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78% Of Residential Property Has A Mortgage


234SALE

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HOLA441
I don't doubt the stats at all but it would be more interesting to see how much people owe against the value of their house.

I have a mortgage and on the current prices probably own about 30% of it, this would put me at risk if house prices were to fall by much as 40%. I'm probably very lucky in that I know of a number of people who actually took out a 110% mortgage, as they added the stamp duty and fees to the actual mortgage. I'm not sure how many people there are like this but I know they exist.

Our house is, on current valuations, 30% mortgaged (based on a sale that completed last week in the same road - although ours is much nicer (needs irony/denial emoticon :rolleyes: ). Now I fully expect that at best we'll hold on to being 50% mortgaged, which a wise old sage mentioned some time back is where mortgage customers should attmept to be in order to batten down hatches etc. Fukc it, just decided that our road is immune, 20% growth year on year can't be ruled out :D

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HOLA442
i understand what you're saying but i do think you're tripping if you think 25% is a 'modest correction'; thatt's a crash surely?

of course it's 100% possible / likely but to describe it as you have presumably means 'Great Crash 1' should really be called 'Modest Correction 1', which doesn't really have the same ring to it.

Owners will see 25% as a crash, however even that doesnt take prices back into the realm of affordable housing, average HPrice of £150K reduced from around £200K still leaves the median waged buyer with houses of 7 x annual wages. a real crash would be around 50% down in my mind and quite possible with the current set of conditions converging as they are, eg financial calamity (credit crunch) price inflation leading to higher interest rates and to top it off the potential for a real recession with high unemployment. And those are the certainties, never mind the other monsters hiding under the bed, like war with Iran, peak oil etc.

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HOLA443
If you're going to argue averages you have to stick to averages, not pick and choose. I've been doing a bit of research on Joe Average and was pleased to see the ONS begin to explode some myths - Average household mortgage is 140K, average house price (Nationwide) 190K, doesn't read that well does it? Average Joe only has 50K equity, 70K according to some indices, perhaps at the extreme 85K if you believe other stats from FT Index etc. Now with a modest correction of 25% off values Average Joe is approaching zero/negative equity. Ten years ago the average outstanding mortgage was 50K, just as house prices have trebled so have mortgages. What is increasingly rare is to find folk that have simply; gone to work, ignored all the noise re. house prices, have lived in the same house for ten years, kept their head down and their finances straight and paid down the mortgage. That certainly isn't Average Joe who has remortgaged twice. In fact according to recent research only 20% of mortgage holders have stayed loyal to their original lender over the past ten years. Moving mortgage, taking out equity, (MEW) is more common than most think and has been a huge driver to our one track economy. Mrs Average Joe has insisted on keeping up with the Joneses

i was sticking to averages, this is the data I referred to: Average outstanding mortgage for the 11.8m households who currently have mortgages is £98,517

Source: http://www.creditaction.org.uk/debtstats.htm

Is this data any more / less robust than ONS? I'm not an expert on these data sources but the total debt figures get quoted on here quite often.

BTW, you can remortgage without taking on extra debt and without moving back to 25 years...if you have some stats on how many people extend the mortgage and extend the term when they remortgage then please post .

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HOLA444
He must have been thinking about another country - not profilgate Britain.

Compare the UK 21% without mortgages, with a less-borrowed place like Hong Kong:

QUOTE

Loads of Debt-free Households:

+ "According to the governments latest figures, the number of households earning HK$50,000 per month

or above totalled 250,600 - up 4.6% from last year.

And about 52% of homeowners are free of mortgage

debt."

UNQUOTE

/see: http://www.greenenergyinvestors.com/index....=920&st=100

Where would you rather own property??

Whoa! Hang on! We have to be careful how the statistics are interpreted. Maybe 40% houses have no mortgage, but 21% of people live in a house with no mortgage. For example, the houses with no mortgage on them could be populated by 21% of the population. In fact, I'd say that is quite likely, given that old people living in a couple or alone likely have no mortgage, while 79% of people are piled into the rest of the housing stock with a mortgage on it.

