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House Price Crash Forum

ProleStore

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  1. Yes, the MMR came from the government. They had no choice because of the upcoming European Credit Directive. Otherwise they may well have watered it down significantly. I don't know what else explains the government's schizophrenic attitude to mortgage debt. https://www.gov.uk/government/consultations/implementation-of-the-eu-mortgage-credit-directive/implementation-of-the-eu-mortgage-credit-directive
  2. The mortgage market review was forced upon the government by the EU. It was introduced as a pre-emptive move to ensure Britain would be compliant with upcoming EU legislation, so that the UK government wouldn't have to introduce the European rules directly. Our government's main contribution to the European policy, if I remember correctly, was to negotiate an opt-out for the BTL people farmers.
  3. Landlords only exist because of the state theft of 'property' by previous governments. The taxes raised by landlords on the land they govern is entirely spent on themselves. Even if the council wastes 99% of the money they take, they are doing better. And if you don't like it, you get to vote on it. If the democratic bit of local government takes money from the feudal bit of local government then that is a small victory for democracy, however poor that democracy is. The non-state private sector has absolutely nothing whatsoever to do with any of this, and is entirely unaffected. All this reaction really shows, is just how effective it has been for feudalists to camouflage themselves as entrepreneurial businesses. A thousand years of history says this is ********.
  4. In financial terms, your first house provided a partial hedge against the increasing value of the house you really want. So there was profit on the hedge, but a loss overall. The number of people who think they've benefitted from the increased cost of housing, is many times the number of people who actually have benefitted.
  5. As far as I am concerned this is just ******** Hell, banks can repossess your home if you default on unsecured debt, like a credit card bill or an overdraft. This just reinforces my view that people are completely delusional when it comes to housing.
  6. I don't believe that it is rational, I think the recent bailouts and props are just the latest phase of the delusion, they aren't the cause. All irrational bubbles are profitable, for a while, once the inertia gets going. Doesn't make them rational. The housing market is our society's equivalent of the Easter islander's stone faces. Easter islanders spent so many of their resources building faces, that their society collapsed.
  7. Poverty for landlords is the solution. The problem is the excessive amount taken out of the productive economy and spent by the unproductive on unproductive assets. Government is just the largest landlord. Focusing the debate on their spending alone is just a distraction from the real problem.
  8. Absolutely. It's ridiculous to suggest the housing crisis is a difficult or intractable issue. It's harder to think of another political problem which is so easy to solve. There are probably 20 or 30 policy options that would work, to a greater or lesser degree, and one of those options is just to do nothing at all.
  9. Lots of home-owners have been carefully trained to think that they are better off because of house price increases. Vested Interests control the media, which creates the public opinion that determines government policy to benefit the vested interests.
  10. I'm not sure if this has been covered already but, as I understand it, the difference between the treatment of consumer mortgages and BTL mortgages comes from the fact that consumer mortgages are regulated by the FCA: http://www.fca.org.uk/firms/financial-services-products/mortgages This means that firms can be fined for not observing the FCA guidelines on 'treating customers fairly' which includes things like complying with the (EU mandated) MMR, various rules on the information provided to customers, and the process when customers are in arrears. The regulation goes beyond the minimal legal and contract requirements, and is supposed to give additional protection to consumers. BTL landlords lobbied the government, who lobbied the EU, to exclude BTL mortgages from these protections. The landlords got what they wanted. So (and I'm hoping someone more knowledgable will confirm this) the mere fact that these conditions are included in consumer mortgage contracts does not mean that banks can apply them on a large scale to consumers, even if they are legally enforceable. Assuming you trust the FCA of course...
  11. Devaluing your currency is default. Are we really supposed to believe that a sneaky default can fix everything, whereas an actual default is the end of the world?
  12. I'm just emphasising how sinister the concept of an 'amateur' landlord really is. I think it terrible that something with such consequences is treated as just another lifestyle choice. Something for consumers to buy into. Lots of people do believe this, but I wasn't suggesting you were one of them. I did make a swear though, sorry about that .
  13. Every single holder of a BTL mortgage is an investor, just like every single shareholder. They are taking responsibility for a person's home, it isn't a ******* hobby.
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