Mikesev Posted June 1, 2007 Share Posted June 1, 2007 "Timebomb for 1m mortgages By Jane Croft, Retail Banking Correspondent Published: June 1 2007 20:15 | Last updated: June 1 2007 20:15 Up to a million homeowners could see their mortgage repayments jump by almost a third in the next 12 months as they approach the end of cut-price mortgage deals. Four interest rate hikes in the past 10 months mean that borrowers are now facing a ticking timebomb as they near the end of two- and three-year fixed-rate mortgages taken out in 2005, which are now poised to shift on to more expensive rates. " Here The FT calls the top? Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 1, 2007 Share Posted June 1, 2007 "Timebomb for 1m mortgagesBy Jane Croft, Retail Banking Correspondent Published: June 1 2007 20:15 | Last updated: June 1 2007 20:15 Up to a million homeowners could see their mortgage repayments jump by almost a third in the next 12 months as they approach the end of cut-price mortgage deals. Four interest rate hikes in the past 10 months mean that borrowers are now facing a ticking timebomb as they near the end of two- and three-year fixed-rate mortgages taken out in 2005, which are now poised to shift on to more expensive rates. " Here The FT calls the top? WHEY HEY HEY!!!!!! The FT is a SERIOUS newspaper............ BRING IT ON. BRING IT ON. I hope it's SO BAD that they NEVER EVER let this happen again. Of course - this is a pipe dream....... The VI's will have another boom brewing in a few years time...... UNLESS THINGS CHANGE - TAX ON MULTIPLE PROPERTY OWNERSHIP: VOTE: YES? NO? Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted June 1, 2007 Share Posted June 1, 2007 but surely property is 'affordable' and that's all that matters Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 1, 2007 Share Posted June 1, 2007 but surely property is 'affordable' and that's all that matters "Affordable" only to those numptles willing to sign their lives away to some Slimeball Moneylender --- and become SLAVES to them....... Quote Link to comment Share on other sites More sharing options...
Dr Crash Posted June 1, 2007 Share Posted June 1, 2007 Winslet/Blanchflower: I feel like I'm flying Cut to lookout nest Sailor/FT editor: ICEBERG. DEAD AHEAD Sorry, probably not that funny Quote Link to comment Share on other sites More sharing options...
Mikesev Posted June 1, 2007 Author Share Posted June 1, 2007 Have to say, I was quite pleased I found this, could be significant. Hope I didn't steal RB's thunder Quote Link to comment Share on other sites More sharing options...
Wemb Posted June 2, 2007 Share Posted June 2, 2007 "Affordable" only to those numptles willing to sign their lives away to some Slimeball Moneylender --- and become SLAVES to them....... Indeed. They only slightly misquoted me, though- (I'm the 'Manager forced to live like student') - they did put in my bit about me always being on the verge of being able to buy 'next year' - but not the bit about me being (just about) able to buy now, but REFUSING to do so, or my comments about the UK being on the verge of a HPC, or why newbie BTL's are doomed, and are only going to bring it about faster. I suspect 'Sharlene'[1] thought I may have had an agenda. Wemb [1] Good god, Neighbours has a lot to answer for.. Quote Link to comment Share on other sites More sharing options...
deano Posted June 2, 2007 Share Posted June 2, 2007 (edited) On the right hand side of the article there is a vote for GB as pm, dont forget to have a say. He is doing really well so far. Good Lord the FT's havng an HPC day, its full of it. Edited June 2, 2007 by deano Quote Link to comment Share on other sites More sharing options...
Realistbear Posted June 2, 2007 Share Posted June 2, 2007 Sheeple Talk about now: But but but, we thought it wasn't going to be like America where Great Crash 2 is laying waste to house prices due to mass repossessions caused by mortgage resets? Nothing in the Daily Express to warn us........... We had better sell quick because we are going to lose our home when our payment rises by 33.33%. Neither talk: Might be time to get off the fence now as the wind is clearly blowing against the bulls now. Great Crash 2 is here. IMO, such an obvious result of the miracle economy. Cheap to get in but there is never any free lunch. All the poisons that have been lying in the mud are hatching out. Quote Link to comment Share on other sites More sharing options...
grey shark Posted June 2, 2007 Share Posted June 2, 2007 "Affordable" only to those numptles willing to sign their lives away to some Slimeball Moneylender --- and become SLAVES to them....... Eric , get a fan club set up . Eric Pebble one of the best posters on here imho of course , our Eric doesn't mince his words either . Quote Link to comment Share on other sites More sharing options...