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HOLA445
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HOLA446
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HOLA447
Guest mattsta1964

Source - Credit Action

Debt Facts and Figures - Compiled 1st November 2007

Total UK personal debt

Total UK personal debt at the end of September 2007 stood at £1,380bn. The growth rate increased to 10.0% for the previous 12 months which equates to an increase of £120bn.

Total secured lending on homes at the end of September 2007 stood at £1,163bn. This has increased 10.9% in the last 12 months.

Total consumer credit lending to individuals in September 2007 was £217bn. This has increased 5.8% in the last 12 months.

Total lending in September 2007 grew by £11.2bn. Secured lending grew by £9.8bn in the month. Consumer credit lending grew by £1.4bn.

Average household debt in the UK is £8,681 (excluding mortgages). This figure increases to £20,189 if the average is based on the number of households who actually have some form of unsecured loan.

Average household debt in the UK is £55,403 (including mortgages).

Average owed by every UK adult is £29,063 (including mortgages). This grew by £350 last month.

Average outstanding mortgage for the 11.8m households who currently have mortgages is £98,517

Average interest paid by each household on their total debt is approximately £3,718 each year (this equates to 9% of take home pay).

Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,554 per average UK adult at the end of September 2007.

Britain's personal debt is increasing by £1 million every 4 minutes.

Today in the UK:

Consumers will borrow an additional £330m today

The average household debt will increase by over £13.25 today

77 properties will be repossessed today

317 people today will be declared insolvent or bankrupt

2,750 County Court Judgements (CCJs) issued

Bank and building societies will hand out £1bn in mortgages today

Citizen Advice Bureaus will deal with 6,600 debt problems today

The average car will cost £15 to run today

More than 7,716 loan repayments are going unpaid every day

The average home will cost £30 today to run

Raising a child to the age of 21 will now set you back £23.50 daily

The price of a typical house will increase by £45 today

£500m will be withdrawn from cash machines today by 7.5m people across the UK

24.5m transactions worth £1.4bn will be spent on plastic cards today

1/3rd of all groceries we buy today will end up in the dustbin.

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HOLA448
I'm now seeing (for the first time) valuations differing (being re-valued) by up to 10% by the valuer even at the FTB level of circa 150K. So there's (theoretically) a 10% crash simply due to sentiment affecting surveyors. As always you must remove your own pre-conceptions from any analysis. The Morgan Stanley CE recently described 40% of house valuations as "froth", I reckon 25%, over a 3 year period, is very realistic. It'll take us back to the 'sunny halycon affordability days' of sunny 2004-2005. ;)

Those few words speak volumes about the ridiculousness of the whole situation!

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HOLA449
I was watching 'The Number 23' when I decided to check how long was left – I hit the display time button and it was showing 23m00s – what are the odds of that!

Actually it is in most american films, on purpose, usually...

23% of films have the number 23 somewhere in the film...

23 isn't good or bad, nor is it my lucky number but if you observe it it comes up at some very strange points in your life..

Spiral Tribe was a organisation know for their love of the 23

Infact I used to be a fan of the KLF, later I ownly realised they also had 23 hidden many places in their music videos

Jimmy Carrie has been a 23 nut probably for as long as I have.

I also own twenty3.co.uk also twenty3 LTD so it became away of life for me...

Have you watched Mulholland Drive or Lost Highway,,, what The Number twenty3 was trying to be...

Regards 234sale

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HOLA4410
Actually it is in most american films, on purpose, usually...

23% of films have the number 23 somewhere in the film...

23 isn't good or bad, nor is it my lucky number but if you observe it it comes up at some very strange points in your life..

Spiral Tribe was a organisation know for their love of the 23

Infact I used to be a fan of the KLF, later I ownly realised they also had 23 hidden many places in their music videos

Jimmy Carrie has been a 23 nut probably for as long as I have.

I also own twenty3.co.uk also twenty3 LTD so it became away of life for me...

Have you watched Mulholland Drive or Lost Highway,,, what The Number twenty3 was trying to be...

Regards 234sale

Do you mean Jimmy Cautie or Jim Carrie. Know the first but not the second. Very talented and unassuming guy.

