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Times Breaking News: Repossessions Rise 40% As Mortgage Arrears Worsen

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Guest KingCharles1st

Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

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The CML will wrap it up with the climbing from a historically low base ********.

The base is not important, it's how high it goes that matters.

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Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

In a Vauxhall?

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Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

They could always squat in an empty new build BTL...

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“Northern unemployment is an acceptable price to pay for curbing southern inflation” Eddie George former Governor of the Bank of England

Homelessness is an acceptable price to pay for curbing inflation.

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Lesley Titcomb, the FSA director responsible for the mortgage sector, said: “As our data shows, in these current market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly.

This means paying attention to their individual circumstances and not repossessing their homes when there may be an alternative solution.

"Repossession has to be the last resort."

Oh really?

Anyone care to point me to the part of the Consumer Credit Act 1995 which says "Repossession has to be the last resort"?

Anyone care to find the small print on a mortage application that reads "Your home may be repossessed if you do not keep up repayments on your mortgage... but only as a last resort"?

The argument being put forward here and in the US that repossessions are dangerous, and that banks should be discouraged - or even prevented - from carrying them out, is deeply flawed. Put simply: if you prevent lenders from seizing the assets on which their defaulting customers have secured loans, then in future they will not be prepared to extend those loans. Outlaw repossession, and secured lending will disappear. The mortgage will cease to exist.

Less melodramatically: make it harder for banks to repossess and they'll become much, much more cautious about lending money for home purchase. The net result is to make the crash far deeper and longer than it needs to be, and needlessly increase the impact it has on the wider economy.

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Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

[insert tongue in cheek]

This is HPC, we're not supposed to care about them - we yell gleefully as distressed sales make prices tumble. That recent prediction by the housebuilders federation of price increases was based on assuming these people had to live somewhere.

[remove tongue from cheek]

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Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

This possibility (repossession) never entered to many thick heads. Many stretched themselves and bought bigger houses than that they can afford, without realizing a small increase in the interest rate or reduction in income can cause significant damage to their family finance. Increase in the cost of living adds the fuel to the fire.

I guess many have to downgrade themselves to smaller property, moving to less posh area etc. My sympathy goes to these families.

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Anyone know the equivalent figures 12 months into GC1?

No I don't, but I think the figures will go a lot lot worse that the number quoted in this story as there are long waits for people to actually get a court date and consequently a lag in the figures. This is based on a conversation with a someone working on repos for a lender. They believed there was a 3 month wait to get a court date in January this year as opposed to 3 days the previous year!"

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Christ, this is at 5% interest rates. :blink:

I'd hate to see what it would be like if we were at the long-term average of 7%, or even 15% where the "experts" promised we would need to be to cause any trouble.

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Isn't 45,000 the figure the CML predicted 6 months or so ago. Not much of a story really, everyone knew they would rise. Of course if this keeps on climbing...

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The argument being put forward here and in the US that repossessions are dangerous, and that banks should be discouraged - or even prevented - from carrying them out, is deeply flawed. Put simply: if you prevent lenders from seizing the assets on which their defaulting customers have secured loans, then in future they will not be prepared to extend those loans. Outlaw repossession, and secured lending will disappear. The mortgage will cease to exist.

Sounds good to me. :)

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Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

I think the council will put them in vacant properties. Local authorities now have powers to take over empty houses and use them for social rent. I know of a house near my parents that was reposessed and stood empty for a while.

Then a family moved in and who said they were on the social. They were there say 6 months then moved on.

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Christ, this is at 5% interest rates. :blink:

I'd hate to see what it would be like if we were at the long-term average of 7%, or even 15% where the "experts" promised we would need to be to cause any trouble.

We had MIRAS 'last time' (I did in 1988) so the equivalent IR on your repayments for the first £30k were about 12% when the rate was 15%. Not sure of exact figures, I can't recall what the basic rate of tax was at the time. The multiples have also been allowed to be higher than the 80s. Eric's Liar Loans are a bigger factor than I first thought too.

Edit-typos.

Edited by Stourbridge Baggie

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Christ, this is at 5% interest rates. :blink:

I'd hate to see what it would be like if we were at the long-term average of 7%, or even 15% where the "experts" promised we would need to be to cause any trouble.

The debts kept getting bigger it really doesn't take an economics degree to work out the bigger the loan the more it costs to service.

Approx figures

£10k @ 3.5% £350 a year to service

£100k@ 3.5% £3500 a year to service

£10k @ 7% £700 a year to service and i'ts only £350 extra to find.

£100k @ 7% £7000 a year to service now you've got to find £3500 from somewhere.

