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eric pebble

" - Fears Over Mortgage 'timebomb.' - " A Warning From Febr 2003!

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Fears over mortgage 'timebomb'. [February 24th 2003]

"A type of mortgage popular amongst self-employed workers has been branded a "ticking timebomb" by leading analysts.

Datamonitor researchers argue that self certification mortgages - which allow a borrower to certify their annual income without having to supply documental proof - are particularly prone to trouble in times of economic downturn.

The worry is that mortgage lenders have, during the house market boom, relaxed lending rules too far for self certification customers."

READ ALL HERE: http://news.bbc.co.uk/1/hi/business/2788597.stm

AND -- Read all below - also from 2003. :rolleyes::rolleyes:

The Writing on the Wall was ignored....... :rolleyes::rolleyes:

Edited by eric pebble

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On r4 yesterday about 1.50 some geezer was saying about crowd mentality and mass hysteria claiming that NO group saw the house price inflation as a problem.

Can't remember his name but if you've got time to go through it you could dig his name out and email him.

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On r4 yesterday about 1.50 some geezer was saying about crowd mentality and mass hysteria claiming that NO group saw the house price inflation as a problem.

Can't remember his name but if you've got time to go through it you could dig his name out and email him.

No, because the ones that didn't see it as a problem were benefiting from it. ;)

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On r4 yesterday about 1.50 some geezer was saying about crowd mentality and mass hysteria claiming that NO group saw the house price inflation as a problem.

I think a lot of people saw it. I moved house myself in 2003 after my second kid was born. Moved because we needed a bigger house. We'd been planning it for 2 years, clearing down the few debts we had (student loans etc...), getting ourselves into good shape financially so we could cope with one year of maternity leave. A house move was factored in and we worked hard saving for it only to see the price of a semi-detached house in our area rocket from £100k to £160k in less than a year. We took one look at those prices and agreed something wasn't right, e.g. how could people afford that?, what would we do if I lost my job? etc... etc... We could have borrowed the money easily but we settled for a more modest property at around the price we'd expected to pay originally.

We knew it wasn't right. Other people must have know it wasn't right. Those £160k houses went up to £240k a few years later but still people, people with similar means to us, were finding the money to buy them. The instituations that lent to them must have know it wasn't right. Basically I think everybody knew but most just looked the other way. Anyway, I bet most of the idiots that did lie to get their mortgages wish they were in my shoes now. Still they probably had a nice few years living like they won the lottery.

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...as soon as Labour got in..... :rolleyes:

Since 1997, the self certification marketplace has grown by nearly 28% - outstripping the mortgage market as a whole - as the mortgage market has responded to changing work patterns.

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Fears over mortgage 'timebomb'. [February 24th 2003]

"A type of mortgage popular amongst self-employed workers has been branded a "ticking timebomb" by leading analysts.

Datamonitor researchers argue that self certification mortgages - which allow a borrower to certify their annual income without having to supply documental proof - are particularly prone to trouble in times of economic downturn.

The worry is that mortgage lenders have, during the house market boom, relaxed lending rules too far for self certification customers."

READ ALL HERE: http://news.bbc.co.uk/1/hi/business/2788597.stm

AND -- Read all below - also from 2003. :rolleyes::rolleyes:

The Writing on the Wall was ignored....... :rolleyes::rolleyes:

Good post Eric.

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Good post Eric.

Great pleasure ToW.

Oh how I despair at how this isn't item number ONE in the news: It has been the Greatest Financial Fraud in all history - it is sitting there - the Mammoth in the Room - and everyone is just pretending it's not there. And unless and until they do - and the bubble is fully defalted - this country is f****d. :angry:

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Chickens coming home to roost - glad I didn't over extend my self when Halifax said I could borrow 45,000 pounds based on my equity. House only cost 32,500 in the first place!!!!

Wonder how many people wandered into that particular trap? Millions I guess, already seeing huge slashes with house prices near me cheapest started at 80,000 now down to 49,999 in a few months (Heywood, lancs).

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Great pleasure ToW.

Oh how I despair at how this isn't item number ONE in the news: It has been the Greatest Financial Fraud in all history - it is sitting there - the Mammoth in the Room (...)

" 'Mammoth' in the room"?! :huh:

Isn't a mammoth ... like a ... a type of...

Elephant ! ? :huh:

Like this one???

:D:D

.

Edited by Tired of Waiting

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Chickens coming home to roost - glad I didn't over extend my self when Halifax said I could borrow 45,000 pounds based on my equity. House only cost 32,500 in the first place!!!!

Wonder how many people wandered into that particular trap? Millions I guess, already seeing huge slashes with house prices near me cheapest started at 80,000 now down to 49,999 in a few months (Heywood, lancs).

And they're worth 1/3 of that - i.e. £16,500.

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" 'Mammoth' in the room"?! :huh:

Isn't a mammoth ... like a ... a type of...

Elephant?! :huh:

Like this one???

:D:D

.

that's the mammoth in the Broon....

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Um ...If they bought in 2003 they would still have equity in the house ? ...isnt it?

For now, probably, just, depending on the region of the country.

And to be fair to those authors, who could have predicted tha Britain would go so completely into banana republic mode like that, at THIS level?? It was unthinkable. Not THAT much, surely.

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Um ...If they bought in 2003 they would still have equity in the house ? ...isnt it?

Wierd that. A couple of places I've looked at are now probably attemting to shift at around 2003 prices.

(N Yorks).

In these areas the number of sales fell away after 2004 - the prices just got too high.

At the moment, asking prices are about 30% off 2006 prices.

Assuming that offers are going to come in at least 10% then they are well down.

There's just not the mortgage credit in the area any more.

Houses have gone from being prices using 'Price @ 2006 + 10% = 2007 price'

To now being priced to 3 x salary MINUS any unsecured debt.

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I think a lot of people saw it. I moved house myself in 2003 after my second kid was born. Moved because we needed a bigger house. We'd been planning it for 2 years, clearing down the few debts we had (student loans etc...), getting ourselves into good shape financially so we could cope with one year of maternity leave. A house move was factored in and we worked hard saving for it only to see the price of a semi-detached house in our area rocket from £100k to £160k in less than a year. We took one look at those prices and agreed something wasn't right, e.g. how could people afford that?, what would we do if I lost my job? etc... etc... We could have borrowed the money easily but we settled for a more modest property at around the price we'd expected to pay originally.

We knew it wasn't right. Other people must have know it wasn't right. Those £160k houses went up to £240k a few years later but still people, people with similar means to us, were finding the money to buy them. The instituations that lent to them must have know it wasn't right. Basically I think everybody knew but most just looked the other way. Anyway, I bet most of the idiots that did lie to get their mortgages wish they were in my shoes now. Still they probably had a nice few years living like they won the lottery.

Many I know believed the "supply and demand, small Island" line I think. They didn`t see it as fraud or a ponzi or whatever.

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For now, probably, just, depending on the region of the country.

And to be fair to those authors, who could have predicted tha Britain would go so completely into banana republic mode like that, at THIS level?? It was unthinkable. Not THAT much, surely.

'course not. i'n't? :P

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  • 312 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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