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Radio 4 Phone In - You And Yours Today Tuesday 7Th April

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http://www.bbc.co.uk/programmes/b05pn66v

Call You and Yours: Are you paying the price for the great recession?

A Halifax report out today suggests the number of first time buyers is dropping. More say they don't want to own their own home - they'd rather rent. Is our obsession with housing on the wane? Are we on the way to a continental model where renting is normal? Or are you part of a young generation that feels they are paying the price for the great recession?

Email us with your stories youandyours@bbc.co.uk, call us after 11 on 03700 100 444. And join Shari Vahl for Call You an

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I phoned in and spoke to them. Promised callback but nothing has happened.

Looks like they don't want to hear any viewpoints contrary to their own.

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So, were there any interesting calls or not?

Halifax guy said young people dont understand whats involved getting mortgage. Apparently if they did they would all jump in.

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There was a couple of interesting calls but Radio 4 decided to change the brief to a comparison of renting between different Euro countries instead.

A call early on was from a Mother who had 3 children unable to buy. She thought prices were too high.

A scientist had moved from the UK to Germany because he could not afford to rent or to buy.

Radio 4 You and Yours was too cowardly to take calls from buyers like myself unwilling to buy at these prices.

Edited by Flopsy

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Radio 4 You and Yours was too cowardly to take calls from buyers like myself unwilling to buy at these prices.

This is what they don't (won't) consider, because it's just not part of the have/have-not "narrative" - the "want-nots".

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I got the feeling (didnt say explicitly) that all that matters is - can you afford the monthly payments? If yes, buying is not so scary. Apparently.

Yeah, 25 years of payments in today's basket-case economy. To be conventional today is to be a mark.

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I had lunch with the CEO of one of the major housebuilders once.

He told me that these days the only relevant stat for a starter home was "how much will it costs per week".

If you got that number right relative to the local labour market you'd sell the houses.

His view was that people look at it like a car purchase and were only concerned if they could afford the payments based on their current circumstances....

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I had lunch with the CEO of one of the major housebuilders once.

He told me that these days the only relevant stat for a starter home was "how much will it costs per week".

If you got that number right relative to the local labour market you'd sell the houses.

His view was that people look at it like a car purchase and were only concerned if they could afford the payments based on their current circumstances....

In that case surely they'll easily save up the meagre deposit needed.

I can see the next thing will be generational mortgages.

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In that case surely they'll easily save up the meagre deposit needed.

I can see the next thing will be generational mortgages.

I think that's where its going. His modus operandi was to try to source a finance package to go alongside the house and then the salesmen could say "you can own this house for £x per week". In his opinion his target market did not really consider the capital value or the 25 years of mortgage repayments, so I guess they wouldn't blink at 40 year mortgages......

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I think that's where its going. His modus operandi was to try to source a finance package to go alongside the house and then the salesmen could say "you can own this house for £x per week". In his opinion his target market did not really consider the capital value or the 25 years of mortgage repayments, so I guess they wouldn't blink at 40 year mortgages......

This has already happened. That's what interest-only lending is...

On the one hand it was naked interest-only lending to owner-occupiers, (i.e. no repayment plan). IOs coming to term are then just rolled over; I think they are calling them lifetime mortgages. New naked IO now essentially banned for proles in the owner-occupier market.

On the other hand it's BTL - which is almost exclusively IO - the remaining part of this new model. Watch this space, I guess.

Edited by bland unsight

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This has already happened. That's what interest-only lending is...

On the one hand it was naked interest-only lending to owner-occupiers, (i.e. no repayment plan). IOs coming to term are then just rolled over; I think they are calling them lifetime mortgages. New naked IO now essentially banned for proles in the owner-occupier market.

On the other hand it's BTL - which is almost exclusively IO - the remaining part of this new model. Watch this space, I guess.

which was almost ...

BTL used to be dummy punters borrowing from dummier (now bust) banks on a massive leverage play.

Its exploded in both their faces.

Now, BTL is a way for smarter banks to get capital out of a dumb OOs main home when he BTL loan goes bad,

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