No Nationwide repos for 12 months

[stop_the_craziness]

The whole thing is a shit show for everyone.

If you didn't own a house when the music stopped then you probably never will.

If you did own a house when the music stopped then you'll probably have to live in it forever, (possibly paying over the odds on the mortgage in the future) and regardless of whether it suits your needs.  Or you'll have to have all the hassle, stress and tax implications of being an "accidental" landlord so that you can buy the next house "up the ladder" than you wanted to buy in the normal way (by selling yours) but couldn't because you were trapped by the imaginary "value" of your existing house.

 

Edited May 29, 2020 by stop_the_craziness
clarity

[richmondtw]

3 hours ago, TheCountOfNowhere said:

More magicked up cash, negative rates, inter gemnerational mortgages.

There will be a revolution at some point.

When this finally collapses it is going to be spectacular.

Been hearing that for many many years now.

 

3 hours ago, longgone said:

you have to wonder why anyone bothers to go to work or save anything. 

I work to enables me to buy a house which is now mortgage free, go to sport events, concerts, enjoy a beer in the local, spend time with family and mates, go to theatre, look after my wife and kids

2 hours ago, Locke said:

2 hours ago, Gigantic Purple Slug said:

a) it's really bad press

Sure

It obviously would be very bad press unless you are someone who wants to see a person lose their home that they live in. All big companies have huge PR departments  and you can be assured that they are advising against repos.

2 hours ago, Locke said:

2 hours ago, Gigantic Purple Slug said:

b) they will need to re-house everyone who is kicked out

hahaha what?

If people lose their houses because of a house price crash, it is tautological to state that there will be loads of affordable housing for them.

As has been pointed out on the site many times there is a huge shortage of affordable  local authority subsidised housing 

 

 

 

 

[richmondtw]

3 hours ago, TheCountOfNowhere said:

More magicked up cash, negative rates, inter gemnerational mortgages.

There will be a revolution at some point.

When this finally collapses it is going to be spectacular.

Been hearing that for many many years now.

 

3 hours ago, longgone said:

you have to wonder why anyone bothers to go to work or save anything. 

I work to enables me to buy a house which is now mortgage free, go to sport events, concerts, enjoy a beer in the local, spend time with family and mates, go to theatre, look after my wife and kids

2 hours ago, Locke said:

2 hours ago, Gigantic Purple Slug said:

a) it's really bad press

Sure

It obviously would be very bad press unless you are someone who wants to see a person lose their home that they live in. All big companies have huge PR departments  and you can be assured that they are advising against repos.

2 hours ago, Locke said:

2 hours ago, Gigantic Purple Slug said:

b) they will need to re-house everyone who is kicked out

hahaha what?

If people lose their houses because of a house price crash, it is tautological to state that there will be loads of affordable housing for them.

As has been pointed out on the site many times there is a huge shortage of affordable  local authority subsidised housing 

 

 

 

 

[richmondtw]

5 minutes ago, stop_the_craziness said:

The whole thing is a shit show for everyone.

If you didn't own a house when the music stopped then you probably never will.

If you did own a house when the music stopped then you'll probably have to live in it forever, (possibly paying over the odds on the mortgage in the future) and regardless of whether it suits your needs.  Or you'll have to have all the hassle, stress and tax implications of being an "accidental" landlord so that you can buy the next house "up the ladder" than you wanted to buy in the normal way (by selling yours) but couldn't because you were trapped by the imaginary "value" of your existing house.

Over the odds?  Low interest rates are here to stay.

You have the option to sell if you want to if it does not suit your needs.

You dont have to be a landlord if you inherit you are free to sell.  

It is not imaginary every product / service is worth what someone is prepared to pay for it.  

So whatever you do is bad ? So what is your solution? 

[Si1]

27 minutes ago, Timm said:

Not sure what you mean by this, but I remember "let to buy" mortgages from the early '90s. You just had to find a tenant for your underwater home and you could buy a new one. They essentially created the BTL thing - lots of people got into it by accident and were surprised to find they had fallen into a nice little earner.

I'm not sure how well it would work now - BTL is not what it was and a lot of people would find they had fallen into a nice little cluster******. Perhaps if they were HMG sanctioned?

Probably entirely to do with the way BTL was taxed at the time

[TheCountOfNowhere]

8 minutes ago, richmondtw said:

Over the odds?  Low interest rates are here to stay.

Have you not been following.

Debt deflation...massive QE...inflation shoots up...Interest rates shoots up....house prices collapse

The UK is even more of a zombie economy now than it was 6 months ago.  

