Smith Posted January 21, 2023 Share Posted January 21, 2023 A lot to unpack here! https://www.theguardian.com/business/2023/jan/21/upsize-downsize-why-the-covid-property-race-for-space-went-sour-for-homebuyers Quote Link to comment Share on other sites More sharing options...
Smith Posted January 21, 2023 Author Share Posted January 21, 2023 Barbara and John put their home on the market last month, and have already had to reduce the price. “We are likely now to make a loss upon sale. We are so angry and upset with the government that we have ended up here.” Quote Link to comment Share on other sites More sharing options...
Stjames83 Posted January 21, 2023 Share Posted January 21, 2023 “Claire and her husband James, who did not want to give their full names, upsized from their three-bedroom mid-terrace former council house in central Hertfordshire to a £600,000 five-bed in a Cambridgeshire town in spring 2021, in the belief that mortgage rates would remain low. “We stretched our budget to move to our dream house. Monthly payments have just increased by £370, after we rushed to re-fix for five years at just under 4% in November,” Claire says.” The salary multiple here barely adds up, unless they had a massive deposit. In which case they are pleading poverty and will be quite ok. Someone smarter than me could work out their loan amount and LTV based on that increase. Quote Link to comment Share on other sites More sharing options...
Blobsy Posted January 21, 2023 Share Posted January 21, 2023 "Retrospectively, I feel it was quite irresponsible for the bank to lend us this much, and I know they would have lent us more.” Dear god. Everyone else's fault but mine. Quote Link to comment Share on other sites More sharing options...
Stjames83 Posted January 21, 2023 Share Posted January 21, 2023 Edit - forgot to quote the part stating they have a household income of 60k. That wouldn’t qualify for the 5.5 rates so let’s say absolute max loan would have been about 280k. Someone is fibbing. Quote Link to comment Share on other sites More sharing options...
Clarky Cat Posted January 21, 2023 Share Posted January 21, 2023 5 minutes ago, Stjames83 said: Edit - forgot to quote the part stating they have a household income of 60k. That wouldn’t qualify for the 5.5 rates so let’s say absolute max loan would have been about 280k. Someone is fibbing. Yeah, they cant have that big a mortgage. They presumably took out the initial one at about 1%. Going from 1% to 4% is roughly 40% increase in repayments, so the £370 increase corresponds to an original loan of £245k (all assuming 25yrs). 40% LTV. Quote Link to comment Share on other sites More sharing options...
12fixer Posted January 21, 2023 Share Posted January 21, 2023 OMG the article is one long whingefest. Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted January 21, 2023 Share Posted January 21, 2023 (edited) 1 hour ago, Smith said: Barbara and John put their home on the market last month, and have already had to reduce the price. “We are likely now to make a loss upon sale. We are so angry and upset with the government that we have ended up here.” If their house price had gone up in value would they be thanking the government and handing over their profits on sale to fund the NHS. I think not! This is one effect of Covid and the financial crash etc since 2008 - when you succeed it’s all thanks to you and your efforts but when things go sour it’s the government’s fault and perhaps you even expect a bailout. If only Tory MPs hadn’t dumped Liz Truss we might even be seeing a bigger house price crash now!! Which I assume most people posting on this site want to see?! Edited January 21, 2023 by MARTINX9 Quote Link to comment Share on other sites More sharing options...
Bob8 Posted January 21, 2023 Share Posted January 21, 2023 10 minutes ago, MARTINX9 said: If their house price had gone up in value would they be thanking the government and handing over their profits on sale to fund the NHS. I think not! This is one effect of Covid and the financial crash etc since 2008 - when you succeed it’s all thanks to you and your efforts but when things go sour it’s the government’s fault and perhaps you even expect a bailout. If only Tory MPs hadn’t dumped Liz Truss we might even be seeing a bigger house price crash now!! Which I assume most people posting on this site want to see?! I think this is the divide. You see a house price crash coming with working people getting poorer and put in their place as morally overdue. Others think houses should be more affordable to ordinary people. Quote Link to comment Share on other sites More sharing options...
Huggy Posted January 21, 2023 Share Posted January 21, 2023 Just think how salty they'll be next month The Graun have been horrible rampers for decades, and it's nice to hear them squeak a little now. More stories of how people defied the 'can't lose with bricks and mortar' meme can only help the cause. Cheers Big G! Quote Link to comment Share on other sites More sharing options...
mynamehere Posted January 21, 2023 Share Posted January 21, 2023 Financial difficulty reaches the middle classes. Shame no comments in the article! “We are looking forward to meals out and family holidays – our move will allow us to do such things again.” Quote Link to comment Share on other sites More sharing options...
