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Credit Action: Debt Facts And Figures - Compiled 3rd October 2005

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"Housing 1st Time Buyers: The average house price in the UK in July 2005 for first time buyers now stands at £153,168 which is an annual increase of 6%.

The Council of Mortgage Lenders (CML) estimate in August 2005 that the first time buyers average new loan is 87% of the value of the property and that they borrow 3.22 times their income (based on income figure provided by buyers in their mortgage application and may reflect one or more incomes).

The average deposit required by first time buyers in the second quarter of 2005 was 21.0% of the purchase price. Based on repayment loans, in the UK, repayments as a percentage of income for first time buyers were 23.3% in the second quarter of 2005, up from 22.9% in the previous quarter and up from 21.4% one year ago"

So the average first time buyer earns £41383.90? The figures don't add up - what on earth is the average first time buyer buying? who earns £40k and wants to live in a place worth £150K? Surely they must have some sense?..........or maybe not.

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Guest Charlie The Tramp
The majority of Britons would be unable to cope financially in the event of a minor household emergency according to the Alliance & Leicester. Just 28% said they had money put aside which could be used to replace household appliances, such as a cooker or fridge.

Oh well how will a cut in IRs help now.

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why would anyone get themselves into a situation they live month to month? when they were able to get credit in the first place

its a crazy country all right

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Britain's personal debt is increasing by £1 million every four minutes

:blink::blink::blink:

So there's £250k of borrowed money entering the economy every minute.

I can only see 2 possible outcomes to this in the meduim-long term:

1. Hyper-inflation

2. Pay back time / Bankruptcy

Are there any others?

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Guest Charlie The Tramp

Watching BBC News tonight talking about divorce and the withdrawal of legal aid.

They will now expect you to take out a loan for your legal expenses, only in extreme circumstances will legal aid be granted. Maybe the Banks will do a special scheme for budding divorcees. :)

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:blink::blink::blink:

So there's £250k of borrowed money entering the economy every minute.

I can only see 2 possible outcomes to this in the meduim-long term:

1. Hyper-inflation

2. Pay back time / Bankruptcy

Are there any others?

Devaluation, see #1.

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Watching BBC News tonight talking about divorce and the withdrawal of legal aid.

They will now expect you to take out a loan for your legal expenses, only in extreme circumstances will legal aid be granted. Maybe the Banks will do a special scheme for budding divorcees. :)

Several thoughts:

The Government thinks/hopes/believes this may cut the divorce rate. If it does, "Oh aren't we good, divorces coming down". Social engineering attempt.

The "Human Rights" lobby will probably have much to say and a case will go to European Court.

Lawyers will be a bit peeved.

Expect insurance companies to start offering "divorce fees protection insurance".

You know "We hope you don't need it, but just in case".

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I think this is the most telling paragraph;

The figures for the second quarter 2005 show that the total number of individual insolvencies has increased by 36.8 per cent on the same period as last year and has risen to its highest level in 45 years. Bankruptcies have risen by 27.5 per cent and Individual Voluntary Arrangements (IVAs), an alternative to bankruptcy, have risen by 69.6 per cent when compared to the figures for the same period last year. The number of people who have become bankrupt or entered into an Individual Voluntary Arrangement (IVA) in England and Wales in the last 12 months is 54,227. Personal bankruptcies have broken the 40,000 barrier for a 12 month period for the first time.

Having debt is one thing having debt you cant pay is quite another.

And its going up and up and up.

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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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