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Double rate hike from High Street Home Loans

The fallout from the US sub prime mortgage crisis and subsequent difficult market conditions continues to impact lenders in the UK sub prime arena.

High Street Home Loans (HSHL) increased its LIBOR discount and fixed products by one per cent on 23 August, and then some six days later, on 29 August, raised its rates again by a further one per cent.

HSHL a division of GMAC – RFC Limited says it has taken this step as a result of the unprecedented circumstances within the world's mortgage markets and although it feels this is a short term situation they feel it necessary to take this action at this current time.

Julia Harris, Mortgage Expert at Moneyfacts.co.uk- the money search engine, comments: “Consumers with less than perfect credit records have benefited from extremely attractive rates over the last couple of years, due to competition within this market keeping rates down. We are now seeing the margins between prime and sub prime residential mortgages starting to widen: unfortunately this will impact more on those that are already struggling.

“With signs that house prices are starting to cool, combined with current market conditions, mortgage applications for sub prime products are likely to come under closer scrutiny from lenders.”

http://www.marketoracle.co.uk/Article1997.html

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Guest grumpy-old-man
Double rate hike from High Street Home Loans

The fallout from the US sub prime mortgage crisis and subsequent difficult market conditions continues to impact lenders in the UK sub prime arena.

High Street Home Loans (HSHL) increased its LIBOR discount and fixed products by one per cent on 23 August, and then some six days later, on 29 August, raised its rates again by a further one per cent.

HSHL a division of GMAC – RFC Limited says it has taken this step as a result of the unprecedented circumstances within the world's mortgage markets and although it feels this is a short term situation they feel it necessary to take this action at this current time.

Julia Harris, Mortgage Expert at Moneyfacts.co.uk- the money search engine, comments: "Consumers with less than perfect credit records have benefited from extremely attractive rates over the last couple of years, due to competition within this market keeping rates down. We are now seeing the margins between prime and sub prime residential mortgages starting to widen: unfortunately this will impact more on those that are already struggling.

"With signs that house prices are starting to cool, combined with current market conditions, mortgage applications for sub prime products are likely to come under closer scrutiny from lenders."

http://www.marketoracle.co.uk/Article1997.html

what, you measn the UK has a subprime problem as well. I'm shocked. :o

:lol::lol:

ps - one of my daughters friend fathers has a mortgage with GMAC, he told me 2 4 years ago (edited) as it was the only place that would give him the money to go from a small terraced house in a sh1te area of Wakey into a 3 bed detached in a very area of Wakey (not his exact words obviously ;) ). He also bought himself a 2 year old BMW & his wife got a 1 year old small car. They had 2 big holidays abroad as well the same year & spent a load of money on the house. His new wife told my daughter that their front room curtains cost £1000 for 1 set. They have a 50" plasma tv as well, they have 3 kids, they all got loads of new new gadgets, laptops, top end phones etc.

This is all true anecdotal & sums up stereo-typical UK imo.

My son said 2 years ago that they must be very well off being able to buy all this stuff. ;)

ps - the guy is a warehouse supervisor & his wife works as a receptionist, I will let you lot do the maths.

edited to add - doesn't time fly, it was actually 4 years ago :o I just looked up the house again on the LR & he bought it for £188,000 on the 26/11/2003.

Edited by grumpy-old-man

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When i take it off his hands for 88k do you think the bank will throw in the 50" plasma screen to tempt me into the market.

just remember the bigger the boom the bigger the bang.

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When i take it off his hands for 88k do you think the bank will throw in the 50" plasma screen to tempt me into the market.

just remember the bigger the boom the bigger the bang.

This guy is almost my bellweather for this current market.

I reckon his house will be up for sale very soon, we will see eh.

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This guy is almost my bellweather for this current market.

I reckon his house will be up for sale very soon, we will see eh.

From my own experience there are loads like this, champagne lifestyle with lemonade earnings, more like council pop earnings sometimes.

I know one couple who have drawn the equity out of their home every two years for about the last six years. It will be mind boggling negative equity for so many.

I think the cliff fall off in consumer spending when this merry go-round stops will be a real first.

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From my own experience there are loads like this, champagne lifestyle with lemonade earnings, more like council pop earnings sometimes.

I know one couple who have drawn the equity out of their home every two years for about the last six years. It will be mind boggling negative equity for so many.

I think the cliff fall off in consumer spending when this merry go-round stops will be a real first.

well, when 70% (no stats provided, just a approx) of GDP is based on the housing market it will be funny to see what happens now the credit tap is turned almost fully off. :o:lol:

all the coffee shops, nail & beauty ferapists ;) , those small exclusive designer soft furnishing & bathroom type places, all these stoopid non-jobs, lifestyle gurus etc.....what will happen to them. :lol:

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From my own experience there are loads like this, champagne lifestyle with lemonade earnings, more like council pop earnings sometimes.

