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First off I want to say that I really enjoy your website. This is my first post so I hope I don't step on anyones toes.
I run a mortgage website and am constantly looking for information on the UK property debt market.
Recently I found some very interesting data on the credit card stats in the UK.
The basic of these findings are that credit card lending is on the decrease for the first time in a number of years. This debunks the theory that the market could be going to all hell. People may be wising up and saving money for a change.
Maybe my economics isn't as good as some of the people on this forum but I would like to know what you think about this trend?
Thanks
John
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Credit Card Correlation The credit card trend compared to Mortgage
#1
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Posted 19 September 2006 - 04:00 PM
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#2
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Posted 19 September 2006 - 05:18 PM
UKMortgagez, on Sep 19 2006, 05:00 PM, said:
The basic of these findings are that credit card lending is on the decrease for the first time in a number of years. This debunks the theory that the market could be going to all hell. People may be wising up and saving money for a change.
Thanks
John
Thanks
John
People are probably consolidating higher rate borrowing (credit card) for lower rate borrowing (loans and mortgages) in my opinion.
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There are 10^11 stars in the galaxy. That used to be a huge number. But it's only a hundred billion. It's less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers.
~ Richard Feynman (1918 to 1988)
#3
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Posted 19 September 2006 - 05:59 PM
I'd say that the removal of free credit for rate tarts has been an incentive for rate tarts to change their borrowing habits. i.e. 0% on balance transfers for 6 months is no longer 0% (apart from the Post Office credit card) because lenders now charge a 2.5% transfer fee, which equates to 5% annual interest. This is only slightly cheaper than a loan or a mortgage - which are both less hassle regarding paperwork, hence loans/MEWing are being increaingly favoured.
0% on new purchases for 9 months is still widely available though, so if one's disciplined one can still obtain some completely free credit - but this limits the amount one can borrow for free to approx 9 months' of living costs payable by credit card.
0% on new purchases for 9 months is still widely available though, so if one's disciplined one can still obtain some completely free credit - but this limits the amount one can borrow for free to approx 9 months' of living costs payable by credit card.
This post has been edited by bugged bunny: 19 September 2006 - 06:00 PM
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Posted 19 September 2006 - 06:36 PM
The unsecured debt is just moving to secured debt. Most mortgage lending is remortgaging.
Look at http://www.creditact...k/debtstats.htm
Look at http://www.creditact...k/debtstats.htm
House Price changes
Topic Link: http://www.housepric...howtopic=127421
Links: Halifax, Nationwide, Rightmove, Land Registry (monthly), Land Registry (Raw data - Quarterly).
____________________________________________
Read what the papers said during the last crash: Here.
NO LONGER UPDATED. ----------------------- Peak ---------- Trough -(% trough fall) - Current - (% from peak) - (% from Trough) Halifax: -------------- Aug07 199,612 - Apr09 154,490 (-22.60%) - Oct09 165,528 (-17.08%) - (+07.14%) Nationwide: ----------- Oct07 186,044 - Feb09 147,746 (-20.59%) - Oct09 162,038 (-12.90%) - (+09.67%) Rightmove: ------------ May08 242,500 - Jan09 213,570 (-11.93%) - Nov09 226,440 (-06.62%) - (+06.03%) DCLG (formerly ODPM): - Jan08 221,758 - Mar09 187,193 (-15.59%) - Jul09 196,338 (-11.46%) - (+04.89%) Land Registry (Mth): -- Nov07 186,009 - Apr09 152,803 (-17.85%) - Sep09 158,377 (-14.86%) - (+03.64%) FT HPI: --------------- Feb08 231,804 - Apr09 199,953 (-13.74%) - Aug09 205,338 (-11.42%) - (+02.69%) Land Registry (Qtr): -- Q307 230,474 -- Q109 198,939 (-13.68%) -- Q209 224,064 (-02.78%) -- (+12.63%)
Topic Link: http://www.housepric...howtopic=127421
Links: Halifax, Nationwide, Rightmove, Land Registry (monthly), Land Registry (Raw data - Quarterly).
____________________________________________
Read what the papers said during the last crash: Here.
#5
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Posted 19 September 2006 - 07:19 PM
Jason, on Sep 19 2006, 07:36 PM, said:
Good god, those are some scary numbers...
