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easy2012

When 2025 Ish Comes And The Io Mortgages Comes Due.

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Without a doubt they (the bankers) will pump the bubble bigger then lobby the government to change the rules.

See Ireland for an example.

See anglo for an example of bankers at work..

See Max Keiser for more details..

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Just like to hear the views on this one - a key question about HPC

It's not such a big issue to me. IMO, the people on IO will simply have to remortgage and will carry on paying until they die, no doubt at which point their estate will be confiscated by the bank if it is appropriate to do so. It's very unlikely that they will be kicked out, because the number will be large enough to carry some voting kudos.

Maybe it will affect the banks ability to lend, as I assume that the banks plan for a certain amount of mortgage finishes/starts per year. I guess the big trouble for the banks is if they actually are planning that all this money will come in on the day specified with people paying what they owe. Then things could get interesting. But my guess is that they are already contingency planning for this. I am sure the banks know exactly how much money the customers have and whether they are planning to pay off or won't be able to.

To me the bigger impact is further down the line, in the respect that their children will not inherit wealth and will also be saddled up with large debts from education. But this is all pretty much academic to me, because it hits so far down the road I'll probably be dead, or at the very least not be buying a house because I'll already have one by then.

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It's irrelevant. UK house prices will have collapsed long before then as will all of the crooked banks behind them. Ten million unemployed and starving in a Third World future.

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It's irrelevant. UK house prices will have collapsed long before then as will all of the crooked banks behind them. Ten million unemployed and starving in a Third World future.

If house prices collapse it will be possible to employ UK workers on lower wages so unemployment should go down, not up. I also don't see what house prices have to do with the cost of food.

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If house prices collapse it will be possible to employ UK workers on lower wages so unemployment should go down, not up. I also don't see what house prices have to do with the cost of food.

i'm buying a load of farm foods pot noodles though at 69p each with a 10% off voucher, just in case..

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It's irrelevant. UK house prices will have collapsed long before then as will all of the crooked banks behind them. Ten million unemployed and starving in a Third World future.

The government and banking cartel have enough tricks up their sleeves to drag this out for another 30 years. All they have to do is ensure the amount of debt increases and the ponzy scheme will continue.

They will just do the following:

Keep interest rates low

Allow banks to offer 40 year mortgages at 8x joint salary

Inter-generational mortgages

Increase university fees

Privatize Royal Mail, then the rest of the prisons and then finally the NHS

Sell off the BBC

Make it more difficult for people to claim state benefits and reduce the amount handed out.

etc etc.

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The government and banking cartel have enough tricks up their sleeves to drag this out for another 30 years. All they have to do is ensure the amount of debt increases and the ponzy scheme will continue.

They will just do the following:

Keep interest rates low

Allow banks to offer 40 year mortgages at 8x joint salary

Inter-generational mortgages

Increase university fees

Privatize Royal Mail, then the rest of the prisons and then finally the NHS

Sell off the BBC

Make it more difficult for people to claim state benefits and reduce the amount handed out.

etc etc.

i'd agree with this. The only thing that has ever kept banks going is extend and pretend, they'll keep at it until it is impossible.

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It's not such a big issue to me. IMO, the people on IO will simply have to remortgage and will carry on paying until they die, no doubt at which point their estate will be confiscated by the bank if it is appropriate to do so. It's very unlikely that they will be kicked out, because the number will be large enough to carry some voting kudos.

.........

To me the bigger impact is further down the line, in the respect that their children will not inherit wealth and will also be saddled up with large debts from education. But this is all pretty much academic to me, because it hits so far down the road I'll probably be dead, or at the very least not be buying a house because I'll already have one by then.

I'm with the slug on this. Those that took out IO mortgages in 2000 will have significant equity in their properties by 2025, they'll either have to roll the mortgage over or downsize. Whatever the discomfort to the individuals concerned I don't see this causing any major shocks to the financial system as a whole.

Your ideas on the cumulative impact of student debt and reduced inheritance on successive generations are interesting. Low annuity rates and the closure of defined benefits schemes mean that subsequent generations of pensioners will not necessarily share the golden lifestyles of my parents generation. This too will mean that there is less to inherit.

cheery isn't it?

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I'm with the slug on this. Those that took out IO mortgages in 2000 will have significant equity in their properties by 2025, they'll either have to roll the mortgage over or downsize. Whatever the discomfort to the individuals concerned I don't see this causing any major shocks to the financial system as a whole.

Your ideas on the cumulative impact of student debt and reduced inheritance on successive generations are interesting. Low annuity rates and the closure of defined benefits schemes mean that subsequent generations of pensioners will not necessarily share the golden lifestyles of my parents generation. This too will mean that there is less to inherit.

cheery isn't it?

HP is many areas are back to around 2003 level and a 20% fall would put those in negative equities.

I suppose the verdict is that nominal house price is higher in 2025 than 2000 ?

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I paid my IO only mortgage off. I paid nothing off for years, and then made a few years of big payments until it was gone. I really appreciate the flexibility of an IO.

Edited by jethrotull

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Maybe it will affect the banks ability to lend, as I assume that the banks plan for a certain amount of mortgage finishes/starts per year. I guess the big trouble for the banks is if they actually are planning that all this money will come in on the day specified with people paying what they owe. Then things could get interesting. But my guess is that they are already contingency planning for this. I am sure the banks know exactly how much money the customers have and whether they are planning to pay off or won't be able to.

The banks have credit utilisation time profiles but it depends on how they are funding the loans. Generally they are borrowing short and lending long so there is a varying degree of pressure depending on market conditions at the time. Impossible to say what funding markets will look like in 2025.

TPTB have shown resourcefulness and imagination in keeping the asset price bubble plates spinning, regardless of problems building up elsewhere in the economy, so who knows what they will come up with next. Taxpayers' money being used to buy up securitised bank mortgages seems quite likely to me, freeing up the banks to lend more. Might as well go the whole hog and party like it's 2006 again.

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  • 243 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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