Sooty
Well-Known Member
The 'fatcat bankers' are at least taking some of the heat away from the 'gas-guzzling 4x4s'...
Credit Crunch....getting scary now!!
- Thread starter mrsew
- Start date
burtie
Well-Known Member
[ QUOTE ]
Obviously I'm seeing it from a slightly different side but there is so so much more to it than anything the press appear to be reporting.......there is no one doorstep to lay blame on.
[/ QUOTE ]
Maybe not one doorstep but there is certainly a major culprit in the mortgage brokers both here in the UK and the states. The amount of ridiculous mortgages that were sold to people who had no chance of affording it without any checks is totally immoral if not actually illegal, although given the duty of care these so called professionals are supposed to have I wouldn't be surprised to see a number of them getting in trouble.
Most of the current problems stem from this I'm afraid.
Obviously I'm seeing it from a slightly different side but there is so so much more to it than anything the press appear to be reporting.......there is no one doorstep to lay blame on.
[/ QUOTE ]
Maybe not one doorstep but there is certainly a major culprit in the mortgage brokers both here in the UK and the states. The amount of ridiculous mortgages that were sold to people who had no chance of affording it without any checks is totally immoral if not actually illegal, although given the duty of care these so called professionals are supposed to have I wouldn't be surprised to see a number of them getting in trouble.
Most of the current problems stem from this I'm afraid.
The Voice
Well-Known Member
"I was looking at a mortgage that was pulled on the Friday and went up by 0.6% on the Monday to 6.49%"
This is what I put yesterday morning
This mortgage was pulled today with a new rate of 7.39%, so since Friday the rate has gone up 1.5% on the best rates available.
It will be interesting to see what happens once the USA vote and how quick money comes back onto the market.
This is what I put yesterday morning
This mortgage was pulled today with a new rate of 7.39%, so since Friday the rate has gone up 1.5% on the best rates available.
It will be interesting to see what happens once the USA vote and how quick money comes back onto the market.
Llanali
Well-Known Member
Yes, I'm worried. Very much so- most of my investments are with AIG! I'm praying the USA will get this rescue bill through- I cannot see another solution to this gloom. With any luck an injection of cash should restore the cash flow, adn we can begin to crawl out of this mess.
Have to say, have done all I can, and am now not reading newspapers or watching the news. Occasionally will read the news on the internet, but watching BBC WorldReport at 5am each morning was worrying me to th point of near ill health. I can do nothing more, so i may as well sit back, curb my spending, and trust that those in a position of power for once do the right thing.
Have to say, have done all I can, and am now not reading newspapers or watching the news. Occasionally will read the news on the internet, but watching BBC WorldReport at 5am each morning was worrying me to th point of near ill health. I can do nothing more, so i may as well sit back, curb my spending, and trust that those in a position of power for once do the right thing.
pootler
Well-Known Member
I do think that the US has an obligation to pass the bill given their role in the sub-prime mortgage crisis. I can't imagine the bill not being passed - the alternative is too dangerous to the US and world markets.
LankyDoodle
Well-Known Member
I think my husband and I are as worried as the every other middle class couple up and down the country.
We don't have a huge mortgage - 85k - and it's on fixed rate until 2010 at 6%. We pulled our shares and investments last year (and they were worth a lot). Only last night we were lying in bed musing how gutted we would be if the money was still tied up. To be honest though, the money was only worth a third of what it was when it was invested in 1999.
We have everything we need/want in life - 2 horses, a trailer to travel them in, 2 nice cars, a nice house. Above all of that, though, we have each other, and hopefully we always will. We can weather a few years of financial struggle; and we might lose a lot in the meantime, but we will come out the other end. God forbid we should lose the house, but my in-law's have already offered for us to move onto their farm with them, so that would always be an option!
I know it's hard to be optimistic and I struggle enough, but I think the key to surviving is going to be looking on the bright side. I have things I can sell if things get unbearable. I am willing to get sharers for my horses, a lodger, anything like that. My husband can do extra overtime and I will always be needed in my line of work. We can tighten our belts a lot more than we are doing and as we have no radiators at the moment we won't be using heating this year! Make do and mend I think is the philosophy we all need to adopt now. My hair is going to get VERY long
I'll have to get handy with a sewing needle to sort clothes out instead of buying new. Holidays are not necessary either... not when you're struggling to pay everyday bills.
It is of course very scary, but we have to do what we can to survive it. Maybe it'll make us all aware of how much we have been spending over recent years, and how unnecessary a lot of that spending has been.
