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ReggiePerrin

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Everything posted by ReggiePerrin

  1. This could be a poison chalice; it's not exactly a good idea to owe the Council money.
  2. There has to be a significant proportion of IO borrowers who have no repayment plans in place, either because they mortgaged themselves up to the hilt to buy the property in the first place, or decided that 25yrs was a long time and they'll worry about the repayment plan 'tomorrow', they're plain thick, etc, but I don't think they're the real problem or they're just the tip of the problem How many IO borrowers back in the 'good old days' based their repayment plan on 5% p.a. interest rates on savings? There were tons of savings accounts that paid this and more back in 2007. Maybe the biggest problem is not the people without a repayment plan, but those who are trying to save up to repay the mortgage but can't because of low interest rates? Compound interest on a savings account is a thing of beauty when the rate is 5%+ p.a., it's totally meaningless when it's 0.25% This era of low interest rates is a double edged sword when it comes to IO mortgages. I think people would be better off with higher interest rates, you pay of the interest on the loan as it accrues, it never compounds, whilst the savings/investment accounts get the full benefit of compound interest? The IO mortgage problem really does deserve to be described as a 'ticking timebomb', made even worse by the Government and the BOE's interest rate policy.
  3. Hopefully this will panic even more people into buying... because the only way my children will ever be able to buy a house is if we inflate this bubble to bursting point. So good for the Express, keep up the good work.
  4. and then the taxman/taxwoman charges 20% capital gains tax on everything above 10k As investments go a leveraged bet on a single asset can best be described as reckless.. even more so when someone can't work out 'profit'. In case you still know this person, I'll give them a a tenner, they then pay me £2 each year for ten years and I'll give them £5 back at the end.. a profit of £5 for them, £15 if they count the £10 I originally gave them... it's easy money
  5. You can add, "or willing to pay" to your statement. Up to now demand has meant that tenants have been forced to accept higher rents, if demand were to drop and/ or the supply of rental property increases, then a lot of people will demand rent reductions..a power shift Anecdotal, but rents seem to be dropping in my part of the south west, there appears to be a bit of race to the bottom to get new tenants into properties.
  6. Bloody good point.. I'll have to think long and hard about sticking with them after today; they'll need to convince me they can upgrade their systems to cope with any future peak in trading activity.
  7. Thanks, I thought I had checked all the previous posts... obviously not
  8. Heard on the radio that the shares set aside for the retail investor, us, had been over subscribed 15x.. so what are you planning on doing with your 5 shares? Hold or sell for a luxury holiday?
  9. If these were priced similar to 80% mortgages why would anyone bother to save up or put down a 20% deposit? 90% mortgages would be more expensive than a 95% mortgage, so who would ever take out one of those? The people with 60% LTV mortgages will expect a bigger saving over a 95% LTV loan, or else why bother? Basically it would destroy the mortgage market if HTB2 loans were priced anywhere near 80% LTV mortgages. HTB2 is a 95% LTV mortgage with a guarantee, a guarantee that has to be paid for, the risks are still high if the borrower can only scrape together a 5% deposit, so these MMDs should be offered at the highest interest rate, which has to be higher than 90% mortgages
  10. I gave duff info a minute ago, no change there then found this, it might be of help to you? CWU info on share scheme Some interesting bits in there:- I wonder what a 'good leaver' is? and
  11. I think you almost answered your own question 10% of the shares have been set aside for employees, so they get the same number of shares regardless of the shareprice at float.
  12. First I will declare I have an interest in this IPO, I'm in for a miserly £1,500 wrapped up in an S&S ISA. goal is to take profits ASAP and wait to see if the USA defaults, they're weirder than us, and then buy back in at a lower price [My apologies if this appears amoral] but I can't help thinking back to the hype of the last big IPO; Facebook, that led to some very unhappy retail investors (I hope I'm wrong, see above) Anyway good to see so many HPC'ers going for this one, if for no other reason than it shows you know when the Government is giving a genuine giveaway, as opposed to the absurd HTB1&2 offer, which sees people leverage to invest in an illiquid asset, i.e. houses, at peak price.
  13. There is only so much land, so you can't keep building Universes forever, what will happen to the Countryside? I'm not that impressed with this particular Universe, it seems to be broken, is there any mention on how people can switch to another one?
  14. Old news but this gives you some idea of the size of the problem (figuratively and literally) Wall of home knocked down to get morbidly obese teenager to hospital It might be cheaper if they invested in a forklift and a low loader?
