Realistbear Posted February 19, 2006 Share Posted February 19, 2006 http://www.thisismoney.co.uk/money-savers/..._page_id=5&ct=5 Halt the bank bonanza Helen Loveless. Financial Mail 19 February 2006 CONSUMERS are wallowing in debt and the financial services industry is still dogged by mis-selling scandals, but the High Street banks are about to announce record profits of billions of pounds. AT least a third of all mortgage borrowers are believed to be paying standard variable rates, the long-term rate that kicks in after any upfront deal. The SVR costs borrowers an unnecessary £6.5bn a year in interest In the past two years, arrangement fees charged by lenders have also risen from an average of £299 to about £500. These have subsidised the spread of low-rate fixed deals. Who is benefitting from HPI? When the air is out of the bubble the banks will still be owed the same amount! Quote Link to comment Share on other sites More sharing options...
heresjohnny Posted February 19, 2006 Share Posted February 19, 2006 When the air is out of the bubble the banks will still be owed the same amount! If there's a crash/recession then banks will write off loads in bad debts - no good being owed anything if the person cannot pay it off (or their assets are worth less than the debt) Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted February 19, 2006 Share Posted February 19, 2006 If there's a crash/recession then banks will write off loads in bad debts - no good being owed anything if the person cannot pay it off (or their assets are worth less than the debt) Which means: 1. They will be able to reduce their tax bills by including the written off loss against future earnings at that time. Country suffers loss of tax, banks benefit. 2. People who owe the banks will still have the debt hanging around their necks for years and years afterwards. Banks benefit. 3. If banks repossess then banks still have the debt owed by the defaulters plus they have property to sell on. Banks benefit. Quote Link to comment Share on other sites More sharing options...
membrane Posted February 19, 2006 Share Posted February 19, 2006 Which means: 1. They will be able to reduce their tax bills by including the written off loss against future earnings at that time. Country suffers loss of tax, banks benefit. 2. People who owe the banks will still have the debt hanging around their necks for years and years afterwards. Banks benefit. 3. If banks repossess then banks still have the debt owed by the defaulters plus they have property to sell on. Banks benefit. yeah, but whats in it for the banks Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted February 19, 2006 Share Posted February 19, 2006 yeah, but whats in it for the banks Probably will close all their branches and move to online only. At which point they will relocate to Bombay and... Quote Link to comment Share on other sites More sharing options...
heresjohnny Posted February 19, 2006 Share Posted February 19, 2006 Which means: 1. They will be able to reduce their tax bills by including the written off loss against future earnings at that time. Country suffers loss of tax, banks benefit. 2. People who owe the banks will still have the debt hanging around their necks for years and years afterwards. Banks benefit. 3. If banks repossess then banks still have the debt owed by the defaulters plus they have property to sell on. Banks benefit. Ha ha ha ha ha - like it - banks benefit if there is a HPC and have to write off billions in debt. Funniest comment i've seen for ages. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted February 19, 2006 Share Posted February 19, 2006 Ha ha ha ha ha - like it - banks benefit if there is a HPC and have to write off billions in debt. Funniest comment i've seen for ages. Go and learn some basics about UK Corporate Tax before you make such comments! Quote Link to comment Share on other sites More sharing options...
BillyShears Posted February 19, 2006 Share Posted February 19, 2006 http://www.thisismoney.co.uk/money-savers/..._page_id=5&ct=5 Halt the bank bonanza Helen Loveless. Financial Mail 19 February 2006 CONSUMERS are wallowing in debt and the financial services industry is still dogged by mis-selling scandals, but the High Street banks are about to announce record profits of billions of pounds. AT least a third of all mortgage borrowers are believed to be paying standard variable rates, the long-term rate that kicks in after any upfront deal. The SVR costs borrowers an unnecessary £6.5bn a year in interest As mortgages get bigger and bigger, new house owners are paying larger amounts of their salaries to the banks. Eventually we get to the point where relatively poor people have loans 6-7 times their income, and are paying much of their take home salary to the bank, with just enough left over to scrape by. Given the size of the mortgages, then either most of the repayment is interest, or possibly it's even an interest only loan where all of the money goes to the bank. While many opposing points can be argued, I'm sure that this benefits the banks in some way shape or form if the situation slowly arises where massive numbers of people are working hard just to give lots of money to banks. Billy Shears Quote Link to comment Share on other sites More sharing options...
Jason Posted February 19, 2006 Share Posted February 19, 2006 (edited) If the vendor doesn't go bankrupt after a repossession the lender can claim the money back in later years. By this time everyone would have forgotton about it (Out of sight, out of mind). Just what happened after the last crash. Edited February 19, 2006 by Jason Quote Link to comment Share on other sites More sharing options...
frugalista Posted February 19, 2006 Share Posted February 19, 2006 Britain: Small rainy island, owned by banks. Excellent cheese. Mostly harmless. frugalista Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.