We don't have a huge mortgage - 85k - and it's on fixed rate until 2010 at 6%. We pulled our shares and investments last year (and they were worth a lot). Only last night we were lying in bed musing how gutted we would be if the money was still tied up. To be honest though, the money was only worth a third of what it was when it was invested in 1999.
We have everything we need/want in life - 2 horses, a trailer to travel them in, 2 nice cars, a nice house. Above all of that, though, we have each other, and hopefully we always will. We can weather a few years of financial struggle; and we might lose a lot in the meantime, but we will come out the other end. God forbid we should lose the house, but my in-law's have already offered for us to move onto their farm with them, so that would always be an option!
I know it's hard to be optimistic and I struggle enough, but I think the key to surviving is going to be looking on the bright side. I have things I can sell if things get unbearable. I am willing to get sharers for my horses, a lodger, anything like that. My husband can do extra overtime and I will always be needed in my line of work. We can tighten our belts a lot more than we are doing and as we have no radiators at the moment we won't be using heating this year! Make do and mend I think is the philosophy we all need to adopt now. My hair is going to get VERY long
It is of course very scary, but we have to do what we can to survive it. Maybe it'll make us all aware of how much we have been spending over recent years, and how unnecessary a lot of that spending has been.
burtie
Well-Known Member
[ QUOTE ]
To be honest though, the money was only worth a third of what it was when it was invested in 1999.
[/ QUOTE ]
Gosh, what did you invest in? Mine are a little own at the moment but I'm still averaging around 8% annual return from 1999.
To be honest though, the money was only worth a third of what it was when it was invested in 1999.
[/ QUOTE ]
Gosh, what did you invest in? Mine are a little own at the moment but I'm still averaging around 8% annual return from 1999.
Twiglet
Well-Known Member
[ QUOTE ]
[ QUOTE ]
Obviously I'm seeing it from a slightly different side but there is so so much more to it than anything the press appear to be reporting.......there is no one doorstep to lay blame on.
[/ QUOTE ]
Maybe not one doorstep but there is certainly a major culprit in the mortgage brokers both here in the UK and the states. The amount of ridiculous mortgages that were sold to people who had no chance of affording it without any checks is totally immoral if not actually illegal, although given the duty of care these so called professionals are supposed to have I wouldn't be surprised to see a number of them getting in trouble.
Most of the current problems stem from this I'm afraid.
[/ QUOTE ]
Very simplistic view I'm afraid and doesn't consider the many many aspects of this problem, or in fact banking in general.
How do you think the mortgage lenders were allowed to offer mortgages as they did? (And it's lenders rather than brokers fyi, brokers are just middle men). They were all inside their relevant market regulators' rules. Where do you think they got the money to lend on mortgages?
And as nice as it is to think it, morality really doesn't come into the issue!!
'Sub prime' made many people a lot of money for a long time in the securitisation market, again, all within regulators guidelines.
[ QUOTE ]
Obviously I'm seeing it from a slightly different side but there is so so much more to it than anything the press appear to be reporting.......there is no one doorstep to lay blame on.
[/ QUOTE ]
Maybe not one doorstep but there is certainly a major culprit in the mortgage brokers both here in the UK and the states. The amount of ridiculous mortgages that were sold to people who had no chance of affording it without any checks is totally immoral if not actually illegal, although given the duty of care these so called professionals are supposed to have I wouldn't be surprised to see a number of them getting in trouble.
Most of the current problems stem from this I'm afraid.
[/ QUOTE ]
Very simplistic view I'm afraid and doesn't consider the many many aspects of this problem, or in fact banking in general.
How do you think the mortgage lenders were allowed to offer mortgages as they did? (And it's lenders rather than brokers fyi, brokers are just middle men). They were all inside their relevant market regulators' rules. Where do you think they got the money to lend on mortgages?
And as nice as it is to think it, morality really doesn't come into the issue!!
'Sub prime' made many people a lot of money for a long time in the securitisation market, again, all within regulators guidelines.
Twiglet
Well-Known Member
[ QUOTE ]
The 'fatcat bankers' are at least taking some of the heat away from the 'gas-guzzling 4x4s'...
[/ QUOTE ]
True.....and coming from the banker side, and driving a 4x4, plus am fully intending on being a working mother one day - I am the Daily Mail's idea of Satan
The 'fatcat bankers' are at least taking some of the heat away from the 'gas-guzzling 4x4s'...