  15. It won't end before 2017/18 IMHO.. we had multiple versions/releases of QE, so I don't think they'll stop at HTB2. There's a lot of problems brewing at the moment which are going to take a few more years before they pop uncontrollably, e.g. IOM timebomb, an ageing population who haven't thought about pensions, interest rate rises; real austerity, rather than just talk about austerity, ...
  16. The evolution of Music Bros + replace 'oh-eh...' with 'HTB' = Jedwood Evolution rules; Creationists can eat 7000yr old dirt .
  17. You didn't drop a testicle, I think it's duff data: I saw a Lloyds 95% LTV mortgage on there a few weeks ago, a few days later I spoke to the local Lloyds Mortgage commissary and they denied any knowledge of offering such a product, 90% LTV is/was their max offer. (FYI: I admit that I panicked when I saw the HTB2 rubbish.. I got my mojo together before I did anything rash)
  18. I'm with you on this one; I started reading it and thought it was taking the mickey, but towards the end I started to think they were serious.. It has to be a joke, or else the author needs help.
  19. I'm not so sure it's a 'game' they're playing and one of them will blink sooner or later. If the same Politicians that caused this mess put the right to buy Assault Rifles before the lives of Children, then I think they'll have no problem triggering a default to put their point across on Obamacare ... I think it'll have to get really bad before either side backs down, .e.g. a global financial crisis that hits gun sales
  20. There was a TV programme a few years back (books, who needs them? ). Basically they took three generations of the same family to an outdoor pursuits place.. The kids had no fear... throwing themselves down death slides and anything else presented to them. There was little thought given to the dangers, risks, etc The parents were really nervous about the risks they were being asked to take and those that their kids were taking. I think the mother refused to even watch, let alone participate The grandparents were like the kids... to hell with the risks, let's enjoy ourselves. I guess it's the same with money; Kids and Grandparents have less responsibilities, so can afford to take risks, parents are more cautious as they have more responsibilities, more to protect, etc.
  21. If the BOE is worrying about the leverage levels of hedge funds, they're going to have kittens if they ever get round to checking out the BTL market
  22. Apparently a lot of people are confused by the meaning of 'Interest only mortgage', so ... I went to quite a few house parties in the 90's that were thrown the night before people posted their keys through the door of the building society/bank, now people are being offered a 15% taxpayer funded gold plated guarantee... what can possibly go wrong
  23. I appreciate it's not an equity loan like HTB1.. it's a 15% guarantee on mortgage, so I believe my original question is still valid? (badly worded probably, but still valid ) Edit.. This scheme is probably worse than HTB1 because it is a guarantee ... you can't run away from the HTB1 equity loan
  24. I'm curious whether any thought has been given to the possible impact HtB2 might have on the borrower's behaviour should house prices crash (don't laugh; I know houseprices only ever go up.. so this is purely theoretical ) I borrow x number of '000s on a HtB2 mortgage and put down my parent supplied/borrowed 5% deposit; house prices go up; no problem. House prices drop 5% and on paper I've lost my deposit. houseprices drop 10% and I've lost my deposit & the taxpayer is in trouble to the tune of 5%.. house prices drop 20% and look like they might drop further. What do I do? Walk away from the property losing only my 5% deposit, but owing nothing to anyone, the taxpayer picks up the bill, or do I risk prices falling even further and end up owing the bank money as well as losing my deposit?? Assuming the latter is the answer; How many press reports of HTB2 borrowers posting their keys back through the Banks letterbox will it take to cause a stampede? (i'm sure the bank will try to recover any losses not covered by the Government scheme from the borrower)
  25. The Government is trying to stoke HPI, kick start the economy with funny money, etc. to this end the Press is full of articles about how property is booming, how BTL is the answer to poor interest rates and so on. It makes sense as part of this strategy to trash saving or investing for your retirement, that way people have more cash available to buy overpriced property. Those who still 'stupidly' want to put something aside for the future, assuming they have the means to do so, are being told that property is the best/only way to fund your retirement. (I'm fairly certain if an IFA recommended a leveraged investment in shares as a viable alternative to cash savings they'd be struck off and sued, but it seems to be an okay practise if you're buying property.. weird??) Personally I still save\invest for my retirement across multiple asset classes, in various Tax wrappers, e.g. ISA, SIPP, Company DC pension scheme. I try to spread the risk, don't panic if the market implodes, dripfeed into investments, buy when others panic, sell when the Press recommends a great investment idea, e.g. Buying Apple shares @$700, and forget about buying an annuity when I retire (income drawdown is my plan) Sorry for the monologue, I'm just try to show that some people still plan for the future, regardless of the pitfalls and bad press
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