Monday, Aug 21, 2006

Crocodile tears for the FTB - and no mention of the dip in prices

BBC "News": First rung

This is the property news today for the BBC, not the dismal Home.co.uk or Rightmove figures.

Emma Koubayssi joins presenter Lesley Curwen to explore the best way to get her toe on the bottom rung of the property ladder.
In other words, this silly girl is thinking of jumping on the property ladder in the Gorbals, Glasgow. She persuades herself that an interest only mortgage is the one for her, no mistake!

Posted by paul @ 04:43 PM (634 views)
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5 Comments

1. kpjcomp said...

Yes, I listened to the broadcast, amazing how these advisors never pointed out the posiblity that house prices might be going into reverse. Oh, what am I talking about of course they would'nt, VI (vested interest)!!.

I've tried to send Emma an Email warning of this, and pointed her at this website. I hope she receives it, she sounded a nice girl. They also pointed out that because of her age she'll be entitled to a 30 year mortgage. How nice of the bank to do that!!

Monday, August 21, 2006 11:16PM Report Comment
 

2. Caledonian-emigre said...

There are plenty of customers for her if she wants to push mind-altering substances so as to earn a bit of extra cash to pay off the mortgage.
Or she could get the local youth to torch the place and claim on the insurance.
The Gorbels - I cant believe it - one of the most deprived housing esates in Europe.

Tuesday, August 22, 2006 08:23AM Report Comment
 

3. paul said...

Och aye - Gorbels, Glasgee.

A wee dram n'a shotay skaahg.

Tuesday, August 22, 2006 11:21AM Report Comment
 

4. inbreda said...

"because of her age she'll be entitled to a 30 year mortgage" !!!!! She looks close to retirement age !!! No offense intended - I'm sure she's a lovely person.

From the sounds of it, it doesn't matter if the property goes down in value because she has french doors. And when I say french does, what I really mean is that it doesn't matter whether it's summer time or winter time.

Glad she's considering all the most important aspects of the biggest financial mistake...I mean decision...she'll ever make.

She's looking at a place 5 times her income, c. 85,000 which would mean monthly repayments of c. 530 quid - not counting maintenance costs, and all other fees for purchase. This is in comparison to her current rent of 350. Even interest only is more than her rent - and IO will mean she never actually owns the property! Of course I have calculated these figures over a 25 year period rather than a 30 year period, because the BBC mortgage calculator doesn't go beyond 25 as a repayment term. Odd that, isn't it.

And despite the fact that she has already managed to rack up debts that squander more than 20% of her monthly income already, she believes she has the self discipline to take an interest only mortgage and pay off the mortgage capital (wiv, like, a bonus or sumfink).

I cannot believe people are this stupid.

"At the end of the day, if Im old enough to get a
mortgage on my own, Im old enough to discipline myself to pay off
some of my capital"

Rather: "At the end of the day, if Im old enough to get a
mortgage on my own, Im old enough to bear the brunt of 30 years financial hell from making my own stupid mistakes"

"Im just really excited.." Say no more.

Tuesday, August 22, 2006 03:00PM Report Comment
 

5. markd said...

You know we must be at the peak of this madness when someone is excited about buying a flat in the Gorbals!

Tuesday, August 22, 2006 03:28PM Report Comment
 

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