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Bbc News This Morning - Man With 2 Homes And Interest Rate Increases

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On the business news bit this morning on the BBC there was some guy on who has 2 homes. It appears he built his second home and is now trying to sell the first, but is currently paying 2 mortgages. Apparently he can afford both now and if rates go to the dizzy heights of 1% he'll be fine....

However he then went on to state that people now can't get a mortgage to buy his first house at current rates and if rates go up they definitely won't be able to afford it!!!

My first reaction was perhaps your asking price is unaffordable rather than people can't afford to borrow. Not sure if this will get repeated again during the morning but it was on the 6.45 slot this morning.

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On the business news bit this morning on the BBC there was some guy on who has 2 homes. It appears he built his second home and is now trying to sell the first, but is currently paying 2 mortgages. Apparently he can afford both now and if rates go to the dizzy heights of 1% he'll be fine....

However he then went on to state that people now can't get a mortgage to buy his first house at current rates and if rates go up they definitely won't be able to afford it!!!

My first reaction was perhaps your asking price is unaffordable rather than people can't afford to borrow. Not sure if this will get repeated again during the morning but it was on the 6.45 slot this morning.

Are we meant to feel sorry for him ?

Is this meant to be a reason for not raising rates ?

Why is this man's inability to add up and plan for the worst case my problem ?

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On the business news bit this morning on the BBC there was some guy on who has 2 homes. It appears he built his second home and is now trying to sell the first, but is currently paying 2 mortgages. Apparently he can afford both now and if rates go to the dizzy heights of 1% he'll be fine....

However he then went on to state that people now can't get a mortgage to buy his first house at current rates and if rates go up they definitely won't be able to afford it!!!

My first reaction was perhaps your asking price is unaffordable rather than people can't afford to borrow. Not sure if this will get repeated again during the morning but it was on the 6.45 slot this morning.

Perfectly logical but subversive thinking in mind of homeowners/landlords and other property VI; take some more soma and keep paying your landlord's rent.

I've seen it all before. We need to give them more time, and find new more ludicrous excuses. Start a fund to pay down their mortgages for them... even on houses they think are worth multi-million pounds with all the HPI locked in.

Grand Designs episode; Brighton; mini hpc time, before the QE/reflation.

Not only have things on site change but there's been a huge shift in the world economy. Barry's plan has always been to finance this project by selling their current home and the development project he owns next door.

Barry: £450,000 is what they've asked us to drop it by. Now that house (points to the other mansion house on the right), and that house (points to his original large detached luxury home over on the left) are worth kind of the same money. If I was to drop them both by that kind of money then it's going to cost about one million pounds. The dream that I've had has been entirely changed since we've started building it.

Barry: I've had a few days in each of the last few weeks where I've been really demoralised by it. Now I'm thoroughly aware I've put us in a position that we really didn't actually have to be in. There's a different scenario attached to our personal finances now so us like everyone else have got concerns. Suddenly it seems excessive to have even the vehicles we've got, and three houses in a row, that kind of stuff. There's almost an element of embarrassment about it.

Wife: I've thought so much, were we too greedy, were we striving for too much when what we'd already got was more than, you know, a lot of people would hope for in a lifetime really.

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So now the government has to design UK economic policy to help the guy with two houses.

How many houses do the MPs have each ?

Jesus spoke in Parables so the simple fold would understand. ;lol:

Edited by TheCountOfNowhere

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So now the government has to design UK economic policy to help the guy with two houses. mortgages

Rising defaults = banks' capital eroded = forced sales = falling asset prices = reduced lending = rising defaults = banks' capital eroded and so on........

= bust banks = savers punished < ---------- isn't that the bit people ain't so keen on?

Edited by R K

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Are we meant to feel sorry for him ?

Is this meant to be a reason for not raising rates ?

Why is this man's inability to add up and plan for the worst case my problem ?

Clearly this man is financially illiterate and needs the state to sponsor him so he can make money, you ought to be ashamed of yourself for not feeling sorry for such retards.

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Rising defaults = banks' capital eroded = forced sales = falling asset prices = reduced lending = rising defaults = banks' capital eroded and so on........

= bust banks = savers punished < ---------- isn't that the bit people ain't so keen on?

Bring it on. Even though I'm fairly loaded (with deposit saved over the years). It can't be more painful than now.

We've had ages of stupid bubble, then QE/0.5% and new 20% higher peaks - non-owning savers have taken the entire punishment already.

Edited by Venger

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Rising defaults = banks' capital eroded = forced sales = falling asset prices = reduced lending = rising defaults = banks' capital eroded and so on........

= bust banks = savers punished < ---------- isn't that the bit people ain't so keen on?

Errr...savers have already been punished.

