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r thritis

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Everything posted by r thritis

  1. It doesn't take anything off the price. It means that the price at which people are prepared/able to buy has increased by the amount of the stamp duty. Net result - the seller gets the stamp duty instead of the govt.
  2. Disagree - if the value of the asset is less than the amount borrowed, the bank has lost.
  3. Agree entirely - and doing it this way (which is happening now), avoids the 'nuclear' option of sending out large bills.
  4. Agree that banks will do anything in their own interest to maximize profit - but for that very reason - why would they turn a mortgagee who was meeting their monthly commitments into a default? The bank would end up writing off the loss after reposession etc and the mortgagee would be bankrupt. No win for all parties.
  5. Thanks marmite. That thread says it all really. From what I see there, it looks like its a condition of many BTL mortgages, but not residential mortgages (unless I missed something). I would still condsider it unlikely that they would invoke it though if someone was meeting their monthly payments. To do so would quickly turn a profit returning customer into a distressed default. Yes - they have already done it for overseas holiday property - but it is a big step from that to mainstream BTL.
  6. This topic seems to be gaining some mainstream legs. As I understand it, if a mortgage is offered on, say, a 85% LTV basis, and the value of the property falls, the lender is able to re-establish the agreed LTV by requesting a lump-sum payment from the mortgagee. Questions: 1. Is this a standard clause in all mortgage agreements - or is it primarily a BTL thing? 2. Did we see any margin calls in the 89-94 crash? 3. Has this happened in the US? I can see that there is potential for an absolute meltdown here - if one lender made a margin call, all others would scramble to follow suit to avoid being left behind. The prospect of huge (10k+) bills landing on the mats of already stretched home-owners and BTL investors would cause absolute panic and a massive wave of bankrupcies and reposessions (to the extent that the govt would surely intervene). Utimately, this would be in no-one's best interest, least of all the lenders. It couldn't happen - could it? RT.
  7. Last year you could get a 100% mortgage if you were 108 and terminally ill.
  8. Yeah I get that all the time. It does seem to be the concensus view of those unable to think for themselves.
  9. Bast*rd "If you rent you are a low income low life"
  10. I think Milliband has decided that Labour wont win the next election under any circumstances. His aim in making his current play is to get sacked by GB and to be elected Labour leader in opposition with the hope of becoming PM after 1 term in opposition. This is the "Hesseltine manouver". It failed for him.
  11. Thanks for your insight Ma'am, but I'm not sure ones popularity will increase.
  12. We'll see quite a lot of this desperate self justification of a bad financial decision. "I'm happy in my little home" etc. The fact remains that she must now spend half her working life paying back the money she has thrown away in the worst financial mistake of her life. It is much easier to convince herself that she is happy with what she's done rather than face the reality of the situation.
  13. Here all you doom-mongers go again, with your gloomy predictions of price falls. Petrol prices are still higher than they were a year ago.
  14. Hell no, no one could have predicted that could they? Who'da thunk it?
  15. It was a big confidence trick. The (thankfully now defunct) seminars subjected you two days of indoctrination. One of the central themes of the Inside Track brainwashing was that "you've made the profit when you buy a property not when you sell it". This is drummed in repeatedly throughout the 2 days. Now this is clearly daft, but if you can get people to believe this assertion, you have then opened the door to sell them anything as long as you make them think that you have already locked in a discount. What the seminars where doing, in effect, was to prepare the lambs for the slaughter: Inside Track being the farmer and Instant Access Properties being the abbortoir.
  16. 12 inch deep pan with pepperoni and extra mozzerella please. I've got everything in cash in multiple on-line saver type accounts, having got out of various investment funds at the start of the year (which looks like good timing thus far). My biggest fear is the doomsday scenario, i.e. total banking collapse or hyper inflation. If this were to happen, at least those with a house would still have a house. I would have s*d all. Not losing too much sleep over this as I think the worst case scenario is very very unlikely.
  17. Out with the Bollinger, in with the Lanson. Times are tough for a tenant.
  18. Many seem to have been unable to make a distinction between what they want to happen and what was likely to happen. This blind 'wishful thinking' seems to have affected even hardened experts and seasoned professionals. In the past few years I have spoken to financial advisors who had convinced themselves that it was sustainable for property price increases to outstrip wage increases effectively for ever. Their blindness in this seemed to be driven by their own circumstances and their perceived horror of a falling market - to the extent that they could not even contemplate it.
  19. Stamp duty cuts do nothing for first time buyers. If a buyer has an extra 5 grand in their pocket from the stamp duty cut, developers / sellers will raise their asking price by 5 grand. End result - FTB pays same amount but tax payer has bailed out the developer.
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