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Two posts on the BBC's business live stream that, if connected, show why prices are still so high, and it's very much repossessions that are not happening. These are needed in order for a proper correction to take place...

Mortgage arrears and possessions fall again

Posted at10:00
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The number of mortgages in arrears of 2.5% or more of the outstanding balance fell to 88,200 in the second quarter of this year.

That's the lowest level since at least 1994, according to UK Finance, when the data was first tracked.

The number of properties repossessed also fell, from 1,900 to 1,800, which accounts for 0.02% of all mortgages, the trade body pointed out. 

The total was the same as in the final quarter of last year, and is the lowest figure since quarterly data was first published in 2008, it said.

"Borrowers are being helped by low interest rates," pointed out UK Finance head of mortgages Paul Smee.

 

Lack of housing supply dragging down property market

Posted at9:45
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More comment on that downbeat Rics housing survey which suggest that the slowdown is spreading outside London to the south east...

"The long-running issue of housing supply remains, and it’s vital that the Government continues to find and act on ways to address our limited housing stock to boost housing supply and give more younger buyers a better chance at homeownership.”

Jeremy DuncombeDirector, Legal & General Mortgage Club
 

"The fundamental issue which remains and prevents a significant advancement in our housing market is a chronic lack of supply. The Government must begin to put words into action and address this problem, sooner rather than later, to enable more first-time buyers to step onto the property ladder and increase market fluidity.”

Richard SextonDirector, e.surv

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At some point the young are going to twig the politicians and bankers are playing them for mugs.

When will they wake up to the fact the BoE magic'd up £115Bn  to force down IRs and lend to any mug willing to agree a house is worth 10x what they earn ?

Hopefully at that point the protests start.

The UK sub-prime is here and plane for all to see.

 

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So thinking about it......why are repossessions so low, low interest rates help, low interest rates over a working lifetime and longer help, any interest is better than no interest.....but who would be left with the responsibility of housing all the repossed?......we don't go for people sleeping in streets, doesn't give a good impression.....bit like zombie businesses.....any income better than no income.;)

Edited by winkie

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12 minutes ago, TheCountOfNowhere said:

At some point the young are going to twig the politicians and bankers are playing them for mugs.

When will they wake up to the fact the BoE magic'd up £115Bn  to force down IRs and lend to any mug willing to agree a house is worth 10x what they earn ?

Hopefully at that point the protests start.

The UK sub-prime is here and plane for all to see.

 

Will they?  If they do, they'll be the first generation ever to do so.

Bankers and politicians have been playing the public ever since there were bankers and politicians.  As yet, there's never really been a mass change in public awareness about it.

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I expect a meaningful correction will only come with forced sales...historically this comes with recession and unemployment

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17 minutes ago, kibuc said:

Banks are really not that keen on repos. They are in the money lending stealing business, not in the property selling business.

Repos usually go to auction which generally lowers the selling price. This lowers the valuation for all the other houses in the area, many will be mortgaged by the same banks. It's better for the banks to hold off and hope the prices stay high enough for the mortgagee(s) to sell and pay off their debt.

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50 minutes ago, Sour Mash said:

Will they?  If they do, they'll be the first generation ever to do so.

Bankers and politicians have been playing the public ever since there were bankers and politicians.  As yet, there's never really been a mass change in public awareness about it.

Not in the Uk.

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37 minutes ago, kibuc said:

Banks are really not that keen on repos. They are in the money lending stealing business, not in the property selling business.

They'd be bankrupt if they repo and sell at market value.


We are being force to bail out the banks by paying insane house prices.

It makes their 2007 collapsing balance sheets look viable.

This is about as corrupt as any country can get

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10 minutes ago, Option5 said:

Repos usually go to auction which generally lowers the selling price. This lowers the valuation for all the other houses in the area, many will be mortgaged by the same banks. It's better for the banks to hold off and hope the prices stay high enough for the mortgagee(s) to sell and pay off their debt.

This only is an issue if (/because!) the banks have not done their lending properly - if they require sufficient deposits they shouldn't care if prices fall as even a 10-20% drop in prices would still see only the most recently-bought first time buyers in negative equity and any losses to the bank would be minimal. 

