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Caveat Mortgagor

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Posts posted by Caveat Mortgagor

  1. Pure greed.

    I run a recruitment agency. These parasites (oh the irony of a recruiter calling someone else a parasite!) often pester me to sign off their forms to show one of their 'clients' is now working.

    It seems that if anyone who is instructed to see them subsequently gets a job without their help, then A4E and the myriad of other similar companies get paid.

    It annoys me that we put a lot of work into getting someone into the right job, and yet they want payment, often for more than we would make out of the candidate. Ive always refused. The first time, my missing 'sign off' was elevated through the organisation chasing me about 4 or 5 times. They've all stopped ringing me now.

    And to top it all, the advice these places give and the CVs they help to create are almost the polar opposite of what actually gets the candidate a job.

  2. Surely we need an attic tax, a cupboard tax, and a garden tax...

    If you believe an absence of subsidy or benefit is a tax, then surely your tax already exists. Unless of course cupboards and attics are already directly subsidised.

    But just how daft would you sound if you complained of an attic tax just cos you cant put in a claim for one?

    About as daft as me complaining of the "standing on my own two feet" tax as a result of never qualifying for any benefits.

  3. a boom and a bubble could be seen as 2 different thing...there isn't a boom that's for sure...there is a bubble though.

    out of touch politician trying to be a smart ass.

    This was my first thought.

    He says no boom and defines that as low volumes. He is indeed correct that volumes are low. But this ignores the fact that prices are still firmly in bubble territory.

    A deliberate misleading comment to justify a desperate policy.

  4. We are due to complete at the end of this month.

    Nearly bought in desperation at an insane price in 2007. Daft thing is i knew that a crash had to come but began to think it wasnt coming. Fortunately my grudging attitude to buying meant we were beaten by a keener buyer. The house we were going to bid on was taken off the market only a matter of hours before i rang to put in an offer.

    Within weeks the banking system melted down and prices started falling. Mrs Caveat saw with her own eyes the price falls I had predicted. I am lucky that ever since then she has trusted me. If I said it wasn't worth buying, she went along with me, I know many arent so lucky.

    We've saved and spent a deposit a couple of times since then. At the beginning of this year I started to see some value returning locally. Not on a huge scale, but one or two houses that would have suited us at OK prices. So we started saving with a bit of determination. Couple of months later and HTB2 was announced and this steeled our resolve to buy before stupid people are allowed back into the market.

    We were s21'd from our rental in 2011 as LL wanted to let the house to a family friend. This really angered me. Last 2 years we have been renting from a couple of teachers. They bought to paint and flip. By the time we moved in they had taken 10 months to get round to renovating the house and decided to rent as they hadnt finished off. This should have been a warning sign to me. The little jobs never got finished. I did them. When the initial tenancy finished in spring this year they wanted a bit more (quite a few houses have come up for rent on our street at quite a bit more than we were paying, it seems rents may have gone up quite a bit). They even told me they had agreed for a friend to move in if we didnt want to pay what they were demanding. Seems they have a friend who was leaving her husband and would happily outbid us with the help of HB.

    The sense of entitlement they displayed - especially her - really wound me up. Apparently the house was worth more because it was nicer than when we moved in. I quickly explained that we only have to return the house in the condition we found it. She fell apart crying that I was threatening to wreck their house. The fact she thought of the house as a wreck when we moved in was pretty telling.

    We ended up agreeing £150pm reduction in rent. But a few jobs i couldnt do still needed doing. They stopped answering the phone and I brought out my secret weapon. They hadnt protected our deposit. A letter before action brought them into line very quickly. We agreed £2500 compensation and we also have our deposit back.

    I feel like I've exorcised a few of the demons of being treated like shite by landlords in return for being a good tenant who always pays on time.

    So, that brings us to present day, we've found somewhere we are happy to buy - right location at right price! Its a small terraced cottage in a nice quiet hamlet. It needs a bit of love after being rented out for the last 5 years, but the huge private, very peaceful back garden sold it to me - despite being overgrown. We'll probably spend 6-8% of the purchase price to make the house how we want it.

    Last similar house to sell was 2 doors up. Sold in 2007 for 35% more than we are paying.

    Mortgage is very manageable, in fact (worryingly for the wider implications of loose lending) our bank didnt bother to do a credit check as it was a tiny salary multiple. Interest on the mortgage will be little more than half what LLs are asking for basic clean rentals. Once we have spent a bit to get the house how we want it we will be overpaying mortgage in order clear it in 5-6 years.

    We have paid 4% more than our vendor paid in 2002. I would be happy to see prices drop across the board so others can have the same opportunity as us. But I fear that the w*nkers in Westminster have other ideas.

  5. Not just in Scotland.

    Ive recently agreed compensation of £2500 with our landlord for failing to protect.

    Until April last year, whilst it was an offence to fail to protect, the LL could protect the day before a court hearing and they were let off. Now its an automatic win for the tenant.

