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Everything posted by bobby9983

  1. You've got to support the Tories for making banks pass on interest rate cuts to businesses and consumers. The current regulators the FSA are all ex-bankers running the industry for the benefit of their friends. The latest figures show that bank margins have never been higher than now; they are making billions and continuing to pay ridiculous bonuses, whilst at the same time having record complaints for shoddy service, all whilst we the taxpayers own them. The tories will scrap the FSA and return the regulation of banks to the Bank of England. This fact alone is worthy of a blue vote.
  2. the problem a lot of LL's have here is that many councils are now paying housing benefits direct to the claimant and guess what they spend it on (tip - it's not rent)?
  3. Nothing selling + No reductions = Stagnation As other poster has noted the 4 D's will barely move the market. Until interest rates rise and then people will be forced to sell. For a true insight into the Psyche of an in denial homeowner watch the program House Swap on BBC 1. The most recent episode showed a young couple looking to trade up. They were quite happy to accept a 10k knock down from their initial asking price of 190k. When the older lady in her detached house was asked to knock a bit off her asking price - around 5% - she said she would never sell. In my opinion that's where the problem lies, the baby boomer generation is sat on a mass of unrealised equity and bugger them if they are going to accept their property has dropped a penny from 2007 as a £20k drop for them means about 40 missed holidays in their retirement. The greedy gets won't stand for it. Screw you younger generation, we've completely cocked the world up, taken all the oil, made sure we screwed all your pensions just after we took our nice defined benefits and now we want you to pay ridiculous prices for our houses even though there's no way you can afford unless you take out a whopping great big mortgage.
  4. I know depends on the individual company / house in broad terms this makes up the difference, and more in a touchy feely way
  5. I don't think you can knock the average landlord. With a choice to invest money in assets that are tangible like property or intangible (for your average punter) like shares, the decision as to which would they rather is obvious. When you look at the average property market down 21% vs a tracker fund on the FTSE 100 between Jul 2007 to present down approx 29%, you can certainly forgive them. Yes property is illiquid I hear you say, and highly geared that's bad. But for every sob story there is a very happy bunny paying from nothing to 2% over base thank you very much. Absolutely coining it in. The press is just saying today that the UK will lag every major economy, central bankers and economists alike are forecasting low interest rates for some time, so for many landlords times have never been better. Cue the shouting...
  6. No one is doing a runner in my example. The land registry figures show a purchase price of £100,000. The £25,000 bridged deposit monies are declared to the lender as deposit from 'investments' (the buyer joins an investment club, who lend the deposit over a short time). Just google 'BMV property' or 'bmv mortgages'. It's rife and yes, the lenders are all incompetent.
  7. It's funny how when times are good the banks keep schtum and then as soon as they lose money they shout fraud from rooftops. The fraud they are talking about involves some derivative of the following process; I find a property worth £100,000 I can get a £75,000 buy to let mortgage I convince the vendor to sell to me at £75,000 I submit my mortgage application and the property is valued at £100,000 I instruct a solicitor who is competent in arranging such deals to act for me, and another familiar firm to act for the vendor. Vendor and I use the solicitor's process to complete the purchase, which probably involves a third party to 'bridge' the deposit monies. The purchase likely goes through at £100,000 and the difference of £25,000 is probably recovered after sale using same solicitors.
  8. Ok I've read this thread and whilst it is interesting the article it refers to itself is more so. In my opinion Osborne's argument is right. From the very top to the very bottom of the economy the governance of finance over the last decade has been heavily skewed to rewarding debt and punishing equity. From the high leverage of private equity and ridiculous tax rules for pension schemes, to the fact that the average Joe with 50k to invest can get a mortgage in 5 minutes to buy a property, exempt from stamp duty for which he can claim full tax relief and sometimes reduced VAT, whereas if he wanted to do put this in shares he would have to go through the pain of four hours with an IFA and then have to pay full stamp when he makes the trade.
  9. A natural consequence of government stimulus the world over is a return to normal for a short time, but all the same mistakes that were made to get us here, i.e artificially low interest rates that induce irresponsible borrowing, have been made all over again but ten times worse. In 2003 the base rate reached as low as 3.5%, and that added jet fuel to the bubble. The government can't keep this up forever, already the market is increasing borrowing rates which have now become completely detached from the base rate or Libor. Swap rates have spiked in the last couple of weeks, which will run through to borrowing of all types in the next few weeks. Later this year the second stage of the credit crunch will start with imploding prime residential mortgage and commercial backed securities. Banks will keep their margins as they are because they have to try and stay solvent, they will start to hoard cash again.
  10. Said Russian business leader and bank are probably in hoc to German banks for a large proportion of that indebtedness...
