Friday, June 8, 2007

The big lie!

How the mortgage market has changed

This affordability story is a scam. Huge debt overhang and no chance to repay the principal. Really only two options going forward, a life as a debt slave, or default... your choice. Let us hope the crash is soon.

Posted by confused76 @ 11:28 AM (1465 views)
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3 thoughts on “The big lie!

  • Lax lending criteria will never cause a decline in house prices; neither will rising interest rates or rising unemployment. The only thing which will cause a decline in house prices in the crazy market and house-price mentality of today is when the Media report that LARGE numbers of people are FORCED to sell and, against their will / better judgement, are made to accept a price lower then that which they would want to accept. A cause of FORCED SALES could be bankruptcy of many people; a major jump in unemployment caused, perhaps, by outsourcing service sector financial jobs to the far east or india.

    All that lax lending critieria does is to remove the ability of mortgage holders to resist dire financial circumstances. Financial circumstances have been benign since 1997. Whether they remain so in the future is the debate.

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  • I agree. Get as many people as you can to go on propertysnake.co.uk. Bring the crash to the people.

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  • “Banks and building societies have been forced to change the way they lend to homeowners because a combination of rising house prices and low interest rates have transformed the mortgage market.”

    Um, cart before horse. If the banks didn’t lend it or checked at least some of the data being presented for self-cert loans, things would not have gotten quite so out of hand. What beggars belief is how short is the memory of financial institutions. Back when pension holidays were being granted, it was all high returns are here to stay; now its, low interest rates are here to stay. Of course, everything is lowest common denominator. It only takes one idiot willing to bid up the price of a house beyond their means, or one bank increasing its multiplier and market forces cause everyone to follow. The winners curse…

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