Timm Posted September 12, 2023 Share Posted September 12, 2023 (edited) https://www.theguardian.com/money/2023/sep/12/uk-mortgage-meltdown-looms-amid-terrifying-growth-in-arrears Quote The Bank of England said mortgage arrears rose to £16.9bn, up by 29% on the previous year Mortgage lending was also hit in the second quarter with gross advances falling by £6.3bn to £52.4bn. Year on year, mortgage lending slumped by almost a third, to the lowest level since the worst of the Covid-19 collapse in lending in the second quarter of 2020. Edited September 12, 2023 by Timm Quote Link to comment Share on other sites More sharing options...
msi Posted September 12, 2023 Share Posted September 12, 2023 Banks giving forbearance thinking UKGOV will backstop them.... oh wait... Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted September 12, 2023 Share Posted September 12, 2023 Debt is for poor people......... I keep telling everyone this........... Quote Link to comment Share on other sites More sharing options...
newgi Posted September 12, 2023 Share Posted September 12, 2023 Well the lowest its ever been, since records began in 2007, was last year when it was at £13.5bn which was then 0.84% of Outstanding Mortgage Balances. Got to be expected in the current high interest rate regime and, yes of course, banks ought to be prepared to weather the storm for a bit as it ought not to be too long before interest rates go in the opposite direction or, at least, perhaps they have peaked. https://www.ftadviser.com/mortgages/2022/03/08/mortgage-arrears-fall-to-lowest-level-since-2007/ Quote Link to comment Share on other sites More sharing options...
Huggy Posted September 12, 2023 Share Posted September 12, 2023 This bowl of porridge is just right. MPC next week too. Lets's see what further improvements they can throw into the mix Quote Link to comment Share on other sites More sharing options...
Armus Posted September 12, 2023 Share Posted September 12, 2023 Terrifying for who? Quote Link to comment Share on other sites More sharing options...
Timm Posted September 12, 2023 Author Share Posted September 12, 2023 7 minutes ago, Armus said: Terrifying for who? Lewis Shaw, founder of Mansfield-based Shaw Financial Services apparently! Quote Shaw said: “The speed at which mortgage arrears are increasing is terrifying and should give cause to pause at the next Bank of England interest rate meeting. This is dire data, and we know that it’s about to get an awful lot worse with 1.6m mortgage holders due to renew over the next 12 months at significantly higher rates than anyone has been used to for well over a decade.” Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted September 12, 2023 Share Posted September 12, 2023 2 hours ago, Social Justice League said: Debt is for poor people......... I keep telling everyone this........... It is and the ultra rich too. The mega rich take out loans of millions and use that as their income because they don't pay taxes on loans. Completely different model to the peasants taking out debt to work like headless chickens for the rest of their lives. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted September 12, 2023 Share Posted September 12, 2023 2 hours ago, newgi said: Well the lowest its ever been, since records began in 2007, was last year when it was at £13.5bn which was then 0.84% of Outstanding Mortgage Balances. Got to be expected in the current high interest rate regime and, yes of course, banks ought to be prepared to weather the storm for a bit as it ought not to be too long before interest rates go in the opposite direction or, at least, perhaps they have peaked. https://www.ftadviser.com/mortgages/2022/03/08/mortgage-arrears-fall-to-lowest-level-since-2007/ Interest rates can stay high longer than you can stay solvent - Can`t see them below 5% any time soon TBH, there is just far too much inflation out there now. Average bubble buyer is bust after they take the 6 month I.O "breather", the banks are offering, this just gives the bank time to get the repo in order and prepare to sell the house. Quote Link to comment Share on other sites More sharing options...
