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The Masked Tulip

Rising Number Of Owners Face Risk Of Losing Home

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THE number of people who faced losing their homes in South West Wales during the second quarter of the year has risen.

According to the latest figures released by the Ministry of Justice, 340 people across the region were taken to court in the past three months as mortgage lenders moved to repossess their properties.

This is compared to 295 in the first quarter of 2009.

In Swansea, 145 faced court action, with 105 in Carmarthenshire and 90 in Neath Port Talbot.

But despite the rise, the figures represent a significant drop compared to the same time a year ago, with repossession action down by 39 per cent in Neath Port Talbot, 36 per cent in Carmarthenshire and 29 per cent in Swansea.

The Ministry of Justice has no regional data for how many properties were actually repossessed following the court action.

Across the UK, however, the Council of Mortgage Lenders (CML) said the number of homes repossessed has fallen by 10 per cent in the second quarter of the year.

The 11,400 homes repossessed was a rise of 14 per cent compared with the same period the previous year.

Difficulties

The group said early advice for struggling owners, low interest rates and tolerant lenders were helping.

But rising unemployment could soon leave more householders in difficulty.

In Swansea, Neath Port Talbot and Carmarthenshire the number of people signing on rose to 13,192 in July according to the latest figures.

Chief executive of Swansea Building Society, Alun Williams, said: "Lenders have been encouraged to use repossession as the last resort and try and work with mortgage holders and various advice agencies.

"Generally more efforts have been put into trying to speak to their customers.

"Obviously interest rates are lower than this time last year which would have helped."

http://www.thisissouthwales.co.uk/southwal...il/article.html

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How does that make YOU feel Bob?

Actually, not over-joyed. I have real sympathy for hard-working, decent people in the area who are in trouble and in danger of losing their homes. There must be people, parents, elderly, etc, who are worried sick and I feel really sorry for them.

On the other hand, if you are a greedy person who has been speculating on property instead of buying a home then good enough.

How you tell one group from the other is beyond me though - any idea?

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There must be a fair number of properties that are being repossessed in the Swansea area. I'm seeing a few notices in the Evening Post from agents each week saying they are acting on the instructions of the mortgagee in possession and have received an offer of........".

It isn't nice to see people losing their homes. But it is reassuring for my sanity to know that I was right over the last few years when I thought it was crazy the way people were spending big time on moving house, buying new cars, block paved drives, extensions, holidays etc. I thought people must have been borrowing/mewing and that it wasn't sustainable.

Anyone else noticed there does seem to be a fair number of new properties coming on the market over the last month or two? It's just that none of it seems to be very good quality - nothing that interests me anyway. That's the problem for me. There aren't that many parts of Swansea I want to live in and not many properties (in my price range) that excite/interest/appeal to me.

Who's Bob? Bill Murray played Bob in "What about Bob?".

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Actually, not over-joyed. I have real sympathy for hard-working, decent people in the area who are in trouble and in danger of losing their homes. There must be people, parents, elderly, etc, who are worried sick and I feel really sorry for them.

On the other hand, if you are a greedy person who has been speculating on property instead of buying a home then good enough.

How you tell one group from the other is beyond me though - any idea?

Difficult one due to human being's foibles.

I suppose that if I had to I would generalise that age will be a divider. Older homeowners will probably have built up some equity over the years if they have owned for long enough, will generally be a bit more sensible.

Kids who bought in the last few years with small deposits could be tempted to spend their monthly mortgage money on more exciting stuff like crack now that the initial attraction of home ownership has worn off.

Like you say, those who have lost their home through unemployment or illness deserve some sympathy. I only say SOME because lenders are keen to assist, there are insurance policies and benefits available to help also so we must assume that even these people could be doing something wrong to get repo'd.

I've noticed a couple of repo's selling super quick in decent locations over the last few weeks.

I know that I'll not get much agreement on this but I have seen people benefit greatly by being able to remortgage and raise funds against their home, a friend did this and was able to start a business which is now a big success.

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I know that I'll not get much agreement on this but I have seen people benefit greatly by being able to remortgage and raise funds against their home, a friend did this and was able to start a business which is now a big success.

I disagree.