[/ QUOTE ]
True.....and coming from the banker side, and driving a 4x4, plus am fully intending on being a working mother one day - I am the Daily Mail's idea of Satan
Orangehorse
Well-Known Member
Yes, the real culprit is Government regulations which allowed this to happen. You can't blame people from making money at no risk to themselves (selling mortages to people who wouldn't be able to afford them when the fixed rate came to an end.) They were laughing all the way to the bank - I bet they have nice houses to live in.
I am surprised that people are surprised that this has happened.
It was barmy (and many people said so) not to include house prices into the inflation figures.
But of course we all LOVE it when our house increases in value.
The ones I really feel sorry for are the old people who had their capital invested in what they thought were safe shares, like banking and have lost everything, and yet they cannot go on earning to replace the lost money.
I am surprised that people are surprised that this has happened.
It was barmy (and many people said so) not to include house prices into the inflation figures.
But of course we all LOVE it when our house increases in value.
The ones I really feel sorry for are the old people who had their capital invested in what they thought were safe shares, like banking and have lost everything, and yet they cannot go on earning to replace the lost money.
TarrSteps
Well-Known Member
On the subject of sub-prime and "zero down" mortgages and the like . . . it may have been unwise of institutions to offer them but people did take them! I am not portioning blame but even at the time it amazed me that people were taking on credit that depended not even on their circumstances staying the same but on them substantially improving, to have any hope of meeting their obligations. How can anyone grow to adulthood and not be aware of the potential hole in a situation like that? I know credit is part of modern life and I'm as guilty as the next person but the scale of some of it boggles the mind.
What really surprises me is that anyone is surprised. Literally 2 years ago there was a reality show on US television (called something like "Credit Crunch" or "Financial Fix") based on helping people who were slipping into serious financial trouble. Week after week of people whose debt exceeded their assets to the extent that selling everything would not solve the problem. And this was BEFORE the "scare" started!
There is a great quote, "Every American thinks he's a temporarily disadvantaged millionaire." (Sorry, can't remember the attribution.) This is so true and it's this attitude that has both led to problems and is getting in the way of fixing them. It doesn't seem as pervasive here but I would have to say, in London at least, it's not hugely off the mark. People really do think if the dice just roll their way they won't be affected. (What they really think, I suspect, is that obscene bonuses etc are "okay" because it's only a matter of time/luck/work until they are in that position as well.) I can't really see a "solution" until the shock gets bad enough that enough people change their views and accept that this is global, bigger than someone's fault, and the result of a whole approach not a few mistakes.
Eeek, my native socialist roots are showing.
There was a great sound bite from a Republican who voted against the bail out - he said he voted against it because it didn't hold the people getting the huge bonuses responsible enough! What a crock! I would suspect that up until a few weeks ago he was all for the big bonuses as a fantastic example of free market economy and social Darwinism at its best.
Eh, I have nothing useful to say, I'm just ranting.
On a vaguely horsey note, it will be interesting to see what effect it all has. Obviously people are still going to have horses but I wonder if/how attitudes and practices will change. I think the "mended not new" attitude will have to figure larger in most people's views, if only because the market for any sort of horse with a "problem" is likely to be the most affected and there will be fewer buyers for the midrange horses. On the other hand maybe more people will turn to "bargain" horses . . . it will be interesting to see how that goes.
I am old enough now to remember the last significant down turn and it did, in the end, have quite a significant impact on the numbers of horses around which, after things settled a bit, was actually GOOD for the industry in a way. The cycle of life, I guess.
Scary stuff. I'm also going with not watching too much news - it just depresses me and serves no good purpose. The trick will be to be careful without letting paralysis set in!
What really surprises me is that anyone is surprised. Literally 2 years ago there was a reality show on US television (called something like "Credit Crunch" or "Financial Fix") based on helping people who were slipping into serious financial trouble. Week after week of people whose debt exceeded their assets to the extent that selling everything would not solve the problem. And this was BEFORE the "scare" started!
There is a great quote, "Every American thinks he's a temporarily disadvantaged millionaire." (Sorry, can't remember the attribution.) This is so true and it's this attitude that has both led to problems and is getting in the way of fixing them. It doesn't seem as pervasive here but I would have to say, in London at least, it's not hugely off the mark. People really do think if the dice just roll their way they won't be affected. (What they really think, I suspect, is that obscene bonuses etc are "okay" because it's only a matter of time/luck/work until they are in that position as well.) I can't really see a "solution" until the shock gets bad enough that enough people change their views and accept that this is global, bigger than someone's fault, and the result of a whole approach not a few mistakes.
Eeek, my native socialist roots are showing.
