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Realistbear

V Is Wallow In Giant Profits Made Out Of Hpi

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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!

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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)

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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.

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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

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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.

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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!

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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

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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 by Jason

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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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