Daily Mail 2 good stories

[Gush]

9 hours ago, Dorkins said:

So in this scenario, even though 15 years into their own careers they wouldn't have the cash flow to service the mortgage, you think they would be able to find a buyer 15 years younger than them who would be able to service a mortgage 30-40% bigger than theirs?

Seems like a fantasy to me, basically a miniature version of Fungus expecting a consortium of Arabs/Russian/Chinese to buy him out any day now.

Its not fantasy. Fungus has been leaching the system for 15 years successfully.

This ponzi relay on sentiment.  As long as you can make believe the next generation of 20yr old they can make money even after paying 30 -40% more than previous owner then the ponzi continues. 

[Will!]

11 hours ago, jiltedjen said:

Thing is how long will they able be able to string it out with credit cards and overdrafts and loans, could probably string it out for a full 10 years. then start again after going bust with young children. 

might even be able to restructure all the personal loans etc, for an additional 5 years.

maybe they will sell up in 15 years time utterly bust, but find their house has gone up 30-40% and bails them out with a deposit for their next house and clear their debts, 

of course by then they will feel flush, no debt and a free deposit, time for an upgrade on a bigger house. 

and so it continues on and on. the real issue happens at retirement, which they will never do. put then you just go sick, etc. 

I think their story is pretty typical of a lot of young buyers on HTB. 

there is enough of them that there will be a massive demand for ‘help to buy second steppers’ causing a two teir market 

 

9 minutes ago, Gush said:

This ponzi relay on sentiment.  As long as you can make believe the next generation of 20yr old they can make money even after paying 30 -40% more than previous owner then the ponzi continues. 

I know quite a few would-be second-steppers who are stuck because of MMR.  They were economical with the truth on their first mortgage application and hid some of their recurring outgoings in order to borrow more than they would otherwise be able to do.  Now they want to take the next step on the pyramid but they can no longer conceal their recurring outgoings when they apply for an even bigger mortgage.

They're stuck in their flats for which they paid silly money.  They can afford the monthly repayments with NIRP,  but they need to sell for even sillier money in order to buy a house and they can't sell for that because of MMR.

[jiltedjen]

Not sure what happens with the next generation. 

 

I saw an advert on Facebook for gifted deposits. You want to buy a new build, they will double your deposit for free! 

I thought ‘well this is just a ******** way to keep the selling price high, while giving a slight discount, just allowing even more leverage, I bet loads of people have called them out in the comments’

*clicks comments*
 

someone called ‘chaz’ has tagged billy ‘big man’ lastname saying ‘this looks like a good deal’ ‘yeah man will give them a ring ting’

followed by a flood of tagging, and loads of positive comments. 

so the issue was never the price, or the 20% boost or ‘help’ but it’s the lack of deposit. no-one cares about the price of leverage. 

even if the person who’s selling you something which is sooo bloody expensive for the local area, that they are struggling to sell even with HTB, and send a massive warning flag of ‘dangerously overpriced and not selling’ having to literally pay people to buy the houses, yet this is positive. 

So maybe this couple are screwed or they are just not the last generation to have mental ‘support’ there will be other generations who will have a lot of ‘support’ for their £1m first home.

im not pro HPI at all. 

but in markets which are not allowed to ever fail or fall what else do they have to go than up? Up up and away? 
 

Sterling is less important than house prices 

[ebull]

I

13 hours ago, jiltedjen said:

so the issue was never the price, or the 20% boost or ‘help’ but it’s the lack of deposit. no-one cares about the price of leverage. 
 

I have experienced this also [mostly around 2008]. If the bank/CC company/quidco will give you dosh, that's dosh you can spend today.

Absolutely everything else is unimportant. Even amongst small traders pricing up jobs for 1-2k with costs 70% of that who you would think have the ability to make thought through decisions about debt.

One in particular only saw the east euro skirt the fat bar steward could get with the credit. Of course that only lasts until the credit runs out.