  11. Britney, that is THE worst poem I've ever read.
  12. This is what I don't get with this business of landlord margin calls... Say the landlord is in a position where the lender feels they should make a margin call so they ring said landlord and ask them to cough up. The landlord says "take me to court I'm not paying". The lender knows if they do this and ultimately force repossession then they will have massive costs and either have to manage the property themselves, putting them in the same position they are in now, or sell, which in today's market would mean a nice big fat loss and the pain of having to pursue a landlord for the difference who could well go bankrupt anyway. It doesn't matter if you are a big or small landlord. The lender really is going to go for you as a last resort if you are way behind on your payments. Unless of course, your lender is the one that is really in trouble, and has been ordered by their regulator to liquidate at whatever cost to reduce their balance sheet. This is what's probably happened with your landlords Spanish properties and could be the case over here, especially if he were with a fully taxpayer owned bank like Northern Rock or Bradford & Bingley, as they know the tax payer ultimately pays so they don't give a stuff if they lose millions.
  13. QUOTE (Super Ted @ May 21 2009, 09:47 AM) * This could be it. This may be the trigger. The trigger for what? The trigger for Super Ted to lose his marbles big time.
  14. +1, if not a bit harsh though. I think that many over these sheep brained idiots were duped into it by fraudsters. I definitely have an exception to my thoughts on this matter where investors are concerned. I don't think any honest family or person looking to buy a home to live in should ever be repossessed. The lender should take responsibility for them and negotiate the terms of their mortgage to suit. Investors on the other hand, let them rot if they can't keep up payments. It's just business.
  15. WOW. 97%!!! It just proves the fact that the biggest hypocrasies of humanity are played out in the property market. Out walking on the street you would say that 97% of people have nothing but good faith in mind for their fellow humans. Put them in at the sharp end of capitalist system, however, hiding behind the auctioneers and estate agents, letting them do the dirty work for them, and all the very worst aspects of humanity come out. Gazumping, Gazundering, wasteful, pointless contract races, unrealistic prices, vulture investing picking the bones off the dead and feckless. We all do it.
  16. And all for the better too. I listened to a great programme on Radio 4 recently about this bunch of desperate housewives from South West London, they had done a programme a couple of years earlier all about their lavish lifestyles. Now that most of their husbands had been made redundant they'd been forced to stop splurging, get rid of the X5s and trade down properties. However, nearly all of them seemed much happier now.
  17. The only two sets of people I know currently in the process of buying residential property are in Central London, both are in contract races to secure properties 15% off 2007 prices.
  18. I love it how lenders have conveniently colluded with the FSA to shift all the blame on borrowers and brokers. They invented the product, they invited borrowers to defraud them. The reason? Securitisation. The only reason self cert existed was because the lenders used securitisation, therefore they didn't think it would them who would suffer if the borrower defaulted, but the hapless pension funds they sold the debt to. But neither the lender's bosses or the FSA really understood the process. They clearly still don't. It's funny how now that they can't securitise there are no self cert products available.
  19. True self cert were always about 10% of the market. Fast Track were and still are very prevalent, however, they are only offered to customers with very low loan to value and very high credit scores so the kind of borrowers that get to fast track aren't really the type to default on their mortgage. Also, both lenders and brokers know that the FSA are monitoring fast track applications very closely now, so it's another case of the horse and the stable door again.
  20. However, now that the government owns more than a hefty stake in most of our banks all of a sudden it becomes VERY IMPORTANT for lenders to know exactly how much tax the borrowers has paid, so they can inform their boss, HMRC, about who isn't paying the tax that they should be. How do you think the FSA is catching all the dodgy mortgage brokers all of a sudden? It isn't because they find out from customer complaints or mystery shopping, it's because all they need to do now is ring up their employee at Northern Rock and ask for a list of every self employed mortgage broker's mortgage applications and check them against tax paid at the HRMC.
  21. I commented on this earlier, I did a check of the mortgage market and could only find 30 self cert deals out of 1200 available. There aint no self cert anymore.
  22. Read the FSA article. This is what will fix the mortgage market... Require income is proven in every case. Ban interest only loans without repayment vehicles. Limit loan to value to 90% but offer 95% with guarantees for first time buyers. Blanket ban on anything but long term fixes with break clauses every few years to allow refinancing if rates have dropped. Lenders to stop paying varying levels of commission to brokers, either pay the same or not at all. Lenders to stop pricing products dependent on the distribution route. I.e when times are lean, keep the best deals in house, when times are plenty, let the brokers do the donkey work. Intermediaries should be able to give advice on every sheme available. Lenders to charge fair "arrangement fees". £1000 and upwards just for granting a loan does not reflect the administration involved and means lenders dangle a carrot of a low rate and then kill the customer with the hidden charges. This would allow products to be more transparent, easier to understand and allow advice to be given to and paid for directly by the public if and when required. Pretty much everything that the FSA said yesterday was in complete hindsight and would only apply to the magical land that was 2001 to 2007. A quick check of my mortgage data this morning shows that out of 1269 remortgage products available. 32 of them are self cert and the rates START at 6%. There are no sub prime mortgages available anymore.
  23. He did the deal direct with the lender, neither the broker or lender will have any influence over Nationwide's valuer. Besides, is this fraud? Mortgage broker - "So Mr client, what do you think your house is worth. Mr client - "possible £200,000, could be less". Mortgage broker - "Ok, we'll put down £200,000 and see what the lenders valuer says". All that's happened is that he has negotiated a better rate for himself. Well done you.
  24. I wonder if we'd ever get this over here?
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