Saturday, Aug 05, 2006

Dangerous mortgages are a sign the market has peaked

Times Online: 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 (484 views)
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7 Comments

1. Rachel said...

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.

Saturday, August 5, 2006 10:41AM Report Comment
 

2. uncle chris said...

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.

Saturday, August 5, 2006 11:17AM Report Comment
 

3. inbreda said...

Don't worry, hopefully in the future Blair won't need a mortgage when the Hague arrange a nice rent free room for him.

Saturday, August 5, 2006 11:27AM Report Comment
 

4. harold said...

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.

Saturday, August 5, 2006 04:11PM Report Comment
 

5. Steveo said...

Here we go again ..... Another scheme that will be similar to the endowment mis-selling's thats happened over the last few years.

Saturday, August 5, 2006 04:53PM Report Comment
 

6. Rachel said...

Harold! i'm not happy that prices have rocketed, i was just pointing it out

Sunday, August 6, 2006 10:41AM Report Comment
 

7. japanese uncle said...

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.

Sunday, August 6, 2006 11:29AM Report Comment
 

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