Sunday, Jun 17, 2007
Will borrowers be saved last minute?
Times: Borrowers face £1bn mortgage shock
Article signed by "chef Franco Beer" (have they run out of journalists at the Times?). Old info: 800,000 borrowers in for a nasty shock in the second half of 2007, but broadcasted full-page in the Sunday Times. For your information, did you know that the total number of repossessed homes from 1990 to 1993 was "just" 247,000? and the number of outstanding BTL mortgages is 800,000...
Posted by confused76 @ 03:00 PM (142 views) Add Comment
11 Comments
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1. Scott said...
This is why the crash is being delayed. Those on fixed rates are unaffected until their deal ends. It seems like this summer will not be so sunny after all. I am a patient man. If it takes until next Spring I am still laughing.
2. Pr said...
Were they saved last time? The Chancellor can't afford it. That's the whole point, the credit crunch effects everybody, including the government, which uses the very long term loans that are more expensive for those taking out fixed rate loans.
3. inbreda said...
Too true Pr,
In fact, having sold off the gold reserves the government would only have taxes to bail out homeowners.
Of course a large chunk of those taxes now come from stamp duty etc, so they will already be depleted.
And of course, think about all of those unemployed builders, estate agents (woo-hoo!) and so on that will be created as a result of the credit crunch. That will knock income tax returns.
4. fahrenheit451 said...
The concept that anyone will be "saved" by this or any other government will, unfortunately, not happen. All they care about is that they get a fat wage packet, good pension and the rest can get stuffed. (Actually the more they mess up the economy, the more work they make for themselves ...) But really how much sympathy can one have for BTL's who get into trouble cos they cann't do their maths. It's the over stretched FTB's we should have some sympathy for, with 100% mortgages that have been duped into thinking that they would be able to afford them by the modern day "Loan Sharks".
Here we down the Auction Houses ...
Old McCawber's maths never took into account the effects of inflation, all he could see was today and tomorrow, and hoped he would avoid the "Poor House" by the end of the year.
5. wage slave said...
Q. Who saved borrowers in the last crash ?
A. Nobody. They're on their own.
6. Orwell said...
I would respond to this as follows:
Sirs/Mesdames,
167% of UK GDP is debt. I do not profess to know what the cost/s of financing this is, one might suggest a conservative average 16.7%? A median may even be between 7.5% - 33% = 20.25%?
We do not hear of the balance of payments deficit anymore. This credit binge is not being paid for. Hot money from the financial markets must be making up the difference.
In view of the state of the bond markets in the USA, inflation in China and the world economy and the fact that the UK money supply since 2001 when rates were last at this level has increased by 13% with nothing (other than overpriced housing) to show for it, can you really anticipate that interest rates will remain at 5.75%? Most sensible economists do not rule out interest rates at 6%, some people have said that they may reach 7.5%. In the past it has not been unknown to be 10% or more.
Perhaps Financial Advisers and this paper should be advising their readership accordingly?
7. mrmickey said...
I don't think the government are that worried about a crash in houseprices & the economy, in fact I think they know it's coming hence all the cameras, spy planes and general paraphenalia of a police state now being put in place to control the newly created serf class.
8. george monsoon said...
Dont forget I.D. cards Mr Mickey
And for the record, I really do believe that you are closer to the truth than most people on here would be able to accept.
9. wage slave said...
Lets not forget the DNA database either.
I was watching The Terminator the other night and wondered how long it would take before the world ended up like that.
10. mrmickey said...
If you want to know what the not to distant futures going to be like watch Terry Gilliam's film Brazil it's a classic. I love the bit in the film where when your arrested you have to pay for the cost of the arrest and obviously loans are available at competitive rates if required.
11. doomwatch said...
Mr Mickey, the truth is worse. No one has spotted the new Bailiff laws been rushed through. They will soon be able to LEGALLY force, yes, that's break in, REALLY ? Yes BREAK IN to any address (even if their info is wrong, which it usually is) they like, if they are chasing debt for something as simple as a unpaid parking ticket.
Wonder why this has been rushed through ? The fact of the matter is, many government agencies & councils are VERY worried about debt, as
are the lenders, and now more frequently contracting "Bailiff" companies to aggressively grab anything they can, of course adding on
their rediculous "charges" at the same time.
BE AFRAID, they usually take cars away at 5am.