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HOLA4411
Do you mean Jimmy Cautie or Jim Carrie. Know the first but not the second. Very talented and unassuming guy.

Yep Jim Carrie the comedy actor is a 23 nut too...

I also a a member of the church of the subgenius, brighton based

seeing that film man of the year also was a bit of a mind bender seeing as I funded the elections in Kemptown and Brighton Pav

Fim is about a comedian, called Dobbs

who stands for and wins the election

Labour Co-op David Lepper 19,846 48.7 −5.9

Conservative David Gold 10,203 25.1 −2.6

Liberal Democrat Ruth Berry 5,348 13.1 +3.6

Green Keith Taylor 3,806 9.3 +6.8

Socialist Labour Ian Fyvie 573 1.4 +1.4

Free Party Bob Dobbs 409 1.0 +1.0

UK Independence Stuart Hutchin 361 0.9 +0.5

ProLife Alliance Marie Paragallo 177 0.4 +0.4

also

http://en.wikipedia.org/wiki/Wikipedia_tal...etion/Bob_Dobbs

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HOLA4412
Yep Jim Carrie the comedy actor is a 23 nut too...

I also a a member of the church of the subgenius, brighton based

seeing that film man of the year also was a bit of a mind bender seeing as I funded the elections in Kemptown and Brighton Pav

Fim is about a comedian, called Dobbs

who stands for and wins the election

Labour Co-op David Lepper 19,846 48.7 −5.9

Conservative David Gold 10,203 25.1 −2.6

Liberal Democrat Ruth Berry 5,348 13.1 +3.6

Green Keith Taylor 3,806 9.3 +6.8

Socialist Labour Ian Fyvie 573 1.4 +1.4

Free Party Bob Dobbs 409 1.0 +1.0

UK Independence Stuart Hutchin 361 0.9 +0.5

ProLife Alliance Marie Paragallo 177 0.4 +0.4

also

http://en.wikipedia.org/wiki/Wikipedia_tal...etion/Bob_Dobbs

Very interesting, I'll look out for the movie and you at the Town Hall next elections. Are you sure your not Jimmy Cauty ;)

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HOLA4413
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HOLA4414
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HOLA4415
Glad you are back on after I had typed it I realised I've been making a few quips like that lately mostly on Brighton thread. Promises to stop. Will look into the 23 more now. Cheers.

I cant pm you, seems that you have decided not to recieve pm's

just noticed another 23

HPC Poster

Group: New Members

Posts: 230

Joined: 1-September 07

From: Brighton & Hove

Member No.: 10,282

Bull or Bear? Bear

Number of post for the next 10 posts will have 23 in them,, see what you have started

Edited by 234SALE
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HOLA4416
I cant pm you, seems that you have decided not to recieve pm's

just noticed another 23

HPC Poster

Group: New Members

Posts: 230

Joined: 1-September 07

From: Brighton & Hove

Member No.: 10,282

Bull or Bear? Bear

Number of post for the next 10 posts will have 23 in them,, see what you have started

:rolleyes: Will look at my control panel not sure if I need to be upgraded to receive pm's. Have been wondering what the upgrade was all about. I bet those stamps he did the ones that caused a bit of fuss had 23p on them.

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HOLA4417
:rolleyes: Will look at my control panel not sure if I need to be upgraded to receive pm's. Have been wondering what the upgrade was all about. I bet those stamps he did the ones that caused a bit of fuss had 23p on them.

We currently are planning our Hove Actually assault for 2007 New years eve, where I have printed 1000 actually stickers for all of Bright and Hove…

The plan is to change every road sign to read Hove Actually :ph34r: Now thats what I call art

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HOLA4418
We currently are planning our Hove Actually assault for 2007 New years eve, where I have printed 1000 actually stickers for all of Bright and Hove…

The plan is to change every road sign to read Hove Actually :ph34r: Now thats what I call art

I like it :lol: Keep in touch on the Brighton thread. I've just asked for an upgrade.

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HOLA4419
It was mentioned on the truth about propoerty if I remember correctly. 45% of houses do not have a mortgage according to that programme.

I have been trying to find out this info, but it seems hard to collect...

I would guess 45% of property, which includeds commercial and retail

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