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Realistbear

Fears Grow Of Looming Mortgage Black Hole

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http://business.scotsman.com/finance.cfm?id=182172006

Fears grow of looming mortgage black hole

A MORTGAGE
black hole of more than £1bn is facing hundreds of thousands of Britain's home buyers,
because they have used endowment compensation cheques to fund luxury holidays, kitchen extensions or buy other consumer durables.
It is estimated that by the end of this year up to a million households will have received a cheque typically for between £3,000 to £5,000 after being wrongly sold an endowment policy, according to insurance industry sources. Some payouts have been as high as £50,000 or more.
However, Britain's giant home lenders believe that less than half of this cash has been used to settle loans, triggering fears that
householders are heading for a new mortgage crisis in 2012/13
when low-cost endowments sold at the peak of the market begin to mature.
Council of Mortgage Lenders spokeswoman Sue Anderson said: "This is a serious concern for many of our members. Lenders are worried that borrowers are spending this money today,
only to store up problems in the future."

This could extend the HPC for 10 years or more: 2006-2116

Time to find a long term rental.

Edited by Realistbear

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RB,

Sir, I salute your indefatigability in seeking out relevant and useful articles.

In two or three years' time, this forum's main discussion is going to move from "why we shouldn't buy" to "is now the right time to buy?"...I'll be bearing (no pun intended) this article in mind.

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This doesn't surprise me in the slightest. This is the mentality of some of the thickos in this country. They receive a cheque to bridge the gaping hole left by their under-performing endowment so instead of investing it they spend it. I can see a lot of people forced to take out extended mortages or sell up. This will be a blow to many hoping for a nice comfortable retirement. They may either have to sell up or carry on working, that's if there's any jobs left for them.

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A MORTGAGE black hole of more than £1bn is facing hundreds of thousands of Britain's home buyers

Peanuts compared to the near £10bn per month black hole that new entrants/upsizers are digging themselves into.

Edited by OnlyMe

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This doesn't surprise me in the slightest. This is the mentality of some of the thickos in this country. They receive a cheque to bridge the gaping hole left by their under-performing endowment so instead of investing it they spend it. I can see a lot of people forced to take out extended mortages or sell up. This will be a blow to many hoping for a nice comfortable retirement. They may either have to sell up or carry on working, that's if there's any jobs left for them.

My warm fuzzy side is fighting with my rational side. On one hand I wish no ill to no one, but on the other, if these people were prepared to make a punt on their houses to spend for today then as far as it goes, I have made the sacrifices that they were'nt prepared to when it was optional. They can make the sacrifices that are an almost universal long-term requirement of self-indulgence. Karma!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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