Heaven Knows I'am Miserable Now

[eightiesgirly]

Critical mass

Can apply to debt too ... seen it many a time.

Only just affording the mortgage, living on the credit cards, consolidate into a loan, mew to pay that off, then start again, eventually it all grinds to a shuddering halt. Everyone begins to default on everything and credit becomes virtually unavailable, only those that don't need it can get it.

[REP013]

eightiesgirly Posted Today, 10:06 PM

Only just affording the mortgage, living on the credit cards, consolidate into a loan, mew to pay that off, then start again, eventually it all grinds to a shuddering halt. Everyone begins to default on everything and credit becomes virtually unavailable, only those that don't need it can get it.

To coin a phrase - "BINGO", or is it "HOUSE". The new word will be "REPOSSESSION".

[redgenieuk]

I wouldn't like to think what would happen to my engine at 10,000rpm let alone 15,000

You wouldnt need to worry about the old one, just worry about where the new one is coming from.

A bit of MEW should make sure you have enough cash

[Jonnybegood]

What must be remembered in the late 80s early 90s fixed rate mortgages were almost non existant, Most were on SVR and hence saw their repayments increase 50% in a short period of time, Any person with a bit of sense would be looking at minimum 5 year fixing of a mortgage these days if not just to avoid high fees to remortgage.

We have seen an increase from 3.5% to 5.25% past few years but there were very few who secured a mortgage under 4%, So even today there are still sub 5% mortgage available meaning that many have only seen a 1% increase on their mortgages, thats approx £60pm increase on £100,000

Back in the 90s £40,000 increasing from 10% to 15% would of meant £367pm becoming £515pm almost overnight, Plus whatever the banks added for their SVR so quite a bit more

[eightiesgirly]

What must be remembered in the late 80s early 90s fixed rate mortgages were almost non existant, Most were on SVR and hence saw their repayments increase 50% in a short period of time, Any person with a bit of sense would be looking at minimum 5 year fixing of a mortgage these days if not just to avoid high fees to remortgage.

We have seen an increase from 3.5% to 5.25% past few years but there were very few who secured a mortgage under 4%, So even today there are still sub 5% mortgage available meaning that many have only seen a 1% increase on their mortgages, thats approx £60pm increase on £100,000

Back in the 90s £40,000 increasing from 10% to 15% would of meant £367pm becoming £515pm almost overnight, Plus whatever the banks added for their SVR so quite a bit more

Good point, but not many fixed rates are for very long and have to re-set at some point, that becomes a hell of a jump if rates go up a good bit in the meantime. Same thing with those early low rates for three years offers. Everyone means to pay the extra off the mortgage, but no one ever does.

[REP013]

It really doesn't matter how much IR's raise your monthly payments if you can't afford them to begin with.

I have a few friends who borrow to live every day, this is what credit cards are for.

Their overdrafts are growing, their credit card bills are growing, they are getting loans or paying off loans they got for the deposit on their house.

We are borrowing £360 Million a DAY

[ripandcap]

From my mortgage statement at the time 1989

1/01/89 12.75%

9/01/89 13.50%

7/10/89 15.00%

1/01/90 14.75%

Scary stuff eh? - I'll have to sleep with the light on now!

What must be remembered in the late 80s early 90s fixed rate mortgages were almost non existant, Most were on SVR and hence saw their repayments increase 50% in a short period of time, Any person with a bit of sense would be looking at minimum 5 year fixing of a mortgage these days if not just to avoid high fees to remortgage.

We have seen an increase from 3.5% to 5.25% past few years but there were very few who secured a mortgage under 4%, So even today there are still sub 5% mortgage available meaning that many have only seen a 1% increase on their mortgages, thats approx £60pm increase on £100,000

Back in the 90s £40,000 increasing from 10% to 15% would of meant £367pm becoming £515pm almost overnight, Plus whatever the banks added for their SVR so quite a bit more

If you have a look at eightiesgirly mortgage repayments, although interest rates went up 50% her mortgage payments went up approx 15% in that year. In 2004 you could get a 3 year fixed on just over 4% and now they are over 5%. Approx 20% increase.

[Orbital]

Bit of a disappointment from The Fool

its a story that supports a different ideal to HPC of course it was going to get picked apart and thrown out - just like any other story that dares to question the doctrine of HPC. Unfortunately such an approach is typical of a belief system where you are picking up on any evidence that supports the ideal and dumps any that doesnt. Hey we cant let objectivity get in the way of ideaology!

We are borrowing £360 Million a DAY

how many working adults in the country? 40million? By that "stat" on average each one of us is borrowing 9million pounds every day! Wow! I must have missed something, where do I sign up to get my 9million a day? Something doesnt quite make sense there does it?!

[maricopa]

£9 a day? thats a conservative estimate. i already borrowed a tenner off my boss this morning, so i'll have increased it a little already

[NoIdea]

on average each one of us is borrowing 9million pounds every day! Wow! I must have missed something, where do I sign up to get my 9million a day? Something doesnt quite make sense there does it?!

Think maybe you should revisit your calculator. I think it would be 9 GBP a day.

[right_freds_dead]

If you want, then start to laugh

If you must, then start to cry

Be yourself dont hide

Just believe in destiny

Dont care what people say

Just follow your own way

Dont give up and use the chance

To return to innocence

YAH-oha-AHH, Woo -AHH.

AHH-Owea. Yah-Ah-E-Yah.!!!

[me me me]

Think maybe you should revisit your calculator. I think it would be 9 GBP a day.

Hilarious, Orbital is so excited at rubbishing this fact he totally misread it. £9 a day. £3k a year

Not sure about 40 millions though. I think the demographics of this country explain the bubble perfectly.

Edited April 16, 2007 by me me me

[precipice]

its a story that supports a different ideal to HPC of course it was going to get picked apart and thrown out - just like any other story that dares to question the doctrine of HPC. Unfortunately such an approach is typical of a belief system where you are picking up on any evidence that supports the ideal and dumps any that doesnt. Hey we cant let objectivity get in the way of ideaology!

how many working adults in the country? 40million? By that "stat" on average each one of us is borrowing 9million pounds every day! Wow! I must have missed something, where do I sign up to get my 9million a day? Something doesnt quite make sense there does it?!

Nice demonstration there, old chap. What's 6 orders of magnitude between friends? Perhaps if you stoped frothing for a minute, and thought things through a little more? Nah... Froth away.

P.

[Jonnybegood]

If you have a look at eightiesgirly mortgage repayments, although interest rates went up 50% her mortgage payments went up approx 15% in that year. In 2004 you could get a 3 year fixed on just over 4% and now they are over 5%. Approx 20% increase.

Yes but thats only a snap shot of the rate for that period, If she was to start from May 1988 to May 1989 then you would see an IR rise from 7.5% to 14%. On a £40,000 mortgage thats an increase from £299pm to £485pm in just 1 year (just over £185) and throughout that period it got more expensive each month.

On £100,000 today 4% to 5% is £533pm to £591pm an increase of just under £60

Today it is possible for people to prepare, they know when the fixed rate ends and what the new rate will be. It just does'nt happen overnight

Due to the lack of Fixed rate mortgages in the late 80s this would of happened on mass, everyones mortgage went up the same way, Today it would not happen that way, there are so many different kinds of deals that some get hit less than others, IR to a large percentage of people are now almost irrelevent has many fix for the remainder of their mortgage.