Tuesday, Dec 05, 2006

Mortgage hell for thousands

BBC Radio 1 News: Mortgage hell for thousands

There are warnings that hundreds of thousands of people are at risk from losing their homes because they can't keep up their mortgage payments. Debt-help groups say banks are lending five or six times applicants salaries.

Posted by millard @ 09:46 AM (476 views)
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19 Comments

1. millard said...

They don't seem to have the full article that was on the Radio, and little surprised that I couldn't find a similar article within the BBC site.

What it does show is that these x5 or x6 mortgages are already causing massive problems, as the introuction rates come to an end the problem is only going to get worse!

Tuesday, December 5, 2006 09:50AM Report Comment
 

2. p. o. o. r said...

Interesting - I now know several people who are starting to struggle with payments, mostly couples where one person has lost there job, but also others who are now finding it hard to meet the increases in monthly outgoings generally. As Millard said this problem is only going to get worst. It will be interesting to see what happens with the housing market in January which is normally a boyant time. At the moment Estate agents near me tell me that there are no properties coming onto the market, which in normal times would push prices up through lack of supply, but at the same time there are very few people looking to buy - which means that for the last six months prices have remained static - I live in the South East in one of the most expensive parts outside of London. Will they start to drop soon?

Tuesday, December 5, 2006 10:29AM Report Comment
 

3. sovietuk said...

Ruling tosspots (e.g NL) with their taxpayer paid-for big houses in expensive parts of north london will of course not have to worry about mortgage repayments and the cost of living. Greedy payrises and fat pensions for them are all that matters.

Tuesday, December 5, 2006 10:47AM Report Comment
 

4. denzil said...

6 * salary mortgages!

It was only a few days ago that Mervyn King the governor of the Bank of England stated that this was not a problem.

Tuesday, December 5, 2006 11:40AM Report Comment
 

5. paul said...

poor, living in Shepherds Bush, I've just turned down two estate agents looking to sell me one bedroom flats for 270k apiece.

I told them to think again on their valuations, because two bedroom flats are going cheaper than that in the area. I agree that both supply and demand appear to be low currently, making it look more buoyant than it really is. I bet transaction volume is low though.

Tuesday, December 5, 2006 12:28PM Report Comment
 

6. waitingfor hpc said...

guys,

my mate has been trying to sell his flat in Kent for 3 months. Was on market at 240K, no views, now dropped to 200K, some views but no sale.

Tuesday, December 5, 2006 12:32PM Report Comment
 

7. george monsoon said...

Its 1989 all over again!!

Tuesday, December 5, 2006 12:45PM Report Comment
 

8. talking rot said...

The words of Swervin' King echo in my ears. The people expected to default are neither rich enough or sufficiently numerous to make an impact.

Please correct me, but so far Swervin' King hasn't got it wrong. His predictions, when he has been bold enough to make them, have been accurate.

Perhaps a crash will not occur as a result of this. There is a theory that bubbles don't need a pin to deflate as they eventually deflate under their own weight. Sounds like sh*te to me.

Tuesday, December 5, 2006 12:51PM Report Comment
 

9. millard said...

Talking rot, while I would agree that the numbers that are currently defaulting are not making an impact it appears that a lot more will follow, even if the historically low interest rates don't come to an end in a hurry. The deals that made it affordable 2 years ago have all but dried up, people will start to feel the real cost.

Sentiment has been driving the market, its basically been a self-fulfilling proficy, the media tide (which drives public sentiment) has begun to change with more articles being published supporting the notion that the current situation is unsustainable, much like a 5x mortgage.

Tuesday, December 5, 2006 03:31PM Report Comment
 

10. Leedel20 said...

Honest John has done so well, lets all have a laugh at the disaster that will hit these liars.

Tuesday, December 5, 2006 04:11PM Report Comment
 

11. p. o. o. r said...

It is true that there seems to be much more talking down these days - I would not be surprised to hear come January that the bubble in the housing market has burst - I can almost hear the hissing sound already. However we have to take in the wave effect, and some areas may take longer until they see the results. A friend of mine phoned me today, to tell me that he was informed today that come January unless orders come in, he will be out of work. Another person who after a few months will start finding things tough, unless he is luckly and gets a new job quickly. Not the news you want just before Xmas.

As interest rates now only change by 1/4 percent, I can see the bubble deflating slowly over the next 12 to 18 months. Small changes increases the default rate at a much slower pace - Imagine what it would be like if interest rates were hiked by 2 or 3 percent, as used to happen.

Tuesday, December 5, 2006 05:14PM Report Comment
 

12. Sam said...

actually, the rate increases are at a simlar rate to before because people have borrowed so much in moneytary value. ergo, a small increase in percentage value equals a sizeable increase.

rates at 6% now will have the same effect at rates at ~14% in 1990. ~8% and we're in the historical records area.

Tuesday, December 5, 2006 05:44PM Report Comment
 

13. Nohpc said...

The market will be slow at the moment due to the recent rate rise but when people realise that this will stabilise and not rise any further the market will pick up again. Much like what we saw in 2005.

People having to drop their prices does not mean that the market is depreciating. It simply means they got too greedy and asked too much money for their property in the first place. If my property is worth 300 thou and I put it on at 350 and end up dropping the price to 310 that does nto mean a property crash it means I am being more realistic.

And finally.. why do you think people shouldn't struggle with their mortgage? Life is a struggle. You work so you can live and play. Why should people be able to buy the house of their dreams and not have to work their butts off to get it and keep it? That is the nature of life if you want something you have to continually fight for it.

Tuesday, December 5, 2006 07:38PM Report Comment
 

14. nearly30 said...

Did anyone see the BBC News @ 10 report on the massive increase in BTLaunder last night?

They were making an issue about it being a bit 'risky' these days - despite middle class MEWers seeing it as a status symbol and investment (w*nkers).

Wierd - as it didn't reflect any web or print article - or govt report out!!

A BBC report - of their own making perhaps??? Wonders never cease!!!

The best bit was a guy (an arch w*nker) who has 100 - yes 100 - BTLaunder houses in his 'portfolio'.

Sorry Dave Cameron - it's not w*nker its t*sser! Apologies!

Tuesday, December 5, 2006 07:55PM Report Comment
 

15. millard said...

nearly 30, this'll be the link for the story

http://news.bbc.co.uk/nolavconsole/ukfs_ne...storyid=6208374

Tuesday, December 5, 2006 08:53PM Report Comment
 

16. millard said...

http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/bb_wm_fs.stm?news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6208374

sorry, here it is

Tuesday, December 5, 2006 08:54PM Report Comment
 

17. nearly30 said...

That's the baby!!

Good old Greg Haywood - 100 properties 'worth' 35 million - all on borrowed money - get in!!!

I really hope it's a 40% drop - really - what a total git - the biggest cuckoo I have ever seen!!!!

Tuesday, December 5, 2006 09:02PM Report Comment
 

18. Sam said...

lol, Nohpc. I think they would have made the same arguements for slavery. oh, and 300 thou? thou? sounds like yuppie speak to me.

Wednesday, December 6, 2006 10:10AM Report Comment
 

19. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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