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2,070,000 Facing Problems Paying Their Mortgage

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http://investing.reuters.co.uk/news/articl...N-MORTGAGES.xml

Mortgage strife for two million young homeowners
Wed Jun 6, 2007 10:42 AM BST28
By Jennifer Hill
LONDON (Reuters) - More than two million young property owners have conceded they will struggle to meet their mortgage repayments amid rising interest rates.
Some
2.07 million
homeowners aged between 18 and 34 -- the majority of them first-time buyers -- say they will have problems with the increased cost of borrowing, according to a survey by online mortgage company mform.co.uk.
That figure will rise to
2.66 million
if there is another quarter-point hike in the Bank of England base rate.

I wonder how many are having problems and do not admit it or have no idea they are already going down the bankruptcy path? We could see millions of repossessions as GC2 begins its work here.

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More than two million young property owners have conceded...

Quite a large survey. Or perhaps they mean that a sample representative of 2 million young property owners...

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I wonder how many are having problems and do not admit it or have no idea they are already going down the bankruptcy path?

Well I know a number of folks who have had very modest mortgages, but have spent to their credit limits and then got into a spot of bother, only to MEW it back on track again. And this has happened a few times to the same couples over the past 4-5 years. Interest rates were lower then! I wonder what they'll do when they realise there is little to MEW out anymore when rates hike ? :huh:

Edited by JoePublic

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Dont worry prices will drop 40% or more, at the moment iam looking at properties in central london asking price of betwen 500- 600k, i know when the crash comes they'll cost 250-350k easy!. There is so much debt it's scary, i know people earning good wages in debt of over 50k with a mortgage.

The whole boom cycle is coming to an end and now people will get to see the bust, and what a bust it will be this time round.

Edited by crash2006

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There is a bonkers amount of debt in society now 20 years ago what was consider crazy is now just the average or better, its all going to end in tears n' snotters lots of snotters.

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Guest vicmac64
Dont worry prices will drop 40% or more, at the moment iam looking at properties in central london asking price of betwen 500- 600k, i know when the crash comes they'll cost 250-350k easy!. There is so much debt it's scary, i know people earning good wages in debt of over 50k with a mortgage.

The whole boom cycle is coming to an end and now people will get to see the bust, and what a bust it will be this time round.

I'm the same - I agree - but I'm also wondering will I be able to get to my saving before the banks crash??????????????????

And I'm serious.......................................

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I'm the same - I agree - but I'm also wondering will I be able to get to my saving before the banks crash??????????????????

And I'm serious.......................................

like icc in london in the early 90s, best thing is to have various bank accounts all under 32k.

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LONDON (Reuters) - More than two million young property owners have conceded they will struggle to meet their mortgage repayments amid rising interest rates.

Some 2.07 million homeowners aged between 18 and 34 -- the majority of them first-time buyers -- say they will have problems with the increased cost of borrowing, according to a survey by online mortgage company mform.co.uk.

That figure will rise to 2.66 million if there is another quarter-point hike in the Bank of England base rate. [/indent]

I wonder how many are having problems and do not admit it or have no idea they are already going down the bankruptcy path? We could see millions of repossessions as GC2 begins its work here.

I guess those young property owners should have not stretched theirself to buy if a measy 0.25% rise hurts them. We are talking about 0.25% rate rise every now and then around @ 6%. How the hell would they cope with double digit interest rates if they have a problem with 0.25% rise?

Surely these muppets don't expect only 3.5% or 6% interest rates during the term of mortgage that is a life long 25 years! The problem is they don't seem to have a "Plan B", for interest rates, they have never seen in their borrowing lifes.

Ohh well maybe it is different this time :lol:

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Surely these muppets don't expect only 3.5% or 6% interest rates during the term of mortgage that is a life long 25 years!

Yes they do. In fact, I think that most of these people don't really understand the concept of IRs anyway.

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Why under 32K?

The Financial Services Compensation Scheme covers any firm authorised by the Financial Services Authority. The scheme is the statutory fund of last resort for for financial services firms. The scheme protects deposits, insurance policies, investment business, mortgage advice and arranging insurance broking and, as of 2005, insurance policies.

If a firm in which you have invested your money is unable, or unlikely to be able to pay claims against it, the FSCS will pay compensation. The amount of compensation is capped for different products.

For deposits in banks or building societies, the FSCS will compensate you for 100% of the first £2,000 you invest, and then 90% of the next £33,000. So if you have £35,000 in a savings account and the firm goes bust, you will receive £31,700 from the FSCS.

For this reason, if you have large amounts of money sitting in savings accounts, you may want to consider spreading the risk and putting your savings in several different accounts, so the entire amount is protected.

For more information, and to see the limits on other types of investments, visit the Financial Services Compensation Scheme website at http://www.fscs.org.uk/

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Surely these muppets don't expect only 3.5% or 6% interest rates during the term of mortgage that is a life long 25 years! The problem is they don't seem to have a "Plan B", for interest rates, they have never seen in their borrowing lifes.

If most consumers understood interest rates then long term or even full term fixes would be far more common. They are IIRC the most common form of mortgage across mainland Europe. The level of unauthorised overdraft borrowing at quite frankly stupid IR's really indicates how financially unaware most consumers/borrowers are 27.5% EAR (Barclays), jump in spend some more.

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Guest Bart of Darkness
Yes they do. In fact, I think that most of these people don't really understand the concept of IRs anyway.

Observe the sense of outrage at the "unjust" and "wicked" BoE raising IRs for no very good reason (that they can see).

How very dare they!

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