I think if they are now pushing for a crash in the MSM then it's because the banks can now withstand the crash. I'd hapilly have lost 10% of my savings if house prices fall back abother 30% nominally and some sort of reality comes to the market.

If the bankers steal any more of the savers cash and workers income though I fear it's mass protest and a lot of trouble.

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= bust bailed out banks = savers punished. This is not a recession, it is a robbery.

.........

The super Isa sting that slashes rate for savers: Banks take an axe to tax-free interest just one month after Chancellor's flagship policy was introduced

article-0-20515E4900000578-744_634x393.j
Edited by onlyme2

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Rising defaults = banks' capital eroded = forced sales = falling asset prices = reduced lending = rising defaults = banks' capital eroded and so on........

= bust banks = savers punished < ---------- isn't that the bit people ain't so keen on?

Nope. I no longer care having hedged plenty out of sterling. It's up to individuals whether they believe in deposit guarantees. Bring it on.

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Rising defaults = banks' capital eroded = forced sales = falling asset prices = reduced lending = rising defaults = banks' capital eroded and so on........

= bust banks = savers punished < ---------- isn't that the bit people ain't so keen on?

far better than stealing our real wealth.

I'm probably 20 or so years richer than you...

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far better than stealing our real wealth.

I'm probably 20 or so years richer than you...

A fortunate man indeed......

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Let's not just think about the man with two houses...there are the people who get free housing byt want better free housing ( and I guess, someone else to pay for ti ).

http://news.sky.com/story/1314350/families-stuck-in-temporary-homes-for-years

Families Stuck In Temporary Homes For Years
Derya Dosdogru and her son are among thousands of homeless families who have waited for years for a permanent address.

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On the business news bit this morning on the BBC there was some guy on who has 2 homes. It appears he built his second home and is now trying to sell the first, but is currently paying 2 mortgages. Apparently he can afford both now and if rates go to the dizzy heights of 1% he'll be fine....

However he then went on to state that people now can't get a mortgage to buy his first house at current rates and if rates go up they definitely won't be able to afford it!!!

My first reaction was perhaps your asking price is unaffordable rather than people can't afford to borrow. Not sure if this will get repeated again during the morning but it was on the 6.45 slot this morning.

Ah!!!! EASY!!!! To "AFFORD " his stupid La La Land price, all the "buyers" have to do is - what "buyers" did right the way through the "boom" times Pyramid-Ponzi Scam period......... and that is....... take out a MASSIVE

LIAR LOAN!!!!

THEN they'll "AFFORD" it!!!!! :P:lol:

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The BBC website carried an odd ticker announcement at interest rates being held. Those at the BBC website do seem to express relief each month that rates do not rise and spin the HPI stories. I don't think they are biased. It is just they tend to rarely critique press releases or provide any analysis.

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I don't think they are biased.

I made a formal complaint about a local news program on housing.

They eventually sent me a DVD to prove they were right and I was wrong. The thing I complained about was open to interpretation i guess, but 10 seconds further into the news article they actually stated something as fact that was not true.

When I then complained about that I was told that my complaint could not be processed because this was not part of the original complaint and I was not allowed to make a 2nd complaint.

I KNOW they are biased.

Edited by TheCountOfNowhere

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Rising defaults = banks' capital eroded = forced sales = falling asset prices = reduced lending = rising defaults = banks' capital eroded and so on........

= bust banks = savers punished < ---------- isn't that the bit people ain't so keen on?

Banks recapped to some extent, global markets.... profits in the order of £trillions when the banks crash this thing, writing new mortgages on low-mid-high prime.

I'm just wondering how the older VI are going to react to the biggest house price crash of all time. They better put up quietly, as saver-renters been forced to do so, during reckless boom years and save the banks reflation. Keep counting your house prices complacent VIs; we're close to turning down.

Daily Mail

Average UK house price to hit £780,000 by 2040, says leading think tank

Kilo Charlie, My World, 9 hours ago

We purchased a property in 1983 for £72,000.........today it's worth £650,000 plus. It's certainly possible and quite likely.

Sam, Bucks, 3 hours ago

Bought house in ,74 for 16k added extention about £8k now valued at £480k you do the maths?

No you do the maths, b1tch, as we go into a sharp hpc.

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How many houses do the MPs have each ?

Jesus spoke in Parables so the simple fold would understand. ;lol:

A certain man went unto the home of Barratt in the kingdom of Persimmon and said unto him, 'sir, I would buy of you an house, but the price of which you ask is high, and of my store of gold, I have not enough unto the price of which you ask, which is even unto ten times the pay which my master giveth unto me in a twelvemonth.' And Barratt said unto him, go, and speak thou unto the moneylenders, who shall supply unto thee all that thou desirest, as verily, I selleth not my house for less than it is worth nor giveth it away.' (Book of Bellway)

Edited by Austin Allegro

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