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Caveat Mortgagor

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Posts posted by Caveat Mortgagor

  1. I'd rather be a 20 something in a clapped out old fiesta going to a music festival with my friends than an asset rich old guy with a clapped out body peeking out from behind the curtains in a cold massive house. And so would they.

    I was with you until this bit, for 2 reasons

    1.) Music nowadays

    2.) Festival goers nowadays

    I hate queues, hate most modern music and hate being drenched by some complete strangers warm pi$$ whilst I'm trying to relax and have a drink

  2. Don't be such a pleb.

    It's called credit and it is a beautiful thing.

    Credit for breakfast, lunch, dinner and supper.

    I can see green shoots already. :rolleyes:

    You've just reminded me of an old Bobby Thompson gag

    Some of us call it debt. Others call it credit. Committee mens wives..... on account.

    Well I'm in debt on account of I cant pay my credit

  3. I took him to task some months ago on twatter. He got quite rattled and replied to me 4 or 5 times. In fact once he replied twice before I had a chance to come back at him.

    I think it was the line 'you acknowledge huge inequality, but dont see a problem, what sort of consumer champion are you?' Apparently he sees himself as an advisor of practicality and he advises individuals not groups or something. Anyway, he sent me the attached link to explain everything.

    My comments are Nick 21st Nov 2011My link

  4. Apologies if this has been posted, though I cant see it anywhere. Over the weekend Halifax released a report stating that buying a house costs £600 month, but renting costs £732 a month.

    Thought you might want to exercise some spleen venting.

    Press release

    A bit more detail

    In particular i like how they have forensically analysed the cost of everything associated with buying a house (though they fail to account for a fall in the value of the asset bought at the same time as recognising that falling prices is a factor in buying being cheaper). My favourite bit is how they also take into account the interest lost on your deposit.

    Avg deposit = £39,346

    Int lost = £39.22 a month.

    That's right. If you have enough about you to acquire nearly £40k in savings, you'll only have it in an account that pays 1.1%p.a. interest.

  5. Just been on BBC breakfast. The 'expert' was financial advisor. Cue groans on the Caveat sofa!

    But she did allude to the fact bank of mum and dad had been exhausted, that people need to consider moving away from the IO and consider paying down capital or move with a smaller deposit and take a hit with higher interest rates. Very bearish! :-)

    When the sofa droid suggested everything will be alright if people sit tight and wait for the market to bounce back, the new hpc heroine stated that prices climbed too fast previously and that maybe the current difficulties in the housing market are the new normal!

  6. The game changer - Q: what has distorted the long term ratio of salary multiple and house price?

    I note you wanted figures on household income. This would no doubt make an allowance for the increase in second earners, but also the often unspoken factor that has meant hard (un) working families have had the pressure relieved massively and they have been able to take part time work.

    Look at the huge jump in the cost of financing this scam between 1999-2002. Would be interesting to find out what it costs today. This should always be remembered as part of Gordon's legacy to the country.

  7. Schapps on Radio 4 banged on about "we building more homes" and claimed "of no quick fix solutions"

    Someone needs to get through to him than a German type of rent and tenure control would release a lot of property for purchase from inadequate landlords whilst addressing the exploitative rent level issue - This is a quick fix.


    Posts: 25

    Joined: 08-August 07

    Great lurking!

  8. As I got into my car, the Kerrang 8 o'clock news was on. The very first thing I heard was '.....says the cost of renting a house is out of control and rents need to come down. The average rent in the country at present is £725 a month.'

    I really liked the fact that they recognise housing is too expensive and in particular the choice of words ie 'out of control'.

    The next step is to get the media to see that the cost of buying a house is out of control as well.

  9. The lady in the video is even on google streetview with a 'for sale' sign outside it:


    Judging by the house numbers next along it is 31 - if so then it was bought in 2000 for 55K. But the doorway is on the side so it could be Sandy Court, but no house prices come up for Sandy Court, so assume it is Luke Street.


    Yep, if you zoom in on google it says 31 on the house so bought for 55K.

    You did that the hard way TMT.

    At the top of the RM listing is a hyperlink for 'see more properties like this one'. If you click, it does a RM search within a half mile radius of the postcode.

    Once you have the postcode in RM, simply hover over the 'housprices' hyperlink in the menu at the top of the page, and a drop down menu appears. Click 'price comparison report'. Narrow down the search to 'this postcode only' and Hey presto. much easier than dicking about with streetview.

  10. The sub-heading says 'forbearance joy for thousands'

    I think its more accurate to say forbearance joy for the banks. Yesterdays report showed more than 28000 mortgages are in arrears by in excess of 10% of the outstanding mortgage balance. These worst case examples are the ones allegedly 'benefiting' from the forbearance.

    I would say the banks are the ones who can play make believe, and are able to continue to pay bonuses whilst pretending the 5 year old mortgage - which is in huge negative equity and which hasn't had a repayment in months - is actually some form of asset!

    Champagne all round for the banks.

    Reckon the mortgage debt holders would prefer to be put out of their misery though.

  11. I expect they simply do not understand the figures and what they mean.

    Thanks for reading the article and pointing that out.

    I got quite depressed reading the first few sentences of the article that I gave up reading the rest.

    In fact, Its the same article from earlier but edited.

    However TMT, have you read the guardian article linked in the other thread. I thought of you when reading about the former civil servant from south wales who was earning £70k pa until redundancy, but is now only getting offers of £16k. If things dont pick up, he might have to sell.