Get your money out the bank before the inflation hits cause as we've seen today, I'd wager the NW can't stand a house price collapse.  Some banks will be shutting and not opening again

[TheCountOfNowhere]

17 minutes ago, richmondtw said:

Been hearing that for many many years now.

 

 

It's dragging on a bit, isn't it.  Doesnt mean it's wrong.

Money's worthless, people haven;t twigged yet

[Locke]

19 minutes ago, richmondtw said:

It obviously would be very bad press unless you are someone who wants to see a person lose their home that they live in. All big companies have huge PR departments  and you can be assured that they are advising against repos.

Yes, I was agreeing. I don't care to discuss press htough.

19 minutes ago, richmondtw said:

As has been pointed out on the site many times there is a huge shortage of affordable  local authority subsidised housing 

Are you in the "rented houses simply vanish once the landlord sells up" brigade?

[Hullabaloo82]

45 minutes ago, Timm said:

Not sure what you mean by this, but I remember "let to buy" mortgages from the early '90s. You just had to find a tenant for your underwater home and you could buy a new one. They essentially created the BTL thing - lots of people got into it by accident and were surprised to find they had fallen into a nice little earner.

This is exactly what I'm referring to and am convinced it's what will happen again in the event that there is a more sustained crash. The pool of potential buyers will be significantly reduced, the pool of potential renters (with nice government supported rent payments - furlough or HB/UC) significantly increased. 

The banks would rather let HB pay the mortgage for a few years whilst they flog another one to somebody still in stable work and let inflation do its magic on the debt rather than try to sell a highly illiquid, depreciating asset. 

[TheCountOfNowhere]

33 minutes ago, richmondtw said:

It obviously would be very bad press unless you are someone who wants to see a person lose their home that they live in. All big companies have huge PR departments  and you can be assured that they are advising against repos.

 

It's very bad press that people can't afford homes, doesn't ****ing stop them tho.

People will be dancing in the streets when the BTLetsters are repo'd.

REPO=GOOD.

NO-REPO=MARKET MANIPULATION=FRAUD

[Warlord]

What goes up must come down

The bubble will burst doesn't matter how much they try and kick the can .

[TheCountOfNowhere]

1 minute ago, Warlord said:

What goes up must come down

The bubble will burst doesn't matter how much they try and kick the can .

Unless it's in real terms  

I was sick of this madness in 2016, I just cannot believe what I am seeing.

I am more and more convinced that the CV19 was an excuse to hand the bankers more and more.

 

[Warlord]

5 minutes ago, TheCountOfNowhere said:

Unless it's in real terms  

I was sick of this madness in 2016, I just cannot believe what I am seeing.

I am more and more convinced that the CV19 was an excuse to hand the bankers more and more.

 

'Never let a crisis go to waste' 

[Orb]

10 minutes ago, Warlord said:

What goes up must come down

The bubble will burst doesn't matter how much they try and kick the can .

I said exactly this is 2010, and was told no, house prices only go up. I was adamant prices would plateau then come down by 2015. And look where we are now. This week I've seen several properties come onto the market in Northampton 30-35% higher than their last sold price of 2015/16/17. So even if they sell for 10% less than current asking price, they're still around 20% up in less years than I've got fingers on one hand. It's utter madness. 

[reddog]

I am curious to see what will happen in s years time, some people could have got in massive arrears by then.

 

This could turn out to be a really bit decision.  Was speaking to s Spanish colleague a few years ago, he said Spanish banks own a huge amount of property that they has reposed, the problem was they could not release it on to the market, as priced would go through the floor.

Edited May 29, 2020 by reddog

[Warlord]

Just now, Orb said:

I said exactly this is 2010, and was told no, house prices only go up. I was adamant prices would plateau then come down by 2015. And look where we are now. This week I've seen several properties come onto the market in Northampton 30-35% higher than their last sold price of 2015/16/17. So even if they sell for 10% less than current asking price, they're still around 20% up in less years than I've got fingers on one hand. It's utter madness. 

They managed to reflate the bubble but they won't be able to do it this time (in my opinion).  We'll see!

.

 

[winkie]

Once the debt has been secured.....the lenders will own most of the asset.....it is in their interest to keep  rolling over the debt, earning ever more interest or income from that debt...... long-term they are forever collecting rent, the asset they will continue majority or partially own.......Today few will own anything, everything is rented.?

[Orb]

Just now, Warlord said:

They managed to reflate the bubble but they won't be able to do it this time (in my opinion).  We'll see!

.

