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Realistbear

H S B C Comes Out Fighting For F T Bs Who Are Now Without Hope

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http://business.timesonline.co.uk/article/...2346085,00.html

Banking and finance

The Times September 07, 2006

First-time buyers offered home loans for groups
By Rebecca O'Connor
HSBC, Britain’s biggest bank, is targeting cash-strapped first-time buyers who cannot afford a home of their own with deals that allow up to four borrowers to club together on their mortgage.
Since the end of last year, the number of group loans issued by HSBC has soared by 50 per cent, as rising house prices have pushed the property ladder out of the reach of thousands of aspiring homeowners.

It used to be that a single person could afford basic accomodation. Then it required 2. Now its whole groups! The Miracle Economy is still at work. :lol:

Edited by Realistbear

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How the f**king hell does this work.

I buy a 4 bed semi house with four other folk for £250,000. Each of us have a partner and maybe kids

or do I buy a 4 bed detached for £400,000.

either way someone and their kids are sleeping on the floor.

edited for poor spelling - typing whilst smoke coming out of my ears

Edited by eurows

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hmmm... all the pleasure of student living, except with a huge, rate sensitive debt hanging over you!

could this also be aimed at 'btl clubs?' several of my friends are members of 'share clubs' - it could be the new investment-as-fun activity!

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Get interesting when they want to use the kitchen too.

And the toilet, as if everyone has a partner there could be 8 people in the house desperate to use the sh itter.

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And the toilet, as if everyone has a partner there could be 8 people in the house desperate to use the sh itter.

And waht if the group wants to have people over for dinner--push the rest into their bedrooms? What happens when you want to have guests overnight? What if you don't like the same music? What a nightmare. Some miracle economy if its brought us down to this. It's 3rd world living.

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It's 3rd world living.

You owe the 3rd world an apology for that insult. In general 3rd world countries have loads of land space.

Someone needs to take HSBC and other lenders by the scruff of the neck and give them a rough shake: "And what are YOU doing to prevent demographic Dunkirk? Hasn't our birthrate fallen enough for 40 years already?"

Same question to everyone else involved in this shameless extortion ramp.

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hmmm... all the pleasure of student living, except with a huge, rate sensitive debt hanging over you!

could this also be aimed at 'btl clubs?' several of my friends are members of 'share clubs' - it could be the new investment-as-fun activity!

Yes this could well work if they let to Students

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And waht if the group wants to have people over for dinner--push the rest into their bedrooms? What happens when you want to have guests overnight? What if you don't like the same music? What a nightmare. Some miracle economy if its brought us down to this. It's 3rd world living.

Seems like a great way to buy into that "Friends" lifestyle :blink:

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What happens if one of them dies ? Suppose 4 people buy together and house prices keep rising so each has a share worth more than inheritance tax threshold and then in 5 years one dies leaving to the other 3. Won't they have to pay x thousand in tax ?

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My feelings too.

If people want to team up so that they can live somewhere together they should just rent. It will work out much cheaper and not require the same level of commitment.

I can't help thinking that the only reason people would buy in these circumstances is because they hope to make money on capital appreciation.

This behaviour has the word 'bubble' written all over it IMHO.

Exactly. What happens when one wants to move out? When repairs need doing and - oh sorry, I don't have any money, can you buy a new washine machine? I'll pay you back, honest.

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My feelings too.

If people want to team up so that they can live somewhere together they should just rent. It will work out much cheaper and not require the same level of commitment.

I can't help thinking that the only reason people would buy in these circumstances is because they hope to make money on capital appreciation.

This behaviour has the word 'bubble' written all over it IMHO.

I agree this may not be the best time to go for this type of scheme but thats not to say it would not pay off in the long run

In the 80's 3 mates of mine bought a modest terraced house together and let one room to another mate

At the time they were single but each had girlfriends at one time or another

After a few years they were all able to 'move on' get married , have a family etc and had the necessary start on the property ladder - So this can be a good way to move your circumstances forwards if it's done at the right time

Remember that sizes of households are shrinking and demand is exploding so whist house prices are not going to soar in value they may not crash - I wouldn't be surprised if we did see a slight correction of about 10% but no lower due to pent up demand

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I cannot understand why these numpties don't realise if they stop paying these ridiculas prices they will fall. Simple. Everyone can have a house each then, there's no shortage.

I guess that's the same for any product you care to mention - Hey lets stop buying petrol!

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Home ownership is over in this country for the moment if you are an average earner. I know people who have bought in a group on IO mortgages :blink:

Mad until you look at the alternatives: Living like a student in a scummy HMO into your thirties, 6 month leases, crappy carpets and dodgy landlords nicking your deposit. It gets boring after a while.

Personally I'd emigrate, or find a way to up my earnings, but there you go!

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These products are a result of living in an adapting market economy - expect more in the future

Off topic: IMO the Government is engineering a low wage highly mobile workforce - they are not interested in your 'old-fashioned' need for home ownership

We need a Government/BOE that tackles inflation (ie raises IR when needed) and more land release (not just so the landed gentry have a nice view from their mansions) instead of cramming millions of slaves (ie us) into cities...

Edited by dnd

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Home ownership is over in this country for the moment if you are an average earner. I know people who have bought in a group on IO mortgages :blink:

Mad until you look at the alternatives: Living like a student in a scummy HMO into your thirties, 6 month leases, crappy carpets and dodgy landlords nicking your deposit. It gets boring after a while.

Personally I'd emigrate, or find a way to up my earnings, but there you go!

I guess we all have to realise the situation has changed - The expectation in the past may have been for a FTB family to buy a 2 bed or small 3 bed house but now there are more 1 parent families and people living alone so the economy is dictating that due to these changes an individual can't expect to easily buy a 2-bed place on their own

I myself am living in a studio which I'm buying having moved out of a 2-bed flat which I am letting - There you go - another real world example for you!

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I guess HSBC are serious about pushing this product: I was just chatting about mortgages and such to a friend using MSN Messenger and the advert line at the bottom proclaimed, "HSBC Mortgages lets you share the cost with up to 3 friends."

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I guess HSBC are serious about pushing this product: I was just chatting about mortgages and such to a friend using MSN Messenger and the advert line at the bottom proclaimed, "HSBC Mortgages lets you share the cost with up to 3 friends."

Up to 3 friends now--10 by next year? Allowing for the numbers unemployed and unable to pay more than 50% of their GIRO.

This really is a disgrace and if it happened in France they would already be burning down EAs and smashing Mortage Banker windows. We just sit back and let the bar stewards get away with it without a murmur as the nice Mr. Brown with his strained smile receives accolades as the Iron Chancellor and next leader of the nation.

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Great idea. Come the crash, who blinks first? It's a ridiculous idea purely on the basis of flexibility, if you need to move jobs for instance. But what happens in a negative equity scenario? If someone bails, do the other 3 have to pick up the payments, or does the bank stand it?

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Common sense would tell you that the further they devise these crazy schemes, the more likely there will be a crash.

The crash will come when they run out of ideas in order to defer the inevitable.

House Prices now bear no correlation to earnings, its as simple as that!!!.

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But the lending institutions can only make money from lending to as many people as possible, and to tie you in..this situation is not that easy to get out of...madness.

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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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