Jump to content
House Price Crash Forum

Recommended Posts

This is a bit of a blow for those who have claimed that the banks can't afford to let prices fall. I'd say all the planets are lining up nicely for hpc mk2-keep it up good little debtslaves!

Share this post


Link to post
Share on other sites

I suppose if, on average, people are reducing the amount that they owe on their houses, this must be making their mortgage repayments more affordable to them?

It normally reduces the term if you overpay doesn't it?

This surely is bad news for our debt fuelled economy though. No mewing = no spending = recession.

Share this post


Link to post
Share on other sites
The rise was due to homeowners paying off more of their mortgage and lenders' demands for higher deposits.

I wonder what proportion of the £3.2bn is the former and what is the latter? If most of the money is accounted for by higher deposits stumped up by non-FTBs, then very little new money is entering the system and therefore this is a bit of a non-story.

Share this post


Link to post
Share on other sites

Imo people should turn their mortgages into revolving home equity lines of credit. Then pay it down in the good times, but leave it open incase they need it later.

Share this post


Link to post
Share on other sites

Imo people should turn their mortgages into revolving home equity lines of credit. Then pay it down in the good times, but leave it open incase they need it later.

:rolleyes:

Share this post


Link to post
Share on other sites

This is a bit of a blow for those who have claimed that the banks can't afford to let prices fall. I'd say all the planets are lining up nicely for hpc mk2-keep it up good little debtslaves!

The only planet left to align is Uranus - once Uranus is on the line, HPC will happen. :P

Share this post


Link to post
Share on other sites

Imo people should turn their mortgages into revolving home equity lines of credit. Then pay it down in the good times, but leave it open incase they need it later.

what you mean like govts should pay down debt in the good times? except when the good times come they are not viewed as good times but permanent new paradigms, you really do have no concept of human psychology, in fact the last decade shows the exact opposite of what you write, you take it out during the good times because they are permanent and then are fcked when the good times end, i often think you come on here just to take the pish

Edited by Tamara De Lempicka

Share this post


Link to post
Share on other sites

I would have thought in some ways it's bad for the HPC since those people now have more equity in their properties and therefore are less susceptible to interest rate rises when they happen

The upside I guess is that banks will see that it's "worth" reposessing a house with equity rather than one without.

Edited by exiges

Share this post


Link to post
Share on other sites

I would have thought in some ways it's bad for the HPC since those people now have more equity in their properties and therefore are less susceptible to interest rate rises when they happen

The upside I guess is that banks will see that it's "worth" reposessing a house with equity rather than one without.

I have long thought that the free money to banks and almost free money to mortgage payers was designed to 'allow' house prices to fall. The consequences the banks and to homeowners of a substantial fall from here are now less than 2 years ago (unless you have spent the free money on pensions for former CEO's or a new caravan)..

Share this post


Link to post
Share on other sites

I would have thought in some ways it's bad for the HPC since those people now have more equity in their properties and therefore are less susceptible to interest rate rises when they happen.

But they're more able to accept a lower offer; if someone has no equity then they can't sell for less then they paid and will hang on until they go under. if there's equity, they can better take the hit and walk away without going bankrupt or being repo'd.

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-10645760

Any long term consequences for house prices?

I have been maniacally overpaying for a few years now, and also paid off a massive (for me!) lump sum having sold loads of shares when the FTSE was briefly at 5600. Mortgage was £142K in 2005, now down to £49K.

Missus will soon no doubt want to buy a bigger house, which will onvolve going back to £142K mortgage again, probably more, and at a higher IR. Gah if even tight gits like me can't afford a reasonable size house what hope is there?!

The last year has surely proved that the Sibleys of this worl were right, and governemnts "won't let it happen". If it all starts to go bad again, it's printy printy and inflation. :( They won't hesitate.

Share this post


Link to post
Share on other sites

I have been maniacally overpaying for a few years now, and also paid off a massive (for me!) lump sum having sold loads of shares when the FTSE was briefly at 5600. Mortgage was £142K in 2005, now down to £49K.