Dave
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Posted 19 September 2006 - 09:26 PM
Anyone who questions the unaffordability of housing right now should consider this statistic:
That is truly shocking.
Quote
Four out of every five women aged between 21 and 25 spend more than their wages every month.
That is truly shocking.
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Posted 19 September 2006 - 10:33 PM
peemac, on Sep 19 2006, 10:26 PM, said:
Anyone who questions the unaffordability of housing right now should consider this statistic:
That is truly shocking.
That is truly shocking.
It is if you're their boyfriend or husband...
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Posted 20 September 2006 - 10:10 AM
Jason, on Sep 19 2006, 07:36 PM, said:
The unsecured debt is just moving to secured debt. Most mortgage lending is remortgaging.
Look at http://www.creditact...k/debtstats.htm
Look at http://www.creditact...k/debtstats.htm
I did a banking course at college back in 1990, and one thing the tutor said to us was.
Never ever turn an unsecure debt into a secured debt. It may seem like a good idea, but it rarely is. Many people who struggle to pay an unsecure debt, will still struggle to pay the secure debt, but with far greater consequences.
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Posted 09 November 2006 - 11:31 AM
a drop in growth, but the market is still growing at 1/2%. Credit cards are becoming less attractive as balance transfer fees disappear, i am getting rid of 2 credit cards i no longer need...
This post has been edited by moosetea: 09 November 2006 - 11:32 AM
I have bought a newish (5 years) house in November 2006. I talked the vendor down 30% off peak 2004 price am am paying less than the 2002 price. I feel prices will continue to drop down to the 2001 price but saving for 5 years hopefully means i wont be stung. The price i am paying isn't much above the price the vendor paid for the place when it was new in 2000. However some idiot is trying to flog an identical house on my road for 55k above the price i paid, one month later!?!?! The housing market is frothy, no-one ever knows what the value of a house is, the value is what someone is willing to pay, make sure you pay alot less than the asking price.
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if you get the skills you will earn ALOT of money
Free to collect, like ebay but you dont pay, you just have to collect
QUOTE (sledgehead)If you make a living from something, you are a professional something: it is your profession. You could bake dog turds and flog them as ornaments. If that's how you make your living, you ARE a professional dog-turd baker. Period
QUOTE (Rolling Stone 13th July 2000)The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.
QUOTE (Soon Not a Chain Retailer @ Aug 30 2009, 01:03 AM) Society should provide trampolines not safety nets.
QUOTE (GordonBrown Jan 27 2008 (warning about the coming inflation?))if you don't get the skills you wont get a job
if you get the skills you will earn ALOT of money
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Posted 01 April 2007 - 05:26 PM
peemac, on Sep 19 2006, 10:26 PM, said:
Anyone who questions the unaffordability of housing right now should consider this statistic:
That is truly shocking.
That is truly shocking.
It's shocking if they happen to be single, and the source of the stat is accurate and is a true representation of the whole country.
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Posted 01 April 2007 - 05:31 PM
moosetea, on Nov 9 2006, 12:31 PM, said:
a drop in growth, but the market is still growing at 1/2%. Credit cards are becoming less attractive as balance transfer fees disappear, i am getting rid of 2 credit cards i no longer need...
You say credit cards that you no longer need. Does this mean that you will be keeping some credit cards and that you need them? I'm asking, not to judge, but to better understand, as I came to the conclusion that no credit cards are necessary. I'm curious to know if there are any situations that credit cards are necessary, or a prefereance to saving. I ask this with complete neutrality, and imply no judgement.
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Posted 02 April 2007 - 12:22 PM
Meditating Hamster, on Apr 1 2007, 06:31 PM, said:
You say credit cards that you no longer need. Does this mean that you will be keeping some credit cards and that you need them? I'm asking, not to judge, but to better understand, as I came to the conclusion that no credit cards are necessary. I'm curious to know if there are any situations that credit cards are necessary, or a prefereance to saving. I ask this with complete neutrality, and imply no judgement.
Credit cards can help saving. I pay a large proportion of my bills with credit cards, and then pay off the entire balance at the end of the month, paying no charges or interest. The money that would be paying for those things stays in my account longer and gives me the interest, minimal I know, but it's something for very little effort.
I originally started doing this in my teens as I thought I'd need it to build a credit rating (which is probably nowhere near as someone who's debted to the eyeballs.)
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