I know one couple who have drawn the equity out of their home every two years for about the last six years. It will be mind boggling negative equity for so many.

I think the cliff fall off in consumer spending when this merry go-round stops will be a real first.

If you release equity from a property without selling it arent you just borrowing more with the equity as collateral. Now that surely means that you will need to be paying the loan.... so the warehouseman and receptionist must have a higher income than you think!

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If you release equity from a property without selling it arent you just borrowing more with the equity as collateral. Now that surely means that you will need to be paying the loan.... so the warehouseman and receptionist must have a higher income than you think!

nope, because of 2 reasons imo.

1 - they will have very low rates as part of a 2/3 or 5 year deal, when this expires they are fooked as they will inherit the current market rate. Also they will probably be sub-prime borrowers so the rate will higher than normal.

2 - they will be using the new money they have MEW'ed to service their existing & new debt &/or using credit cards to live on.

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well, when 70% (no stats provided, just a approx) of GDP is based on the housing market it will be funny to see what happens now the credit tap is turned almost fully off. :o:lol:

all the coffee shops, nail & beauty ferapists ;) , those small exclusive designer soft furnishing & bathroom type places, all these stoopid non-jobs, lifestyle gurus etc.....what will happen to them. :lol:

all the coffee shops, nail & beauty ferapists ;) , those small exclusive designer soft furnishing & bathroom type places, all these stoopid non-jobs, lifestyle gurus etc.....what will happen to them. :lol:

Now theres a bonus! I wonder how many people will get their calculators out in a couple of years from now and work out how many houses their tacky spending practices would by at that stage of the game, all these t*ats I used to work with who thought spending £10+ per day on coffee and a sandwich was a necessity, who bought two or three DVD's every week or how about the same collection of clowns thinking that spending £100 was neccisary for a decent night out. Best of all, I wonder who will think that actualy paying for a ring-tone is sensible use of money.

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all the coffee shops, nail & beauty ferapists ;) , those small exclusive designer soft furnishing & bathroom type places, all these stoopid non-jobs, lifestyle gurus etc.....what will happen to them. :lol:

Now theres a bonus! I wonder how many people will get their calculators out in a couple of years from now and work out how many houses their tacky spending practices would by at that stage of the game, all these t*ats I used to work with who thought spending £10+ per day on coffee and a sandwich was a necessity, who bought two or three DVD's every week or how about the same collection of clowns thinking that spending £100 was neccisary for a decent night out. Best of all, I wonder who will think that actualy paying for a ring-tone is sensible use of money.

Glad it annoys you as much as it does me. I sit there thinking my god! that's a weeks supermarket shop, or my BB rental for a month and you spend it on a cr*p butty and a bottle of water- water for heavens sake. Can't say I'll be too upset when some very much needed common sense comes to the fore.

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all the coffee shops, nail & beauty ferapists ;) , those small exclusive designer soft furnishing & bathroom type places, all these stoopid non-jobs, lifestyle gurus etc.....what will happen to them. :lol:

Now theres a bonus! I wonder how many people will get their calculators out in a couple of years from now and work out how many houses their tacky spending practices would by at that stage of the game, all these t*ats I used to work with who thought spending £10+ per day on coffee and a sandwich was a necessity, who bought two or three DVD's every week or how about the same collection of clowns thinking that spending £100 was neccisary for a decent night out. Best of all, I wonder who will think that actualy paying for a ring-tone is sensible use of money.

a guy who I worked with last year who was on 28k was spending £15 per day on an expensive meal whilst at work, he had just bought a 3 bed semi & was running a car. I went out for 3 days with him & another guy doing the same, then I told them that I couldn't afford to carry on doing this.

3 months later he was on the moby in an empty office when I walked in, I caught some of the conversation, he was at his limit on his credit card & there were ringing him. ;)

I was talking to one of the directors a few weeks later & he mentioned that he regularly got "subs" on his wages. :o

I mean do these people think that everything in life is free, I find it bizarre. :blink: I mean we have all had some debt at some time in our life & bought something stupid (c'mon now tell the truth), but this has been pushed well beyond the realms of normality.

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Glad it annoys you as much as it does me. I sit there thinking my god! that's a weeks supermarket shop, or my BB rental for a month and you spend it on a cr*p butty and a bottle of water- water for heavens sake. Can't say I'll be too upset when some very much needed common sense comes to the fore.