Missus will soon no doubt want to buy a bigger house, which will onvolve going back to £142K mortgage again, probably more, and at a higher IR. Gah if even tight gits like me can't afford a reasonable size house what hope is there?!

The last year has surely proved that the Sibleys of this worl were right, and governemnts "won't let it happen". If it all starts to go bad again, it's printy printy and inflation. :( They won't hesitate.

Grats.

Share this post


Link to post
Share on other sites

what you mean like govts should pay down debt in the good times? except when the good times come they are not viewed as good times but permanent new paradigms, you really do have no concept of human psychology, in fact the last decade shows the exact opposite of what you write, you take it out during the good times because they are permanent and then are fcked when the good times end, i often think you come on here just to take the pish

I've also see people take every penny they have and use it to pay down debt.. then be screwed when an emergency comes up.. let alone an opportunity arises but they have no liquidity.

Perfect example: worried about your job? Having a revolving home equity line will give you time and let you fund your own business to get it started - if you do lose your job.

Share this post


Link to post
Share on other sites

I've also see people take every penny they have and use it to pay down debt.. then be screwed when an emergency comes up.. let alone an opportunity arises but they have no liquidity.

Perfect example: worried about your job? Having a revolving home equity line will give you time and let you fund your own business to get it started - if you do lose your job.

what im saying is that it wont work because the majority who will need it will already have removed it in the good times (which is exactly where we are (you know, a credit crisis). Some people might use it correctly but unfortunately as we have seen the last decade the majority of people are financial fckwits, thats not being derogatory, just highlighting that the majority have no interest in understanding financial matterss or economic matters, they arent that sad and even those that are that sad enough to be interested in such things will often have completely different opinions on the economy so half of them have to be wrong and will act incorrectly accordingly

Edited by Tamara De Lempicka

Share this post


Link to post
Share on other sites

I've also see people take every penny they have and use it to pay down debt.. then be screwed when an emergency comes up.. let alone an opportunity arises but they have no liquidity.

Perfect example: worried about your job? Having a revolving home equity line will give you time and let you fund your own business to get it started - if you do lose your job.

Except the fact that no bank in the world will let you 'release' equity if you DON'T HAVE A JOB.

Share this post


Link to post
Share on other sites

what im saying is that it wont work because the majority who will need it will already have removed it in the good times (which is exactly where we are (you know, a credit crisis). Some people might use it correctly but unfortunately as we have seen the last decade the majority of people are financial fckwits, thats not being derogatory, just highlighting that the majority have no interest in understanding financial matterss or economic matters, the arent that sad and even those that are that sad enough to be interested in such things will often have completely different opinions on the economy so one of them has to be wrong

TDL; your post is irrefutable and perfectly describes why we are where we are. The fact of the matter is that just because it is possible to save in the good times and use these savings in the hard times doesn't mean humans actually achieve it.

Share this post


Link to post
Share on other sites

I wonder what proportion of the £3.2bn is the former and what is the latter? If most of the money is accounted for by higher deposits stumped up by non-FTBs, then very little new money is entering the system and therefore this is a bit of a non-story.

not only that, but when people MEW, they take out £30,000 or so - to put down a large deposit on a Range Rover, go on holiday to the maldives and then clear some of the credit card debt. When they overpay, they overpay, what? £200 - £500 per month??!! Hardly putting back in what they take out?!

It must therefore mainly be the higher deposit ratio going in that has the main effect, plus the lack of MEW coming out, although having said that, I overpay and have never MEWed, so it only needs 10 people like me to qucikly rack up an equal and opposit payment to the "jones'" next door with the nice car with no petrol and holes in their shoes and malnourished kids...

Share this post


Link to post
Share on other sites

If you took MEW money out of the equation (ie, fake wealth), when did the UK actually enter recession?

Edited by Reck B

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.