Sunday, Aug 12, 2007
Houston, we appear to have a problem
Indie on Sunday: The boom generation wakes up to reality
Includes mention of hpc.co.uk
Posted by financial planner @ 11:53 AM (167 views) Add Comment
19 Comments
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1. paul said...
That sickening feeling is setting in for those who overstretched themselves. When they start finding that they can't sell without dropping the price to below what they bought it for, that's when the real carnage starts.
2. Nmarks said...
What strikes me is that with so many mortgages with fixed rate periods due to expire later this year and interest rates set to rise, borrowers will be reluctant to take up renewing fixed rate deals and presumably revert to and be at the mercy of variable rate deals with all the instability that accompanies it.
3. Scott said...
600k,700k,900k for properties around the capital. Where is this money coming from? Is everyone else but me a contract killer on the weekends. This would explain the high prices and never-ending crime in London.
4. bidin'matime said...
For those who don't know, Jonathon Davis (extensively quoted in the article) is the guy behind HPC.co.uk. He posts on the forum as 'financial adviser'. He's one of the few who has managed to make real inroads into the VI spin machine and get the HPC message across.
5. vfr said...
It's very simple really. In 1990 my 60 k mortgage cost me £600, 2.5 times my income then. interest rates were 11.99% and I could afford it.
My successor has a a mortgage of 220K on 5.25% and an income multiple of 4.4. £962.50.
what chance 11.99% now ! repayments would be £2200. 8% would be £1466. I hope and I mean really hope that this credit crunch isn't going to happen. What is really sad though is that us doom mongers have been telling the powers to be to reign in credit for so long and now it is absolutely sickening to hear people try to talk up what is inevitable. They should be taken to court and jailed for mass fraud.
6. Boarder said...
Credit Crunch is yesterday. Solvency Crisis is tomorrow.
7. Scunnered said...
"We have seen a slight slowdown in the market, but this is largely due to people wanting a quicker sale." says the vice-president of the National Association of Estate Agents.
Errrr .... OK, thanks, that makes perfect sense.
8. Scott said...
Yes vfr. If this was China, some members of the MPC and some journalists would be facing long terms in prison.
9. Alan said...
@ vfr
I don't think this site is inhabited by doom-mongers. I think that the postings have repeatedly called for financial restraint and sense from the lending community for the past 18 months I've been watching. These have been ignored in the pursuit of profit and bonuses.
One can hardly be anything else but bearish on house prices given the silly offers over the last year or so by high street mortgage brokers (x 5.5 salary, 125% mortgages, "creative" applications etc). Prices can't go up forever. I've told stacks of people not to over extend themselves when trading up, they almost always replied that the EAs advised taking the biggest morgage possible!
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12. Bubbles. . . said...
Hasnt Gordy promised economic success in an nation which has a record twin defecit. Just as his extravagance and huge increase in public employees are coming home to roost he escapes from his true responsibilities and will pretend he has had nothing to do with it, perhaps we should back him as the next PM with his luck we could all get away with it at 11.99% interest rates. We will all be rescued as they need our votes..This credit crunch will not and should not happen under his expert guidance.
13. vfr said...
Alan,
My comment about doom mongers was based on that fact that that is what the article in question called us on hpc. Personally I am not offended. I find it strange that HPC gets a mention. Obviously it is amuch read forum and people are beginning to see teh sense in what has been said. Typical of so much broad brush journalism when the true issues are never really understood. I came onto this website and felt a breath of fresh air in that I finally found somewhere that people were talkiing sense. Anything that I have read or seen so far from the so called 'quality press' is so superficial it really seems to ignore the true consequences of what is going on. Perhaps the journalists or editors are pandering to much to thier readership and are afraid of ridicule by mainstream tv or their competition. heho ignorance is bliss.
14. Orwell said...
Bubbles...
I think the question of public servants is probably unfair. Whilst not one myself, I agree and concede that there may be some over paid lampost counters and discrimination advisers, or life cycle consultants, but in the whole they dio a very good and difficult job. The 40/60ths pension is of course a different issue...
By the way I have worked under jobsworths including one particular poor quality one in a Local Authority surrounding Manchester. They were supposed to be head of Legal Services, knew no law and just wanted to delegate everything...A frequent problem we all know...
15. Orwell said...
Mind you Merve,
I would still stick to your guns and apply another couple of IR rises...
16. financial planner said...
"bidin'matime said...
For those who don't know, Jonathon Davis (extensively quoted in the article) is the guy behind HPC.co.uk. He posts on the forum as 'financial adviser'. He's one of the few who has managed to make real inroads into the VI spin machine and get the HPC message across."
Just for the record:
Bidin - thanks for the mention. Though: I am not behind HPC. I was a poster and got involved... I am not posting as Financial Adviser but as...
17. george monsoon said...
Has anyone else noticed that HPC seems be have been mentioned an awful lot in the media recently?
Who was it said "any publicity is good publicity" ?
18. uncle chris said...
We popped over the road to visit a family of six living is a massive Grade II listed house, which they have renovated over the past 2 years. They confirmed that they are now having to sell up (reluctantly) because they cannot afford the new mortgage once their fixed rate runs out next month. I know they has lots of children, but this guy runs an IT company and claims to earn well over £60,000 a year. This is not sub-prime mortgage lending. Many, many people have over-leveraged themselves and I don't think the establshment truly understand the nature of the probelms creeping over the horizon.
19. bidin'matime said...
Financial Planner - my apologies for misunderstanding your involvement and for getting your nom-de-plume wrong - well done anyway for keeping in the public eye/ear.