The person who thought of putting water into a plastic bottle and selling it to the masses is a pure genius. I remember a time before bottled water when if you wanted to drink the stuff, you would just get a glass and turn on the tap. It probably still is a lot safer than bottled water

Best,

L

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a guy who I worked with last year who was on 28k was spending £15 per day on an expensive meal whilst at work, he had just bought a 3 bed semi & was running a car. I went out for 3 days with him & another guy doing the same, then I told them that I couldn't afford to carry on doing this.

3 months later he was on the moby in an empty office when I walked in, I caught some of the conversation, he was at his limit on his credit card & there were ringing him. ;)

I was talking to one of the directors a few weeks later & he mentioned that he regularly got "subs" on his wages. :o

I mean do these people think that everything in life is free, I find it bizarre. :blink: I mean we have all had some debt at some time in our life & bought something stupid (c'mon now tell the truth), but this has been pushed well beyond the realms of normality.

Oh yes I lived life to the full extent of my credit cards and overdraft in the past, then BOOM change of circumstances and the eighties. What a rude awakening.I had to take on two jobs, with two babies to raise I was tired beyond tired, it was the most miserable existance ever. Every bill on the mat made me panic. Took me 10 years of hard work and extreme budgeting to dig my way out. I ain't going back there for anyone.

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Oh yes I lived life to the full extent of my credit cards and overdraft in the past, then BOOM change of circumstances and the eighties. What a rude awakening.I had to take on two jobs, with two babies to raise I was tired beyond tired, it was the most miserable existance ever. Every bill on the mat made me panic. Took me 10 years of hard work and extreme budgeting to dig my way out. I ain't going back there for anyone.

Good for you 80's girlie, I hoipe you have some good luck for the future then. :)

Mrs GOM & I have been there also, it's not nice but once you have been there nothing in the world phases you imo. I was brought up in a 1 parent family (mother) & lived in council housing until the age of 17. I am only 41 btw, I just like the GOM name. ;)

We view wealth very differently now also, however, we have always been a health over wealth type couple though anyway tbh.

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The person who thought of putting water into a plastic bottle and selling it to the masses is a pure genius. I remember a time before bottled water when if you wanted to drink the stuff, you would just get a glass and turn on the tap. It probably still is a lot safer than bottled water

Best,

L

Yeah my teens think it's so un cool to have water from the tap. One 'mum look' lets them know i'm not impressed .

However the oldest has just learned a few facts about finance, they cut her hours at work drastically,gave her a bit of a shock. Thankfully she was able to get another job. No bottled water now, and she makes her own sandwiches.

I said nothing! :rolleyes:

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ps - one of my daughters friend fathers has a mortgage with GMAC, he told me 2 4 years ago (edited) as it was the only place that would give him the money to go from a small terraced house in a sh1te area of Wakey into a 3 bed detached in a very area of Wakey (not his exact words obviously wink.gif ).

Where did he move from/to if you don't mind me asking.

Someone I know has just moved from Flanshaw to Sandal, although they did have a horrendous amount of equity on the house they sold having bought it for £17k in 1987.

Got to stand up for bottled water I'm afraid. Given a choice between a bottle of water and assorted sugary rubbish when I'm out and about water wins every time.

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Where did he move from/to if you don't mind me asking.

Someone I know has just moved from Flanshaw to Sandal, although they did have a horrendous amount of equity on the house they sold having bought it for £17k in 1987.

Got to stand up for bottled water I'm afraid. Given a choice between a bottle of water and assorted sugary rubbish when I'm out and about water wins every time.

he moved from a shitty area in Ossett to a nice area of Horbury, can't give you the exact details obviously as my daughter still sees the girl sometimes.

I don't think he would have had any equity to put down as he divorced at the same time of moving & his ex wife got the old house.

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The person who thought of putting water into a plastic bottle and selling it to the masses is a pure genius. I remember a time before bottled water when if you wanted to drink the stuff, you would just get a glass and turn on the tap. It probably still is a lot safer than bottled water

Best,

L

I do kind of agree. However is there really much difference between water and anyother bottled drink you would buy? In some ways the guy who did it offered us a choice. For exapmple, I am not rich, but I am not short of a couple of quid. When driving if I am thirsty (i mean dry mouth the horrible kind) you want to stop and get a drink. Now my brain has always said not to buy bottled water as its a waste of money.

How is buying a soda better value? OK, its branded. It has taste, but its 90-99% water. Is has either lots of sugar or full of chemicals to replace it. You can buy a 1.5L bottle of water for the same money as a 500ml soda, so now its water every time.

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