There was a great sound bite from a Republican who voted against the bail out - he said he voted against it because it didn't hold the people getting the huge bonuses responsible enough! What a crock! I would suspect that up until a few weeks ago he was all for the big bonuses as a fantastic example of free market economy and social Darwinism at its best.
Eh, I have nothing useful to say, I'm just ranting.
On a vaguely horsey note, it will be interesting to see what effect it all has. Obviously people are still going to have horses but I wonder if/how attitudes and practices will change. I think the "mended not new" attitude will have to figure larger in most people's views, if only because the market for any sort of horse with a "problem" is likely to be the most affected and there will be fewer buyers for the midrange horses. On the other hand maybe more people will turn to "bargain" horses . . . it will be interesting to see how that goes.
I am old enough now to remember the last significant down turn and it did, in the end, have quite a significant impact on the numbers of horses around which, after things settled a bit, was actually GOOD for the industry in a way. The cycle of life, I guess.
Scary stuff. I'm also going with not watching too much news - it just depresses me and serves no good purpose. The trick will be to be careful without letting paralysis set in!
LankyDoodle
Well-Known Member
[ QUOTE ]
[ QUOTE ]
To be honest though, the money was only worth a third of what it was when it was invested in 1999.
[/ QUOTE ]
Gosh, what did you invest in? Mine are a little own at the moment but I'm still averaging around 8% annual return from 1999.
[/ QUOTE ]
We had shares in various things, but couldn't list all of them as Gerrard were dealing with it all. What was invested was over 300k. Last year we pulled 118k in order to do work to our house among other things.
[ QUOTE ]
To be honest though, the money was only worth a third of what it was when it was invested in 1999.
[/ QUOTE ]
Gosh, what did you invest in? Mine are a little own at the moment but I'm still averaging around 8% annual return from 1999.
[/ QUOTE ]
We had shares in various things, but couldn't list all of them as Gerrard were dealing with it all. What was invested was over 300k. Last year we pulled 118k in order to do work to our house among other things.
LankyDoodle
Well-Known Member
[ QUOTE ]
On the subject of sub-prime and "zero down" mortgages and the like . . . it may have been unwise of institutions to offer them but people did take them! I am not portioning blame but even at the time it amazed me that people were taking on credit that depended not even on their circumstances staying the same but on them substantially improving, to have any hope of meeting their obligations. How can anyone grow to adulthood and not be aware of the potential hole in a situation like that? I know credit is part of modern life and I'm as guilty as the next person but the scale of some of it boggles the mind.
What really surprises me is that anyone is surprised. Literally 2 years ago there was a reality show on US television (called something like "Credit Crunch" or "Financial Fix") based on helping people who were slipping into serious financial trouble. Week after week of people whose debt exceeded their assets to the extent that selling everything would not solve the problem. And this was BEFORE the "scare" started!
There is a great quote, "Every American thinks he's a temporarily disadvantaged millionaire." (Sorry, can't remember the attribution.) This is so true and it's this attitude that has both led to problems and is getting in the way of fixing them. It doesn't seem as pervasive here but I would have to say, in London at least, it's not hugely off the mark. People really do think if the dice just roll their way they won't be affected. (What they really think, I suspect, is that obscene bonuses etc are "okay" because it's only a matter of time/luck/work until they are in that position as well.) I can't really see a "solution" until the shock gets bad enough that enough people change their views and accept that this is global, bigger than someone's fault, and the result of a whole approach not a few mistakes.
Eeek, my native socialist roots are showing.
There was a great sound bite from a Republican who voted against the bail out - he said he voted against it because it didn't hold the people getting the huge bonuses responsible enough! What a crock! I would suspect that up until a few weeks ago he was all for the big bonuses as a fantastic example of free market economy and social Darwinism at its best.
Eh, I have nothing useful to say, I'm just ranting.
On a vaguely horsey note, it will be interesting to see what effect it all has. Obviously people are still going to have horses but I wonder if/how attitudes and practices will change. I think the "mended not new" attitude will have to figure larger in most people's views, if only because the market for any sort of horse with a "problem" is likely to be the most affected and there will be fewer buyers for the midrange horses. On the other hand maybe more people will turn to "bargain" horses . . . it will be interesting to see how that goes.
I am old enough now to remember the last significant down turn and it did, in the end, have quite a significant impact on the numbers of horses around which, after things settled a bit, was actually GOOD for the industry in a way. The cycle of life, I guess.
Scary stuff. I'm also going with not watching too much news - it just depresses me and serves no good purpose. The trick will be to be careful without letting paralysis set in!