Pablo-silver or lead? Posted June 2, 2007 Share Posted June 2, 2007 IMO anyone who took out 2 to 3 year fixed rates at 3 to 4 % because the repayments were what they could afford and their strategy going forward was to rate tart on to a similar or lower deals at the end of the fix...... are effectively SUB-PRIME! Get ready for the 'it's not fair' squeeling from naive ftb's and 3 years worth of newbie shaz and dave btl's. Also we havent yet seen the sentiment shifting Red Top headlines that will accompany the unwinding of this debt bubble............. as I said before the press talked this up and they'll help bring it down! It looks like the mortgage brokers are going to be busy. Quote Link to comment Share on other sites More sharing options...
jonpo Posted June 2, 2007 Share Posted June 2, 2007 Eric, the US Federal Reserve are with your dream. They think that prices are based on demographics. From their research UK prices will bottom out at 80% down in real terms, and there is no demographic foundation for any repeat boom. This is the last human demographic boom IMO. Its certainly the last for many of the older generation fortunety I could still crank out a mini population boom given suitable circumstances Have you seen the predictions of working age populations in UK US and europe its aging population all over Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted June 2, 2007 Share Posted June 2, 2007 (edited) Baked beans for 25 years ? Edited June 2, 2007 by Ash4781 Quote Link to comment Share on other sites More sharing options...
jonpo Posted June 2, 2007 Share Posted June 2, 2007 IMO anyone who took out 2 to 3 year fixed rates at 3 to 4 % because the repayments were what they could afford and their strategy going forward was to rate tart on to a similar or lower deals at the end of the fix...... are effectively SUB-PRIME!Get ready for the 'it's not fair' squeeling from naive ftb's and 3 years worth of newbie shaz and dave btl's. Also we havent yet seen the sentiment shifting Red Top headlines that will accompany the unwinding of this debt bubble............. as I said before the press talked this up and they'll help bring it down! It looks like the mortgage brokers are going to be busy. Uless your on a repayment mortgage you should be subprime for the simple fact you have no intention to pay off the capital Quote Link to comment Share on other sites More sharing options...
twatmangle Posted June 2, 2007 Share Posted June 2, 2007 http://www.ft.com/cms/s/361aa206-1073-11dc-96d3-000b5df10621.html Sounds like a Dail Mail headline but actually it's the FT Time bomb for 1m mortgages By Jane Croft, Retail Banking Correspondent Published: June 1 2007 20:15 | Last updated: June 1 2007 20:15 Up to a million homeowners could see their mortgage repayments jump by almost a third in the next 12 months as they approach the end of cut-price mortgage deals. Four interest rate hikes in the past 10 months mean that borrowers are now facing a ticking time bomb as they near the end of two- and three-year fixed-rate mortgages taken out in 2005, which are now poised to shift on to more expensive rates. The problem is also backloaded to the end of this year because there were a number of good deals around in the latter half of 2005 after the rate cut in August of that year. About £200bn of mortgages – approximately 20 per cent of the UK mortgage market – moved onto fixed-rate deals in 2005, according to new research by analysts at Credit Suisse. Credit Suisse estimated a large chunk of these mortgages would be written on two- or three-year fixed-rate deals because these were the most commonplace in the market. Jonathan Pierce, banks analyst at Credit Suisse said these fixed-rate mortgages were now coming to the end of their deals and up to a million households could face higher payments. "For some customers we see a 25-30 per cent increase in interest payments," he said. He said the payment shock could lead to higher arrears as more consumers who might have overstretched themselves to get onto the housing ladder struggled with the increased payments. In some cases consumers could find themselves paying hundreds of pounds more per month. Back in 2005, fixed-rate mortgage deals were around 4.49 per cent but comparable fixed-rate deals have now risen to just under 6 per cent, according to Moneyfacts, the financial information group. This could mean a homeowner with a £125,000 interest-only mortgage would see their monthly mortgage payments jump from £457 per month to £612 per month. Those who had a two-year fixed-rate £300,000 interest-only mortgage in 2005 would see payments rocket from £1,100 to £1,470. Consumers can find cheaper fixed-rate deals on the market – but most of these now charge large upfront fees of £1,000 or even 2.5 per cent of the value of the mortgage. If consumers coming off fixed- rate deals do nothing, they will automatically be moved to their lender's standard variable rate, which is around 7.5 per cent. Copyright The Financial Times Limited 2007 Quote Link to comment Share on other sites More sharing options...
