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Sonic the Hedge Fund

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Everything posted by Sonic the Hedge Fund

  1. Wow, you may have stumbled on somthing there Justice Perhaps destroying the pound is part of Gordon's master plan to get Britain to join the the Euro......
  2. The graphs show the number of mortgage resets per month Mortgage reset: homeowner who fixed their rate at a lower rate 2 or 3 years ago, on a new deal now has to pay a much higher interest rate for two reasons: 1) base rates have gone up by nearly 2% over the last 3 years 2) More importantly, spreads (i.e. premium above base rate to cover risk/losses by the banks & underwriters) are increasing rapidly, due to the sub-prime crisis and global credit crunch. Victoria just anounced that thy are adding 2.5% to sub prime mortgaes for this reason A Victoria IO sub-primer who fixed three years ago will now have to pay +2% for base rate increase +2.5% premium due to the increased cost of credit. Thats 4.5% on top of a previous rate based on 4% (all previous margins being equal, these are both NEW rate increases) Sh1t, did their monthly payment just DOUBLE? as the graphs show, the number of homeowners facing this dilema will grow over the comming months
  3. Private equity is lucky to find any finance at all now.....
  4. thats also quite a big jump, but isn't that due to the swap market pricing in the risk of base rate increases? i.e. it's due to the predicted future actions of the BoE The key thing in the article is that Victoria are re-pricing because they cannot sell their debt, this is an actual example of the debt market setting UK mortgage rates. The actions of the BoE are becoming irrelivent, pushing the string, so to speak
  5. I have been waiting for this piece of news for some time Check out this from the front page of HPC, this is an absolute killer: http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0 This one mortgage lender cannot find a buyer for their debt, so they have had to re-price the rates on their mortgage offerings: sub-prime +2.5% near prime +1.25% This is a UK mortgage lender no doubt others will soon follow...they will have no choice, the market has spoken If the BoE cut rates by .25% it will make no difference
  6. Ingenius Promote EUR carry trade, props up the pound while deflating the Euro
  7. Welcome to HPC W12 There is some real treasure on this forum, amongst all the floatsum. whereabouts do you reside on STVI?
  8. I agree It's quite simple really, IMO The Sun does not lead the direction of public sentiment, it follows So if the 'Sun Says' then Joe Blogs is already thinking it.
  9. Your finances are obviously healthy, but there are plenty of people just one rate rise from financial meltdown. I know one person who pays £1700 of his £2400 monthly salary into mortgage payments. Another, 22 years old has £300K mortgage on about £45K joint income. Both are paying IO, with the only (temporary) saving grace that they are only 1 year into a 2 year fix, but there must be plenty of people who have no spare cash to pay for a pending reset.
  10. It's like a big game of pass the parcel, with loads of parcels, some of which are timebombs but no one realy knows which. While the music played nobody cared, but now the music has stopped and the CD player is broken.
  11. Well this is obvioulsy true, IMHO. Most people are just too insular to understand or care about what is going on until they actualy see it going on around them.
  12. Funily enough I also know of one such example, the BTL in this thread was previously a builder: http://www.housepricecrash.co.uk/forum/ind...mp;#entry664980 And guese what, he is in the sh1t!!!
  13. Just out of interest, where are these figures from crown? Thanks Sonik
  14. This is a very simple scam; the developers are selling new builds at a premium so they can sell the PX at a loss The builder maintains the impression of high sale prices on the development by applying a big discount retrospectively to the PX property. The buyer is none the wiser because having been paid well over the odds for their PX (confirmend by the fact that it has not sold on open market), the high price of the new build seems right. No wonder second-hand newbuilds are imposible to sell!!! I would say this is sick; but then if people are stupid enough to be drawn in by this kind of scam and a shiny new kitchen then they deserve to get stung Nest, just out of interest, which town(s) in Herts are you refering to?
  15. Overal looks like less than half the CDOs are being accepted as colateral by the Fed. Also interesting that Fed appears to be charging higher interest on RMBS colateralised loans. Looks like the Fed considers some banks to be 'sub-prime' borowers
  16. But this time the fall is from a much higher start point, which means it has broken through previous suport In a floating market absolute values are meaningless, floating markets are relative by definition.
  17. I agree It just shows how many are priced out, since the average FTB wage is much higher than the overal average wage.
  18. Amazing how the sheeple sudenly sit up and take notice. Today, many of my co-workers are asking me what the hell is going on, just two days ago they though I was nuts
  19. Least reported? this same story was the the headline on the business section yesterday: http://www.housepricecrash.co.uk/forum/ind...pid=724135&
  20. Does anyone have serious answer to Tuffers' question? This is important to those of us who are long on GBP.... My guese is that the previous strenght of sterling was due mostly to carry trades, which are now unwinding. IMHO (and I am no expert!), if other factors (such as carry trade) are put aside, the massive credit pumping of ECB, FED and BoJ should have devalued EUR, USD, JPY against GBP, the fact that GBP has fallen without credit pumping by the BoE shows that sterling is reverting to it's true fundimental value. Is this right?
  21. Once again George Bush shows that he has got his finger on the pulse (shame that the patient is already dead) Soft landing? The plane has already crashed and the flames are rapidly spreading All that remains now is some firefighting, central banks are dropping from helicopters as I type............
  22. Front page headline on BBC business right now: http://newsvote.bbc.co.uk/1/hi/business/6938072.stm
  23. Banks can set their own interest rates for savers, and they also get a loyal customer that they can then flog other finance products to Many of the top savings deals are tie-ins; you have to open a current account etc. to get the best savings rates.
  24. I have wondered this too A&L have consitently offered headline grabing savings rates, and they are also an aggressive mortgage lender But then most of A&L's debt is fully collateralised, so bad debt isn't realy their problem. Perhaps high savings rates are indicative of organisations that have been sucsefull in offloading their risk onto the markets? The real suckers are the ones left holding the CDO's
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