    Just for TMT

  12. Hmmm, from the article

    The CML reported that the number of borrowers in arrears, of 2.5% or more of their outstanding mortgage, was flat.

    There were 157,400 people in this position in the second quarter of the year, slightly fewer than in the first three months.

    However, the CML warned that things could take a turn for the worse if the economy deteriorated further.

    "The Bank of England forecast for growth reminds us of the pressures that may disturb the current pattern of stability," Mr Smee said.

    Richard Sexton, of e.surv chartered surveyors, said thousands of distressed borrowers were being kept on "life-support" by their lenders.

    "To banks' credit they've done everything they can to keep people in their homes, but now the economy is slipping downhill they'll be forced to switch those life-support machines off," he said.

    "We'll soon reach a tipping point where the market will be hit by a glut of repossessions once banks decide they can no longer afford to sustain all of these 28,000 struggling borrowers [in long term arrears]".

    There's another thread about a similar BBC article. In this article they mention 28000 people, but fail yet again to explain what they are.

    Let me clarify - The 28,000 relates to the number of mortgages in arrears by 10% or more of the outstanding mortgage balance.

    Twice now they've overlooked that scary detail. Its almost as if they don't want to frighten the sheeple.

  13. Repossessions fall to 18-month low

    Council of Mortgage Lenders says the drop in the second quarter of 2012 was in line with a seasonal pattern

    Household budgets are under pressure at a time of high unemployment and low wage growth.

    The number of homes repossessed by mortgage lenders in the past three months fell to its lowest level since 2010, according to official figures.

    There were 8,500 posessions in the second quarter of 2012, the Council of Mortgage Lenders said – about 1,000 fewer than in the first three months of 2012 and the lowest number since the final quarter of 2010.

    The CML said the drop in the second quarter of the year was in line with a seasonal pattern it has seen in each of the past three years.

    The number of borrowers who have fallen behind with their mortgage payments was broadly the same as compared with the same quarter in 2011 and the first quarter of 2012.

    "The figures show that lenders, borrowers and debt advisers are working together to get through the current period of economic difficulty and keep mortgage possessions in check," the CML's director general Paul Smee said.

    Previous figures from the CML showed that the number of UK homes being repossessed fell to its lowest level in four years in 2011. However, the group said it expected there to be a higher number of people facing more serious problems this year.

    It predicts repossessions will rise from 37,000 in 2011 to 45,000 this year, as people's budgets remain under pressure at a time of high unemployment and low wage growth.

    "That repossessions are likely to rise for the year as a whole is depressingly predictable," said Mark Harris, chief executive of mortgage broker SPF Private Clients. "Although interest rates are expected to remain at 0.5% for the foreseeable future, a growing number of borrowers are still struggling."

    "Mortgage rates continue to rise, despite the non-movement of base rate, with more than a million homeowners seeing an increase in mortgage rates in May, for example. Those with little or no equity in their homes don't have the luxury of being able to remortgage on to a cheaper deal."

    The struggle some homeowners face was laid bare earlier this week in testimonials from Guardian readers as part of a series about how the recession has changed their lives.

    Tim Robson, 49, an unemployed senior civil servant from south Wales said: "I was a senior manager at a local council when I was made redundant in 2010 earning more than £70,000 a year. Now I'm being offered jobs at the bottom being paid £16,000 and my jobseekers allowance is about to run out. If things don't improve, this year I will have to sell the house, but the market is so depressed it'll be a struggle to sell it." (Calling TMT!)

    Many homeowners face repossession not because they refuse to downsize, but because they cannot sell their homes.

    "The situation is particularly hard for people who have bought in the past six or seven years and find that their properties are now worth less than they paid for them," said former estate agent and housing commentator Henry Pryor. "For those people, even if they want to move to restore their position, they can't because they don't have enough equity to get a new mortgage deal."

    He added: "The shock in today's figures is that they haven't grown larger quicker. However, lenders do seem to be working harder than ever to make sure people stay in their homes, and I hope this will continue."

    Additional figures from the CML show that landlords are continuing to cash in on the property market. Buy-to-let lending increased by 5% in the second quarter of 2012, with the volume of loans up 14% year-on-year.

    Taken from the Grauniad

  14. This article on repossessions in UK has fallen to its lowest level since the end of 2010:


    Also mentions that SMI is a major factor but that the 13 week wait brought in at the start of 2009 reverts to 39 weeks at the end of the year. The CML don't like it, no surprise there.

    Banks and building societies who are willing to allow 3 months arrears are hardly going to allow 9 months, are they?

    The BBc article did mention this.... The CML reported that the number of borrowers in arrears, of 2.5% or more of their outstanding mortgage, was flat.

    But failed to mention this.......there was a small increase (from 28,000 to 28,300) in those mortgages with the highest levels arrears, of more than 10% of the balance.

    Still, perhaps its better to imagine that the latter doesnt exist. I mean, imagine being in arrears by 10% of the outstanding balance. You would think they would be repoed before they got to that stage. Yeah, repoes are under control, the economy is fixed, low interest rates have saved us all and no-one gets 10% of the O/s balance in arrears with their mortgage!

  15. And yet the trout in the studio summed up the whole problem with the media. The 'expert' was telling the watching masses how the market is more difficult for various groups - including FTBs. The dizzy trout interrupted the 'expert' to say 'you'd think its a good time to be a first time buyer cos prices would be low'

    There you have it. If only the FTBs would take advantage of these low prices. Those pesky kids (average age of approx 40) are screwing things up for everyone else!

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