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Bear'd to the Bone

A Foot In The Door

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Sweet. As a saver i have no patience nor time for people who are fuelling this boom by over borrowing. For many this will be a wake up call of I told you so. We here have tried on many attempts through this forum and indeed through our own personal lifes to educate people. It is just unfortunate that people do not want to listen.

Tough. Just want house prices back to 3.5 times salary and 25 years morgages like it should be and lax lending practises to stop.

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Before, we were issuing about 11 summonses every week. That's jumped up to 11 a day now."

So this is what they mean when people say the sh1t has hit the fan :o

Home repossessions are climbing to levels not seen since the property crash of the early Nineties. Sarah Duguid joined the bailiffs at work - and met the unlucky debtors whose houses are no longer their homes

This just adds to supply :rolleyes:

Edited by smarty

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This is great reporting, which I never thought I'd see in the Indy. I know plenty of people who could be in the same situation if things went only slightly out of kilter. God forbid it happens to them.

On a more ghoulish note, are these reposession orders publicly available in the County Courts?

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Guest Guy_Montag

I wish I had less sympathy for these people than I do. I could understand it if interest rates had jumped to 12%, but they have no-one to blame but themselves.

At the same time, I am genuinely sorry for them, it must be dreadful to lose your house & have nowhere to go.

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Such sad stories

Tough shit, I say !

Their reckless lending has fuc*ed up their own lives and made mine a hell of a lot more difficult than it needed to be.

Just wait for...

"it was the evil Banks and money lenders fault - they made us do it"

Sympathy ?? Forget it :ph34r:

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In the kitchen, the agent employed by the lender, who said he carried out around 15 repossessions a day, was cracking jokes. "Can I make anyone a cup of tea?" he asked, pointing at the dirty sink.

I too don't have time for those that borrow above their means. But this attitude makes my blood boil.

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God that was depressing. Repsonsibility lies with both parties. As for the "made themselves intentionally homeless" stuff. I'd rather my tax money was spent on helping these people instead of all the other crud they waste money on.

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Depressing reading. It must be very easy to get sucked into such a situation - particularly if you are used to having a wage coming in. What is affordabe while you are working, quickly stops being affordable when you lose your job. Also, many people with mental health issues and depression make bad decisions when they are under stress - look at the man who Lloyds Tsb loaned £40,000 to even though he was suffering from severe mental illness.

I would've thought that it would be impossible not to feel sympathy for anyone in this situation - particularly anyone with children.

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Guest Bart of Darkness

Very interesting article.

"I see these new developments going up and we say 'give it a year and we'll be going in'.
and a lot of them haven't got a clue about APRs.
While banks were willing to give increasingly large mortgages to first-time buyers who struggled to get on the property ladder, many who already owned houses began to use them as though they were bottomless ATM machines.
For the companies that lend money the picture is rather rosier, even if the borrower defaults on their mortgage, according to a spokeswoman for Shelter. "Mortgage companies cannot really lose once someone has taken a loan with them. Even if they repossess, they still get their money back."

Try telling the people losing their homes that it's "different this time" or "they" won't let it happen.

The sad thing is, we're just at the start of the downturn, with interest rates still relatively low. Wait until they rise, along with unemployment.

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Guest growl
God that was depressing. Repsonsibility lies with both parties. As for the "made themselves intentionally homeless" stuff. I'd rather my tax money was spent on helping these people instead of all the other crud they waste money on.

I dissagree with you there Gruffydd. If the government used our tax money to help people out such as the chap called Peter, I for one would be very angry. Helping somebody like him out would teach him no lessons, and that is his problem. Since he would never learn and would continue to ignore warning letters and just drift through life spending recklessly.

Unless of course you are talking about retraining Peter. But I believe(I may be wrong?) that the government already do this.

What gets me is the fact that Peter after losing his factory job decided to doubleglaze his house by MEWing, and was buying other new stuff. If he had spent the money on an education course or some kind of retraining to get himself another job, I might have had a bit of sympathy. But obviously he was so depressed that he decided to 'comfort spend' instead. :angry:

Are peoples lives so empty that the only thing that makes them feel better is 'comfort spending'.

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What gets me is the fact that Peter after losing his factory job decided to doubleglaze his house by MEWing, and was buying other new stuff. If he had spent the money on an education course or some kind of retraining to get himself another job, I might have had a bit of sympathy. But obviously he was so depressed that he decided to 'comfort spend' instead. :angry:

Are peoples lives so empty that the only thing that makes them feel better is 'comfort spending'.

I don't agree that depressed people buy merely to make themselves feel better. They often spend money because they lose the ability to forward plan, and lose all concept of "the future". It is the worst time possible to make financial decisions, but sadly the banks take limited responsibility for whether or not a person is in a fit state to take on debt. It is easy to say that people should take responsiblity for their own actions, but what about the vulnerable?