    Following our little result, Ive been asked by 5 different friends / family asking me to help them understand if they have a case. I reckon 4 of them do.

    It seems that many deposits taken between 2007 - 2012 have not been protected and many canny landlords have failed to notice the change in the law, and many agents got bogged down trying to retrospectively protect a large number of deposits before May last year and made simple administrative errors.

  6. Would be interested to know how they have come to their conclusions.

    Have they reached a simple conclusion that, all the 2 bedders are occupied, therefore there is nowhere for the 3 and 4 bedders to downsize?

    Or have they allowed for the overcrowded 2 beds which will become available when the bigger under occupied houses are freed up?

    I guess the question I am asking is : is the problem simply one of the volume of small social houses, or is it largely a question of logistics? ie freeing up large social houses in order to free up the smaller ones

  7. In my city (Coventry) there are roughly 119,000 dwellings.

    Guessing that there is a 70 /30 split between OO and rentals would mean approx 35,700 rentals.

    When i did a freedom of info request from the council (as did many on HPC early in 2011) I was informed there were 28,700 live cases of housing benefit. (Obviously some are low paid workers who only get top ups)

    Thats roughly 80% of the rental market in the city

    So, if every landlord shuns all those on housing benefit they will all be chasing 20% of renters.

    Its simply not going to happen as described in the Telegraph. The landlords are benefit dependent.Of course, a journo couldn't possibly imagine a scenario where landlords would have to accept a lower rent

  8. Which buys what in places people want to live? An ex-council flat above a shop? Prices have to collapse, this scheme won`t replace the LIAR LOAN phenomenon.

    Maybe I blinded you by giving an example of a £100k mortgage. This effect isnt restricted to people spending such amounts. Think of the figures as being 'for every £100k spent'.

    The purchasing power based on affordability means from January the buyer with a 5% deposit could spend a little over 40% more than before.

    In other words, for every £105k they spent before, they will be able to 'afford' to pay £150k when this scheme comes in (again assuming the rates of 3%) How much of a game changer this policy is, will be dependant upon the rates attached to these mortgages.

  9. I think what you are really describing is a return to LIAR LOANS..

    the ability to outbid a competitor is difficult if you are on a salary you have to prove...that extra £5K you need to "win" the house of your dreams comes from more borrowing in most cases....LIAR LOANS acheive this very nicely.

    A few 95% mortgages are available today. Interest rates at 6.59%+

    Current HTB mortgages (on newbuild) are available at circa 3%.

    What do effect do you think that will have on affordability if the second phase of HTB is funded with similarly cheap money?

    According to the BBC mortgage calculator, a £100k repayment mortgage over 25 years at 6.59% would cost £688 per month

    If the mortgage is at 3%, the same £688 would pay for a mortgage of £143800.

    This means someone who can pony up a poxy 5 to 7 grand can make the payment on a purchase price of £150k, instead of the £105k house they could afford previously.

    The key will be how expensive these mortgages are in terms of the rate being charged.

  10. money has been thrown at the market since last year...prices are not rising.

    But now they will throw it at people who havent had to save a big deposit.

    My opinion, and quite a simplistic rule, but it applies to almost anything you buy. The harder you have to work to earn the money to buy something, the more careful you are.

    When the govt stumps up a deposit, people are less careful. See the volumes sold for new build HTB. Lots of new builds near us have struggled for ages. Property bee has shown the builders putting up prices, and still they sell all their plots very quickly.

    If you are buying a house, you simply need to offer more than the next highest bidder. This has created a 2 tier market where those with unearned equity will pay silly money, but generally at the higher end of the market.

    At the lower end, people who have had to save their 10% plus are much more cautious about buying, and will negotiate. As a result prices in my area at the bottom end of the market have fallen consistently since the short lived the dead cat bounce in spring 2009.

    However a new breed of buyer is about to be set free. I expect the lower end will be pumped up.

  11. I agree with this. In fact sellers will actually now be able to afford to lower prices because they wont need such a high LTV for their next purchase.

    And this still all relies on a wave of FTBers willing and able to join the bottom of the ponzi. As in the Cambridge illustration a few posts above, FTBers are better off with the New-Build part of the scheme. And I'm not convinced of the media myth of "pent up demand" of FTBers.

    Also, as I understand it, the guarantee is not for mortgage arrears but to indemnify the lender in case of repossession and the property has lost value. So the guarantee is useless until the banks have repossessed the property. In the medium term this guarantee creates an incentive for banks to go for repossession rather than forebearance. I see a lot of unintended consequences in this scheme.

    Whilst you are on to something with the change to the incentives to repossess, the first of the repossessions are unlikely to be be for at least 1 year / 18 months / 2 years (delete as applicable). So how long before the numbers become significant enough to have an impact?

    The money being thrown at housing will lift prices in the short term. In 3 years time when the bubble blowing stops, the repo's could be picking up pace.

