Reply to: Halifax House Price Index May 2016

[DimPrawn]

Central banks have no idea what's going on in the housing market

[AtW]

In central London, maybe. Elsewhere, good luck. They will need it.

We'll see soon.

[GB9]

If they bought 15 years ago then their house should be worth at least double, possibly triple.

They'll be laughing all their way to the bank ...

In central London, maybe. Elsewhere, good luck. They will need it.

[AtW]

Where will they live when they sell up? Who will be in a rush to give them a juicy profit. BTLers around here are bailing while they can.

If they bought 15 years ago then their house should be worth at least double, possibly triple.

They'd have to rent somewhere or buy since they'll have nice deposit from tax free CGT on their prime residence.

They'll be laughing all their way to the bank ...

[GB9]

So? They won't be able to repay it and will lose the house - given that those houses were bought 15+ years ago there should be nice profit in them, in any case houses will be snapped up by BTL crowd, these people will still have to live somewhere. Coming soon to UK - buy houses with people living in them.




They'll have to work something out because otherwise bubble might just burst.

Where will they live when they sell up? Who will be in a rush to give them a juicy profit.

BTLers around here are bailing while they can.

[AtW]

You're missing the point. There are 100,000s of IO mortgages coming to term end in the next 2-4 years with no way of repaying them.

So? They won't be able to repay it and will lose the house - given that those houses were bought 15+ years ago there should be nice profit in them, in any case houses will be snapped up by BTL crowd, these people will still have to live somewhere. Coming soon to UK - buy houses with people living in them.

Are you suggesting they are all going to take out repayment loans over 40 years and their kids are going to agree? And all the other banks are going to produce a similar product? What if the kids can't afford the payments when their parents die? What if the kids have their own house?

And what about the government backed mortgages that the government will no longer issue?

More likely is a form of rental mortgage / equity release whereby the bank takes a proportion of the property on death.

They'll have to work something out because otherwise bubble might just burst.

[The_Equalizer]

Govt will support "the economy" which is based on debt. The whole ponzi scheme is a house of cards.

The mortgage debt will be backed by funny money from the BoE.

No one wants to rock the boat and risk upsetting the elite.....

But numbers being numbers (if you see what I mean) there comes a point when it's unavoidable such as 2008. The again 2008 was only a correction of sorts what with some banks being too big to fail.

[GB9]

Govt will support "the economy" which is based on debt. The whole ponzi scheme is a house of cards.

The mortgage debt will be backed by funny money from the BoE.

No one wants to rock the boat and risk upsetting the elite.....

The government debt is managed by a separate organisation.

They are already kicking the IO renters from properties.

The Government will get its money.

[DimPrawn]

Sorry, late edit to previous post.

The Government wants it's cash back and will take it from non payers.

Govt will support "the economy" which is based on debt. The whole ponzi scheme is a house of cards.

The mortgage debt will be backed by funny money from the BoE.

No one wants to rock the boat and risk upsetting the elite.....

[GB9]

Banks will swap debt with central bank, ie they will pass on the risk to the tax payer.

They cannot and will not ever lose!

Sorry, late edit to previous post.

The Government wants it's cash back and will take it from non payers.

[DimPrawn]

And the banks will want the collateral for the pleasure.

The term renting from the bank will become more apt than ever.

Banks will swap debt with central bank, ie they will pass on the risk to the tax payer.

They cannot and will not ever lose!

[GB9]

Banks will go for a much easier option. Extend the interest only mortgage for another 20 years and the bankers don't have to worry about it any more, they can go back to collecting nice fat bonuses.

It's a non-event waiting to not happen.

And the banks will want the collateral for the pleasure.

The term renting from the bank will become more apt than ever.

Edit: the Government backed mortgages won't be extended without a major policy shift.

[DimPrawn]

You're missing the point. There are 100,000s of IO mortgages coming to term end in the next 2-4 years with no way of repaying them.

Are you suggesting they are all going to take out repayment loans over 40 years and their kids are going to agree? And all the other banks are going to produce a similar product? What if the kids can't afford the payments when their parents die? What if the kids have their own house?

And what about the government backed mortgages that the government will no longer issue?

More likely is a form of rental mortgage / equity release whereby the bank takes a proportion of the property on death.

Banks will go for a much easier option. Extend the interest only mortgage for another 20 years and the bankers don't have to worry about it any more, they can go back to collecting nice fat bonuses.

It's a non-event waiting to not happen.

[GB9]

"A new type of mortgage that would allow parents to pass their property and debt on to their children was launched today by the Kent Reliance building society."

Children to inherit home and debt | Money | The Guardian

Japanese style multi-generational mortgages may help FTBs | Property Reporter

The 40-year-old mortgage you will pass on to your children: House price boom forces buyers to opt for two-generation loans | Daily Mail Online

You're missing the point. There are 100,000s of IO mortgages coming to term end in the next 2-4 years with no way of repaying them.

Are you suggesting they are all going to take out repayment loans over 40 years and their kids are going to agree? And all the other banks are going to produce a similar product? What if the kids can't afford the payments when their parents die? What if the kids have their own house?

And what about the government backed mortgages that the government will no longer issue?

More likely is a form of rental mortgage / equity release whereby the bank takes a proportion of the property on death.

[DimPrawn]

And then a nice dose of inflation?

Yep. Suddenly we are all millionaires and property seems affordable again...