking on new staff for £28k per year with no previous expierence, salary goes to £35k after 3 years as long as you have got a good service record.They can do overtime to boost salary to £40k plus and all they need is a clean driving license.
So as in your famous statement
If you have nothing helpful to say then !!!!!!.

fc123

The_Dangerman wrote: »

Yep London will do that to you! Thankfully I live just 5 mins from open country and the "B-road blasts"

I find most women of my age think it's cool. Other than that, I ain't to fussed. I think the problem is too many old mid-life crisis men drive them. But I'm not old, or in a crisis, there's the difference. But meh, who cares, it's only a car!

Off topic but you are a hetero bloke of 23 ...so lots to learn.

Some tips;
1; 1st date in an old Escort. Go Dutch.
2; 2nd date " .....offer to pay all but accept half if offered.
3; 3rd date " ......pay all.

When you are sure that she fancies you not the car...pick her up in it.
I wish you luck but 2 decades time.....who knows...plus don't assume good health can be maintained by avoiding fags and trotting to the gym.

My Hubby went stone deaf (a hereditory disease) at age 40...super fit bloke. Had op so ok now BUT you never know what is around the corner.
Enjoy being 23

My bro had an Aston...2 years later he has a very high maintenance wife and couple of babies. She judged him by the car....not quite how real life turned out.

Rover

Abit tiresome this almost daily debate.
With the exception of Hearts, Running Bear and the OP - everyone and his dog knows there will be a correction. A significant slide in house prices all the way to 2011 and possibly abit longer.

When even the bears and the vested interests concede the realities, it's really not worth debating:
http://www.mortgagesolutions-online.com/public/showPage.html?page=746038

Que running bear in anger mode

mr.broderick

geoffky wrote: »

ha ha loser car salesman and three kids i retired at 35 and you call me a loser, 3 kids is for poor people.

Yep im a poor family man who doesn't lie on the internet about my success', unlike you, you horrible human being.

mr.broderick

pickles110564 wrote: »

We have three loverly children, hang on let me check, phew I still can raise a couple of quid.;)

Ignore him he can't even get it up, its why he has a porsche cause he's got a 2" penis (hard)