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Barnsey

BOE UK credit conditions survey Q2 2017

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Oh fck this is terrible.

Im going to start getting stuck behind people in the supermarket queue getting their cards cut up again.

 

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Currency collapse has pushed up prices by a lot.People out at the end of the risk curve ie a lot of the UK cant pay so default instead on debts.Its defaults that will see massive wealth destruction.I doubt the UK will cause it,but we are in a terrible mess going into it.Recession's usually cycle with interest rates going up to choke off demand.This time inflation is the interest rates increase.Boe and the government sucking the life out of the productive economy is about to be shown for the disaster it is.

18 months and they will be printing like never before.

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12 minutes ago, durhamborn said:

Currency collapse has pushed up prices by a lot.People out at the end of the risk curve ie a lot of the UK cant pay so default instead on debts.Its defaults that will see massive wealth destruction.I doubt the UK will cause it,but we are in a terrible mess going into it.Recession's usually cycle with interest rates going up to choke off demand.This time inflation is the interest rates increase.Boe and the government sucking the life out of the productive economy is about to be shown for the disaster it is.

18 months and they will be printing like never before.

And tax credits have created a cargo-cult mentality in 30-40% of the working age population.

Short of money? Ask for more government money. No concept of gettign a FT job, working OT, or getting a second job. Just - pay us more money.

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1 minute ago, Freki said:

So next in line should be car loans, and then mortgage. 

Yes,i would say thats the order.Mortgage is paid first.Most of these defaults will be people still in work,so they wont get the mortgage paid.

Remember as well,just in time for the sell off,

"SMI as a benefit is ending on 5 April 2018, and will be replaced by a loan. If you get SMI as a benefit, you’ll get a letter by February 2018 telling you about the loan and other options available to you."

Once you have a 2nd charge loan on the house owed to the government the chances of a decent re-mortgage go out of the window.Stuck on SVR forever.

Interesting to see the rules on these loans,they arent out yet.The rules on paying them back will be the key,and at what rate and what income.

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If the deliquency rate on unsecured lending is raising. It's a matter of time for the secured lending to catch up.

For sure banks can't sell the kidney of the borrowers of unsecured lending.

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Rather timely received what is pretty much a near-completed application form in the post from Vanquis today, "congratulating" me on being pre approved for a 39.9% card £1k limit with loads of pretty picture card designs to choose from. Interestingly the example HOUSEHOLD income INCLUDING benefits is just £14,750, and there is much emphasis on being approved in just 60 seconds.

Just think of all those people out there right now, this very morning, getting that through the post as they're panicking about how to pay the bills at the end of this month. Another £1000 to postpone the pain a little longer.

Batten down the hatches folks, 2007 came by to say HELLO, REMEMBER ME???

giphy.gif

Edited by Barnsey

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2 minutes ago, Barnsey said:

Rather timely received what is pretty much a near-completed application form in the post from Vanquis today, "congratulating" me on being pre approved for a 39.9% card £1k limit with loads of pretty picture card designs to choose from. Just think of all those people out there right now, this very morning, getting that through the post as they're panicking about how to pay the bills at the end of this month. Another £1000 to postpone the pain a little longer.

Batten down the hatches folks, 2007 came by to say HELLO, REMEMBER ME???

giphy.gif

~40% APR with zilch real wage increase over the last 10 years ....

 

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Am I correct in thinking that the government did not disclose yet the size of the HTB scheme and how much it has on its balance sheet?

Some are due their first extra payments now.

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i don't understand it very well, as it's the first time I've seen one, but there are more gems in there:

Quote

demand for buy-to-let lending decreased significantly

 

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16 minutes ago, Freki said:

Am I correct in thinking that the government did not disclose yet the size of the HTB scheme and how much it has on its balance sheet?

Some are due their first extra payments now.

Lending now up to 16bn, stats 2013 to March 2017 in here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/621112/H2B_MGS_Official_Statistics_Publication_June_17.pdf

The one stat they don't supply is the p/l on those resold.

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6 minutes ago, Democorruptcy said:

Lending now up to 16bn, stats 2013 to March 2017 in here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/621112/H2B_MGS_Official_Statistics_Publication_June_17.pdf

The one stat they don't supply is the p/l on those resold.

Pure theft from working people to prop up house prices.Then again the young people buying them are still stuffed.If houses go down 50% and they had an equity loan of £50k they still owe the government £25k,plus their own deposit lost,plus owe the bank 30% of the original loan.Cant buy ,well,ever again really.

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I heard yesterday that 20% of people use an unauthorised overdraft every month (It was on a discussion about Lloyds changing their charging structure). Can't currently find anything online to back this up though.
 

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The BBC report on this BOE survey but at the end of an article of the dearth of housing on the market...

"Separately, the Bank of England's latest Credit Conditions Survey of banks and building societies has suggested that home buyers could find it trickier to find mortgage deals with low deposits in the months ahead.

The survey found lenders were likely to rein in lending as they become more cautious about the state of the economy.

Lenders expect a slight reduction in mortgage availability to house buyers with deposits of less than 25%, and "in particular" those with a deposit of below 10%"

http://www.bbc.co.uk/news/business-40581912

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