Wednesday, September 13, 2006

hitting the fan

Debt warning as rising numbers face threat to their homes

despite historically low interest rates, there's more evidence that things are going pear shaped.

Posted by inbreda @ 02:00 PM (3044 views)
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14 thoughts on “hitting the fan

  • “Like many home owners, Mr Cotton relied on social security, which covers mortgage payments only after several months.”

    Is this serious?!?!?!?!

    The social will cover the mortgage payments?!?!?!?!

    So honest savers will soon be paying X times more tax to pay the stupidly high mortgages for idiots that thought houseprices could only go up and have spent the last few years squandering the equity in their overpriced property just so honest people can bail them out?!?!?!?!

    I think I’m going to be sick.

    If there is a downturn, can you imagine the gearing that this will create?

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  • It is indeed serious, sadly.

    I’d be curious to know exactly how many NHS beds could be funded by the subsidy on his country home. It doesn’t seem unreasonable for him to sell his house and move into rented accomodation like the rest of us peasants, or a smaller place (since at 54 his kids have probably left home already).

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  • If you are under 60 and,

    1. Have had a mortgage that you took out before 2nd October 1995
    (and you are still with the same mortgage provider)
    2. Are a carer receiving a Carers Allowance (previously ICA)

    you get half your mortgage interest paid after 8 weeks.
    After a further 18 weeks all your interest is paid.

    If you are under 60 and don’t fall into these groups,
    you will get all your interest paid after 39 weeks.
    Only interest on the first £100,000 of qualifying loans is paid.
    So if you have a mortgage of £125,000 you will get interest on £100,000 paid,
    but will have to continue to pay the interest on the remaining £25,000 yourself.

    Another good reason to take out an interest-only mortgage.

    Also most people will have to cope 3/4 year before they get any help, a long
    time not to pay the mortgage, I’ve a feeling the Mortgage company might want
    the house before that. And 100K nowadays aint a lot for a house.
    I soppose the reason why the Social do this, is because if they go into rented
    they would end up spending the same anyway. Interest-only on 100K is about
    £450.

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  • This would seem to be a trend that all nations are experiencing — and deploring. That is, individuals can make extremely poor personal and business decisions and then visit the consequences on all. It does seem completely unfair to those of us patiently waiting to legitimately afford something we can indeed afford. Besides people like this man we’ve also got the other end of the situation with those who won’t be bothered to work at all and just show up expecting all on a silver plate. Have you seen recent news of illegal Mexican aliens in California, for example, who hired private security forces to hold back police while they raised the Mexican flag over the post office in Maywood? They are demanding the United States “back” from European invaders. They may need reminding that they were originally from Spain, Portugal and who knows. People and their ideas of entitlements these days are completely insane.

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  • Uncle Chris and Talking Rot: the auction was advertised on http://www.homepge.net/uk/property_auction. {the word “homepage is without the a…just in case you thought I’d missed it out!}. I went to one at the end of July { held by Barnard Marcus http://www.barnardmarcusauctions.co.uk} and this “extra one” was announced there. The catalogues are free and the repossessions are, I believe, identifiable by the wording “by order of mortgagees in possession”. As i said before, this particular auction was selling only property from the Halifax. I rather think that if the indications are right, that there will be lots of opportunities to go to more repossession auctions in the near future! Happy bidding

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  • I forget to say….you can download the full results of the auction from Barnard Marcus website.

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  • IndiaBlue,

    Mexicans were not necessarily from “Spain, Portugal and who knows”. What are you talkng about. California was taken off Mexico in the Mexican -American war.

    American History: “Growth of a Nation”
    http://www.animatedatlas.com/movie.html

    Do some learning….

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  • IndiaBlue,

    Mexicans were not necessarily from “Spain, Portugal and who knows”. What are you talkng about. California was taken off Mexico in the Mexican -American war.

    American History: “Growth of a Nation”
    http://www.animatedatlas.com/movie.html

    Do some learning….

    Reply
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  • its sad but true people that have got onto the property market in the last two years I would imagine are particularly vulnerable to the possibility of futher interest rates. all the these tv programmes expounding the virtues of property investment well most people on this web know its a con, at the end of the day its the city spics that make the big bucks.

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  • Just how caked in shit can a fan get before it stops?

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  • Titch

    Many thanks for the URLs. Have been looking at them with interest.

    I can not believe my taxes support such a high level of assistance to property owners when non-property owners get little help. Please could some one tell me why property owners have some/all of their mortgage payments paid for them when they have lost their job? Assuming the home owner gets a subsequent job a few months later, does he/she have to pay back the money Social Services have given to their lender? If not, then a percentage of equity in some ones home was paid for by the public?

    Loose job, sell home and rent until new employment found – ie recover yourself from some appaulign bad luck.

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  • rich

    Thank you for your comment on “MoneyWeek: Why one more itnerest rate may not be enough.” I am not disputing the validity of the article. My concern [and frustration] stems from seeing a large number of articles within many quality publications which have predicted a House Price Crash on the basis of risks. Risks are things which MAY or MAY NOT happen. As a result many quality publications like MoneyWeek and The Economist, have rightly pointed out economic risks that MAY cause a House Price Crash.

    The thing is, there is no sign of a House Price Crash in their area where I rent (Hampshire) or the area where I am looking to buy in a few years (North Yorkshire). Quality publications have made predictions on the basis of things [risks] occurring when there is no certainty that they will occur. As a result these predictions have not come true. We can only debate the likelihood of these risks occurring and what the outcome on House Prices MIGHT be.

    I recall some learned economist stating “When the facts change, I’ll change my mind” or something similar. It is a fact that there is no House Price Crash today. There are economic risks which MAY or MAY NOT cause one tomorrow. When the risks cease being a possible future event and become an actual current event, then the facts will have changed.

    … And I’ll be able to afford that matchbox under the embankment I’ve always dreamed of!

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  • Lvmreader…..

    The point is that “Mexicans” were mostly originally from Spain via the Conquistadores. If you want to find the disposessed, you must go back to the indigenous peoples of Mexico, who would be the Natives such as the Oaxaca and other groups, similar to the Native Americans [Crow, Navajo, Hopis]. Those peoples do still live there and they are the poorest in Mexico, reliant on the Catholic Church for borderline sustenance, making baskets and cheap pottery for the tourists and having it sold on for a pittance. Please don’t ask me to “read” with such disdain. I lived there for quite a while, participated in many Native ceremonies and got in a great deal of trouble for paying the village peoples what their work was worth.

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  • I can understand a social safety net helping to prevent people (that may have been made redundant / too ill to work) from losing their home. But the fact that houses are no longer seen as homes so much as investments that only go up in value, and the fact that as a result people (stupid people) are paying far too much for property, puts a different perspectiev on things.

    In many cases I suspect that this social safety net is the equivalent of someone borrowing money, going to the casino, and if they win they are all smug telling people how clever they are, and if they lose they expect honest folk to pay taxes to cover the loss.

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