Friday, Oct 06, 2006

Tell us something we don't already know!

MSN: House Prices Un-Affordable!

Here it is in black and white - why house prices will not survive at current levels. Yet the party still goes on - and the BOE still keeps playing with people's lives. It is the duty of any GOVT or Central Bank to ensure that all aspects of 'inflation' are considered when setting IR's and the UK has failed the population in a huge way.

Posted by waitingfor hpc @ 08:46 AM (435 views)
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3 Comments

1. kpjcomp said...

I love this statement->

> And although sharing the mortgage and deposit enabled them to get a foothold on the property ladder,
> it has also left them reliant on the other person and unable to sell up without their consent.

While reading this, a big Advert for HSBC about sharing a mortage with 4 friends came up.
mmm, that reminds me, I need to take out my money from First Direct as there part of HSBC,
not sure I want to keep my money with such a stupid bank.

But I think it would be great if lots of people went I shared a house anyway, that would free up more properties for me to buy.

Friday, October 6, 2006 01:03PM Report Comment
 

2. paolo88888 said...

kpjcomp,

Are you sure that the bank is so stupid? The multiple borrowers are "jointly and severally liable" so there are four people to go after for repayments compared with only two for the typical newly-married couple. Mortgages differing from the normal attract a higher interest rate, and the deposit requirements are slightly higher than for singles and couples. This is critical from the banks perspective as if the loan goes bad and they repossess, they need the proceeds from selling the property to cover the loan and there expenses. It used to be the case that if you borrowed more than 75% the borrower had to pay the premium on an insurance policy to cover the the banks loss in such an eventuallity. Do you realy think banks will lose out if there is an HPC?

Saturday, October 7, 2006 07:16PM Report Comment
 

3. Michael said...

I thought houses were for living in not making money out off them if you want more then one house you should not have more then 3 I know people who have 10 or more houses and they are going to carry on buying and these people are not high flyers they do normal manual jobs. This is making the bubble get bigger and bigger all this as to feed into cpi inflation

Saturday, October 7, 2006 11:35PM Report Comment
 

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