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Guest growl
I don't agree that depressed people buy merely to make themselves feel better. They often spend money because they lose the ability to forward plan, and lose all concept of "the future". It is the worst time possible to make financial decisions, but sadly the banks take limited responsibility for whether or not a person is in a fit state to take on debt. It is easy to say that people should take responsiblity for their own actions, but what about the vulnerable?

It depends what you mean by vulnerable. 'Peter' in the article was forty years old and had bought his house ten years previously. I don't believe he was vulnerable, but I believe he just cruised along life thinking probably that he would have his job forever. Then because he never made any plans and just kept MEWing on his property, when he lost his job then he became vulnerable. But what annoys me about this particular story is that when he did lose his job, he just started to spend money.

You must have met people who 'comfort spend' to make themselves feel better. Its like a short term fix. They feel bad and decide to buy something and its makes them feel good but the feeling doesn't last.

I do agree with you though that there are people who while depressed make bad decisions and have no concept as you say of the future.

But the chap in the article 'Peter' was forty years of age. He is old enough to remember the last HPC and recession. He ignored warning letters. I just think he is so irresponsible. Apparently he lived on his own, so he did not have the responsibilites of a family either.

It may be the best thing to have happened to him in a strange kind of way. Some people really need a bad thing to happen to them to wake them up.

If it had been a single mother who ended up being repossessed through her marriage ending and thus her getting into financial difficulty. Then I would have bucket loads of sympathy. Or a young person(early twenties) who do not have the life experience. Then maybe.

But not the 'Peter' chap, and somehow I don't think he will learn the lesson. <_<

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Serious question. I thought that if you made unemployed the goverment started paying the interest on your mortgage after I think nine months?

When I worked for the Halifax bank they were saying that nobody should get their house repossed because of this safety net.

If that's the case how did Peter get to lose his place?

EDIT Spelling

Edited by Too expensive to trade up

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Serious question. I thought that if you made unemployed the goverment started paying the interest on your mortgage after I think nine months?

When I worked for the Halifax bank they were saying that nobody should get their house repossed because of this safety net.

If that's the case how did Peter get to lose his place?

What do you do in the interim 9 months though? I know home loan management company, they do everything up to repossession for so many household names, they play very hard ball these days. The client is commonly referred to in the industry as a delinquent . The newer players in the lending, those that securitise, appear to have very little sympathy.

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But amid the squalor, there were newly-fitted double-glazed windows, a sparkling new fridge-freezer and a top-of-the range washing machine.

That's the problem. People want what they cannot afford to buy, and rather than buy second hand from the local paper or (heaven's forbid) actually save up for something they go and get a loan.

If you can't afford to pay cash for it, do without it.

If you borrow to get top of the range white goods you're on your own....or in this case out on your **** in the street.

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In effect because in this this boom interest rates have been so low throughout the boom. 8 % would be catastrophic. Remember 8 % in 1990 was not a problem and this was when the average house price was 60K or something. There was no real credit card debt nor reborrowing as much equity off your home. Its sad reading the above and the banks and credit card companies have alot to answer for.

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This is great reporting, which I never thought I'd see in the Indy.

Great point. The Indy drives me mad. It typically carries loads of left-ish stories about social injustice, but then offers a weekly property insert devoted to purchasing second homes abroad!! A surprisingly good story though in this case.

--------------

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Serious question. I thought that if you made unemployed the goverment started paying the interest on your mortgage after I think nine months?

When I worked for the Halifax bank they were saying that nobody should get their house repossed because of this safety net.

If that's the case how did Peter get to lose his place?

What do you do in the interim 9 months though? I know home loan management company, they do everything up to repossession for so many household names, they play very hard ball these days. The client is commonly referred to in the industry as a delinquent . The newer players in the lending, those that securitise, appear to have very little sympathy.

You still have to find the nine months payements and the benefit only pay the interest - not the endowment/loan. I also seem to remember that the benefits system would not pay for loans secured on the house...I think this was the case, maybe someone else knows. If this is the case then a lot of people are in a lot of trouble. Last time many people allowed themselves to be repossesed because they couldn't sell and couldn't pay the mortgage. Repossesion was the only way they could prove to the the council housing departments that they were not voluntary homeless.

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You still have to find the nine months payements and the benefit only pay the interest - not the endowment/loan. I also seem to remember that the benefits system would not pay for loans secured on the house...I think this was the case, maybe someone else knows. If this is the case then a lot of people are in a lot of trouble. Last time many people allowed themselves to be repossesed because they couldn't sell and couldn't pay the mortgage. Repossesion was the only way they could prove to the the council housing departments that they were not voluntary homeless.

The nine month rule was introduced by Peter Lilley in the mid 1990s - so people were still getting reposessed when you got your interest paid at an earlier stage.

You also have the fact that interest only (endowment) mortgages were far more common then than now. If you are on a repayment, you're going to find it hard to switch to interest only if you ain't got a job.

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  • 301 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%



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