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Moneyweek Magazine Have Used The Expression "mortage Slave"

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Here's the quote, from this article...

Reading between the lines, the balance sheets of more and more of Britain’s mortgage slaves are becoming increasingly fragile. It won’t take much – maybe just a small rate rise – to push many over the financial brink. And that could unleash a torrent of forced selling that could send UK house prices tumbling.

Of course MoneyWeek has been bearish for years and years...

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Here's the quote, from this article...

Of course MoneyWeek has been bearish for years and years...

Since home buyers entered into the arrangement of their own free will, slaves isn't really appropriate. Suckers or fools is probably a better term.

The tax payers forced to bail out the banks is another matter. In that case, they have no choice and are punished if they don't pay their taxes, so the slave term actually fits.

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MSW is a member here.

MSW bought in June 2010

We've just bought a house. It is exactly the kind of house we have long wanted to live in, so we are thrilled. But I am also pretty sure that, while buying it might be a good thing for family stability, it will also be the worst financial decision we have ever made.

You don't need to know that the average house price is still well over five times the average income – or that the average first-time buyer was forced to put down a deposit of £50,000 in March, or even that more than 80% of adults under 30 are unable to afford to buy any kind of house in the UK, according to the National Housing Federation – to know that house prices are still in bubble territory. Instead, you just need to look in an estate agent's window. That usually does it.

That said, markets keep showing us that things can stay at the "wrong" price for years. So, saying that house prices are too high isn't necessarily the same as saying they are going to fall. For that, we need a trigger of some kind – such as the subprime crisis that kicked off collapse in the US and a mini shock in our own market.



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  • 429 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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