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3 minutes ago, Option5 said:

Repos usually go to auction which generally lowers the selling price. This lowers the valuation for all the other houses in the area, many will be mortgaged by the same banks. It's better for the banks to hold off and hope the prices stay high enough for the mortgagee(s) to sell and pay off their debt.

More than anything, banks want's to see the return of their money (and then a return on their money). What they don't want you to do is to default on your debt if it can be avoided.

If you're only just managing to pay your monthly rate and an IR rise puts you in the red but you're still employed, bank will gladly work with you to reduce your monthly commitment, usually by extending the term of your loan and milking you even more.

It's only if you're beyond repair when banks would consider cutting their losses.

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6 minutes ago, kibuc said:

It's only if you're beyond repair when banks would consider cutting their losses.

Or if they can cover the outstanding amount by repo and auction, they don't care about the mortgagees equity. This may happen if they have a large number of delinquent loans on their books and want to improve the look of their loan book.

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36 minutes ago, Option5 said:

Repos usually go to auction which generally lowers the selling price. This lowers the valuation for all the other houses in the area, many will be mortgaged by the same banks. It's better for the banks to hold off and hope the prices stay high enough for the mortgagee(s) to sell and pay off their debt.

Bit like better to keep a property empty collecting no rent than to rent out at a lower price which will lower the value.......seen it all before.;)

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26 minutes ago, kibuc said:

More than anything, banks want's to see the return of their money (and then a return on their money)

If that were true they'd only lend to people who could pay it back, interest rates would be 5% too.

The bankers have taken over, they are feasting on free, tax payer funded, society supported cash.

IMHO we will end up with a German 1930's situation.

Broon had the chance to stamp on these evil ****s in 2007 and he was more worried about his own reputation (IMHO).  he was set up, a total patsy and he feel for it, signing over out children into financial slavery.

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23 minutes ago, winkie said:

Bit like better to keep a property empty collecting no rent than to rent out at a lower price which will lower the value.......seen it all before.;)

The bankers have fixed the market at these insanely high prices.

If people are stretched to the point no one can afford to buy the bankers have a problem...they cant lend.

This is why they will have to collapse the bubble at some point.

If their balance sheets are strong and they can claim against HTB2 then they'll happily chuck people out on the streets

 

Edited by TheCountOfNowhere

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50 minutes ago, TheCountOfNowhere said:

They'd be bankrupt if they repo and sell at market value.


We are being force to bail out the banks by paying insane house prices.

It makes their 2007 collapsing balance sheets look viable.

This is about as corrupt as any country can get

The policies are corrupt - and evil.

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26 minutes ago, billybong said:

The policies are corrupt - and evil.

Voted to leave the EU just to stick to fingers up at the bankers....next day they gifted themselves 10's of billions of £££s

The only think that I can see stopping them is total collapse ( we're all f**ked ) or proper civil unrest ( we're all f**ked ), if we keep going down the road we are right now then we're all f**ked.

So to recap,  we are all f**ked.

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11 minutes ago, Tempus said:

Thing is... They will never raise interest rates. Not going to happen. See Japan.

Raising interest rates is a thing of history.

 

I've only got a couple of minutes into the video and already a representative of the BIS is starting to spout on it and from the tone of it already seems to be criticising the central bankers' policies.  I'll have to finish it later.

It's always amusing to realise that all the main central bankers are directors of the BIS (including Carney) as they regularly effectively pull apart their own policies.  Even so nothing changes.

 

Edited by billybong

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Quote

Thing is... They will never raise interest rates. Not going to happen. See Japan.

Raising interest rates is a thing of history

 

Except in the USA

:lol: :lol: :lol: :lol: :lol: :lol: :lol: 

Edited by TheCountOfNowhere

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2 hours ago, Wayward said:

I expect a meaningful correction will only come with forced sales...historically this comes with recession and unemployment

Normally yes, however don't forget about s24, tick tock.

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16 minutes ago, Tempus said:

Thing is... They will never raise interest rates. Not going to happen. See Japan.

Raising interest rates is a thing of history.

 

 

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22 minutes ago, TheCountOfNowhere said:

The only think that I can see stopping them is total collapse ( we're all f**ked ) or proper civil unrest ( we're all f**ked ), if we keep going down the road we are right now then we're all f**ked.

So to recap,  we are all f**ked.

What are you trying to say?

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