Excuse me...

[Bagpuss]

I think it's only different in the type of people who will be sub-prime in the UK. In the US, sub-prime means gun-totin hick who aint got no job sir. In the UK, sub-prime means junior developer who has a few extra k last year after pizza and jazz mags, who decides he can now afford a 150k mortgage to run a BTL which is going down the pan now.

The educational level of the defaulter makes no difference to the economy.

I don't think there is much difference between UK and US subprime. Many BTL investors are in relatively modest jobs in the likes of the service industry, not solid recession proof jobs, but "nice to have extras" jobs. Add to that all those encouraged to buy when they could barely afford to rent. Maybe not quite as bad on the mortage for home front, but infinitely more stupid on the 20k a year self cert BTL empire front.

[rootsnall]

"The UK is different because:"

On a more personal level "My house/area won't go down in value because:"

I heard it quite a few times yesterday while listening into permie banter

[expat]

On a more personal level "My house/area won't go down in value because:"

I heard it quite a few times yesterday while listening into permie banter

The market is kind of frozen at the moment: people who don't absolutely need to sell are not doing so, because people are only offering silly prices. People who want to buy are only offering silly prices, because they are being told that prices are going down another 40% or whatever.

The market will get going again after a year or two of this. Prices will then be lower than they were; but how much lower is not clear. The answer will probably vary enormously depending on the property.

[ratewhore]

Patricia, a single mother I encountered recently, is typical of buy-to-let casualties. Her mortgage costs on five buy-to-let apartments will shortly jump by £1,000 a month. Her rents do not even cover current interest and the capital value of the flats has fallen 20 per cent. “I’ve just lost my job and I’m temping, so my income is reduced,” she said. “I don’t know what to do. It’s horrendous.” She is likely to lose all her properties, including her home, and crystallise an unpayable £60,000 debt.

Unbe-farking-lievable!!!

[expat]

On a more personal level "My house/area won't go down in value because:"

I heard it quite a few times yesterday while listening into permie banter

It won't go down in value: the value of say a 3-bed house anywhere in the country is pretty much the same, about 60k.

It will go down in price.....

[DS23]

a year ago we would have sold for 450. now... i reckon 350.

[rootsnall]

a year ago we would have sold for 450. now... i reckon 350.

A year ago I BOUGHT for 375, now I reckon 300

[ThomasSoerensen]

Unbe-farking-lievable!!!

someone should help this poor woman - it's only fair