[/ QUOTE ]
Could not have said it better. I have so much sympathy for those who are finding and will find it difficult to pay their mortgage; but there has to be a certain degree of personal responsibility. Of course, most people do what they have to to live the life they need/want.
My mum is a perfect example of those who kept borrowing and reborrowing, without any foresight of what the future could do to them! SHE has a business background and a degree in IT and economics; plus she teaches business and IT. I really worry!
Of course we can all say we didn't really see this coming; but it's a cycle over the sands of time. What goes up must come down and then back up again.
As I said in my last post, we have to grin and bear this, like a very long-lasting storm at sea when all you have is a rotten old rowing boat. Most of us will come out the other side; some may have to sell assets, but it is something that will be got through, and will probably happen again in another 15-20 years!
On the subject of sub-prime and "zero down" mortgages and the like . . . it may have been unwise of institutions to offer them but people did take them! I am not portioning blame but even at the time it amazed me that people were taking on credit that depended not even on their circumstances staying the same but on them substantially improving, to have any hope of meeting their obligations. How can anyone grow to adulthood and not be aware of the potential hole in a situation like that? I know credit is part of modern life and I'm as guilty as the next person but the scale of some of it boggles the mind.
What really surprises me is that anyone is surprised. Literally 2 years ago there was a reality show on US television (called something like "Credit Crunch" or "Financial Fix") based on helping people who were slipping into serious financial trouble. Week after week of people whose debt exceeded their assets to the extent that selling everything would not solve the problem. And this was BEFORE the "scare" started!
There is a great quote, "Every American thinks he's a temporarily disadvantaged millionaire." (Sorry, can't remember the attribution.) This is so true and it's this attitude that has both led to problems and is getting in the way of fixing them. It doesn't seem as pervasive here but I would have to say, in London at least, it's not hugely off the mark. People really do think if the dice just roll their way they won't be affected. (What they really think, I suspect, is that obscene bonuses etc are "okay" because it's only a matter of time/luck/work until they are in that position as well.) I can't really see a "solution" until the shock gets bad enough that enough people change their views and accept that this is global, bigger than someone's fault, and the result of a whole approach not a few mistakes.
Eeek, my native socialist roots are showing.
There was a great sound bite from a Republican who voted against the bail out - he said he voted against it because it didn't hold the people getting the huge bonuses responsible enough! What a crock! I would suspect that up until a few weeks ago he was all for the big bonuses as a fantastic example of free market economy and social Darwinism at its best.
Eh, I have nothing useful to say, I'm just ranting.
On a vaguely horsey note, it will be interesting to see what effect it all has. Obviously people are still going to have horses but I wonder if/how attitudes and practices will change. I think the "mended not new" attitude will have to figure larger in most people's views, if only because the market for any sort of horse with a "problem" is likely to be the most affected and there will be fewer buyers for the midrange horses. On the other hand maybe more people will turn to "bargain" horses . . . it will be interesting to see how that goes.
I am old enough now to remember the last significant down turn and it did, in the end, have quite a significant impact on the numbers of horses around which, after things settled a bit, was actually GOOD for the industry in a way. The cycle of life, I guess.
Scary stuff. I'm also going with not watching too much news - it just depresses me and serves no good purpose. The trick will be to be careful without letting paralysis set in!
[/ QUOTE ]
Could not have said it better. I have so much sympathy for those who are finding and will find it difficult to pay their mortgage; but there has to be a certain degree of personal responsibility. Of course, most people do what they have to to live the life they need/want.
My mum is a perfect example of those who kept borrowing and reborrowing, without any foresight of what the future could do to them! SHE has a business background and a degree in IT and economics; plus she teaches business and IT. I really worry!
Of course we can all say we didn't really see this coming; but it's a cycle over the sands of time. What goes up must come down and then back up again.
As I said in my last post, we have to grin and bear this, like a very long-lasting storm at sea when all you have is a rotten old rowing boat. Most of us will come out the other side; some may have to sell assets, but it is something that will be got through, and will probably happen again in another 15-20 years!
Cuffey
Well-Known Member
My son is redundant already--company making garden furniture, sheds, decking etc
He has debts for car loan etc impossible to pay off on dole money but living in rural area impossible to get a job without a car
He has debts for car loan etc impossible to pay off on dole money but living in rural area impossible to get a job without a car
Angua2
Well-Known Member
I came into work yesterday to be told that there was serious problems and then watched in horror as 46 people were handed redundancy notices.
If I can get a 2nd job then I will do so, otherwise I am seriously going to have to look at alternative arrangements to allow me to keep the horses.
