uro_who

I do a bit of private practice and BUPA set their own fees. The others in the industry usually follow. In 1991 the British Medical Association were outlawed from publishing their own recommendations and since 1991 the BUPA fees have risen 1%. If you compare that with the rise in CPI over the same time it is 50%. The private practice of the average doctor on those terms alone has dropped by 30% since 1991. OK put your hankies away I don' t expect your sympathy!

Steady on SEW no-one is unloved in the HPC family, you can share your decisions and worries with us, its just the bills you're on your own with!

I thought there was some interesting psychology behind the David Haq section. 'He is happy to keep his portfolio as its capital value is rising at 8% per year'. Mmmmm. That was last year. With bits of London falling at 7.8% in a single month on rightmove how long will he remain happy I wonder. Although only 10% might be small number players, these will have a huge impact on the market and valuations. Most big BTL players get off on calculating the value of their portfolio every day. They'll be rapidly on the prozac and the properties on the market if they see the future yacht and place in the Cap D'Antibe going down the swanny. Many will want to liquidate their portfolio before the new dream is a static caravan in Skeggy. Not to knock Skegness/Ingoldmelds you understand.

I couldn't believe it either. it completely negates all the cr@p fro the BBA etc. suggesting that UK lenders have been much more sensible than in America. First time I've seen it mentioned in a negative way is half way down the following story. http://observer.guardian.co.uk/uk_news/sto...2175114,00.html

It's a lovely hook story. So lovely I've emailed it to The Times, The Independent, Today (R4) newsdesks and business desks. I also sent a copy to that nice Mr Fallon on the Treasury Select Committee. Oh I think he's a conservative and 'grilling' Mr King tomorrow.

I spoke to a very nice man at the BoE and that was exactly his point. Overall he said they wanted to limited the rises in the 3 month LIBOR rate to 6.75. The lack of liquidity had meant that the Bank had lost its ability to control the interbank market and this is one of it's mandated jobs. My feeling on the situation is that the banks are just like someone who has run up a huge debt on a 0% credit card and has suddenly found that there aren't any more 0% deals available. Without intervention the punter has to pay off his loans (take debt onto the books) with the BoE help they can all go and buy that new shape audi tt and plasma tv instead. Hey the Cristals on me!

Steady on LJ that's at least 2 really funny posts in 2 days!

Goodness know's how but it's down again. Stand by for emergency rate cut. [gb mode on] due to our stable and growing economy (sucks air like fish out of water) we are able to deliver lower interest rates (suck) the labour party will not allow a return to the bad old days of high inflation and high interest rates (suck) [/gb mode] Book election early next year before shit hits fan again.

I just heard that the BoE have provided over £4 billion of liquidity to the markets. Bank shares have gone through the roof. No moral hazard here, move along nothing to see. Why not let professor King know your thoughts at mervyn.king@bankofengland.co.uk

Do you actually work the for labour party? You seem to have that ring to your comments.

Anyone wonder who's gifted suggestion this was (Paulson - 'yeah shit throw some money at it - drop your interest rates - organise 120 year mortgages - we can party on for ever')

I am thinking of opening a grandad and granny farm for aged HPC posters. Obviously Charlie that is many years off at the moment but please 'bear' it in mind for the future. All executive retirement units will have broadband connections to enable senior baby boomers to manage their stocks, shares and BTL portfolio's at speed. All surounded by glorious Derbyshire countryside. Do remember however that space in the UK is limited and it is best to place a deposit now to avoid dissapointment in the future.

What is really interesting about that table is the interest rate spread. Many years it is not the current 1%. 1.5 or 2% seems much more standard. This would give us 7.25 - 7.75 which would sink many in the UK. Why have spreads been low? The decrease in the premium associated with risk. What have the recent events done. Reminded lenders of the true cost of risk. Expect mortgage rates of 7.75% some time soon.

I actually think the opposite is more common. I'm in a similar situation and despite being a fully paid up bear for the last 4 years still find myself thinking, I hope it all works out before the shit hits the fan! Once you've got yourself into the position that you're moving, cerebration stops and heart takes over. You've already made the conscious decision to get on with it and therefore the hassle and emotional re-adjustment of not moving is more real than a theoretical benefit in 2 years time when prices might have dropped by 20% on their way down by 50% eventually. It fits into the it'll all work out in the end category. My outlook might be tainted by the fact that I'm not a FTB'er. If I was I would run for the hills!

