2m can't keep up with their mortgage payments.
13 September 2006, 10:50 AM
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2m can't keep up with their mortgage payments.
The reality behind New Labour's so called 'strong economy'.
Some 770,000 people have missed one or more repayments in the past year, a Citizens Advice survey suggests.
11% of all those surveyed wrongly believed a secured loan meant they could miss repayments but their home would still be safe.
A further 10% of people thought it was a loan where borrowers could pay back as little or as much as they want each month.
With idiots like these in the housing market Won't be long now till the house of cards tumbles.
http://news.bbc.co.uk/1/hi/uk/5340878.stm
Some 770,000 people have missed one or more repayments in the past year, a Citizens Advice survey suggests.
11% of all those surveyed wrongly believed a secured loan meant they could miss repayments but their home would still be safe.
A further 10% of people thought it was a loan where borrowers could pay back as little or as much as they want each month.
With idiots like these in the housing market Won't be long now till the house of cards tumbles.
http://news.bbc.co.uk/1/hi/uk/5340878.stm
13 September 2006, 11:04 AM
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With over inflated houses it is only inevitable before more and more houses start getting repossessed.
Inflation is rising, and they predict interest rate will reach 5% by Christmas.
People are over stretching themselves because They believe that the housing market will always go up. People thought that in the 90's. Look what happened then !
People are working just to pay their monthly mortgage repayments, and having no or very little money left at the end of the month.
The people I blame are the Banks. Lending too much money to people who are incapable of meeting increased monthly mortgage repayments.
Inflation is rising, and they predict interest rate will reach 5% by Christmas.
People are over stretching themselves because They believe that the housing market will always go up. People thought that in the 90's. Look what happened then !
People are working just to pay their monthly mortgage repayments, and having no or very little money left at the end of the month.
The people I blame are the Banks. Lending too much money to people who are incapable of meeting increased monthly mortgage repayments.
13 September 2006, 11:09 AM
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the banks make it far to easy for people to get into real trouble with loans, and credit cards, never mind mortgages
its about time they were a little more careful about doling money out hear there n everywhere
its about time they were a little more careful about doling money out hear there n everywhere
13 September 2006, 11:37 AM
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Originally Posted by Vapid
Taking a while for the house of cards to tumble though isn't it?
I suspect a lot of lenders have still tried to be a bit lenient regarding defaulters.Giving them more time to pay etc before issuing proceedings.I suspect partly because they were criticised hugely in the 90's for diving in and going repo crazy.
Perhaps we are actually in a similar position to the 90's but lenders are trying to hide/paper over the cracks in the dam?
13 September 2006, 11:43 AM
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But actual house prices aren't falling are they? Don't get me wrong I'll be glad to see them take a dive, I got out of the SE market a year or so ago and would be happy to put some of my profits back in when prices are more realistic.
13 September 2006, 11:51 AM
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The blame can't lie solely with the banks. If a bank said to me, "Of course we can lend you £500,000 for a mortgage", it's in my best interest to know that I can pay that back at the current interest rate and if it goes up somewhat. If people aren't astute enough to calculate what they can and cannot afford then more fool them. Of course the bank will lend the money as it's in their best interest to do so. Not only do they get payment for a while, they then get some collateral if the payments are defaulted.
Why some of these people can't accept responsibility for getting themselves into financial difficulties I don't know......
Why some of these people can't accept responsibility for getting themselves into financial difficulties I don't know......
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13 September 2006, 01:10 PM
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Well if people cannot go through the means testing process & be accurate more fool them, all the mortgage lenders discuss these things with you when you are buying plus you get credit checked so it amazes me unless unforeseen circumstances are to account for some, how some of these people get into such a state?
Maybe I am just a little synical I don't know.
Time to get the deposits ready for the next house ;-)
Maybe I am just a little synical I don't know.
Time to get the deposits ready for the next house ;-)
13 September 2006, 01:39 PM
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The only reason house prices are so high is because people are being able to borrow more. It used to be 3 times your salary and that was it. If they stuck to that then people wouldn't be selling houses for silly prices.
13 September 2006, 02:08 PM
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Plus people are getting themselves in even more financial dire straits by turning to credit cards to pay the weekly shop, as they have little spare cash left after paying the mortgage.
There was a thread just like this a few weeks ago.
Plus, I remember when I got my first Mortgage. Nationwide insisted I pay off my car loan before they would lend me any money. Reason being, so I always had enough cash to pay the Mortgage. Sensible thinking.
Yet only 9 months later I went out and bought a new car. Again, when people are getting these huge mortgages they might have a car that runs fine. 6 months later, the cars dead and need costly repairs, or they have to buy a new one. Yet more money paid out monthly that puts even more financial strain on their finances. Only a matter of time till it all come crashing around their heads.
There was a thread just like this a few weeks ago.
Plus, I remember when I got my first Mortgage. Nationwide insisted I pay off my car loan before they would lend me any money. Reason being, so I always had enough cash to pay the Mortgage. Sensible thinking.
Yet only 9 months later I went out and bought a new car. Again, when people are getting these huge mortgages they might have a car that runs fine. 6 months later, the cars dead and need costly repairs, or they have to buy a new one. Yet more money paid out monthly that puts even more financial strain on their finances. Only a matter of time till it all come crashing around their heads.
13 September 2006, 05:34 PM
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Originally Posted by BBC
The survey suggests two million people fear they cannot keep up with their monthly payments.
Statistics like this from charities with vested interests are notoriously unreliable.
14 September 2006, 12:37 PM
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Originally Posted by speedking
and another two million who could have bought a house but still live in rented accommodation because of the scaremongering, and have lost out.
If I'd listened to some of you lot 4 years ago I'd still be renting - I'm now on my second house.
14 September 2006, 12:41 PM
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Originally Posted by Goochie
Of course none of that happens on scoobynet
If I'd listened to some of you lot 4 years ago I'd still be renting - I'm now on my second house.
If I'd listened to some of you lot 4 years ago I'd still be renting - I'm now on my second house.
that particular house is now worth about 120% more than I paid for it, wish I had kept hold of it when we moved and took on 2 mortgages renting the old house out as my mortgage would have been peanuts anyway, would have got £400pm for it and the mortgage would probably be around £200pm, biggest financial mistake I ever made that 
14 September 2006, 12:47 PM
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Originally Posted by Hanslow
The blame can't lie solely with the banks. If a bank said to me, "Of course we can lend you £500,000 for a mortgage", it's in my best interest to know that I can pay that back at the current interest rate and if it goes up somewhat. If people aren't astute enough to calculate what they can and cannot afford then more fool them. Of course the bank will lend the money as it's in their best interest to do so. Not only do they get payment for a while, they then get some collateral if the payments are defaulted.
Why some of these people can't accept responsibility for getting themselves into financial difficulties I don't know......
Why some of these people can't accept responsibility for getting themselves into financial difficulties I don't know......
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