Edited February 3, 2020 by ebull
stars

[mallish]

On 1/31/2020 at 6:38 PM, “Nasty Piece of work” said:

"Daily Mail" and "Good" in the same sentence?

good or bad depends largely on a political persuasion. Personally I am no fan o the Guardian or the Mirror.

Love that the DM shafted Saracens Rugby Club for cheating the salary cap - that was excellent investigative journalism which has stopped a club that had been cheating for years and ended up in a huge fine and relegation.  

[iamnumerate]

On 31/01/2020 at 21:26, Dorkins said:

Any mouthbreather can borrow a load of money, it's the paying it off part that's the achievement.

If it were a bit harder to borrow - the country would be a lot better off.

[Will!]

On 31/01/2020 at 21:26, Dorkins said:

Any mouthbreather can borrow a load of money, it's the paying it off part that's the achievement.

It's that time of the year.

BBC News: 'I was £32,000 in debt, it consumed every moment'

Quote

After taking out one loan after another, then adding credit card debt, Darren had borrowed £32,000 he could not pay back.
The 44-year-old, from Stoke-on-Trent, was juggling minimum payments and was struggling to cope.

"I was not reducing the debt, it was just going up month after month, year after year," he said.

"I had all the highs of spending the money, but when I was low, it was low. It consumes every thought, every moment of the day just worrying about debt. It was awful."

Credit card companies have been told to write to between one million and two million people who are struggling to cope with debt and have paid no more than their minimum repayment.

Darren received help and is now debt-free, but many people who are in the situation he found himself in are said to be in persistent debt.

Quality BBC journalism doesn't say how Darren became debt free, but if it involved write offs then that might not been a good idea to put in the heads of any other spendthrifts reading.

[Council estate capitalist]

13 minutes ago, Will! said:

It's that time of the year.

BBC News: 'I was £32,000 in debt, it consumed every moment'

Quality BBC journalism doesn't say how Darren became debt free, but if it involved write offs then that might not been a good idea to put in the heads of any other spendthrifts reading.

Quick search reveals the BBC article is a stripped down version of this much more thorough and surprisingly detailed article in the Sun. 

https://www.thesun.co.uk/money/8936267/dad-cleared-32k-debts-year-haggling-debt-collectors/

Crux of it is he got into serious debt in his 20's, entered into a fee charging "debt management plan" at 27 which paid his creditors £1/£2 a month + probably hefty fees to the DMP operator. 

Age 44 one of the creditors offers to take 50p in the pound which spurs him on to work overtime, cash in his Royal Mail shares and offer creditors an average of 40p in the £1 on what they are owed + One £3400 debt was statute barred. 

 

[dances with sheeple]

On 02/02/2020 at 20:52, Gush said:

Its not fantasy. Fungus has been leaching the system for 15 years successfully.

This ponzi relay on sentiment.  As long as you can make believe the next generation of 20yr old they can make money even after paying 30 -40% more than previous owner then the ponzi continues. 

Transactions are half peak madness though, less people are buying into it IMO. The young couple article is just a puff piece for starve to buy at bubble prices, because it is worth it, honest it is, and bankers/boomers definitely need your participation, the other piece is just trying to promote their careers, keep them in the celebrity spotlight by having them do outlandish nonsense and holiday in cool places at the same time. MK is actually a pretty good actress IMO, if she had been around as an actress in the 90`s I think she could have had a movie career, don`t know how good she is at an American accent though, her normal dialect wouldn`t have cut it unfortunately.

[spyguy]

On 02/02/2020 at 21:11, Will! said:

 

I know quite a few would-be second-steppers who are stuck because of MMR.  They were economical with the truth on their first mortgage application and hid some of their recurring outgoings in order to borrow more than they would otherwise be able to do.  Now they want to take the next step on the pyramid but they can no longer conceal their recurring outgoings when they apply for an even bigger mortgage.

They're stuck in their flats for which they paid silly money.  They can afford the monthly repayments with NIRP,  but they need to sell for even sillier money in order to buy a house and they can't sell for that because of MMR.

And theyve had ~10 years repayments - piss in the ocean if its 30y mortgage mind.