Seems unlikely as the bottom of the last property crash was only 11 years ago!

Mouth watering!

Just read http://news.bbc.co.uk/1/hi/business/6993094.stm which got me thinking. If banks and building societies need to increase deposits (7x more depositors than borrowers) then what will they need to charge on the mortgages that these are lent out on? Are they willing to gamble that 3 month rates will come right down or will they force up borrowing costs yet higher?

Let me give you two examples. I wanted to buy a local farm with a barn conversion for my family and mother. I put an offer in of 20% under the asking price. Quite a lot of thought but then refused. I couldn't offer any more anyway as although I'm STR the old dear hadn't sold her gaff. Couple of weeks ago the agent said they were going to sell did we wish to offer more. I couldn't at the time although 5 days later I could but by then it was too late. I happen to know the other buyer offered 10% under the asking price. I'm waiting until closer to the expected completion date to offer more if the other purchaser hasn't pulled out and to stick or knock a bit of he they have. It's a great property in the most brilliant spot and I really do think it is one of a kind. We can afford it and whatever happens with the economy I will take it on the chin. Another bloke at work looked at a different farm house that was up for £1.3 million. However Savills said that they had 2 other buyers and it went to sealed bids. This was on Friday, NR crash in full swing. He told me he offered more over the asking price than his first house cost in total (only about 13 years ago). The result, he still didn't get it! For most buying a house is an emotional decision. It's a nest for you and your family. The first to get nervous will be BTL et al. with most buyers unswayed by the news. There may be a percentage of collapsed chains and if you're able to drive a hard bargain then you should go for it.

Sounds like a politically very un-popular idea. Therefore it hasn't got a hope. The effect of BTL is much larger than second homes. Even the Queen has many more BTL properties than holiday homes. What is needed and can be done relatively painlessly is to turn the tap off. It would be wrong to change the tax regime for existing BTL but for new properties CGT should be 100% with only expenses of sale set against that value. You won't upset quite so many people and can play to peoples better nature in getting it passed. Again clear exemptions could be put in place for for housing associations. For those that wish to invest in property one could possibly allow the introduction of fixed term housing association bonds which pay a level of income. This would allow the expansion of the social housing sector.

Surely the exact problem is that the mortage assets are very difficult to value. The only way to realise them as cash is to sell them and hold on, no one wants to buy mortgages (except at 7 pence in the pound etc.) So it's really only the liquid assets that count surely. If they needed to start to sell their mortgage book at the current prices they'd get for it they'd soon be penny share!

Even better 125% mortgages. Great 25% negative equity even before the rightmove figures. If you took one out to buy that place in Camden last month then you have 32.7% worth of negative equity a month later. Now thats what I call prime!!!!

Please stop, I really can't take much more.

MArkets just opened and NR is down 20% at 510p. Clearly probably won't last but funny all the same

At the mo old chap. But. NR has pioneered high LTv ratio's, income multiples and sucked in a huge amount of BTL onto its books. Increasing business by 55% this spring. Its deliquency rate is only 0.5% today. If house prices fall+++ (see rightmove thread) then that's up to 55% of their mortgage book in negative equity. Ouch, won't look quite so clever then!

It doesn't matter. Detached houses are down 4.3% month on month. I agree it's probably the lack of kite flyers but it's those very people that endlessly hang around on rightmove with unrealistic prices that encourages the next punter to put his on for 20 grand more 12 months later. If those on the market are priced to sell it will drive sentiment down. That is reason 1 why the VI's don't like HIPS. Reason 2 is that they all make a packet everytime you try to buy a house, getting a survey before some gazumps you getting another survey, before their chain breaks down and buyer 3 has yet another survey. How thinks that full fat HIPS (including surveys) would be popular with surveyors and building societies who profit hugely evey time we need to make another mortgage application and book yet another survey through the mortgage provider. Anyway -2.5% across the board and news of credit crunch is going to run riot with sentiment. Hahahahahahaha.