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Caveat Mortgagor

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Everything posted by Caveat Mortgagor

  1. Is it too early to make a prediction of the Land Registry for October? The figure isnt released until Nov 28th. All the same, put me down for -0.9% MoM and -3.2%YoY. Joel Hills (one of the sky news team) quoted these as the October figures from Land Reg when discussing bad economic data coming out today - seems he might have forgotten the embargo in his despair!
  2. Nah, he would get roasted alive. Public sector administrator with a know it all attitude! :-)
  3. http://blogs.telegraph.co.uk/finance/ianmcowie/100013206/new-eu-mortgage-rules-could-hit-house-prices/ European Union (EU) plans to regulate Britain’s booming buy-to-let sector could restrict mortgage availability, force landlords to sell and cause house prices to fall. Other unintended consequences of proposed EU legislation could include reduced numbers of properties to rent, according to new analysis by the Building Societies Association (BSA). Leading mortgage brokers and estate agents agree that the buy-to-let (BTL) sector needs EU intervention like a fish needs a bicycle – but fear that is what it is going to get, whether landlords and tenants want it or not. Now, despite the Treasury deciding two years ago that no further intervention in the housing market is justified, new legislation looks set to take effect next year. The EU draft directive on Credit Agreements Relating to Residential Property (CARRP) says BTL should be regulated in the same way as residential mortgages for owner occupation. That could prevent lenders and borrowers – including existing BTL landlords seeking to remortgage at the end of fixed deals – from taking anticipated rental income into account when assessing how much mortgage is affordable. Instead, EU proposals would bring Britain into line with Continental practice and force lenders to assess BTL in the same way as mortgage applications by owner occupiers on their prime residence; that is, the main criterion would be the borrower’s earnings. Paul Broadhead, head of mortgage policy at the BSA, said: “If rental income is excluded from consideration when underwriting BTL then the availability of new borrowing could cease fairly rapidly. In addition, those with existing BTL loans may well be unable to refinance. “Over time this could lead to a reduction in private rented sector properties. At the extreme, current BTL borrowers may be forced to sell their property portfolios which would have obvious implications for existing tenants and the housing market as a whole.” That’s no exaggeration, given the growing importance of private rented accommodation in Britain’s housing market. While the proportion of home ownership is falling, the number of properties offered for rent has increased by more than 1m since 2005. BTL has delivered income and capital gains despite dismal returns from bank and building society deposits and shocking stock market setbacks. About three quarters of privately rented homes are owned by husbands and wives or individual landlords – as opposed to institutional investors – and BTL mortgages back more than a third of these properties. Mr Broadhead said: “It would be totally inappropriate to bring this lending under the auspices of a proposed residential mortgage regulatory regime. Any attempt to do so could have a detrimental impact on the ability of lenders to provide BTL products, and the consequent ability of investors to provide properties for rent.” David Hollingworth of London & Country Mortgages agreed: “The EU proposals could extend to BTL a similar regime as owner occupier mortgages and lead to tighter criteria which mean landlords face a very different process when they come to the end of their deal.” Ed Mead of the Association of Residential Letting Agents (ARLA) and Douglas & Gordon estate agents, pointed out: “Potential EU legislation might drive many BTL landlords away from what is a vital and expanding part of UK housing provision. “This must be viewed with caution. Our Government ought to be wary of taking a lead from the EU here and actually encourage informed investment into this sector with tax breaks, not lumping BTL in with those residential purchasers who need all the protection they can get.” Housing minister Grant Shapps should send a memo to his opposite number at the EU: “If it ain’t broke, don’t fix it.” Love the comments of the enraged boomers: my particular favourite is:- phil-kean New EU Mortgage Rules - means that British Servicemen and women died in vain fighting in two World Wars.
  4. Property bee shows they were advertising the house at £105k at the point of first lising in August, and put the price up to £145k in October. Is this some sort of special reduction that you only qualify for if you are an overleveraged canny buyer? (preferably a teacher)
  5. Wrong - unless 'that's all' is a coded way of saying North. But I'll expand on my previous comment. I was born about 20 miles north of that line but Ive almost always worked about 70 miles south of there. I was born in a town where people historically had one job all their lives. They identified with a company and co-workers.. If they worked in one place for 15 years or more, and that place closed - it was unlikely they would settle in another job. They just werent very adaptable. Yet the city where I work is completely different. People are far more adaptable. Transient even. Ive often spoken to older blokes who tell me that when they were younger, if they got fed up they would just pack their job in knowing they could walk into another job doing a similar role. In my hometown, if dad was a miner, so was his son. Same for most jobs. But where I work, its completely different.
  6. draw a (slightly curved) line from bristol channel across to just north of the wash. South of that line all cities bar brighton are normal or low. North of that line all bar York are normal or high. Cultural perhaps?
