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2004 Lending Figures Are Shocking


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Just reading some figures on mortgage lending for 2004. Some disturbing facts

Only 45% of the lending total (some £ 292 billion) was for house purchase!!! This is the lowest amount since records began!!!!!!!!!!!!!!! I cannot begin to understand what the f*** people are thinking.

Total wealth generated is around £1000 billion. The boring beaver (Mr Brown) takes £400 billion.

So a quick calculation shows that the £160 billion that was spent elsewhere and secured against property accounts for a whopping 27% of our discretionary spending (wealth after tax, £600 billion, which we have no choice over!).

My 4 year old daughter could work this one out, why do we never see figures in the press reported like this, people might begin to realise how crazy this is!

We are looking at a serious problem, we have to keep racking up debt just to keep the wheels moving!!! Get me out of here!

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Guest Charlie The Tramp
So a quick calculation shows that the £160 billion that was spent elsewhere and secured against property accounts for a whopping 27% of our discretionary spending

We are looking at a serious problem, we have to keep racking up debt just to keep the wheels moving!!! Get me out of here!

No, they who have borrowed are looking at a serious problem. Come a recession and they will take the full force of the explosion. There are always winners in a recession and guess who they are. :D

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Only 45% of the lending total (some £ 292 billion) was for house purchase!!! This is the lowest amount since records began!!!!!!!!!!!!!!! I cannot begin to understand what the f*** people are thinking.

Some people are not thinking (or at least not logically)

If you are on a average/OK'ish salary you've probably never had 10k+ cash to spend and probably never will

I'm not talking about long term savings (which most people don't blow in one go!)

I'm talking about buying a rolex and going to the Maldives, because thats the sort of money you've made in the last few weeks

Fortunate people in this position are in a MINORITY

Back to Mr & Mrs Average salary, they made 5k last month, in fact they made 50K last year on their property

Doesn't take much to work out how a significant number of people in the UK has sucumb to the the temptation of borrowing far to much against all the money they 'MADE' out of property

PS (I use the word 'average' NOT in an offensive way pureley as a simple description)

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The remortgaging to buy cars, holidays etc. is the really worrying thing about this bubble. The BOE say the link between house prices and consumption is weaker than previously believed, BUT there clearly is still a link.

When the housing bubble bursts consumption is going to drop and that will push us into recession. The fact that most of the borrowing going on at the moment is unsecured indicates that people have got used to easy credit. The consequences will be painful.

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  • 442 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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