Saturday, September 15, 2007

The consequences of a decade of Gordonomics and your Mortgage

Mortgage madness will end in inflation, inflation, inflation

Even at the height of the ruinous US housing boom, US banks weren't offering 125% mortgages or six times earnings to people on £18,000 a year. Yet that is what British high rollers such as Alliance and Leicester and Northern Rock have been doing and have "helped" first-time buyers get on to the "housing ladder" with 40 year interest only mortgages which are so good you don't even get to own the house.

Posted by enuii @ 11:23 PM (785 views)
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5 thoughts on “The consequences of a decade of Gordonomics and your Mortgage

  • Brilliant article!

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  • Brilliant article.

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  • Brilliant article – a balm to my battered opinions of the last few years. I really hope my friends will listen now and stop their ruinous considerations of huge mortgages paid for by salaries very vulnerable to a recession (most of them in PR).

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  • But, at least we don’t have any sub-prime to worry about here, do we? Good old British banks have been prudent lenders, ensuring mortgages have been given only to people who can pay, and on the basis of rock-solid assets. Have they heck. In fact, the British banks have been throwing money at home buyers without a thought for the consequences for most of the past decade. Just ring up one of the websites. You don’t even have to prove your earnings.

    Would David Smith, our guru like to comment?

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  • Note quite understood the currency implications.

    Reducing rates is not some magical thing, and cannot be done this time around.

    China is about to need to export some inflation. Our inflation will be going up rapidly.

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