Friday, Apr 20, 2007
Metro joins crash chorus
Metro: Risking all just to buy a home
First-time buyers are risking homelessness as they resort to desperate measures to get on the property ladder, a housing charity is warning.
The number of people whose homes have been repossessed or are struggling with mortgage arrears has doubled in the past two years, says Shelter.
Some are falling into debt after signing lifetime mortgages of six or seven times their salary.
(Front page of this morning's Metro)
Posted by dohousescrashinthewoods @ 08:45 AM (131 views) Add Comment
11 Comments
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1. japanese uncle said...
Lethal business rather than risky business, I would say.
2. paul said...
"Lethal"? As in 致死作用 (chishisayou)?
I'm not buying a house now. I might get killed!
3. Scott said...
Where do these people get 6-7x salary mortgages? I tried this a few months ago (before realizing the crash coming and losing interest) and the highest I could find was 4.3x salary from Halifax.
4. C'mon Correction said...
With rent prices considerably lower than IO mortgages and cost maintaining your own house in my area, I don't understand why youngsters are still so keen to buy. Even taking into account the low capital gains over the last two years here; you would still gain more equity by renting and saving - I've calculated this as fact.
Like Lemmings running towards the cliff...
5. japanese uncle said...
Yes. 決死的な、必死の、desperate FTB buying a house without enough savings is almost killing themseve financially, and not a few of them will be doing so physically, facing the wall in all directions, sadly., hence, lethal.
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7. converted lurker said...
This is an appaling re write of Shelter's press release. Whenever the mainstream media want to kick the housing market and borrowers they always go for the FTB. Recent FTBs, by that I mean those who have bought in the last 3 years, have possibly 20-25% equitable value in their house with ave cost 120-150K. Lose equity, payments go up a percent, hardly gonna kill them is it? Unlike those in 500K house funding 300K mortgages. That's where the pain is really to be felt and that's what'll have the meeja running 5hit scared 'cos guess what? that's the 'level' of house v debt most of 'em have =;¬)
8. doomwatch said...
There were a lot of people looking crest fallen on the tube this morning, as it dawned on them, they have made the worst decision of their
lives and may well be facing financial ruin for the next 10 years.
9. confused76 said...
The cover page of the Metro was very "high-impact", let me tell you. It is distributed freely in the London Underground. I saw hundreds of people on the tube reading it, all of them had a pretty worried expression on their face. I was the only one smiling on the train this morning. What a great start of the day!
10. Sam said...
Doom and Confused,
that's the way they always look on the tube.
the media is turning. that I hate, they helped cause the problem to a certain extent. now they'll look fo scape goats and am sure none of them will own up to being part of it.
11. David20040_0 said...
The Metro? Hardly a respectable organ though is it.
Maybe unless we get on now we won't be ever be able to get on the housing market in the UK.
I have looked at Australia, there are lots of houses there for 100K £ with 2 bedrooms and a pool, it is just the heat that puts me off.