 

I bloody hope not. But the sheep are relentless, as mumsnet testifies, and I have little faith. A few weeks ago somebody on here was reflecting on how he's been conditioned to see London houses under £500k as bargains. For every one of him who reflect on their psychology and see the madness, there are 99 that don't. Frogs and boiling water spring to mind. 

Think about that for one moment. Five.. hundred.. thousand... that's around 15x average UK gross earnings for a house considered by many to be a bargain. 

[Warlord]

Just now, Orb said:

I bloody hope not. But the sheep are relentless, as mumsnet testifies, and I have little faith. A few weeks ago somebody on here was reflecting on how he's been conditioned to see London houses under £500k as bargains. For every one of him who reflect on their psychology and see the madness, there are 99 that don't. Frogs and boiling water spring to mind. 

Think about that for one moment. Five.. hundred.. thousand... that's around 15x average UK gross earnings for a house considered by many to be a bargain. 

Of course it's madness.  It's a bubble and none of it makes common sense only to those wrapped up in it and the trolls on this forum. 

[captainb]

9 minutes ago, Orb said:

I bloody hope not. But the sheep are relentless, as mumsnet testifies, and I have little faith. A few weeks ago somebody on here was reflecting on how he's been conditioned to see London houses under £500k as bargains. For every one of him who reflect on their psychology and see the madness, there are 99 that don't. Frogs and boiling water spring to mind. 

Think about that for one moment. Five.. hundred.. thousand... that's around 15x average UK gross earnings for a house considered by many to be a bargain. 

Well as owners near Gatwick are about to find out its local earnings that matter not an average across the whole country.

 

[Crowdedmarket]

1 hour ago, TheCountOfNowhere said:

It's dragging on a bit, isn't it.  Doesnt mean it's wrong.

Money's worthless, people haven;t twigged yet

The new 10/20 quid notes are lovely though. All the money I get seems to be new notes.

[blackhole]

Not sure Nationwide are going to be liquid enough to survive 12 months of no repos.  A tier 3 at best behaving like they have tier 1 access to capital.  Much like Metro bank.  Tick Tock.

I know I'm personally responsible for at least 5 people moving significant amounts of savings out of them.  I recommend we keep the pressure on!

[winkie]

3 minutes ago, blackhole said:

Not sure Nationwide are going to be liquid enough to survive 12 months of no repos.  A tier 3 at best behaving like they have tier 1 access to capital.  Much like Metro bank.  Tick Tock.

I know I'm personally responsible for at least 5 people moving significant amounts of savings out of them.  I recommend we keep the pressure on!

Nationwide is/was a building society......their business is to lend money to buy houses .......they do not pay the best interest rates to savers.....they thrive on debt not savings, savings are a liability.?

[Warwick-Watcher]

1 hour ago, stop_the_craziness said:

The whole thing is a shit show for everyone.

If you didn't own a house when the music stopped then you probably never will.

If you did own a house when the music stopped then you'll probably have to live in it forever, (possibly paying over the odds on the mortgage in the future) and regardless of whether it suits your needs.  Or you'll have to have all the hassle, stress and tax implications of being an "accidental" landlord so that you can buy the next house "up the ladder" than you wanted to buy in the normal way (by selling yours) but couldn't because you were trapped by the imaginary "value" of your existing house.

 

I think to be fair it's all to do with demand. Prices are falling in Aberdeen and have been for a few years. Nothing to do with the quality of the properties, or the air or the weather. Simply there are fewer people with jobs up there. Transfer that concept to the whole UK with a massive round of redundancies coming up and it's hard to imagine life will continue as before for the housing market.

https://www.zoopla.co.uk/house-prices/aberdeen/

I do accept that anywhere within long commuter distance of London will do better on average - especially if it's got a large garden and room for an office. Anyone selling in say Chelsea can probably buy anything other than a mansion within 1 hour of the M25.

Winchester - 6 bed detached, with annex. £1.45m

https://www.zoopla.co.uk/for-sale/details/53137404?search_identifier=790559d3a6a53eef2302e6e778eed98a

Chelsea - cheapest 4 bed. £1.95m - That half a mill buys a lot of re-decoration and overnight hotels in London.

https://www.zoopla.co.uk/for-sale/details/53944749?search_identifier=2b74261b5f1a9e2d3564f9016de982dd

 

[the_dork]

46 minutes ago, Orb said:

 

Think about that for one moment. Five.. hundred.. thousand... that's around 15x average UK gross earnings for a house considered by many to be a bargain. 

Scuse me jumping in and generally lurking but what do you think would be an accurate price for the average London home? It's such a special case in terms of (global) demand that I just can't see 3-4x even joint earnings being a law of nature there