Maghull Mike Posted September 12, 2023 Share Posted September 12, 2023 Look this is going to be like sinking the Bismark......a lot of shots coming from lots of different angles. We thought we had her 2008, but China blew away our 1st attack. WE HAVE now blown off her rudders & the "Grand fleet" is coming.... Mike Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted September 12, 2023 Share Posted September 12, 2023 (edited) 1 hour ago, The Angry Capitalist said: It is and the ultra rich too. The mega rich take out loans of millions and use that as their income because they don't pay taxes on loans. Completely different model to the peasants taking out debt to work like headless chickens for the rest of their lives. The whole western financial system is completely corrupt and is about to fall over and die. The US is effectively bankrupt in 2023, so let's see what their final move is...... Edited September 12, 2023 by Social Justice League Typo Quote Link to comment Share on other sites More sharing options...
newgi Posted September 12, 2023 Share Posted September 12, 2023 1 hour ago, dances with sheeple said: Interest rates can stay high longer than you can stay solvent - Can`t see them below 5% any time soon TBH, there is just far too much inflation out there now. Average bubble buyer is bust after they take the 6 month I.O "breather", the banks are offering, this just gives the bank time to get the repo in order and prepare to sell the house. Obviously they can but will they, that's the unknown here. In addition, its not in the bank's interest to repo, I think we will see a lot of transfer over to IO which works out for the banks and the borrower. Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted September 12, 2023 Share Posted September 12, 2023 (edited) 9 minutes ago, newgi said: Obviously they can but will they, that's the unknown here. In addition, its not in the bank's interest to repo, I think we will see a lot of transfer over to IO which works out for the banks and the borrower. IO for a 'borrower' is just renting from a leech bank. Why are so many people desperate to 'borrow' worthless, printed out of thin air fiat? Is it the women telling the men to do it or they will deny them sex? Or is it the man, desperate to show the world that he's successful but not mentioning that all his material possessions have been acquired with debt? The man who can buy, in cash, the house and car is worth ten of the debtor f4ck in our bent financial system. Whether cash in hand or debt, it's all effectively worthless anyway. Edited September 12, 2023 by Social Justice League Typo Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted September 12, 2023 Share Posted September 12, 2023 3 minutes ago, newgi said: Obviously they can but will they, that's the unknown here. In addition, its not in the bank's interest to repo, I think we will see a lot of transfer over to IO which works out for the banks and the borrower. I think they will, yes, but I also think that central banks now WANT them higher, but they didn`t see Russia/Ukraine coming (some conspiracy theorists will say they did?) and they were surprised by the resilience of debt junkies to keep borrowing and spending (you can`t just switch people off now like you could back in the 70`s with a rate hike or two, they are programmed to flock to the shopping areas until physical death takes over) What the central banks DON`T want is uncontrolled inflation where they have to do economy breaking hiking cycles, the debate is still on whether or not they are already caught in this trap? The IO idea doesn`t work, people are used to being bailed out now, they will quickly see (forums are full of how bad an idea it is to take this option) that this means they end up worse off and will default on the debt in many cases meaning the house gets sold anyway (IMO) the banks won`t tolerate non-payment, repo is the only tool they have to enforce payment discipline. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted September 12, 2023 Share Posted September 12, 2023 5 minutes ago, Social Justice League said: IO for a 'borrower' is just renting from a leech bank. Why are so many people desperate to 'borrow' worthless, printed out of thin air fiat? Is it the women telling the men to do it or they will deny them sex? Or is it the man, desperate to show the world that he's successful but not mentioning that all his material possessions have been acquired with debt? The man who can buy, in cash, the house and car is worth ten of the debtor f4ck in our bent financial system. Whether cash in hand or debt, it's all effectively worthless anyway. LOL Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted September 12, 2023 Share Posted September 12, 2023 2 minutes ago, dances with sheeple said: LOL 😀 the point I'm trying badly to make is that debt or cash in hand, at this point in the cycle, is all worthless printy. Being in debt is more of a dead mans hand though........ Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted September 12, 2023 Share Posted September 12, 2023 29 minutes ago, Social Justice League said: The whole western financial system is completely corrupt and is about to fall over and die. The US is effectively bankrupt in 2023, so let's see what their final move is...... It's close to the bone. Pretty much on the verge of collapse as I have stated on this site many times. There are no more rabbits to pull out of the hat this time. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted September 12, 2023 Share Posted September 12, 2023 3 minutes ago, Social Justice League said: 😀 the point I'm trying badly to make is that debt or cash in hand, at this point in the cycle, is all worthless printy. Being in debt is more of a dead mans hand though........ Yes, being in debt is worse than the curse of Dracula, you are just carrying this weight around all the time at (maybe increasing) interest, absolutely not how you want to be interacting with this financial system, at least try to have as little obligations as possible and maybe figure out how to get the beast to spit some of the paper in your direction? Quote Link to comment Share on other sites More sharing options...
