Mortgage firms rush to repossess homes as families feel credit crunch

[Diver]

Hmm you're not an economist are you!?!

In a way. I save and pay cash when I have enough. I refuse to pay interest that I don't have to.
I just see that people in genuine difficulty due to circumstances beyond their control (Not those idiots that accept mortgages they can't afford) should get a little help.
If they are on a repayment mortgage, change it to an interest only mortgage % in line with high street lenders. if they still can't cope. force them to sell to one of the equity release companies and then rent it back to them.
If they don't pay the rent, kick them out.

[BlasterBates]

HANG ON

So loads of mugs have been purchasing effectively worthless land. The banks handed over the money, and now can't get it back.

Who has the money?

[Diver]

I blame the banks for this credit bubble. If you flood enough money into any market this kind of thing will happen, money becomes cheap and people act cheaply with it.

I always consider the angles before borrowing:

1 Can I afford the repayments?
2 What if interest rates double?
3 Will I have a buffer for unforseen expenses?
4 What if I'm out of work?

It seems most people these days only consider 1, and that's based on a heavily discounted rate. As I've bored you all to tears with before, this will end is disaster, human behaviour has not somehow evolved since the last crash. It's time for money to be hard come by again


PS Diver 5.8% average is not the APR (APR includes the hidden costs, APRs are circa 7%)

Glad I don't have to pay interest then

[Bagpuss]

Yes, people need protecting from themselves.

I'm not saying that, I am saying if you offer cheap money to idiots they will spend it foolishly, the repercussions will effect everyone. Why should we suffer?

The banks should have more sensible lending policies, they have fuelled the boom by lending ridiculous multiples.

[Diver]

The day of the loan shark is here

Wheres me money and me bat

[tay]

How about forcing those lenders that are charging exorbitant interest rates, to reduce rates in line with the high street lenders. 9% interest rates are ridiculous when high street figures average 5.8%

So you would get rid of sub prime mortgages altogether? Thats not very helpful to sub prime lenders... and result in a barrage of reposessions.

[Bagpuss]

The day of the loan shark is here

Wheres me money and me bat

I knew someone in the 80s that had one of those companies that advertised in the tabloids. IIRC he was lending out at an average of 35% APR. He had a very nice house and several sports cars. Maybe you are on to something

[Diver]

So you would get rid of sub prime mortgages altogether? Thats not very helpful to sub prime lenders... and result in a barrage of reposessions.

Sorry, did not make myself very clear.

Make sub prime lenders reduce for those in genuine difficulty, interest only mortgage change to lower interest for a fixed term.

[Diver]

I knew someone in the 80s that had one of those companies that advertised in the tabloids. IIRC he was lending out at an average of 35% APR. He had a very nice house and several sports cars. Maybe you are on to something

Better plan B

[Ruprect]

In a way. I save and pay cash when I have enough. I refuse to pay interest that I don't have to.
I just see that people in genuine difficulty due to circumstances beyond their control (Not those idiots that accept mortgages they can't afford) should get a little help.
If they are on a repayment mortgage, change it to an interest only mortgage % in line with high street lenders. if they still can't cope. force them to sell to one of the equity release companies and then rent it back to them.
If they don't pay the rent, kick them out.

You are Carol Vorderman and I claim my £5.