If I can get a 2nd job then I will do so, otherwise I am seriously going to have to look at alternative arrangements to allow me to keep the horses.
JS65
Well-Known Member
I listened to the news today, and it kept going over how people who bought houses a couple of years ago are now in neg eq, surely this is only relevant if you need to sell your house??
We bought our farm last year and yes, maybe it is worth less this year but that doesn't worry us as we are not selling!!
I know it's a bad time, but the media are again doing their best to make everything out to be the end of the world.
We are tightening our belts and riding out the storm like everyone else, Trust me, i am old enough to have lived through a lot worse than this.
We bought our farm last year and yes, maybe it is worth less this year but that doesn't worry us as we are not selling!!
I know it's a bad time, but the media are again doing their best to make everything out to be the end of the world.
We are tightening our belts and riding out the storm like everyone else, Trust me, i am old enough to have lived through a lot worse than this.
Sooty
Well-Known Member
The voice of common sense!! It's like when people say their house is worth £x more than when they bought it - so what? Unless you sell it and live in a cardboard box, you will be buying and selling in the same market. Same thing applies now. I do feel sorry for people who absolutely have to sell, but for anyone who bought a house as a home, rather than as an investment or a get-rich-quick scheme, it shouldn't be too bad.
Sooty
Well-Known Member
[ QUOTE ]
What was invested was over 300k. Last year we pulled 118k in order to do work to our house among other things.
[/ QUOTE ]
Always invest in property. It always comes good in the end! A house that cost £300k in 1999 would not be worth £118k now, or less. Worth bearing in mind for the future perhaps...
What was invested was over 300k. Last year we pulled 118k in order to do work to our house among other things.
[/ QUOTE ]
Always invest in property. It always comes good in the end! A house that cost £300k in 1999 would not be worth £118k now, or less. Worth bearing in mind for the future perhaps...
Twiglet
Well-Known Member
[ QUOTE ]
The voice of common sense!! It's like when people say their house is worth £x more than when they bought it - so what? Unless you sell it and live in a cardboard box, you will be buying and selling in the same market. Same thing applies now. I do feel sorry for people who absolutely have to sell, but for anyone who bought a house as a home, rather than as an investment or a get-rich-quick scheme, it shouldn't be too bad.
[/ QUOTE ]
Surely it's more to do with the fact that if interest rates were rising, people were made redundant or could no longer afford repayments, they may need to sell their house.......if they're in negative equity they couldn't pay their mortgage lender back, and it could end up getting reposessed. Sometimes just hanging on to a house until it's worth more isn't always an option.
The voice of common sense!! It's like when people say their house is worth £x more than when they bought it - so what? Unless you sell it and live in a cardboard box, you will be buying and selling in the same market. Same thing applies now. I do feel sorry for people who absolutely have to sell, but for anyone who bought a house as a home, rather than as an investment or a get-rich-quick scheme, it shouldn't be too bad.
[/ QUOTE ]
Surely it's more to do with the fact that if interest rates were rising, people were made redundant or could no longer afford repayments, they may need to sell their house.......if they're in negative equity they couldn't pay their mortgage lender back, and it could end up getting reposessed. Sometimes just hanging on to a house until it's worth more isn't always an option.
LankyDoodle
Well-Known Member
[ QUOTE ]
[ QUOTE ]
The voice of common sense!! It's like when people say their house is worth £x more than when they bought it - so what? Unless you sell it and live in a cardboard box, you will be buying and selling in the same market. Same thing applies now. I do feel sorry for people who absolutely have to sell, but for anyone who bought a house as a home, rather than as an investment or a get-rich-quick scheme, it shouldn't be too bad.
[/ QUOTE ]
Surely it's more to do with the fact that if interest rates were rising, people were made redundant or could no longer afford repayments, they may need to sell their house.......if they're in negative equity they couldn't pay their mortgage lender back, and it could end up getting reposessed. Sometimes just hanging on to a house until it's worth more isn't always an option.
[/ QUOTE ]
Absolutely. I always say to my husband that it's not relevant to us a) because we bought for 59k and b) because we don't need/want to sell. But there will be plenty of people out there who need to sell because they can't afford their repayments, or whose homes are going to get repossessed and the companies are not going to get the money back.
[ QUOTE ]
The voice of common sense!! It's like when people say their house is worth £x more than when they bought it - so what? Unless you sell it and live in a cardboard box, you will be buying and selling in the same market. Same thing applies now. I do feel sorry for people who absolutely have to sell, but for anyone who bought a house as a home, rather than as an investment or a get-rich-quick scheme, it shouldn't be too bad.
