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Total_Injustice

Northern Rock Is Bad For Hpc

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So NR has made a loss and their 125% mortgages are the root of all evil.

However, the Government have backed NR so if the value of properties falls significantly, the Government and ourselves are left carrying more debt. Therefore, it's in the interest of all parties to crank the VI handle and do all that is possible to prop up the price of houses.

This means that there is one question that we should all be asking our MPs. What is their future aspiration for mortgage lending (say in terms of LTV, multiple of income, dual / single income based, duration of load, etc)? After all they ought to have a strategy, an understanding of how house prices will factor in tomorrows economy.

An answer to this question is necessary, as we will then be able to make a reasoned judgement of what 'recovery' looks like for the UK housing market.

Unfortunately, when raised as a petition, I only got 209 signatures. Is my reasoning flawed, or do you all see the situation being so bad that a true HPC will occur as it is unstoppable, or …

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So NR has made a loss and their 125% mortgages are the root of all evil.

However, the Government have backed NR so if the value of properties falls significantly, the Government and ourselves are left carrying more debt. Therefore, it's in the interest of all parties to crank the VI handle and do all that is possible to prop up the price of houses.

This means that there is one question that we should all be asking our MPs. What is their future aspiration for mortgage lending (say in terms of LTV, multiple of income, dual / single income based, duration of load, etc)? After all they ought to have a strategy, an understanding of how house prices will factor in tomorrows economy.

An answer to this question is necessary, as we will then be able to make a reasoned judgement of what 'recovery' looks like for the UK housing market.

Unfortunately, when raised as a petition, I only got 209 signatures. Is my reasoning flawed, or do you all see the situation being so bad that a true HPC will occur as it is unstoppable, or …

Northern Rock didn't make a loss. It's not possible with the recovery underway for the last four months, prices have been going up. I think all you people on here are just lying and inventing a story in the UK press just for your own gain. If house prices had declined then they would have made a loss sure, but they haven't so they must be making money on the houses they had to forclose on, not that they did that either. There are no forced sellers either, that would infer house price drops too as distressed sellers / mortgage companies sell off their assets... sorry I mean houses. House prices only go up everyone knows that. Simples.

The f*cking press are incredible. Green shoots my a*se. More of this to come I guarantee. Note-disclaimer- my guarantee is covered by the government and has an unlimited pot of money (namely you the tax payer pay your own compensation).

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The f*cking press are incredible. Green shoots my a*se. More of this to come I guarantee. Note-disclaimer- my guarantee is covered by the government and has an unlimited pot of money (namely you the tax payer pay your own compensation).

:lol:

I'm sure the masses believe this.

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:lol:

I'm sure the masses believe this.

They do! And worse than that, my brother in law who is an accountant at citi insists that:

1: House prices have not gone down

2: lending on houses and credit cards is a tiny amount of their business

3. they are making massive profits

4. The consumer having a job isn't important to citi

I don't know whether he is simply trying to annoy me or is just delusional.

The fact is, people listen to the BBC etc and this is what they believe. Apart from the odd older person everyone i speak too doesn't think there is a problem now we in recovery.

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They do! And worse than that, my brother in law who is an accountant at citi insists that:

1: House prices have not gone down

2: lending on houses and credit cards is a tiny amount of their business

3. they are making massive profits

4. The consumer having a job isn't important to citi

I don't know whether he is simply trying to annoy me or is just delusional.

The fact is, people listen to the BBC etc and this is what they believe. Apart from the odd older person everyone i speak too doesn't think there is a problem now we in recovery.

Recovery - Noun

1. the act of recovering from sickness, a shock, or a setback

2. restoration to a former and better condition

3. the regaining of something lost

4. the extraction of useful substances from waste

Collins Essential English Dictionary 2nd Edition 2006 © HarperCollins Publishers 2004, 2006

If this is what the country thinks we're all fuc*ed.

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It's important to remember that NR was effectively forced to drive away an unhealthy percentage of its best mortgage customers in 2008 in the drive to pay down the BoE emergency facility, so in some ways the fact that the overall book LTV is only 74% is surprising. Nonetheless a number of NR customers spent most of yesterday complaining to anyone who would listen that they are trapped in negative equity and therefore unable to move their mortgages away from the lender. I'm not sure there's much of a solution to that. Nationwide, and I'm sure other lenders in due course, will offer a remortgage to EXISTING customers in negative equity, since they are already exposed to the risk, but who in their right mind would take on a new mortgage of more than 100% LTV now? That's what got us into this fine mess in the first place, as they say.

If enough people are in negative equity to be unable to move, then good luck to GB engineering a house price recovery.

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It's important to remember that NR was effectively forced to drive away an unhealthy percentage of its best mortgage customers in 2008 in the drive to pay down the BoE emergency facility, so in some ways the fact that the overall book LTV is only 74% is surprising.

That's what puzzles me. If the overall LTV is 74%, bearing in mind that huge numbers must be in negative equity, then there must still be a lot of NR borrowers with more than 25% LTV. So why are they still there? Inertia? Crank up that punitive interest rate!

Edited by Laughing Gnome

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