    Possible perfect storm in 3 years time?? I see this as nothing more than the political game playing that Gordon so loved.... Scorched earth. Leave a horrible sh!tty mess for the next Government to clean up

  12. Don't agree at all. I think many of the posters on here who are renting (professional, degree educated etc etc) would now be owner occupiers, not renters. The idea that if the AST hadn't been invented, these posters would be under a newspaper on The Embankment is ludicrous.

    And you didn't need to be rich to get a mortgage in the early 1980's (or in the 60's, 70's for that matter). That is the point! Renting had more or less died out. If you really wanted to rent, and were "poor" you went to the Council.

    By renting for the last 7 years I have been able to avoid buying into a bubble. If the option of renting hadnt been so freely available to me and others on this board, we would have stoked the demand facilitated by lax lending policies and pushed prices even further. Remember demand is desire backed up by the ability to pay.

    Rather than the rosy view of the world you have painted, i would have been garroted by a 8x mortgage, (or picked a spot on the embankment).

    However, if the debt bubble hadnt been allowed to explode, i would have bought 7 years ago for maybe 3-4 times my salary.

    In my view, lax lending has damaged my financial prospects far more than the introduction of the AST.

  13. Why do you say that??

    3 houses sell in a given time period for £1m, £400k & £100k.

    The average selling price is £500k.

    In the following period, the market struggles. The bottom of the market collapses altogether, the £100k houses didnt sell. The other two did, but at a 10% discount.

    The average selling price is now £630k.

    The moral of the story is that as long as the bottom of the market suffers the most, the statistician can tell you that average prices are rising.

  14. In other news the council is coming round to resurface my road, thats despite the face that it is a minor residential road with not a single fault on it, not even a single spot of damage, not a single pothole in its lifetime.

    Its my roads "turn" apparently. Turn to push a bunch of notes into someones back pocket I'm sure.

    If they do a poor enough job of the resurfacing, you will start getting potholes so they really can justify spending even more of your money mending it every couple of years (but not until you fecked the suspension on your motor of course!)

  15. I recall hearing a stat that Mansfield had the highest concentration of smack users per head in UK

    Couldnt find the stat I was looking for, but the link gives you an idea of what the place is like.

    At a rough guess I would say Mansfield is still 50 miles from Brum, if thats the kind of distance you are happy with then look at the 'out in the sticks' type villages to the east of Nottm heading out to Grantham, or rural Leicestershire.

    Decent(ish) prices, away from the main drag and the feral city types.

  16. Noticeable jump in volumes of properties being reduced by between 5-10% today.

    Property bee shows that more than two thirds of new properties added today are in fact reductions. It is striking that only 1 reduction is a cynical 2% cut. A sprinkling of sales falling through and about 1 in 4 is a genuine new property!

    In Coventry btw!

  17. I am waiting until nearer the end of our tenancy before doing this, but the landlord has three obligations

    1. protect deposit within 1 month of receipt

    2. Give you form showing which scheme its protected with

    3. explain to you who to contact / what to do in the event of a dispute

    You have up to 6 years after termination of tenancy to claim for non-protection. Its an automatic win for you. Court merely has to decide whether to award you 1x your deposit or 3x deposit (this is on top of receiving your deposit back!)

    It boils down to how much you want the money and how much you want to stiff your landlord. Our relationship with our landlord is very poor and I relish the opportunity to teach him to be a little more responsible and that being a landlord isnt just about waiting for the 14th of the month to get a quick cash injection.

  18. Please elaborate on the Localism Act (2011), if you don't mind!.

    Sorry for the delay, only just seen this.

    Localism Act is a separate matter, LL hasn't protected our deposit, Localism Act means I can ask for my deposit back and put in a claim for up to 3 times the size of deposit! (Deposit was £900)

    I am keen to get cracking with this, but Mrs Caveat wants to wait until the time we are moving out as she doesnt want to increase the bad feeling whilst we are living here.

    As for the other tenant lined up, they would have to evict us first, and I knew they couldnt do this without protecting our deposit.

    We now have a tenancy for the lower amount for 6 months. We havent discussed it, but i get the impression they think we will agree to putting the rent back up in 6 months time. It simply isnt going to happen. If we are still there we will go periodic, knowing they cannot serve a section 13 (to force an increase in rent) until at least 12 months, and they cannot section 21 us for eviction until the deposit is protected (and any fines due under localism act have been paid to us)!

    Like i said in my previous post, these people are complete f_cking amateurs and they have annoyed me - I hope to do enough to persuade them to give up rentierism.

  19. Check the date on the epc and check the postcode on Rightmove 'price comparison report' and pay attention to the 'no longer on the market' section. I think the default rightmove setting is 'within 1/4 mile of this postcode', change to 'this postcode only'.

    I asked an EA about a house a couple of weeks ago and was told it had been on for two months. I checked the postcode on the rightmove 'price comparison report'. There are 3 sections, currently on the market, removed from the market and sold prices.

    In the 'no longer on the market' section I saw that the house had been on with at least 3 other agencies over nearly 2 years. The date on the epc said May 2011!

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