  7. Hmmm, a city where 1 in 8 kids is neet is deemed to be low, and where one in 10 kids is neet it is deemed very low. Not very high standards they are working to there.
  8. I used to go to school near this one........ Original price £320k in July 09, price dropped today from £225k - 180k! And what makes it worse is that it went to auction last month. With a nice juicy guide price of a mere £120k, it still failed to sell.
  9. Mrs Caveat refunds travel expenses (on behalf of her public sector employer) to people on benefits. Refunds co-ordinator isnt her official title, but they now need 2 people paying out refunds full time; its badly organised. The bit she really hates is that many cannot be ar$ed to take the correct forms with them for the re-imbursement to prove they are eligiblie. This despite having a letter sent out to them to tell them the process / what to bring if they are re-claiming. The only bit they bother reading is where to go and how much to ask for. When refused they display a generally sh!tey attitude and start shouting. The only thing that makes all this better is she tells me that plenty of people live in streets where the cheapest house is £300k, yet the would be claimants are desperate enough to stand in a queue for 40 mins to reclaim a £2.50 bus ticket and then stand about to argue the toss when they find they arent eligible. It wont be long my friends before these people capitulate.
  10. Be very careful! Sounds like the start of an avoidance measure. With Swedish derogation the agency worker signs a new contract in which they acknowledge they will not have pay parity and they have conceded the parity in order to recieve pay between assignments. They can be given this contract at any point - i believe some agencies will leave this right until the last minute. It may be that you have been given such a contract. If you arent sure ask your agency what it means. They will have put a lot of work into perparing for the new regs, they will know very well how you will be affected. Make sure you guage whether you think they have been frank and honest though. The swedish derogation route has attracted a lot of shyster agencies who have been 'buying' business from clients by offering a charge schedule that assumes they will be able to wriggle out of many of the cost implications. If you do have a swedish derogation contract, ask them how much you will be paid between assignments, and ask them what they think is acceptable in terms of offering you alternative assignments.
  11. Martin, its sounds like you think your kids have inherited your sense of entitlement.
  12. I manage an agency - FWIW i have advised all my clients to pay parity with their employees. Its something we have been working on since March. You should ask your agency what has been agreed with their client. They will know in great detail what will happen. Many companies will try to avoid the extra cost and work with the agency on some sort of legal avoidance measure. The key is that you must be paid the same as someone from the employer doing the same job - this is called the the 'comparitor'. It is likely that some companies have brought in a new pay rate over the last 12 months to prepare for the legislation. If one other person is on the lower pay rate they can justify paying that to agency staff as they employ someone on the comparitor rate. Some companies will employ agency staff to do a job that only agency staff do. In the absence of a comparitor from the employer, the comparitor rate is based on what the lowest paid agency temp gets. The most controversial measure - the one that has hit the news a bit is the 'swedish derogation'. If you are technically an employee of the agency, the employer and agency can use swedish derogation to pay you much less. However, if your assignment comes to an end the agency has to pay you for 4 weeks between assignments. This is a popular way that companies have approached getting round the additional responsibilities of the AWR. The grey area that some companies/agencies will test is how much has to be paid for the 4 weeks between assignments. Some agencies have priced their agreements with clients on the basis they will only pay 1 hour a week. Recent clarification has suggested the employee must get at least 50% of their highest pay in the previous 12 (without checking I think its 12) weeks. I know that some agencies will be offering work up to 4 hours drive away and say that as the employee has refused work they no longer have to pay the 'pay between assignments'. I expect this will be the source of many tribunals. Edit: To answer last part of question, no they cannot sack everyone after 12 weeks. Anti-avoidance measures exist with fines up to £10k per instance of cynical avoidance techniques. They may try to rotate people so that they never reach 12 weeks. If you work for a few weeks then have 6 weeks in a different role (note - this can be with the same employer) then the clock starts again after the 6 weeks in a different role. Technically a company can rotate you into different jobs in different departments to avoid you reaching 12 weeks. However, if challenged, they would need to demonstrate that they didnt bring someone in to the role you have just been moved from.
  13. A minute ago you were comparing benefits to post tax low wage incomes. Now you are comparing to the top 0.005% of salaries Do you sit still when having your haircut, or do you wriggle just as much?
  14. Low wage + high tax. You aren't talking about people with kids are you? Your last statement is a comparison of wages to benefits. Try flipping that comparison on its head. The only reason after tax wage looks so low is because benefits are so high!
  15. If benefits werent so high, the marginal rate wouldnt be so high!
  16. Just had a quick peep, looks really good, Ive often wanted to find all those figures together. I may have to re-word some of my assertions based on your figures, but I was reasonably close; although I thought the turning point was 2001 - your figures indicate I havent checked back far enough.
