Blog - This Is Money

[29929BlackTuesday]

I like the bit ".....btls will be RELEASING properties..." ! Is this yet another euphemism for SELL?

[casehog]

Just had a letter from my credit card stating that as I no longer use it they were going to withdraw it normally I get mail offering "great deals". I owe nothing on the cards that I have and pay them off every month. Is this a new trend?

[eurows]

Yeh. The door is open to first time byers who earn £100k a year and want have a noose round their neck for 25 years whilst living in a dump.

[gasket37]

I like the bit ".....btls will be RELEASING properties..." ! Is this yet another euphemism for SELL?

<tugs forelock>gawd bless those BTL'ers - they are veritable princes and princess, i tell 'ee! </tugs forelock>

all i need now is one of those 125% LTV loans that Northern Rock do & i'll be fine!

[OnlyMe]

It is a door alright - a trapdoor! Just stand over here sir whilst we arrange your 125% mortgage - which colour noose do you prefer the pink or the blue?

[CrashBear]

It is a door alright - a trapdoor! Just stand over here sir whilst we arrange your 125% mortgage - which colour noose do you prefer the pink or the blue?

i still think there are plenty of people around ready to jump down that trapdoor, many friends of mine just walk blindly into buying a house, they don't do any research on the market, they usually do it cus they and the other half want to settle down. I have a sneaky feeling both themselves and the parents stump up the cash.

Edited January 26, 2006 by CrashBear

[Guest Charlie The Tramp]

Just had a letter from my credit card stating that as I no longer use it they were going to withdraw it normally I get mail offering "great deals". I owe nothing on the cards that I have and pay them off every month. Is this a new trend?

The CCC still receive a transaction fee from the retailer when you purchase using your card from 1.5% to 4%. My average CC statement is 1k per month which is always paid off in full. So if we take an average 2.75% they would receive transaction fees of £330 per year, not bad for a very low risk customer who is unlikely to default.

[Smell the Fear]

Telegraph: FSA fears consumers can't afford debts

The City's top watchdog warned banks, building societies and finance houses yesterday they could suffer severe damage to their reputations if the current turn in the lending cycle reveals "they have given credit to large numbers of consumers who are unable to afford their debt repayments".

. . .

In its Financial Risk Outlook 2006 the Financial Services Authority said: "Even in the current benign economic environment we are seeing signs of growing distress among consumers, including more insolvencies, more late payments on credit cards and a rise in mortgage repossession orders."

The FSA said: "Our research shows that many consumers with significant borrowing commitments are currently struggling to keep up, with repayments."

The banks forget that the capitalist model is tolerated by society, not their divine right.

When the truth emerges, they will be subjected to a deluge of regulation. People expect banks to be responsible, just as banks expect borrowers to be responsible. If the banks have been naughty, they will be punished!