Wednesday, Jul 11, 2007
HPC would never happen without the banks - THANK YOU!
Mail: Home buyers crisis as mortgages approach crash rates
The problem is being fuelled by a sharp rise in the number of borrowers allowed to 'self- certify' their income. Mortgage brokers and lenders stand accused of turning a blind eye when customers have lied about their salary to get a bigger loan, in the confidence that the value of their property would rise
Posted by confused76 @ 11:10 AM (208 views) Add Comment
10 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. dohousescrashinthewoods said...
Sharp rise?
UK sub-prime better regulated than the US, is it?
2. Bez1 said...
I've be looking at this website for a couple of months now and find it very interesting. I am "trying" to get myself upon the housing ladder and to that end have moved to Sweden for 12 months to save some money for a deposit. (Good salary and low cost, job subsidised, rental accomodation)
In my opinion there is going to be a serious mortgage "crunch" in the Autumn of this year, specifically November. The evidence for this is as follows, based upon info from this website:
Back in Nov 2005, circa 148,000 fixed rate mortgages were sold at a fixed rate of 4,95%. Hence, two years later these fixed mortages will be coming to an end with the prospect of the base rate being at least 5,75% and probably higher. There are going to be a lot of home owners faced with very high changes in monthly payments (14% diffrence in mortgage rate, (5,75-4,95)/5,75*100)
Novermber 2007 Anyone else care to make a prediction?
I am also glad that the housing issue is now becoming a main stream topic in the press and political circles.
3. george monsoon said...
And in two years, don't forget that these donkey's have probably sealed MEW deals, when looking at the rosey picture of price rises since they bought thinking "hmm I could release some of that 50 grand I have made in equity and get my lovely German shite X4"
It looks good for sensible people.. the rest.. well sorry to say this but I think Darwininan theory has it covered.
4. confused76 said...
Bez1
My guess is a multi-year slump, Germany style. Only if BTLers exit en mass we may see a sharp price drop. Your guess is probably right, but a number of different outcomes are equally possible
5. Jr Hartley said...
george monsoon
You seem slightly resentful towards anyone that has bought a property in the last couple of years (this will no doubt also include one or two FTB's aswell as BTL's). It just doesn't seem right to wish ill and gloat at their misfortune should there be a house price crash. Unless ofcourse you live by the 'I'm alright jack' mantra, which seems to be the accusation thrown at BTL's.
6. Jr Hartley said...
george monsoon
You seem slightly resentful towards anyone that has bought a property in the last couple of years (this will no doubt also include one or two FTB's aswell as BTL's). It just doesn't seem right to wish ill and gloat at their misfortune should there be a house price crash. Unless ofcourse you live by the 'I'm alright jack' mantra, which seems to be the accusation thrown at BTL's.
7. Basildon_bond said...
I personally find it hard to feel much sympathy for those who have over-borrowed on a mortgage without factoring in for the (not exactly unpredictable) interest rate rises be they FTBs, BTLs or whoever. Besides, my guess is that the gloaters on HPC.co.uk will be the least worries of those up to their necks in debts they can't pay.
8. talking rot said...
Jr Hartley
Please be aware that the housing "boom" has hurt as many families as it has benefitted. George is one of them. The sad fact is that many people/families don't even know that the boom has hurt them yet. Encouraged by MEW adverts, some people/families are about to realise that borrowing against the rising value of your home is a very, very expensive way to borrow because it is done over such a long period. Some of these people are my friends who have rammed down my throat just how much money they've made by being clever and buying a home which was bound to rise in value so much so quickly. In fact, one of my friends made this claim, despite telling me in 1992 that he really didn't want the house but had to buy it because of his [now ex] wife. These are the same people who have nagged me to get on the property ladder before I can't because the rent I pay is dead money. (I normally reply with the question "Is my rent more, or less, dead then the interest on your mortgage?") So, George will not be the only one who will be smiling when the juggernaught-pideon comes home to roost. I like to think a subtle-but-deep blade is far more effective then a rough slash though.
Schaudenfraud is an element in mankind's make-up but only the Germans tend to be honest enough to admit to it.
9. inbreda said...
I disagree with you JR Hartley,
Other peoples financial ignorance rarely concerns. Generally because it doesn't impact on me. However, as far as the greed that has driven house prices in recent years it definitely does impact and uncharacteristically I - Like George - have become very resentful towards other peoples stupidity.
10. wiltshire said...
And it's not exactly that long ago that we had the last HPC. It seems people have very very short memories but even if you're a 24 year old, your parents etc should be in a position to inform you that house prices can go down as well as up. It feels like most of the people in this country are in a state of celebrity-led consumerist zombification and the sooner a dose of reality is dispensed the better. Maybe then people will stop concentrating on shopping and sh*te TV shows and start focusing on more important issues.