[/ QUOTE ]
Surely it's more to do with the fact that if interest rates were rising, people were made redundant or could no longer afford repayments, they may need to sell their house.......if they're in negative equity they couldn't pay their mortgage lender back, and it could end up getting reposessed. Sometimes just hanging on to a house until it's worth more isn't always an option.
[/ QUOTE ]
Absolutely. I always say to my husband that it's not relevant to us a) because we bought for 59k and b) because we don't need/want to sell. But there will be plenty of people out there who need to sell because they can't afford their repayments, or whose homes are going to get repossessed and the companies are not going to get the money back.
LankyDoodle
Well-Known Member
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What was invested was over 300k. Last year we pulled 118k in order to do work to our house among other things.
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Always invest in property. It always comes good in the end! A house that cost £300k in 1999 would not be worth £118k now, or less. Worth bearing in mind for the future perhaps...
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I know. It's not really my money. My husband's nan had loads of money invested in TSB and Lloyds, and when they amalgamated she was quids in basically. When she died in the mid-90s the money was left to my husband, but he was not given it until nearly 5 years later, when it had already lost a lot of its value.
He feel crap that he didn't spend the 400k he DID get, on a larger house with some land, as we both come from farming families (not rich families, farming families, and his nan was lucky). Instead, he bought a 3 bed semi for 59k and invested the rest through Gerrard. Dean who managed the funds, kept moving the money around. He got 6-12k a year return on the money but we needed it last year so sold it. This is why he lost so much money!
Still, you live and learn! We are young and have a good life (for now) and each other. Maybe one day we will have a chance again to get a house with land, but until then we work hard to sustain horses at livery
I'm pragmatic, though, because my mum was really hard up when I was little and so I hate getting into money troubles. I am happy with what I have and if we can't afford it, I don't buy it. I plan like mad for all eventualities, including me being unable to find work, like what is happening at the moment (I'm a teacher!). Money is useful and necessary to a degree, but there are always ways to cut back and live off a very small amount. People do it.
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What was invested was over 300k. Last year we pulled 118k in order to do work to our house among other things.
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Always invest in property. It always comes good in the end! A house that cost £300k in 1999 would not be worth £118k now, or less. Worth bearing in mind for the future perhaps...
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He feel crap that he didn't spend the 400k he DID get, on a larger house with some land, as we both come from farming families (not rich families, farming families, and his nan was lucky). Instead, he bought a 3 bed semi for 59k and invested the rest through Gerrard. Dean who managed the funds, kept moving the money around. He got 6-12k a year return on the money but we needed it last year so sold it. This is why he lost so much money!
Still, you live and learn! We are young and have a good life (for now) and each other. Maybe one day we will have a chance again to get a house with land, but until then we work hard to sustain horses at livery
I'm pragmatic, though, because my mum was really hard up when I was little and so I hate getting into money troubles. I am happy with what I have and if we can't afford it, I don't buy it. I plan like mad for all eventualities, including me being unable to find work, like what is happening at the moment (I'm a teacher!). Money is useful and necessary to a degree, but there are always ways to cut back and live off a very small amount. People do it.
Sooty
Well-Known Member
You have a rare and fanastic attitude towards what others would see as bad luck. You obviously have your feet on the ground where money is concerned, and see the legacy as the bonus it was. I guess a smaller percentage of something is better than 100% of nothing.
We have been cutting back for years, in fact I am sitting under a fleece blanket as the house is cold - and it's only October LOL! It's going to get a lot worse though, and I totally agree with you. As a society we have got used to having what we want when we want it, and throwing it away when it breaks. Very wrong...
mickey17
Well-Known Member
I work in a bank!!!!! Im pretty sure we are well stood to weather the storm - deposit your cash with me!
LankyDoodle
Well-Known Member
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You have a rare and fanastic attitude towards what others would see as bad luck. You obviously have your feet on the ground where money is concerned, and see the legacy as the bonus it was. I guess a smaller percentage of something is better than 100% of nothing.
We have been cutting back for years, in fact I am sitting under a fleece blanket as the house is cold - and it's only October LOL! It's going to get a lot worse though, and I totally agree with you. As a society we have got used to having what we want when we want it, and throwing it away when it breaks. Very wrong...
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Thank you. That's kind of you to say. I just think that at a time like this we have to keep our chins up and have a bit of fight. Those who don't may not get through it. I'm not denying it might be hard times, and no one really knows how difficult it could get, but when you feel crap you just have to look at what you do have compared to some people and realise you're not so hard up after all. If you've got a roof over your head, food in your belly and people around you then you're doing OK and will be fine.