sta100 Posted September 12, 2023 Share Posted September 12, 2023 (edited) 1 hour ago, Social Justice League said: Why are so many people desperate to 'borrow' worthless, printed out of thin air fiat? Is it the women telling the men to do it or they will deny them sex? Or is it the man, desperate to show the world that he's successful but not mentioning that all his material possessions have been acquired with debt? You're actually not too far off the mark here with both these questions. Social status definitely has a role to play in people's behaviour and if everyone else in your social/career circle is borrowing to buy overpriced houses then you are obliged to do so. Very few want to live frugally because it's not possible to do that and keep up with people who aren't. Social media has increased this pressure by people presenting themselves with a one dimensional view of their lives where the fruits of their borrowed money has bought them success and happiness. It's a bit like the trend for bodybuilders who hop on steroids like it's nothing now it's become normalised. Why bother to put the hard work in when you're not going to be as big as someone who injects themselves with something toxic and gets all the attention. Unfortunately this toxic poison doesn't just affect those who are willing to ingest it, it has serious repercussions on those who won't touch it too. Edited September 12, 2023 by sta100 Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted September 12, 2023 Share Posted September 12, 2023 Should we care about banks being 'terrified'. They are the ones not getting the repayments. I really couldn't care! Quote Link to comment Share on other sites More sharing options...
canbuywontbuy Posted September 13, 2023 Share Posted September 13, 2023 I find it funny that the same people who breezily claimed a few years ago that property was affordable and would laugh at renters...well, NOW they find their own property unaffordable, while their property value FALLS. It's extremely satisfying to see this. I'm not sorry one iota they are struggling. It's their responsibility, their choice. From 1694 to 2009, the lowest the bank rate ever got was 2%. Welcome to normal rates, people. We did try to warn you, but you were too busy laughing at us. Quote Link to comment Share on other sites More sharing options...
Society of fools Posted September 13, 2023 Share Posted September 13, 2023 3 hours ago, canbuywontbuy said: well, NOW they find their own property unaffordable, while their property value FALLS. It's extremely satisfying to see this. I'm not sorry one iota they are struggling. It's their responsibility, their choice. More power to your sodding elbow sir, I could not have put it better myself. Quote Link to comment Share on other sites More sharing options...
andrewwk Posted September 13, 2023 Share Posted September 13, 2023 14 hours ago, Timm said: https://www.theguardian.com/money/2023/sep/12/uk-mortgage-meltdown-looms-amid-terrifying-growth-in-arrears Translation: please mister government, we need a bailout Quote Link to comment Share on other sites More sharing options...
Brendan110_0 Posted September 13, 2023 Share Posted September 13, 2023 4 hours ago, canbuywontbuy said: I find it funny that the same people who breezily claimed a few years ago that property was affordable and would laugh at renters...well, NOW they find their own property unaffordable, while their property value FALLS. It's extremely satisfying to see this. I'm not sorry one iota they are struggling. It's their responsibility, their choice. From 1694 to 2009, the lowest the bank rate ever got was 2%. Welcome to normal rates, people. We did try to warn you, but you were too busy laughing at us. Just wait until they're evicted, can't get another mortgage due to bad credit score then have to rent. Quote Link to comment Share on other sites More sharing options...
Huggy Posted September 13, 2023 Share Posted September 13, 2023 (edited) 4 hours ago, canbuywontbuy said: I find it funny that the same people who breezily claimed a few years ago that property was affordable and would laugh at renters...well, NOW they find their own property unaffordable, while their property value FALLS. It's extremely satisfying to see this. I'm not sorry one iota they are struggling. It's their responsibility, their choice. From 1694 to 2009, the lowest the bank rate ever got was 2%. Welcome to normal rates, people. We did try to warn you, but you were too busy laughing at us. Indeed. The cost of housing going up was not a problem (in fact it was cheered by some) until now Glad I'm not a home"owner". Edited September 13, 2023 by Huggy Quote Link to comment Share on other sites More sharing options...
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