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About bertie

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  1. I remember reading that there's so much Chinese money in the US system that if they decided to get organised and move it around strategically to cuase the worst damage they could potentially damage the US economy. Given that the said economy is now looking decidedly shaky, they clearly have the ability to do some fairly big damage. I'm the first to admit that I'm a little light on hard facts here. I'm looking to see if others can substantiate or dismiss this possibility. If you work on the worst case, we may well see a return of manufacturing to the UK, only it'll be the kind that makes crappy plastic toys for the wealthy Chinese kids to play with! Bertie
  2. It would seem HPC is not only a source of financial wisdom but also dietary advice. Perhaps Nigella's followup to Nigella Express should be Nigella Repossessed - how to live in Chelsea on a dollar a day.
  3. I found this story on CNN. There are 20+ stories here which are grim reading. As you click through the various acounts of the financial strain these people are under you may see a number of parallels wih some people in the UK. I don't take pleasure from reading any of this. It'll proably have different nuances in the UK but I expect a simlar situation to arrive here some time in the next twelve months. Bertie
  4. I like the concept of Net Present Worth. In other words tot up you debts, savings and assests and this is your total worth. If you have equity you will have a positive net worth in most cases. I consider the idea of saving as not spending some money so that it goes to improve my NPW. Whether the money is put under the bed or used to pay down my mortgage is not really an issue provided I can still access this money with similar convenience (liquidity) that would be similar to a more traditional savings product. I currently have the maximum Cash ISA allowance in the NS&I account which pays more than my mortgage rate and the rest is in the mortgage. On thing which might be worthy of debate is how easy it would be to withdraw overpayments if your financial circumstances changes. Strictly speaking, if you were unemployed or long term stick you should tell your mortgage and they may get a bit twitchy if you were to be drawing down large amounts with no obvious mean of repaying. So I think it's probably wise to retain a small amount in non-mortgage savings and use the rest to reduce your debt. BTW, my mortgage is a normal tracker and I utilise the 500 pound per month overpayment facility. I think the badged offset mortgages offe less attractive rates which only really make sense if you have earnings which can vary widely and you need the flexibility to pay in sporadic chunks. Bertie
  5. OMG, it's so cringeworthy. They just did a bit where they had pictures from viewers. "Here's the lovely view from my cottage." Oh FFS, does the nation give a toss? This is possibly the worst live TV since Sam Fox and Mick Fleetwood did the Brit Awards.
  6. I see a lot of stuff about stagnation of the market. I'm not sure it's going to be that benign. When sentiment was high up until a few months ago we were seeing people readily paying the asking price and in some hot areas they were often going 5% over the top be sure to bag a sale. Now the sentiment has shifted you start to hear talk of bid and chip (gazundering) and start to here the chattering classes talking of buyers putting in silly offers. For example I know a forced seller who got asked to drop their price a further $7K after the initial deal had already been struck. Based on the above, I'm expecting the initial drop to be quite sudden as the market flips from paying a premium to seeking value discounts. Anybody else seen this kind of flip going on locally or got a view on this? Bertie
  7. To be honest Phil has always been pretty balanced in his commentary. It's Krusty who's a bonkers bull.
  8. How about: Your country may be repossessed if you do not keep up repayments.
  9. You make a good point. I can see this being the case for many people, especially if the house has taken a long time to find. On the flipside, the risk is always that if just one of the chain is not emotionally involved in the purchase, perhaps a BTL person the whole chain security is lowered to this denominator.
  10. My friends are in a chain of eight movers. They're in the upper third of the chain. It's been about two months since they jumped in and others may have been in the chain longer. Here's the some things I think make the existing chains very vulnerable: 1. If they're progressing slowly you might need to reapply for you mortgage offer as they do eventually expire. Poorer terms on new application. 2. Your bank may choose to re-evaluate their in-principle offer and decline you before the point of no return for the sale. 3. At least one person in the chain may read the headlines and run for the exit, writing off the sunk costs! This hasn't happened to my friends, but I see it as a real possibility. While it will frustrate them terribly it just might work out in their favour if the predictions come to fruition! Anybody else think chain breakdown is also going to slow the market more rapidly than you'd expect as one buyer pulling out scuppers five or more other transactions?
  11. Dear NR - remember to read the small print: Your bank may be repossessed if you fail to keep up repayments on it.
  12. My cash preservation plan has been to pay all my liquid cash bar a little bit for contingency into my mortgage. As my Net worth is about £60K debt I figure this is my best protection against both interest rate moves and market moves. Anybody any views on this?
  13. I wasn't buying your point but the really large letters have convinced me you must be right. If there's anybody else you haven't won over, I can recommend the caps lock key. I'm off to another thread. Bye.
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