achiddas

Just wondering, as the FTSE is nearing the point of a 50% downturn over 52 weeks, when, if ever, does anyone think will be the bottom point and to dip back in again???

Our business is fairing pretty well so far, down by about 10% on last year and we are a very seasonal resort (North Cornwall). As stated above it is quiet Monday to Thursday, but still a few to keep us goin nicely. But this weekend just passed, absolutely rammed saturday lunch/evening and sunday lunch. For a non specific february/ march weekend this is good business. Mind you, the sun was shining which always helps!! I still think the season could go either way, will either be flooded with tourists, or by then everyone will really be struggling and will be a total washout! Again, could all depend on the weather!!

One house in cornwall that i drive past daily,for sale, agreed, for sale again, agreed, for sale again, agreed again. Think i might see the for sale board again tomorrow. all in 4 weeks. Worrying!!

Here, Here. Your on my wavelength!!

Very cynical, but i think we have to be these days. I wouldn't put it past them to try this, and squeeze that tiny drop more out of their victims, sorry, customers!! Before the armageddon!!

I dont really know whos to blame for that one. Parasitic broker or incredibly foolish buyers. But that is the basis of the problem, a lot of people have no real sense of the value of money anymore. Leaving school without basic maths will hurt you in the long run!!

This ten year fraud of our money is going all the way to the top. Mugabe has been stealing money from his people for years and now we are in the same boat? And we are supposed to be a democratic state!!

HolyS***, How the hell? Think thats probably the worst I have ever heard!!

They are "NONJOBS". A list of pen pushing, money grabbing twangos who start on 50K plus and EXPECT 4/5% pay rises year on year, sucking the lifeblood out of our ever dwindling tax pot.

We are very lucky. My wifes parents are retired and mine are very flexible, so we have all the free childcare we could ever wish for. My work is very flexible and I take my time off when wife is at work. We are not normal 9 to 5ers. We would probably struggle if we were.

I agree, but some people ARE fools and dont look beyond the nose on their face. The 3.5x multiplier and 2.5X for joint applications are a great guide, and im sure there are many honest and good brokers who will adhere to these basic economic rules and only lend to people that can realistically afford it LONG TERM. But there are an unscrupulous few that will, and have, profited from other peoples short sightedness. And I also have a problem with "assumptions". In my eyes its gambling. To assume that your wages will rise year on year and assume that the value of your property will only go up are what this whole bubble are about. There are no assumptions in life. We dont know what will happen. I'm assuming I will live past 80 but may pass on at 30. Who knows?

Good point well made. Nearly all luxuries, not neccesities of life. Try visiting local friends instead of ringing, dry your washing on a line, not in automatic tumble dryer, read a book, play board games, ride your bicycle to work 2, 3 times a week, why go abroad when there is so much of our own country you have yet to visit, Grow your own vegetables. So many things that get forgotten in todays "must have" world. Enjoy the free things in life as they are the most rewarding. Its called the "Good Life" for a reason.

Affordable, yes to a degree, but only at the expense of other interests in our lives. I dont see how spending nearly 40% of net income on a roof over our heads is affordable. The current 20% we are much more comfortable with. It leaves some breathing space in case we see a return to double digit interest rates, which looks ever more likely. When you sign for these things nowadays, the FSA hand out these Key facts leaflets. Its a list of "what ifs", "could you cope if". Its up to you if you wish to take any notice of them. We decided we would. But the next poor people that he spoke to may have signed up for his 2 year deal, at 40% of their net income, and our now stuck looking for a mortgage that could now cost nearer 50%/60% of net.

This story is from 2 years ago but brings home why this mess is unfolding now. My wife and I had been renting for 4 years or so and had managed to save a small amount of money as a deposit and had no debts at all. As newlyweds and looking to start a family soon we decided we were ready to buy our first home. We contacted a broker and arranged a meeting, took our crisp, clean payslips as proof of our income. The figures were as follows: House in Mind 136K Deposit 15K Mortgage 121K Salaries 25k each Income multiplier 2.42 "Ha" said the broker. "Is that all you want. You can get much more than that if you want. We can get you 4/5 times your salary.!!!!!" Really. Wow. Brilliant. 200K just imagine what we can get for that. So then came the repayments. 121K mortgage that we wanted, £600 per month repayment mortgage. Affordable with some money still left over to save each month. 200K mortgage that he said we could get, £1100 repayment mortgage. Unaffordable to us at the time. No spare cash to save. "Try an Interest only then" he said, "£900 a month". "Doesnt that mean that we dont pay the loan off though" we said. "Yes, but your both still young, there will be plenty of time to switch at a later date". We were both 24 at the time, but luckily both have good money sense. We managed to see this broker for what he was and decided to look elsewhere. Im afraid others may not have been quite so clued up. We are now in our house, have a 10 month old son and are happily saving £500 a month towards the next step up the ladder. JUST BECAUSE THEY SAY THEY WILL LEND IT, DOES NOT MEAN YOU CAN AFFORD IT!!!!!!!! Liar Loans at its most currupt, money making worst.