For the small loan every .25% = £25 a year

For the larger loan every .25% = £250 a year more.

It's a huge difference when you start factoring in some people have got LARGE mortgages it was an accident waiting to happen, moving interest rates by 25 base points was negligence of the BoE it really should have been increasing at 10 or 15 base points, but doing that might have been admitting there was a huge problem so we continue to move 25 points all the time.

The banks have been allowed to successfully undermine monetary policy, all save in the knowledge that if they got into trouble the taxpayer would bail them out. The problem is debt has now got too large and the taxpayer is in trouble and hasn't got the money to cover the banks losses.

GROSS NEGLIGENCE.

Edited by interestrateripoff

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Although this has been fairly a fairly obvious prediction to anyone with an I.Q. of over 16 for a few years now, I dare to ask the question where are these families going to live, and how will that be paid for?

Answers on a postcard please..

they will have to find a private rental property - like anyone else has to.

since when did losing your mortgaged home qualify you for an instant council house ?

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they will have to find a private rental property - like anyone else has to.

since when did losing your mortgaged home qualify you for an instant council house ?

[stereotypicalrant]What you need to be is a single mother or a refugee hey presto instant council house.[/stereotypicalrantover]

Plus we haven't got the housing stock.

I've just had a thought prehaps we could turn it into a reality TV show - So You Want A Council - follow 10 repossessed MEW victims as they search for a council watch them perform humiliating tasks to win the council house of their dreams.

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they will have to find a private rental property - like anyone else has to.

since when did losing your mortgaged home qualify you for an instant council house ?

Go in to private rental property? with the obvious poor credit rating someone who has had their property repossessed will have they 'll probably have to stump up 6 months rent in advance plus a deposit of 6 weeks if they can't claim housing benefit...................

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Go in to private rental property? with the obvious poor credit rating someone who has had their property repossessed will have they 'll probably have to stump up 6 months rent in advance plus a deposit of 6 weeks if they can't claim housing benefit...................

I still think squatting is the answer.

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they will have to find a private rental property - like anyone else has to.

since when did losing your mortgaged home qualify you for an instant council house ?

Since you had small kids?

*Takes off cynical hat*

Edited by bomberbrown

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they will have to find a private rental property - like anyone else has to.

since when did losing your mortgaged home qualify you for an instant council house ?

I was in a housing association reception area a few years ago when a couple walked in. Both were not the usual 'chav' type- more middle class types really. They explained that they had been living abroad but their business failed so they had returned to the uk and wanted a house.

They were genuinely shocked to discover that there were no empty houses 'standing by' into which they could be placed, and horrified to discover that there was a three year long que to get one.

I think a lot of people may be in for a nasty shock when they discover that the 'social services' they have been slagging off for years turn out not to be available when they themselves suddenly find they need them.

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I've just had a thought prehaps we could turn it into a reality TV show - So You Want A Council - follow 10 repossessed MEW victims as they search for a council watch them perform humiliating tasks to win the council house of their dreams.

This could become the replacement for location, location, location in a few years.

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Plus we haven't got the housing stock.

I've just had a thought prehaps we could turn it into a reality TV show - So You Want A Council - follow 10 repossessed MEW victims as they search for a council watch them perform humiliating tasks to win the council house of their dreams.

i think the bbc would like that. perhaps with phil or krusty or any other of the 500+ property experts try selling a new lifestyle to the recently repo'ed. he can flip his phone down and say "well theres bedford council with an offer of a bedsit"

simon cowell can be a judge. as can posh or becks. colleen or fish finger muncher kerry katona.

Go in to private rental property? with the obvious poor credit rating someone who has had their property repossessed will have they 'll probably have to stump up 6 months rent in advance plus a deposit of 6 weeks if they can't claim housing benefit...................

yes. thats the plan....they will have to ask relatives or simply go begging on the street.

the answer would be to work harder.

Since you had small kids?

*Takes off cynical hat*

not anymore matey. its all gone now.

I was in a housing association reception area a few years ago when a couple walked in. Both were not the usual 'chav' type- more middle class types really. They explained that they had been living abroad but their business failed so they had returned to the uk and wanted a house.

They were genuinely shocked to discover that there were no empty houses 'standing by' into which they could be placed, and horrified to discover that there was a three year long que to get one.

I think a lot of people may be in for a nasty shock when they discover that the 'social services' they have been slagging off for years turn out not to be available when they themselves suddenly find they need them.

this is the answer i was looking for.

-i.e. theres no answer. 'next please' said the council worker at the desk of social housing help.

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  • 399 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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