Wait til those 'bargain' HTB hit the 5 year pain barrier as th 20% falls o ntheir loan.

Youll have loads of people tuck on a crap new build estate, sharing the tiny space with 30% social tenants, and about ~40% negative equity.

The consistent story I hear about property in my local area is 'X cant sell their house'

Which is a code for they wortn drop the price so it clears.

And Ive be hearing this for coming  up to 20 years.

 

 

 

[Pop321]

On 02/02/2020 at 21:34, jiltedjen said:

Not sure what happens with the next generation. 

I saw an advert on Facebook for gifted deposits. You want to buy a new build, they will double your deposit for free! 

I thought ‘well this is just a ******** way to keep the selling price high, while giving a slight discount, just allowing even more leverage, I bet loads of people have called them out in the comments’

*clicks comments*

someone called ‘chaz’ has tagged billy ‘big man’ lastname saying ‘this looks like a good deal’ ‘yeah man will give them a ring ting’

followed by a flood of tagging, and loads of positive comments. 

so the issue was never the price, or the 20% boost or ‘help’ but it’s the lack of deposit. no-one cares about the price of leverage. 

even if the person who’s selling you something which is sooo bloody expensive for the local area, that they are struggling to sell even with HTB, and send a massive warning flag of ‘dangerously overpriced and not selling’ having to literally pay people to buy the houses, yet this is positive. 

So maybe this couple are screwed or they are just not the last generation to have mental ‘support’ there will be other generations who will have a lot of ‘support’ for their £1m first home.

im not pro HPI at all. 

but in markets which are not allowed to ever fail or fall what else do they have to go than up? Up up and away? 
 

Sterling is less important than house prices 

Good spot.

For most, I guess it has never has been about the price for very young people. I remember looking at houses at 18 (and second home at 21) and spent everything I possibly could on the house....absolutely nothing else financially mattered. And I was more frugal than a ducks bottom ?

If mortgages were restricted to 3x (or even maybe a generous 4x) single income (plus 1 for another earner) and interest rates were 5%....prices would fall accordingly.

It is all a big conspiracy and this support will fail because it is like pushing against the tide....but this sustained support is unprecedented, interest rates have never been this low....so predicting WHEN normality returns and prices fall is the million dollar question. ?

[regprentice]

15 hours ago, Will! said:

It's that time of the year.

BBC News: 'I was £32,000 in debt, it consumed every moment'

Quality BBC journalism doesn't say how Darren became debt free, but if it involved write offs then that might not been a good idea to put in the heads of any other spendthrifts reading.

What was interesting about that article was that they were criticising the card companies for making it 'harder' to repay debt. In a lot of cases the card company reads the rules as Inflexibly as possible, and so they cancel the card and ask for a repayment plan.

The suggestion was that this was making people's lives harder and they needed to find a middle ground where they helped people edge their debt down and down by maybe reducing their credit limit in, say, 5 or 10 steps befire letting them stay on a card with a low limit once they had proven they were a good boy. 

The FCA have given banks 3 years to eradicate persistent debtors. That's not a lot of time for Darren and his mates to repay a chunk Of 5 figure debt. 

[Si1]

15 hours ago, Council estate capitalist said:

Quick search reveals the BBC article is a stripped down version of this much more thorough and surprisingly detailed article in the Sun. 

https://www.thesun.co.uk/money/8936267/dad-cleared-32k-debts-year-haggling-debt-collectors/

Crux of it is he got into serious debt in his 20's, entered into a fee charging "debt management plan" at 27 which paid his creditors £1/£2 a month + probably hefty fees to the DMP operator. 

Age 44 one of the creditors offers to take 50p in the pound which spurs him on to work overtime, cash in his Royal Mail shares and offer creditors an average of 40p in the £1 on what they are owed + One £3400 debt was statute barred. 

 

If he'd have been born ten years earlier then he have been bailed out every step of the way by house price inflation on the cheap 3 bed suburban semi he bought on a random greedy whim at 25.