bomberbrown

Those google images dating back are fascinating. You can actually see when the cracks set in (pun intended) between 2012 and 2015.

I hadn’t considered the implications of a bank repossessing a house till your first two paragraphs. That was a real light bulb moment for me. Banks won’t want all the hassle of renting out a repo and then deducting the rental income from the outstanding loan in order to help the mortgagee, why would they? Get shot of the property in an an auction and have the mortgagee on hock for the shortfall for years to come (unless of course the mortgagee declares bankruptcy) edit: thanks to mods for removing my erroneous multiple posts. Not sure what happened, I’m posting on iPhone FWIW.

As I understand it, the average stats for the uk (correct me if I’m wrong) are: 33% mortgage holders 33% renters 34% own outright (most likely keen eye on savings rates) Therefore I reckon there won’t be a majority swing for bailing out mortgagees . I think Rishi is also on the same page (well I hope so!)

…and how does she think all these prudent FTBs are building their deposits if it’s not with savings? Real savings rates against inflation as well. I really wish journalists/TV presenters/MSM would call politicians out like that. edit: oh, was Laura the presenter? I thought it was one of Sunak’s mob.

Indeed. You might like/dislike this graph then. However, your real price affordability back then was down to you getting a job paying double what you were getting 5 years before rather than any general wage inflation. How many are likely to be in that position today?

That second graph has house prices bottoming out in Q2 2025 at Q3 2021 prices. Dream on! This is is going to play out a long longer than the 89-96 crash.

This ^ I don’t think the MSM, or politicians, actually get it right now. I’d rather we all tighten our purse strings and run the risk of deflation* right now than runaway inflation. *I’ve absolutely no debts so deflation was always my preferred option.

This! ^ Either we all, to varying degrees, accept the pain/cold turkey NOW or run the real risk of some batshit crazy inflation/hyper inflation a bit later. The party’s over.

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7 out of 9 of the MPC voted for 0.5% rise.

Non paywalled copy https://archive.ph/RLE9F

In 1961 it was coming down at huge pace too. Looks like it took 2 world wars and a depression to pass 100% last time. https://www.statista.com/statistics/282841/debt-as-gdp-uk/

This simply doesn’t compute! Is he seriously suggesting the indebted mortgagees are already sitting on thousands of pounds of savings, that if were getting a good return on them that would be the solution to all their mortgage woes. Come on!!! Reading between the lines, Hunt’s effectively whipping up an anti-bankers frenzy, trying to appeal to both debtors and savers alike. Deflecting everyone’s financial woes away from government and laying all the blame with the banks (which they were complicit). Actually, it’s quite clever when you break it down. Read any of my past posts, I stand firm in my belief the minute the world went ZIRP, the sole intention was to get people hooked on cheap debt and then fleece them for 50 years. It took longer than I ever thought it would to get to the payback time, but now here we are nonetheless.

…..and MEW to the moon and back!

WTAF!! Are we seriously meant to feel sorry someone whose mortgage has increased from £300 to £600. FFS! I know many private renters already forking out 3 times that for a poxy London flat.

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I get what you're saying, but all that (vacancy, new price discovery, available finance etc) is not going to happen overnight (see 1989 - 1995 crash as example). And with private sector rent prices on the increase, it's going to be even harder to secure private rented homes. A huge number of cheap, not-for-profit council dwellings would have been an ideal buffer for the next 3 or 4 years whilst this all plays out.

...at a massive, inefficient and uneconomical premium!

.... because there's been bugger all council dwelling building in the last 40 years. That's where this all started (and ZIRP)

The 'problem' we have now that we didn't have in the 50s - 70s is there was an abundance of Council dwellings these defaulters could have moved into back then. We simply don't have that now.

The ludicrous ZIRP of the last 15 years, by all nations, should act as a warning/reminder that you cannot continually to kick the can down the road waiting for a better outcome.

Corrupt image

FWIW, I don’t think the BoE will hold next week, despite the FED decision. BoE are constantly playing catch up and they know it. I actually think they could do a 0.5% increase next week and that would definitely set the cat amongst the pigeons! Bring it on!!