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I know that I'll not get much agreement on this but I have seen people benefit greatly by being able to remortgage and raise funds against their home, a friend did this and was able to start a business which is now a big success.

I haven't decided what I disagree with yet. I just wanted to disagree for the sake of it.

I'll give the matter some more thought but I suppose I could disagree by saying:

I think you will get much agreement on this (the fact noone has disagreed with you yet could make this a good choice - I'll leave it a few more days and if noone has disagreed with you then I'll say I was right to disagree with you);

you haven't seen people benefit by being able to remortgage and raise funds against their home;

you don't have a friend that did this;

you don't have a friend;

you have a friend but s/he didn't do this;

you don't have a friend who's business is now a big success.

There are so many options. Think I've been watching too many Yes Prime Minister episodes on UKTV Gold (on at 2:20 each weekday).

God, I must be bored with house prices. Bored bored bored. Even the Rightmove story (-2.2% last month) hasn't interested me. I know prices should go down again in the Autumn but I'm getting seriously fed up of waiting and starting to wonder whether I should just sod it and buy a house and not care if the prices go down afterwards. Fed up of waiting and want to get on with my life. Incidentally, your username (niceathome) - is it nice at your home? Are you a "home owner"? Where?

I (used to) know a few people who borrowed money on their houses (they called it taking out a second mortgage in those days) to put money into the (failing) family business and ended up losing everything (in the last recession). They found it hard to accept they were going to lose their businesses and as a result ended up losing their houses too. It was very distressing. These are the sorts of people I feel sorry for. I don't really feel that sorry for people who over extended themselves to buy a house and are now facing reposession. I know this sounds harsh, but these are the same people that put in above asking price offers and thus priced other people out of the market.

Edited to hide the fact I can't think, type and spell at the same time.

Edited by Dave Dribble 2

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I haven't decided what I disagree with yet. I just wanted to disagree for the sake of it.

I'll give the matter some more thought but I suppose I could disagree by saying:

I think you will get much agreement on this (the fact noone has disagreed with you yet could make this a good choice - I'll leave it a few more days and if noone has disagreed with you then I'll say I was right to disagree with you);

you haven't seen people benefit by being able to remortgage and raise funds against their home;

you don't have a friend that did this;

you don't have a friend;

you have a friend but s/he didn't do this;

you don't have a friend who's business is now a big success.

There are so many options. Think I've been watching too many Yes Prime Minister episodes on UKTV Gold (on at 2:20 each weekday).

God, I must be bored with house prices. Bored bored bored. Even the Rightmove story (-2.2% last month) hasn't interested me. I know prices should go down again in the Autumn but I'm getting seriously fed up of waiting and starting to wonder whether I should just sod it and buy a house and not care if the prices go down afterwards. Fed up of waiting and want to get on with my life. Incidentally, your username (niceathome) - is it nice at your home? Are you a "home owner"? Where?

I (used to) know a few people who borrowed money on their houses (they called it taking out a second mortgage in those days) to put money into the (failing) family business and ended up losing everything (in the last recession). They found it hard to accept they were going to lose their businesses and as a result ended up losing their houses too. It was very distressing. These are the sorts of people I feel sorry for. I don't really feel that sorry for people who over extended themselves to buy a house and are now facing reposession. I know this sounds harsh, but these are the same people that put in above asking price offers and thus priced other people out of the market.

Edited to hide the fact I can't think, type and spell at the same time.

Too much time on your hands by any chance?

So you're sitting around waiting for another big drop in house prices? I've been more bearish this year than I was last year but prices don't seem to have really moved greatly, or at least not as drastically as I predicted at the start of the year.

Decent houses seem to be acheiving decent money, even the repo's that I have watched seem to have sold in a matter of days at good money as well - one on Cherry Grove and another on Fernhill Close.

What does seem to have changed is that crap housing which might have sold at over £100k 2 years ago is now selling at almost 50% below peak.

Myself, I live by the sea West of Swansea in a very secretive house in that it is not visible unless you get past the gates. Most don't get past including the postman.

GOLD and Dave TV - not much else on in the daytime.

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Too much time on your hands by any chance?

