Wednesday, December 12, 2007

Doing a Dubya

Cameron urges lenders to ease loan rates

David Cameron has called on mortgage lenders to be lenient with homeowners, who face an average increase of £200 in their monthly repayments when their fixed term comes to an end. The Council of Mortgage Lenders said on Wednesday that mortgage payments as a percentage of income are already at their highest level since 1992, when interest rates were 10% and the housing sector was in a slump. Cameron urged banks to consider tapering the rise in interest rates to prevent arrears and repossessions.

Posted by little professor @ 07:54 AM (1555 views)
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26 thoughts on “Doing a Dubya

  • little professor says:

    The CML argued that the Bank of England should instead pump more money into the financial system to help lower the wholesale cost of money.

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  • why should idiots get help???

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  • japanese uncle says:

    On this occasion, Cameron should rather propose a liniency in which everyone who has made a bet in local William Hill or Ladbroker or casino or whatever and lost his money will be refunded.

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  • No-one called for any sort of intervention whilst HPCs were running away. Maybe we should ask plumbers not to charge exorbitant call fees or bankers to be given”sensible”-sized bunuses.
    What happen to the old Tory philosophy” the business of the Government is not the Government of business”. Market Laws seem to apply only when the rich are making money.
    A few days ago,Tick-tock made the point of the Capitalists asking for Socialist-type intervention when in trouble… I fully agree.

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  • Just Watching says:

    ‘switching some to interest only mortgages’
    What about the thousands already on interest only mortgages?

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  • David Cameron on the bandwagon again!!! “Market Laws seem to apply only when the rich are making money.” Great quote I like that!

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  • The problems in the UK mortgage market have yet to truly surface, so the fact that Mr C and the C.A.B are, at this stage seeking leniency over arrears etc must give an indication of the scale of things to come.

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  • Cameron said: “I believe in something called social responsibility: rather than just always seeking a regulatory answer, we should be asking banks and building societies, who are responsible organisations, to act responsibly, to learn from each other and to make sure they do everything they can.”

    What about the PERSONAL RESPONSIBILITY of the borrowers? If someone takes out a loan at a very low rate which they know is going to go up a lot in two years time – it’s quite obvious that they should have some sort of plan to be able to cope at that point. If not, then they deserve all that they have coming. That is how lessons are learned.

    But, of course, I forget. No-one nowadays is expected to take responsibility for anything. It’s always got to be someone elses fault.

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  • He’s playing a favourite card of the Lib Dems – create mischief by calling for something that seems reasonable to the masses, but cannot be delivered…

    His standing with me (low as it is..) – is not improved by these antics.

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  • little professor says:

    Uncle Tom, they’ve delivered it in America, no?

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  • Have to confess… All of this is getting a tad boring.. I sold up… reduced my price by around 10%, walked away with some equity. Guys, the markets going down.. David Cameron could say he is the Christmas Fairy or even the Messiah and I wouldn’t care.

    With the internet, and knowledge, information, etc, along with intelligent minds, the varnish has well and truly peeled off. In any crisis, which society needs, and I believe benefits from incidentally, there are going to be winners and losers. Unfortunately, the mummy’s boys and daddy’s girls are certainly going to bring home the bacon this time. For example, the woman squeeling in the Daily Mail the other day about her plight, she will just move home, or she could make good money servicing a politician, lawyer, hey, she could even marry herself out of debt. You know, someone her dads age, it’s been vogue for years now. Unfortunaely now, these sugar daddies, will be as broke as her.

    Did the BTLer care when he or she was buying the property – No! The truth is, if the Government, BoE, US, etc can wangle their way out of this one, it will be a miracle.

    Unlike most people in the UK, a lot of people here see it for what it is. Thank your lucky stars, you were given this intelligence, and do something positive for yourself about it.

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  • Considering the Uk didn’t have any subprime debt 6 months ago, we have manged to accumulate a lot in that time.

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  • What is happing here? The US has turned into The People’s Republic of America and the Consevative party of the UK now talking about Government interferring with market mechanism?

    Guess what it has nothing to do with saving the poor people out there but all to do with politcal greed and savng the ass of the capitalamarkets!!

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  • it_is_going_with_a_bang says:

    Cameron knows full well whatever he says won’t make the slightest bit of difference.
    If any lender is going to repossess, they are going to want to do it sooner rather than later.
    Later just means being owed more money and more than likely the property worth less.