DaveyDave Posted June 2, 2007 Share Posted June 2, 2007 Up to a million homeowners could see their mortgage repayments jump by almost a third in the next 12 months as they approach the end of cut-price mortgage deals. Surely this can't be right?. Didn't Merv say that IRs would be coming down by the end of the year?. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted June 2, 2007 Share Posted June 2, 2007 (edited) http://www.ft.com/cms/s/361aa206-1073-11dc...000e2511c8.html Up to a million homeowners could see their mortgage repayments jump by almost a third in the next 12 months as they approach the end of cut-price mortgage deals. Four interest rate hikes in the past 10 months mean that borrowers are now facing a ticking time bomb as they near the end of two- and three-year fixed-rate mortgages taken out in 2005, which are now poised to shift on to more expensive rates. The problem is also backloaded to the end of this year because there were a number of good deals around in the latter half of 2005 after the rate cut in August of that year. About £200bn of mortgages – approximately 20 per cent of the UK mortgage market – moved onto fixed-rate deals in 2005, according to new research by analysts at Credit Suisse. Credit Suisse estimated a large chunk of these mortgages would be written on two- or three-year fixed-rate deals because these were the most commonplace in the market. Jonathan Pierce, banks analyst at Credit Suisse said these fixed-rate mortgages were now coming to the end of their deals and up to a million households could face higher payments. “For some customers we see a 25-30 per cent increase in interest payments,†he said. He said the payment shock could lead to higher arrears as more consumers who might have overstretched themselves to get onto the housing ladder struggled with the increased payments. In some cases consumers could find themselves paying hundreds of pounds more per month. Back in 2005, fixed-rate mortgage deals were around 4.49 per cent but comparable fixed-rate deals have now risen to just under 6 per cent, according to Moneyfacts, the financial information group. This could mean a homeowner with a £125,000 interest-only mortgage would see their monthly mortgage payments jump from £457 per month to £612 per month. Those who had a two-year fixed-rate £300,000 interest-only mortgage in 2005 would see payments rocket from £1,100 to £1,470. Consumers can find cheaper fixed-rate deals on the market – but most of these now charge large upfront fees of £1,000 or even 2.5 per cent of the value of the mortgage. If consumers coming off fixed- rate deals do nothing, they will automatically be moved to their lender’s standard variable rate, which is around 7.5 per cent. Edited June 2, 2007 by OzzMosiz Quote Link to comment Share on other sites More sharing options...
nik8 Posted June 2, 2007 Share Posted June 2, 2007 Surely this can't be right?. Didn't Merv say that IRs would be coming down by the end of the year?. This is a proper OUCH Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted June 2, 2007 Share Posted June 2, 2007 mods, please delete as someone already posted! Ta Quote Link to comment Share on other sites More sharing options...
Mikesev Posted June 2, 2007 Author Share Posted June 2, 2007 *bump* Quote Link to comment Share on other sites More sharing options...
polionamen Posted June 2, 2007 Share Posted June 2, 2007 I know a girl who bought a £400,000 2 bed in London with a £35,000 salary (she lied of course to get the loan) Daddy gave £80,000 (spoilt brat inside). So she took a fixed 2 year in mid 2005, repayments were £1,300pcm (IO inside) It is expiring soon : end of I/O + rates hike I am laughing because I remember her saying "I cannot lose" Obviously Daddy will help but it won't be the case for all Quote Link to comment Share on other sites More sharing options...
Guest mattsta1964 Posted June 2, 2007 Share Posted June 2, 2007 Sheeple Talk about now:bla bla bla bla diddy bla bla bla diddy blah bla bla dlah All the poisons that have been lying in the mud are hatching out. Oh no! RB has wheeled out the ol' poisons that have been lying in the mud are hatching out' chesnut..........for....let me see......about the 435th time! Quote Link to comment Share on other sites More sharing options...
leemsip Posted June 2, 2007 Share Posted June 2, 2007 so what now then. Lets say the UK has a housing crash. How do we make the most of it financially. Ive been closely following the US market crash. Good rear mirror stuff would have been to short builders stocks and high risk lenders, (dunno if UK has really high risk lenders like the US). Put options arnt that good when dealin with a prospective crash, (as I have learnt to my financial detriment). It just doesnt happen fast enough and the option expires. Ooooh lost 5k shorting risky lenders who held strong by misinforming the press. Dont know how else to take advantage really. Lets hear some ideas then Quote Link to comment Share on other sites More sharing options...
Wemb Posted June 2, 2007 Share Posted June 2, 2007 so what now then. Lets say the UK has a housing crash. How do we make the most of it financially. I don't want to. I just want to be able to afford a bloody home. Wemb Quote Link to comment Share on other sites More sharing options...
JohnG Posted June 2, 2007 Share Posted June 2, 2007 UNLESS THINGS CHANGE - TAX ON MULTIPLE PROPERTY OWNERSHIP:VOTE: YES? NO? Err... Income Tax? Capital Gais Tax? Think before you post, FFS. :angry: Quote Link to comment Share on other sites More sharing options...
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