Reply to: oh crikey: Mortgage lending hits new high

[Ardesco]

You mean the guy that broke bank protocol, wasn't stopped by management (who were muppets) and bankrupted the bank...

As I said before, Any bank having severe problems is staffed by muppets who shouldn't be in banking in the first place.

[Andyw]

Any bank having sever problems is staffed by muppets who shouldn't be in banking in the first place.

Nick Leeson ?

[Ardesco]

Thing is - when property bubble burts it is the banks who will get shafted: it is them who will have paid real money for asset that will lose huge chunk of it - a major banking system crisis will be upon us, the best that can happen now is no house price growth for many years to allow salaries catch up with the prices and inflation that will devalue debts.

Oh get real AtW, do you really think the banks will loose out? The interest they get from people who don't run out of money will pay for their liabilities as interest reates shoot up, they will probably do deal with the customers where the term of the mortgage is extended so that Johnny Looser can keep his house will they still rake in the money and they will just hold on to some of the property until it becomes economically viable to sell it. (They can always grab back the property and do some deal with a council to rent it out to chav scum, etc.

The only people that don't really loose out in a recession are the banks, they know how to make money and are extremely good at it. Any bank having sever problems is staffed by muppets who shouldn't be in banking in the first place.

[Churchill]

True and a healthy rental market, even 3 per room, puts pressure on the housing market. First Time Buyers get squeezed by Buy to Lets.

Economics 101.

Oh Dear CC, didn't you know that AtW is an "Instant Expert" on all things?

Immigrants often share rooms (!), and 3 people in one room is not uncommon - they are not exactly rich even to afford normal rents, especially not to buy house.

True and a healthy rental market, even 3 per room, puts pressure on the housing market. First Time Buyers get squeezed by Buy to Lets.

Economics 101.

[AtW]

Immigrants often share rooms (!), and 3 people in one room is not uncommon - they are not exactly rich even to afford normal rents, especially not to buy house.

I feel sorry for young people, dragged down by Labour's University fees and unable to buy a house because immigrants put pressure on the market & get priority for social housing.

Then there are the old people, with pensions plundered by Gordon Brown.

Britain is looking like a banana republic.

[BlasterBates]

Why buy property when you can buy cheap Thai shares.

[Alf W]

Shared equity schemes
Mixed repayment / interest only schemes
Property as part of a pension fund
30/40/50 year mortgages
Inter generational mortgages

All mean that people will be able to get more capital for the same monthly outlay which is why house prices have some way to go before they become unaffordable (and then someone re-invents the mortgage again).

Agreed that they are pretty much unaffordable under the old 25 year Repayment 4x your salary model.

[stackpole]

I too have been predicting/hoping for a monumental crash in housing for years and it just isn't bl0ody happening!!!!

Defaults and missed payments are both accelerating. That's the fuse you see burning!

[vista]

Oops

I too have been predicting/hoping for a monumental crash in housing for years and it just isn't bl0ody happening!!!!

I've a nice house paid for so its more a place to live than an investment so if its worth 70p or £700,000 makes very little difference to me. I've got no debt steadfastly refusing to borrow any money because "I want to keep my powder dry for when the collapse happens so I can buy a street or two" to provide for me in my dotage but nothings doing. I feel like a chump that missed the party, it seems that there really is no day of retribution and people can just borrow what ever they want without consequence, bummer.

[oraclesmith]

and..... the only way that's going to happen is if the banks start to stop people borrowing so much. Remember most people are stupid and they think that house price inflation will go on forever, so will try to borrow silly amounts on the basis that in a few years time they will have a hugely valuable asset and they'll be paid something like what they put down on the mortgage application form. Or they're scared that they're going to have to pay 10 times their salary for a poxy 2 bed flat in a few years so they'd better buy quick.

[AtW]

Which will only make property even MORE expensive. it truely is self-fullfilling for the banks aint it!

Thing is - when property bubble burts it is the banks who will get shafted: it is them who will have paid real money for asset that will lose huge chunk of it - a major banking system crisis will be upon us, the best that can happen now is no house price growth for many years to allow salaries catch up with the prices and inflation that will devalue debts.

[lilelvis2000]

Ah well, I think some firm has proposed that option - passing mortgage from generation to generation. Maybe that's the answer - property so expensive it takes centuries to pay for !

Which will only make property even MORE expensive. it truely is self-fullfilling for the banks aint it!

[oraclesmith]

Ah well, I think some firm has proposed that option - passing mortgage from generation to generation. Maybe that's the answer - property so expensive it takes centuries to pay for !