Realistbear Posted February 26, 2007 Share Posted February 26, 2007 http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770 100 p/c mortgage borrowing soars Last updated at 13:27pm on 26th February 2007 Most popular stories * News » * Entire site » * Boy of eight who weighs 14st may be taken from his family * Gordon Brown excited over recent house price gains * Estate Agents to strike it rich again this year * Debt no longer a concern among frenzied housebuyers * Health alert that went unheeded over cuts in bin rounds The number of first-time buyers taking out a mortgage greater than the value of their home has risen by 50 per cent. Brokers at the Mortgage Advice Bureau said homebuyers opting for a 100 per cent mortgage rose by 21 per cent in 2006, while those opting to borrow more than the worth of their property grew by a half. The debt crazed HPI-MEW culture kicks into overdrive as they approach the backstretch. Quote Link to comment Share on other sites More sharing options...
adren Posted February 26, 2007 Share Posted February 26, 2007 http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770100 p/c mortgage borrowing soars Last updated at 13:27pm on 26th February 2007 Most popular stories * News » * Entire site » * Boy of eight who weighs 14st may be taken from his family * Gordon Brown excited over recent house price gains * Estate Agents to strike it rich again this year * Debt no longer a concern among frenzied housebuyers * Health alert that went unheeded over cuts in bin rounds The number of first-time buyers taking out a mortgage greater than the value of their home has risen by 50 per cent. Brokers at the Mortgage Advice Bureau said homebuyers opting for a 100 per cent mortgage rose by 21 per cent in 2006, while those opting to borrow more than the worth of their property grew by a half. The debt crazed HPI-MEW culture kicks into overdrive as they approach the backstretch. Negative equity from day one. Wow. What a lifestyle choice. Quote Link to comment Share on other sites More sharing options...
MarkG Posted February 26, 2007 Share Posted February 26, 2007 Borrowing to pay the mortgage? Quote Link to comment Share on other sites More sharing options...
Squiggsy Posted February 26, 2007 Share Posted February 26, 2007 Hmm - before I go anywhere with this, I do think prices will stagnate / drop slightly. However: - I'm getting a 100% mortgage with g/f on house - but it's on a repayment basis at under 2.5 times joint salary. She doesn't want to rent for 18 months to save the deposit (and she thinks prices will keep on up - though I have been denting that expectation), also we are in the mindset of you rent a house / address, but you buy a home. So I'm actually quite happy with it, and we can afford it. I sold my prev place, having been divorced a lot of the equity had 'disappeared' along with the ex and had to use the balance to pay off cards etc. So - I'm on a decent salary but no deposit in the bank. I guess that a fair proportion of the 100% will be high multiples and interest only, but I think it would be dangerous to assume that they all are. Quote Link to comment Share on other sites More sharing options...
dnd Posted February 26, 2007 Share Posted February 26, 2007 So long as the credit(debt) remains available - prices will keep rising... Fiat is based on debt and western countries are devaluing their currencies I see this situation going on for the next decade or so... Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted February 26, 2007 Share Posted February 26, 2007 My Sister-in-law and her husband took out a mortgage recently for a house, a new car, stuff to put in the house, more stuff probably. I estimated that the car would end up costing them more than double the 10K forecourt price by the time they paid off the mortgage. They looked like they hadn't really thought about it. *tearing hair out smilie* Quote Link to comment Share on other sites More sharing options...
estateagent Posted February 26, 2007 Share Posted February 26, 2007 In the office today we have had 47 visitors of which 2 new instructions. Desperate times. We simple cannot sustain the situation where sellers arnt selling properties and buyers are just paying the highest prices they can to get what is available. Some people are commenting on the fact that rightmove has more properties than ever, may I suggest the reason for this is there are more and more deperate estate agents out there trying to drum up business as the market is dry. Quote Link to comment Share on other sites More sharing options...
Guest d23 Posted February 26, 2007 Share Posted February 26, 2007 In the office today we have had 47 visitors of which 2 new instructions.Desperate times. We simple cannot sustain the situation where sellers arnt selling properties and buyers are just paying the highest prices they can to get what is available. Some people are commenting on the fact that rightmove has more properties than ever, may I suggest the reason for this is there are more and more deperate estate agents out there trying to drum up business as the market is dry. or are you suggesting that more EA's than ever are advertising on the web, even those who previously didn't? Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted February 26, 2007 Share Posted February 26, 2007 So long as the credit(debt) remains available - prices will keep rising...Fiat is based on debt and western countries are devaluing their currencies If not for what is occuring in the US, I'd be tempted to agree with you. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted February 26, 2007 Share Posted February 26, 2007 Why are there 'permanent' sold signs up? One sign I've seen has been up since November! Quote Link to comment Share on other sites More sharing options...
Sinking Feeling Posted February 26, 2007 Share Posted February 26, 2007 Well, I'm not holding my breath as you can't trust an EA to give you a straight answer...The truth is, there are plenty of properties for sale, not that you know it from driving around as they don't bother putting up 'For Sale' signs anymore, just 'SOLD' ones as soon as they receive the most dubious of offers. One minute, there's no sign, the next, it's SOLD and within a couple of days, the sign's completely vanished again. Um. I wonder what's going on? Bear in mind that EAs are hardly the sharpest tools in the box, so don't expect them to go round telling all their vendors to lower prices until the autumn or early 2008... Plenty of for sale signs on my road- probably 12 or more along one road within half a mile! Quote Link to comment Share on other sites More sharing options...
geneer Posted February 26, 2007 Share Posted February 26, 2007 Negative equity from day one.Wow. What a lifestyle choice. Say hello to the greater fools........ Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 26, 2007 Author Share Posted February 26, 2007 or are you suggesting that more EA's than ever are advertising on the web, even those who previously didn't? Desperate times, desperate measures. Quote Link to comment Share on other sites More sharing options...
Wad Posted February 26, 2007 Share Posted February 26, 2007 Doesn't take a genius to figure out what happens next, EAs either get their vendors to drop prices or they'll be getting their P45s. The choice is theirs... Absolutely right. Its not what the EAs say its what they do that reveals the state of their business. Mass sacking of staff in EA offices was the precursor to prices dropping last time round. Head offices sent out directives to managers at branches to cut costs by slashing bonuses, slashing staff numbers and getting any property off the books that had not sold after 3 months by forcing the sellers to drop price and simply refusing to market it until they did. Quote Link to comment Share on other sites More sharing options...
grey shark Posted February 26, 2007 Share Posted February 26, 2007 Hmm - before I go anywhere with this, I do think prices will stagnate / drop slightly.However: - I'm getting a 100% mortgage with g/f on house - but it's on a repayment basis at under 2.5 times joint salary. She doesn't want to rent for 18 months to save the deposit (and she thinks prices will keep on up - though I have been denting that expectation), also we are in the mindset of you rent a house / address, but you buy a home. So I'm actually quite happy with it, and we can afford it. I sold my prev place, having been divorced a lot of the equity had 'disappeared' along with the ex and had to use the balance to pay off cards etc. So - I'm on a decent salary but no deposit in the bank. I guess that a fair proportion of the 100% will be high multiples and interest only, but I think it would be dangerous to assume that they all are. 100% mortgage and no deposit in the bank How much would it of been to rent a similar house for a while , two thirds of the mortgage at most maybe ? But i know renting is not the same it doesn't feel like your own , but how can it feel your own on a 100% mortgage ............................good luck .................. Quote Link to comment Share on other sites More sharing options...
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