BaldED Posted January 21, 2023 Share Posted January 21, 2023 Economic Darwinism is action. Hopefully more of this coming in the next few years. Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 21, 2023 Share Posted January 21, 2023 Holy sh#t. The pain is real. Quote Link to comment Share on other sites More sharing options...
btd1981 Posted January 21, 2023 Share Posted January 21, 2023 "The school run will take 30 to 40 minutes longer, but the improved standard of living will be worth it" There's your standard of living out of the window right there. "Longer" How much time do they plan to spend in a car every day?? Quote Link to comment Share on other sites More sharing options...
Nomadd Posted January 21, 2023 Share Posted January 21, 2023 13 minutes ago, btd1981 said: How much time do they plan to spend in a car every day?? Once they lose the house? I'd say 24 hours. Quote Link to comment Share on other sites More sharing options...
btd1981 Posted January 21, 2023 Share Posted January 21, 2023 10 minutes ago, Nomadd said: Once they lose the house? I'd say 24 hours. 🤣 Quote Link to comment Share on other sites More sharing options...
Homeless Millionaire Posted January 21, 2023 Share Posted January 21, 2023 3 hours ago, Smith said: Barbara and John put their home on the market last month, and have already had to reduce the price. “We are likely now to make a loss upon sale. We are so angry and upset with the government that we have ended up here.” Well thats one laugh I've had today! Quote Link to comment Share on other sites More sharing options...
gerkin Posted January 21, 2023 Share Posted January 21, 2023 I think our dear PM Richie Sunak should ride to the rescue and scrap all stamp duty completely and instructed banks to lower mortgage rates to less than 1%. Quote Link to comment Share on other sites More sharing options...
hotblack42 Posted January 21, 2023 Share Posted January 21, 2023 Might just add up if they sold mortgage free at the very top of the market and borrowed to the absolute max with some savings and/or inheritance thrown in. But why would anyone voluntarily exchange secure tenure and a war chest for a big mortgage & nothing to fall back on? Sounds unlikely.. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted January 21, 2023 Share Posted January 21, 2023 (edited) 2 hours ago, MARTINX9 said: If their house price had gone up in value would they be thanking the government and handing over their profits on sale to fund the NHS. I think not! This is one effect of Covid and the financial crash etc since 2008 - when you succeed it’s all thanks to you and your efforts but when things go sour it’s the government’s fault and perhaps you even expect a bailout. If only Tory MPs hadn’t dumped Liz Truss we might even be seeing a bigger house price crash now!! Which I assume most people posting on this site want to see?! Faster but not bigger IMHO High rates and lower taxes would have increased the velocity so we would have quickly had a big fall and people would have had more money to by the repos. We are now trying to keep folk in their houses by being prudent.. morally right ..... put you cannot taper a ponzi. This is not for our benefit its for the benefit of our creditors in the main thats why to me Rishi feels like the IMF man dropped on the UK to sort us out on our creditors behalf. We are now going to get pay rises and be pushed into the higher taxes and thresholds not moving with inflation. So i think it will be worse but over a longer period Edited January 21, 2023 by Fromage Frais Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted January 21, 2023 Share Posted January 21, 2023 (edited) 1 minute ago, Fromage Frais said: Edited January 21, 2023 by Fromage Frais Quote Link to comment Share on other sites More sharing options...
sta100 Posted January 21, 2023 Share Posted January 21, 2023 5 hours ago, Blobsy said: "Retrospectively, I feel it was quite irresponsible for the bank to lend us this much, and I know they would have lent us more.” Dear god. Everyone else's fault but mine. Hmm difficult one. They are right about that. Quote Link to comment Share on other sites More sharing options...
bartelbe Posted January 21, 2023 Share Posted January 21, 2023 The level of entitlement here is staggering. As other have said, none of these home owners were volunteering to hand over their unearnt profits from house price increases to the government. So why are they outrage that they don't get a bailout for their losses? As for complaints that the banks shouldn't have given them these loans they can no longer afford. Can you imagine how much they would have whined if the banks had refused, at the height of Sunaks bubble, to lend them the money? Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 22, 2023 Share Posted January 22, 2023 6 hours ago, bartelbe said: The level of entitlement here is staggering. As other have said, none of these home owners were volunteering to hand over their unearnt profits from house price increases to the government. So why are they outrage that they don't get a bailout for their losses? As for complaints that the banks shouldn't have given them these loans they can no longer afford. Can you imagine how much they would have whined if the banks had refused, at the height of Sunaks bubble, to lend them the money? I'm pretty sure you could find examples on Mumsnet and even the mainstream press of people whingeing the bank wouldn't lend them enough. And here we are: https://www.theguardian.com/money/2019/dec/23/how-can-we-get-a-mortgage-thats-more-than-35-times-our-income Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 22, 2023 Share Posted January 22, 2023 These d1ckheads inflated house prices out of reach of more responsible people. I despise them. Quote Link to comment Share on other sites More sharing options...
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