Prof

Ok, I admit I`m no economist, so my questions might seem a little stupid to some of the more "clued up" members on this forum. I`ll ask anyway. 1) Is a record of the BoE`s payments to UK banks available for us to inspect ? 2) When/how/will the banks pay the BoE back ? Having heard that Merv has done a U-turn, I don`t trust these muppets anymore.

Watching Sky News this morning, and previous news articles on the current "crisis", I noticed a lot of punters saying they have lost confidence in Northern Rock. This made me wonder what would/will happen when the sheeple lose confidence in the housing market. It could be a bit nasty. Sky have also announced the Rightmove report of a 2.6% drop in prices, could this weekend be a big turning point for UK house prices ?

Offset mortgage, I`ve got one of those. I like it. Lot`s of financial flexibility. I`d pay about £20K off the mortgage, leaving around £30K "for a rainy day". I might be wrong, but having <£35K deposited with any bank is not a bad idea at the moment.

Things (and interest rates) are looking up !

What I noticed today was "FOR SALE". I didn`t see much "SOLD". A lot of the "FOR SALE" signs have been there for months, as have the "SOLD" signs. No VI or media report can alter my conclusion, property sales are slow, very slow.

As I watched this item on BBC News this morning, I thought "Is the boom of the last 5-10 years finally catching up with people ?". Then I thought "Don`t be silly, Gordon said yesterday that he has ended Boom and Bust".

I am starting to loathe BTLers, even though I am an owner. I`d hate to rent, the prospect of having paid my mortage off very soon is a good one. I feel for FTBers, being priced out by BTLers and therefore more likely having to pay rent to a landlord, so he can retire in relative luxury. Well, that`s the plan, but let`s hope the predictions of a HPC become a reality, and finish off a large number of BTLers who think that their investment is sound. It wouldn`t be so bad if the FTBer and BTLer were competing on a level playing field, but it seems that the BTLer has it easier. :angry:

Not possible ? If the Chinese decide to get into PR, Finance, and Media, like they have in manufacturing, what will we be doing ? Polishing their shoes, if we`re lucky.

And the longer they try to convince themselves/the public that there will be no HPC, the better. Why do I think this ? Well because I feel that while the housing market is "in limbo", sales will be very slow. That has got to hurt EAs. Once the crash starts, I would think that there will be a bit more market activity, with people selling up (or trying to), and more buyers coming back into the market. It is quite likely that we currently have a peak in the number of EAs in the UK, due to the "easy money" that`s been made during the boom. I predict there will be a nice drop in the number of EAs over the next few months. This won`t be good for Audi, Mercedes or Mini sales.

‘We hope that as we move into the traditionally busier months of September and October that rates will remain stable and this confidence will return in full force.’

Agreed, it does actually seem to make sense to go IO. Of course, you example assumes that everything goes smoothly (kids leave home in 25 years, for example). Aren`t "kids" living with parents for a lot longer these days ? I`ll stick with paying my mortgage off, hopefully early. The cautious side of me tells me it`s the safest option.

Can we see what they "put in the basket" to measure CPI ? I wonder if they change what they use to keep CPI at the level they want .

What sold signs ? I don`t see many around here. The signs I see look quite old and have "For Sale" printed on them. Also, I remember predicting doom and gloom over 2 years ago, only to be told "but we have low interest rates now". Fine if you have only 2 or 3 years to go on your mortgage, but don`t most (repayment) mortgages take 25 years or more to pay off ? I`d like to hear how the opinions of those who took out large mortgages around 2 years ago have changed. Humans are mostly impatient, greedy creatures, who refuse to learn the lessons from the past.

The future ? Why worry about that, while the value of your home is rocketing and you can borrow money cheaply ?

If only the majority of the UK population "over analyzed" like you, then we wouldn`t be in the crazy situation we are in now with house prices. Plenty of people with your kind of income would be on a borrowing binge. I`d say that you are being very sensible, but I suppose that if you want to take the plunge into the property market, then your finances look reasonably healthy. As you say, you can only afford a sh**hole with a 150K mortgage, so that would be enough to put me off also.

A £500K home, £44K income....... As a single, working, tax paying bloke, that`s something I`ll never be able to achieve. Unless of course, I change career. Now let`s see, how did that family "achieve" their current status ? I know, I`ll have to start sh*g*ing anything with a pulse. The more kids the better. I might even be able to get me a £1000K home and a £60K income. Afterall, bringing up kids is now a career option.

I have never liked Hazel Blears. Whenever I`ve seen her on the news or Question Time, no matter what she comments on, she always makes it sound as though New Labour are doing a fantastic job (with a smug grin on her face). When someone points out a serious problem with some government policy, she will hardly acknowledge the problem and just put a positive spin on it. I just can`t stand politicians who basically avoid everything that might be a problem. We need politicians to admit where things are going wrong, and more importantly, put them right.

"Buy to let investors who have been credited with fueling the housing boom are still making 13% says Birmingham Midshires bank, but they warn that next year may not be so profitable." In other words, Birmingham Midshires are trying to attract further BTL investors. 13% sounds like a good return, and even if next year is not so profitable, they didn`t say that the return next year might be -13%. I think BM know the writing is on the wall for BTL investors (especially new ones), so they are just trying to generate a bit more business.

Dear Potential First Time Buyers, Take note of what Abbey are saying. Good idea to give up the fags, but DON`T give your saved cash to Abbey. Sit tight, wait until the lenders are struggling to get any new business throught the door, and sellers are reducing their prices. In a year or two, you should then be able to buy a house and still afford to eat. If Abbey and their fellow thieves, I mean responsible mortgage lenders, have their way, you may get a mortgage, but you`ll be giving up everything else.

Words from a very wise man. Reducing risk will never pay big returns, but it`s nice to be able sleep well at night. The "get rich quick from property investment" mob are about to find that potential high rewards come with high risks. Interest rates DO go up, as well as down, and it`s the same for property prices. Also, it`s no suprise to see the banks charging higher admin fees. They have a large % of the population hooked on debt, and now they are reaping their gain because they have a lot of people cornered. Beware the bank who offers you "cheap" money. Higher interest rates will have a lot of people wanting to change their mortage deal. The lenders will be loving this.

And may you have a few more days like today, until your foot is on..............

I`m outta here ! PS. My quote can be read at "Darling Admits He Fears The End Of Fixed Rate Loans". Happy 5.75%, BTW.

Blimey ! Am I doing OK ?

I just posted a reply in another thread with a comment "IMO, 6.5% is the new 15%". I think we`re on the same wavelength.

I hope to be gloating until 2112.