  17. Yep. Take out all the mewing and the economy was in recession every year since 2001/2. Ok leave the mew spending, but take out the real growth in public spending - again, the economy is in recession. Ok, we'll leave the mew and the above inflation increases in public spending, but take away the spending funded by the growth in corporate debts - again we are back in recession. Hmm, it needed all 3 of the above to keep gdp positive. Of course it was unsustainable. 'No return to boom and bust' eh?
  18. Step daughter just graduated in June with a language degree. Started a linguist job start of this month. Ok starting pay, training her on something new & interesting, regular overseas travel Niece 1 graduated recently with equine degree. Immediately got a job at a stables. Not the most glamourous job but she's really happy - wants to work with horses. Niece 2 dropped out of Uni more than a year ago. Messed around for 18 months or so; just started a perm (but crappy hours) job in retail Niece 3 dropped out of uni 9-10 months ago. Got more hours from the p/t job she had done whilst studying to keep her going until she started a perm job in a call centre about 2 months ago. No surprises that the graduates got the jobs they wanted very quickly, the drop outs have taken longer to find work and couldnt pick and choose their role. All 4 found work within a few weeks of each other! The drop outs had bummed around for a while with a convenient excuse of no jobs. When cousins got jobs very quickly it took away their nice little excuse - they got their arses into gear and found regular work Demonstrates to me that jobs are there, even for the young uns, its a matter of having skills, failing that......the right attitude! Edit to add - one of nieces has a boyfriend who graduated this summer with architechture degree. Immediately started with with a small firm of architects.
  19. You made the same mistake they did. Its not wealth creation. It re-distribution. From future to now. From proles to Banksters. From young to the boomers.
  20. Some houses in that part of the city are insanely priced. Take this one half a million and they darent show what the outside looks like
  21. You're probably wasting your time, but....... a basic premise of the role of a governments economic policy is to both encourage wealth creation and allow wealth distribution. Even the lefty will agree that. For 13 years we had a government that concentrated on wealth distribution and creating wealth got overlooked. Indded the effects of distribution made it harder for creators. Thats why we employed hundreds of thousands of unnecessary public sector workers, paid benefits to all an sundry earning as much as £60k a year and chucked bucket loads of cash at our political classes to line their pockets. Meanwhile british businesses (and employees) struggled to pay the increasing bill to the exchequor so the bill has been left for future generations. The question is...... should we now try and concentrate on wealth creation and ease off the re-distribution (of money we dont have)? She will no doubt tell you of the unquestioned social benefit of the public sector workers; she may also mention the private sector businesses that supply to public sector. The truth is though, we cannot have them if we cannot afford them! And particularly after 13 years of largesse, being told 'we cannot afford it' is something the left leaning public sector workers dont want to swallow.
  22. TMT style field report for anyone wanting an injection of bearishness. Earlier this week I had a chat with a letting agent who considers himself to be an estate agent, but he spends most of his time on lettings to pay the bills. Tells me a number of interesting things. When the EA offers special deal mortgages to customers, the lender is always hugely over-subscribed and this means that ther lender does a lot of cherry picking to get the best borrowers. The EA loses a lot of business this way. Sometimes the lender can be oversubscribed 2 or 3 times which means they filter out more than half the would be buyers. The special deals will typically be a 90% ltv with an interest rate below the normal insane rates for 90% ltv mortgage. Apparently Northern Rock were one of the recent lenders to do this. They have a limit of no more than 40% of their lending to be on 90% ltv. He is seeing people take their houses off the market for winter - he doesnt understand their logic either - he has advised those doing so that the market will pick up next year - but not in a way that will help them. He is telling his vendors that prices are falling and could be as much as 5% lower by April. Anyone waiting til spring faces losing out. He sees volumes picking up as prices fall as buyers who have held out are tempted into the market. I thought for a minute the bloke must be an HPCer. Lets examine what he's said:- Lenders picking and choosing - despite this he is still unsure about their long term viability / stability Evidence of a buyers strike Lower prices are good for him because they will increase volumes Prices will fall 5% in 6 months Telling vendors 'If you dont take todays price, you wont like tomorrows price' - I think he sees the capitulation stage!
  23. If the programme doesnt make you vomit, this thread on MSE about the first episode will do the job i do like him, hes got a lovely voice for television as well, thanks for the heads up Has it mentioned anywhere that it will be repeated later on in the day? Any chance you could look out for me across the screen at the end and post on here if it is? Many thanks. Sky + already set and waiting :-) he is better off going solo Worth watching just to see the lovely Mr Spencer! Did he have a licence to kill? Will be watching this tonight on 4od! Thanks for the tip off yep! agree, but still just had to watch and was annoyed missed the last 10 minutes, had to get little one from pre-school!! Arrgghh, did the family house sell?? Soooo depressing, they have fawned over Phil and now decided that it shows you simply need a good agent. If only we had workled that out sooner. Housing market can be solved by having a good agent! FFS!
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