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Mortgage Bill Shock Awaits 3m Home Owners

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Guest Bart of Darkness
12.5% instant inflation on your single largest monthly expense. Break out the headache pills!

And that's the best case scenario.

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What if a third have to sell/foreclose, thats 1,000,000 distressed sales onto the market. You would think this will start kicking in by Oct/Nov. Mabey a third is a bit optomistic but there has got to be a huge increase in distressed sales in the latter part of this year.

Damo

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BBC said about wearing a jumper in bed to cut energy bills. That'll help with the mortgage.

:)

A more practical solution would be for OO's to take on second jobs to cover the additional mortage payments and inflating living costs. There is no reason why people shouldn't struggle a bit. Do your 8 hours at the office, come home for a quick bite to eat and then off out again for a shift at McDonald's or night baking. A bit of work never did no-one no harm.

After all, there never was owt for nowt despite Brown's promises of miracles.

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A more practical solution would be for OO's to take on second jobs to cover the additional mortage payments and inflating living costs. There is no reason why people shouldn't struggle a bit. Do your 8 hours at the office, come home for a quick bite to eat and then off out again for a shift at McDonald's or night baking. A bit of work never did no-one no harm.

After all, there never was owt for nowt despite Brown's promises of miracles.

But you mess up your tax credits.

How many households with mortgages rely on tax credits?

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A more practical solution would be for OO's to take on second jobs to cover the additional mortage payments and inflating living costs. There is no reason why people shouldn't struggle a bit. Do your 8 hours at the office, come home for a quick bite to eat and then off out again for a shift at McDonald's or night baking. A bit of work never did no-one no harm.

After all, there never was owt for nowt despite Brown's promises of miracles.

It's got to be considered a failure of the economic system if a couple of workers have to have 2 jobs each to pay for food and shelter.

How much better off we are than during the dark days of the seventies, when a family could live on just 1 man's wages!

Capitalism's a nice idea in theory, but it doesn't work in practice.

Edited by boynamedsue

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It's got to be considered a failure of the economic system if a couple of workers have to have 2 jobs each to pay for food and shelter.

How much better off we are than during the dark days of the seventies, when a family could live on just 1 man's wages!

Capitalism's a nice idea in theory, but it doesn't work in practice.

It was the invention of "The Pill" which made house prices shoot up in the late 60s/early 70's,

when, for the first time, banks and building societies factored in the woman's wage to the

mortgage repayments.

Edited by PotNoodle

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How much better off we are than during the dark days of the seventies, when a family could live on just 1 man's wages!

Capitalism's a nice idea in theory, but it doesn't work in practice.

The housing boom got seriously underway in the 1970's and is a mirror of our industrial decline.

For instance it was still possible to pick up a big three storey terrace in Northampton (where I then lived) in need of work for less than £3k as late as 1980 (about a years wages). I dithered and had to spend nearly £11k to buy my first house.

So I would have to say the "housing boom" was manufactured to ease us in to a post manufacturing/industrial economy. Now that the FIRE bubble has run its course, I'm not sure where we go now in the UK.

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Its not just mortgage costs. The tax take is going to have to rise substantially, energy costs are also going to continue to rise, and peak oil is near. Defaults on loans and mortgages will rise, and even more problems will hit financial institutions in the UK. Interesting that Sterling is now falling back, as investors realise how vulnerable the UK economy looks with its over reliance on the housing market. Here comes inflation, just to add to the problems.

We will look back on this period of easy credit as the golden years.

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The best equivalent deal now costs £146 more each month

Anyone who can't afford an extra £146 per month, won't be getting a new mortgage on an equivalent deal to their previous one. Anyone that stretched will not fit into the category of 80% loan to value and 3.5x salary that most lenders insist on now, and will have to pay much more than the rate used in the article.

The figures I'd love to see are the percentage of both oo's and btl's who won't be able to remortgage at all, and will have to stay on the SVR of 8%. That will be an increase of around 100% in monthly payments.

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BBC said about wearing a jumper in bed to cut energy bills. That'll help with the mortgage.

:)

I wear a jumper in bed....and have the heating on. But i'm a renter so i can afford it!

:P

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We will look back on this period of easy credit as the golden years.

I don't think so, I suspect we will look back at them as times of idiotic excess by the public, criminal neglect by politicians and theft and economic vandalism by the city.

Financiers will be despised and locked into a straightjacket of regulations so tight that it will be near enough a planned economy. Two generations will pass before anyone who gibbers about free markets being good for society is taken seriously again.

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  • 295 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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