So you're sitting around waiting for another big drop in house prices? I've been more bearish this year than I was last year but prices don't seem to have really moved greatly, or at least not as drastically as I predicted at the start of the year.

Decent houses seem to be acheiving decent money, even the repo's that I have watched seem to have sold in a matter of days at good money as well - one on Cherry Grove and another on Fernhill Close.

What does seem to have changed is that crap housing which might have sold at over £100k 2 years ago is now selling at almost 50% below peak.

Myself, I live by the sea West of Swansea in a very secretive house in that it is not visible unless you get past the gates. Most don't get past including the postman.

GOLD and Dave TV - not much else on in the daytime.

I agree with you,

top end houses are still fetching good money but the bottom end has completely fallen apart. That’s probably because the desirable houses are bought by middle aged punters with a few bob whilst the bottom end is all first time buyers, investors and those who would have relied on a dodgy mortgage in the past.

Here's a quick question for you Nice

RPI is currently at -1.4%. The government has spent years trying to get us to accept CPI as the headline rate (because it excludes mortgage interest which is politically convenient for them) and the BoE is compelled to make its interest rate decisions based on this measure. So why should I consider RPI when considering the rate of inflation when the BoE is not expected to? Anyway I am sure RPI will start to head north soon too. It's only so low because of the massive cuts in interest rates which distort things given how reliant on the housing market our economy is.

All of which economic cogitiation leads to me to the most important question. Should I exercise my option to go for a fixed rate mortgage at 4.09% for 3 years (I have reserved this potential rate for a small fee and have the option to exercise it until December but am yet to fill in the paperwork and submit it) ? I am currently on a tracker at 1.26% above base rate (so 1.76% at the moment) but of course as the CPI starts to rise the BoE will start to raise interest rates.

I discussed this with an economist a couple of months ago and she suggested I wait and see. I think I have waited and seen enough though. Even if I am wrong and the CPI starts to fall again, I am certain that in another year it will be rising and this option would protect me from the effects of subsequent inflation (which could be severe if the BoE do not time the cessation of the QE programme correctly) until the end of 2012.

What do you think I should do Nice, stick or twist?

I passed on your kind regards to Malcolm and he asked me to tell you that the sewen are rising by Sainsburys.

:lol:

Edited by marty

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I did overhear a conversation last week about a house in Morriston which was on for 105K only being offered 74K and the EA advising the seller to take the offer.

Whether this is a sign of the market going bad in parts of Swansea but not in the West of Swansea yet is open to debate.

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I did overhear a conversation last week about a house in Morriston which was on for 105K only being offered 74K and the EA advising the seller to take the offer.

Whether this is a sign of the market going bad in parts of Swansea but not in the West of Swansea yet is open to debate.

Much of the so-called rise in Swansea West property values is simply a consequence of devaluation of money. This has led to an explosion of debt as over the long term the debt can be repaid in devalued currency. That's what's happening right now.

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Too much time on your hands by any chance?

So you're sitting around waiting for another big drop in house prices? I've been more bearish this year than I was last year but prices don't seem to have really moved greatly, or at least not as drastically as I predicted at the start of the year.

Decent houses seem to be acheiving decent money, even the repo's that I have watched seem to have sold in a matter of days at good money as well - one on Cherry Grove and another on Fernhill Close.

What does seem to have changed is that crap housing which might have sold at over £100k 2 years ago is now selling at almost 50% below peak.

Myself, I live by the sea West of Swansea in a very secretive house in that it is not visible unless you get past the gates. Most don't get past including the postman.

GOLD and Dave TV - not much else on in the daytime.

I would point you in the direction of previous threads that all lay plain what you all know about the dependence of Swansea on public spending compared to other parts of the UK

Also the unemployed deplete their savings before getting behind on their mortgage and having to sell up

The third nail in the coffin is that interest rates will only go in one direction sooner or later - up

My conclusion: you aint seen nothing yet

What you have seen is some people who should never have been given mortgages in normal times being picked off

The UK economy contracted by 5.5% in the first half of the year, the highest drop ever recorded

The UK budget deficit is 12-13% of national income and the budget needs to be balanced or the cost of UK borrowing will spiral

A new government is coming in next year that will have to raise personal taxes and cut government spending

Its about as inevitable as death and taxes...