    Once someone whos in default and owes even a few thousand on their mortgage how are they ever going to pay it back?
    Even if they wanted to they can’t. So it’s pointless.

    I wonder if the Tax office are going to be a responsible organization when i owe them money. I doubt it!

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  • There are procedures in place which lenders must follow regarding arrears/defaults etc. and taking possession of a property is always the last resort. The procedures have recently been further strengthened by the FSA’s “Treating Customers Fairly” or TCF initiative. I find it hard to believe Mr Cameron and his researchers would not be aware of this before making such sweeping statements.

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  • Another great idea. Continue transferring wealth to homeowners from the rest of the population. Vote Tory!!!

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  • planning4acrash says:

    Isn’t Cameron’s house worth over a million? Didn’t he just borrow shedloads to pay for extensions? Maybe he is sub-prime also?!?!

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  • I don’t believe this and I think “Uncle Tom” and “it_is_going_…” are spot on.

    David Cameron knows full well that nothing will ever happen on this but that he will be seen a lenient to “those poor unfortunate saps who got into trouble.” It is all part of losing the label of “The Nasty Party.”

    Can anyone really see Banks / Building Societies etc paying any attention to this nonsense? Can we expect the Labour Party, ie the party who can actually do something, putting this into practise? Even if they tried, it would be a total disaster through micromanagement.

    Satan will be going to work on a snowplough before this happens.

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  • planning4acrash says:

    http://www.propertysnake.co.uk: 87,723

    Obviously people are withdrawing their price cuts. Will available mortgage liquidity match expectations? Buyers may want to buy but will the credit be forthcoming?

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  • Notaneconomicsguru says:

    Agreed. Cameron is the ulimate political “tart”. His opinions are carefully designed to appeal to a particular audience and he chooses that as carefully as he can. There is absolutely no way he’d make statements like that if in power (assuming he is intelligent which I think he is). His publically expressed opinions are not to be trusted on any subject in my view because he seems prepared to spout nonsense so long as its likely to make him appear to be doing something for the public he hopes one day will vote for his party.

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  • We had to sell our house in 1992 when interest rates rose to 15 percent…and nobody bailed us out then. Sounds crazy (and unfair) to me.

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  • p4c – hes a bit too well connected to be bothered about his own house (after all £1m isnt that much in his circle) . He comes from a bit of a monied background, educated at Eaton etc. I think if anything he would probably be more bothered about investments, eg. recession / stock market falls.

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  • p4c – lets see if thats the case. i.e. transactions should dry up. And / or it could be partly a purge on the database – i saw before a number of the same properties (albeit it could be with those without sole agency). People could have been selling places before HIP deadlines and then realised they cant get what they want so mothball at the moment. I personally wouldnt fancy being an estate agent at the moment….[then again i never fancied being one – but for other reasons!].

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  • As i was saying……”But as well as being impeccably connected, David Cameron is also extremely wealthy. Sunday Times Rich List compiler and wealth watchdog Philip Beresford has valued the Tory leader for the first time.

    He says: “I put the combined family wealth of David and Samantha Cameron at £30m plus. Both sides of the family are extremely wealthy. They certainly have no need to worry about poverty or paying school fees.”
    And thats from the Mail!!!: http://www.dailymail.co.uk/pages/live/femail/article.html?in_article_id=462313&in_page_id=1879

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  • I think the problem this country has and also the US is that debt has been democratized in a very big way. Everybody is in so much debt that if we all default at once what will the banks do, I can see people just refusing to pay their mortgages and squating in their own houses, if enough people do this at the same time the government will be forced to hold off the bailiffs to avoid wide scale civil unrest. Once your neighbour gets away with it then why the hell should you pay your mortgage and the whole thing just snowballs.

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  • David Cameron has just said some thing to appeal to the middle class home owners who are sweating on house prices and getting worried. A lot of people will see through that and some will believe him. I for one believe that it would be socially irresponsible to artificially help the housing market. The worst that can happen to some one in all this is that they go bankrupt and lose their home which isn’t really that bad in the grand scheme of things. If we start further playing with the economy and introduce helping hands then we will get into an even bigger mess than we are in already. Things just have to sort themselves out naturally. I like Mr Mickey idea of forming a squatter network – that would be interesting!

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