Jump to content
House Price Crash Forum
Sign in to follow this  
sambino

It's Crunch Time: Surviving The Credit Crisis

Recommended Posts

"This entirely depends on your outgoings, though statistics from the CML suggest that, in 2007, the average first-time buyer was spending 19.4 per cent on mortgage interest alone."

The CML are stupid.

ANYONE could afford a mortgage at this level.

The fact they cant means the figure is wrong.

Share this post


Link to post
Share on other sites
"This entirely depends on your outgoings, though statistics from the CML suggest that, in 2007, the average first-time buyer was spending 70 per cent on mortgage interest alone."

The CML are stupid.

ANYONE could afford a mortgage at this level.

The fact they cant means the figure is wrong.

Thats more like it :unsure:

Share this post


Link to post
Share on other sites
"This entirely depends on your outgoings, though statistics from the CML suggest that, in 2007, the average first-time buyer was spending 19.4 per cent on mortgage interest alone."

The CML are stupid.

ANYONE could afford a mortgage at this level.

The fact they cant means the figure is wrong.

Was this not the infamous "19.4% of pay... before tax" figure?

Share this post


Link to post
Share on other sites
Was this not the infamous "19.4% of pay... before tax" figure?

you're kidding right- did they really use a pre-tax figure!!!

Share this post


Link to post
Share on other sites

At the moment, to be honest, I don't feel affected much by credit crunch. Tracker mortgage on my (one) b2l has come down a bit actually. Without attracting too much mud slinging, seems like the lending market is back to where it should be and was 4 or 5 years ago, ie you need a 10 or 15% deposit to borrow several hundred thousand pounds. Is that too much to ask? Friends of mine are remortgaging without too much hassle, have 20% to 40% equity. Provided unemployment doesn’t go mad it seems OK out there, apart from a few teenagers in the city who hopefully get the tin tack and a number of nuts b2l landlords with minimal equity who thought Inside Track and similar sharks were their friends and overextended…

Share this post


Link to post
Share on other sites
http://www.independent.co.uk/money/mortgag...sis-800450.html

The credit crisis is hitting everyone from first-time buyers to buy-to-let investors – but do you understand exactly how it's affecting you? Helen Monks provides answers to the big questions we are all asking

I liked this part.

Should I sell my buy-to-let property?

Probably not. The latest survey by the Association of Residential Letting Agents (Arla) indicates that buy-to-let landlords are enjoying higher yields and increasing rents.

In the three months to the end of February, average rents in the private rented sector rose by an average of 4 per cent for houses and 2 per cent for flats – not exactly inflation-busting, but the outlook for further rises looks good.

I loved the "not exactly inflation-busting" to describe 2% rent increases. So the returns are growing less slowly than inflation, and that couples with a 10% (ish) fall in flats... So, if there are any BTL would-be moguls who got seriously into 2 bad flats in 2005-6 out there... you've been done royally.

Share this post


Link to post
Share on other sites
http://www.independent.co.uk/money/mortgag...sis-800450.html

The credit crisis is hitting everyone from first-time buyers to buy-to-let investors – but do you understand exactly how it's affecting you? Helen Monks provides answers to the big questions we are all asking

Call me a pedant, but please use 'affected' for the thread title.. we are all affected by the effect!

Share this post


Link to post
Share on other sites

I'm badly affected by the credit crunch via my savings accounts. I've had to close my Egg account because their Citigroup owners have slashed the rate to 5%. I moved some of my money to Icesave but am now withdrawing some of that cash based on negative publicity about that bank's (and the whole of Iceland's) stability. I have a couple of fixed rate 6-month and 1-year bonds which are things I've never needed to take out before. Now I need to find a suitable instant access home again for my Icesave cash. It's all a real pain. The BoE could even start slashing interest rates even further to bail out the banks causing my savings to be eroded by inflation. There's no escaping the credit crunch.

Share this post


Link to post
Share on other sites

Credit crunch doesn't really affect me, as I'm not in any debt (except an outstanding student loan which will be written off in 35 years' time!) - unless it makes it easier to purchase a house. This will only happen if it lowers my outgoings - at present I am keeping a girlfriend and a young daughter on 17k gross. Not easy but just about possible. It would be a colossal help if my rent didn't take up nearly three-quarters of my take home!! (and we live in small accomodation, cheap for the area).

I was always told by my parents 'expect to spend no more than 1/3 of your income on housing'

So if the credit crunch means house prices come down to a level where I can get a mortgage for £300 a month, then job's a good 'un.