...it just doesnt have to happen quickly or visibly

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I agree with you,

top end houses are still fetching good money but the bottom end has completely fallen apart. That’s probably because the desirable houses are bought by middle aged punters with a few bob whilst the bottom end is all first time buyers, investors and those who would have relied on a dodgy mortgage in the past.

Here's a quick question for you Nice

RPI is currently at -1.4%. The government has spent years trying to get us to accept CPI as the headline rate (because it excludes mortgage interest which is politically convenient for them) and the BoE is compelled to make its interest rate decisions based on this measure. So why should I consider RPI when considering the rate of inflation when the BoE is not expected to? Anyway I am sure RPI will start to head north soon too. It's only so low because of the massive cuts in interest rates which distort things given how reliant on the housing market our economy is.

All of which economic cogitiation leads to me to the most important question. Should I exercise my option to go for a fixed rate mortgage at 4.09% for 3 years (I have reserved this potential rate for a small fee and have the option to exercise it until December but am yet to fill in the paperwork and submit it) ? I am currently on a tracker at 1.26% above base rate (so 1.76% at the moment) but of course as the CPI starts to rise the BoE will start to raise interest rates.

I discussed this with an economist a couple of months ago and she suggested I wait and see. I think I have waited and seen enough though. Even if I am wrong and the CPI starts to fall again, I am certain that in another year it will be rising and this option would protect me from the effects of subsequent inflation (which could be severe if the BoE do not time the cessation of the QE programme correctly) until the end of 2012.

What do you think I should do Nice, stick or twist?

I passed on your kind regards to Malcolm and he asked me to tell you that the sewen are rising by Sainsburys.

:lol:

Sorry for my tardy reply, I've been up in London working hard for a couple of days.

I'm flattered that you should ask me my opinion on your mortgage but I'm not qualified to air my opinion.

Never bothered me before and I doubt I'll let it stop me now!

I'm in a similar situation to yourself, paying my lender's standard rate. None of the deals currently available excite me very much. The million dollar question is when will rates rise and by how much? Also need to consider that mortgage rates bear little resemblence to bank of England rates and what will be the effect of a raise in interest rates.

I'm waiting out a bit longer as I have a low loan compared to the value of the house (even a pessimistic value which is my nature) and I can afford the risk.

What if lenders eventually realise that they wish to lend to low risk high quality applicants/houses? Will products be more competitive?

The reason I ask so many questions is that there is absolutely no certainties!

BTW Marty I had assumed that you were retired and renting or had paid off a mortgage/bought for cash following a divorce and downsized.

Edited by niceathome

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The effect of job losses in the civil service and Swansea council is an interesting one.

My initial reaction is that the majority of jobs in the public sector in Swansea are poorly paid or part time. I have an impression that these job losses could be absorbed without a massive impact. After all I wouldn't expect to see many of the well paid managers or teachers/nurses on the dole.

I'm prepared to be proved wrong, I've never given much thought to public sector jobs but a quick look on the Swansea council website vacancy pages has failed to convince me that they are a source of well paid employment.

Hence, maybe, the growing thought that the affluent parts of town will suffer far less than others in terms of price crashes.

Siwen by Sainsburys eh? Best get a rod out Marty.

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The effect of job losses in the civil service and Swansea council is an interesting one.

My initial reaction is that the majority of jobs in the public sector in Swansea are poorly paid or part time. I have an impression that these job losses could be absorbed without a massive impact. After all I wouldn't expect to see many of the well paid managers or teachers/nurses on the dole.

I'm prepared to be proved wrong, I've never given much thought to public sector jobs but a quick look on the Swansea council website vacancy pages has failed to convince me that they are a source of well paid employment.

Hence, maybe, the growing thought that the affluent parts of town will suffer far less than others in terms of price crashes.

Siwen by Sainsburys eh? Best get a rod out Marty.

Plenty of Council employees on 30 to 35K - have a couple in the same dept and you can get alot for 70K lifestyle in S'sea. Even two 25K jobs makes a difference to a S'sea existence as a couple and a S'sea existence as a single.

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