Saturday, August 5, 2006
Dangerous mortgages are a sign the market has peaked
Supersize your mortgage!
Morgan Stanley offers mortgages up to 7 times single salary on the basis that when the house is sold, they get a slice of the profit! The mortgage is a fixed 2-year at 5.69% but this will become a tracker at 2.5% above the London Interbank Offered Rate, (UK LIBOR). I like the quote at the end "“It could exacerbate the first-time buyer problem. It will support that end of the market in an artificial manner, because Advantage will make a play on affordability ... " All this has echos of the deal at the Bramley Stoke developed in the early 1990s - which became know as the Soney Broke development by the Media. Interestingly the article below this report was titled "Personal Insolvencies Soar" ...
Posted by talking rot @ 10:19 AM (540 views)
7 thoughts on “Dangerous mortgages are a sign the market has peaked”
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Rachel says:
the development you refer to if Bradley Stoke in Bristol, and was then refered to as Sadly Broke. Not so anymore though, as prices there have now rocketed.
uncle chris says:
Doesn’t quite match the 32x salary the Bliars have taken on. No wonder he’s a lap dog for the Americans … that’s the only place left in the world he has a chance of making his
mortgage patments from US backhanders …. sorry, I mean after-dinner speaking tours. The rest of the world thinks he’s a war criminal.
inbreda says:
Don’t worry, hopefully in the future Blair won’t need a mortgage when the Hague arrange a nice rent free room for him.
harold says:
Rachel, the fact that “prices there have now rocketed” is the whole point. Yes, prices have rocketed into the stratosphere, from where they are destined to return to earth leaving new FTBer in Bradley Stoke sadly broke, again. And so it goes on…
In my view, this site’s reson detre is that there is a community of bloggers who are peed-off about the politicians/ecconomists who allow this to happen.
Steveo says:
Here we go again ….. Another scheme that will be similar to the endowment mis-selling’s thats happened over the last few years.
Rachel says:
Harold! i’m not happy that prices have rocketed, i was just pointing it out
japanese uncle says:
Had it peaked a couple of years earlier, the damage to this economy could have been much more limited than the one we all would inevitably have to witness in the very near future. Cunning and wicked have already gone, and only fools are dancing on the floor that can collapose at any moment. Pity.