Share this post


Link to post
Share on other sites

My BTL flat costing me more than I anticipated due to increased mortgage rates, but I'm only making a small monthly loss on it. Safely remortgaged till mid-2010 so all is well on that front.

Day job and small business doing OK, no signs of credit crunch here.

SIPP pension value soaring, due to stock market volativity being good for bargain hunting and short term trading. Also getting good interest rates on cash ISAs.

Share this post


Link to post
Share on other sites

Have been affected by FX and savings rates. Sterling weakness is a pain, as my savings are in pounds but I don't live in the UK. Too late to move them now probably. Am tempted by dollars now and again, as believe US will be in a better place once it has worked through the pain. Not so sure about Blighty. Savings rates are a bit touch and go too, but have a mixed bag of cash accounts, so not too bad. Exited equities 6 months ago. Now wondering what to do to safeguard everything against inflation. UK rates could go negative (real), which would not be good news. Have no shiny goldstuff, as don't have the appetite for that sort of risk (I still view it as risky), and I work in commodities so it kinda puts all my eggs in one basket. But this pain will be worth it if house prices adjust to a more normal level. Even if I can't join the party at least it will be a more equitable society. Only downside is that every person in power is trying to prevent that happening.

Share this post


Link to post
Share on other sites

well, i know at lest 2 people who took out liar loans

they are both remortgaging at the end of this year, if the banks ask for proof. they are in for a shock. stay on SVR of 7-9% or sell

as for myself, seems its benifitted me. savings rates are not too bad. you can get more than 1% above base rate

Edited by cells

Share this post


Link to post
Share on other sites
Guest absolutezero

I have a good credit history and a stable job but my new credit card from the Co-operative Bank has had its limit lowered from £5000 to £4300.

Not that it bothers me because it's only ever got up to £1200 and I pay it off in full every month anyway.

I'm not exactly the sort of customer the bank wants - I don't pay any interest, I don't have a mortgage, I have the basic, free current account and my savings accounts are elsewhere.

If the Co-op stuck their rates up and made them competitive as opposed to 3% or so then I would shove my cash in there.

Share this post


Link to post
Share on other sites

Personally not much as yet but having two sons who need to re mortgage in the next few months I expect to be affected very badly soon with them both telling Mum how hard things are for young people with their caps in hand, Oh and yes nearly forgot Mrs Papag wants another £20 to cover the 2% inflation she is experiencing at the Supermarket.

Share this post


Link to post
Share on other sites

No discernible impact on me so far, apart from higher taxes, fuel and commodity prices reducing my discretionary spending margin in order to maintain saving at the same rate (I aim to save 40% of net income). I renewed the AST on my flat in January for a rent increase which equates to around RPI: given that my landlord is a non-profit conservation trust and the rent is very reasonable anyway, I have no problem with this.

My ISA allowance is all invested for this tax year, but I'm hoping to find a one-year fixed rate ISA bond at a decent rate (as a hedge against a Gordie-ordered panic lowering of IRs) soon after 5 April. I think I'm going to hold off using my S & S whack for the moment until I get a sense of where the market is going in the medium-term, and then possibly invest it in a renewable or alternative energy fund in the summer or autumn. Now we're at or just past Peak Oil, this has to be a solid long-term investment.

Share this post


Link to post
Share on other sites

Financially I'm ok, I still have plenty of discretionary spending. I haven't been in debt (except mortgage) for years. I've never had expensive tastes.

However, it's the credit crunch is having a massive effect on me.

I STR'd.

I stopped watching the propganda box.

I started reading real history and real journalism.

I hate the banks.

I hate the state.

I fear for the future of a planet run by Fascists... Oceania, Eurasia and East Asia....

It made me realise how enslaved to the system I am, and how unjust the system is to the vast majority. In short, I have been awoken politically, all because of the Credit Crunch.

Edited by dazednconfused

Share this post


Link to post
Share on other sites
"This entirely depends on your outgoings, though statistics from the CML suggest that, in 2007, the average first-time buyer was spending 19.4 per cent on mortgage interest alone."

The CML are stupid.

ANYONE could afford a mortgage at this level.

The fact they cant means the figure is wrong.

The CML are the biggest bunch of LIARS this side of Pluto.

Share this post


Link to post
Share on other sites

I am on a fixed rate for another two and a half years, so at the moment things are fine. I was thinking of moving house this year, that is now cancelled.

Work is't affected yet as I am in the public sector.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 293 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.