You have a rare and fanastic attitude towards what others would see as bad luck. You obviously have your feet on the ground where money is concerned, and see the legacy as the bonus it was. I guess a smaller percentage of something is better than 100% of nothing.
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Thank you. That's kind of you to say. I just think that at a time like this we have to keep our chins up and have a bit of fight. Those who don't may not get through it. I'm not denying it might be hard times, and no one really knows how difficult it could get, but when you feel crap you just have to look at what you do have compared to some people and realise you're not so hard up after all. If you've got a roof over your head, food in your belly and people around you then you're doing OK and will be fine.
LankyDoodle
Well-Known Member
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I work in a bank!!!!! Im pretty sure we are well stood to weather the storm - deposit your cash with me!
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Teeheee! You're QUITE sure it's safe?
I work in a bank!!!!! Im pretty sure we are well stood to weather the storm - deposit your cash with me!
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Teeheee! You're QUITE sure it's safe?
burtie
Well-Known Member
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I listened to the news today, and it kept going over how people who bought houses a couple of years ago are now in neg eq, surely this is only relevant if you need to sell your house??
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Sadly a lot of people took out mortgages they simply could afford, yes they should take the blame for this as much as the people lending it to them, but this is why they are now having problems.
Added to that the 1000's who saw rising house prices as free money and took out extra mortgages on the house to get extra cash and just basically lived beyond their menas on the back of the rising hourse market. Again they should take responsibility for what they did not denying that, but that is why they are now in difficulty and why falling prices are a problem for so many who don't want to sell but now have to.
I have little sympathy for people who got themselves into this mess as a basic bit of financial sense should have told them this was not going to go on forevere, but this seems to be sadly lacking in a lot of people.
Given that the current regulatory body are the biggest waste of space possible I'm not sure what the answer is, most likely something similar will happen again once we get over this one.
I listened to the news today, and it kept going over how people who bought houses a couple of years ago are now in neg eq, surely this is only relevant if you need to sell your house??
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Sadly a lot of people took out mortgages they simply could afford, yes they should take the blame for this as much as the people lending it to them, but this is why they are now having problems.
Added to that the 1000's who saw rising house prices as free money and took out extra mortgages on the house to get extra cash and just basically lived beyond their menas on the back of the rising hourse market. Again they should take responsibility for what they did not denying that, but that is why they are now in difficulty and why falling prices are a problem for so many who don't want to sell but now have to.
I have little sympathy for people who got themselves into this mess as a basic bit of financial sense should have told them this was not going to go on forevere, but this seems to be sadly lacking in a lot of people.
Given that the current regulatory body are the biggest waste of space possible I'm not sure what the answer is, most likely something similar will happen again once we get over this one.
burtie
Well-Known Member
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How do you think the mortgage lenders were allowed to offer mortgages as they did? (And it's lenders rather than brokers fyi, brokers are just middle men). They were all inside their relevant market regulators' rules. Where do you think they got the money to lend on mortgages?
And as nice as it is to think it, morality really doesn't come into the issue!!
'Sub prime' made many people a lot of money for a long time in the securitisation market, again, all within regulators guidelines.
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As I said in most cases just immoral, not neccessarily illegal. However a lot of people were selling mortgages they either knew people could not afford or just didn't check/care.
Sub-prime only makes money as long as house prices continue to go up. The only thing that has surprised me about the curent 'crash' is how long it took to happen.
To be honest the real problem is/was America, what happened over there is total madness compared to the UK, we are largely being caught in the wake.
How do you think the mortgage lenders were allowed to offer mortgages as they did? (And it's lenders rather than brokers fyi, brokers are just middle men). They were all inside their relevant market regulators' rules. Where do you think they got the money to lend on mortgages?
And as nice as it is to think it, morality really doesn't come into the issue!!
'Sub prime' made many people a lot of money for a long time in the securitisation market, again, all within regulators guidelines.
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As I said in most cases just immoral, not neccessarily illegal. However a lot of people were selling mortgages they either knew people could not afford or just didn't check/care.
Sub-prime only makes money as long as house prices continue to go up. The only thing that has surprised me about the curent 'crash' is how long it took to happen.
To be honest the real problem is/was America, what happened over there is total madness compared to the UK, we are largely being caught in the wake.
burtie
Well-Known Member
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Quote:
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I work in a bank!!!!! Im pretty sure we are well stood to weather the storm - deposit your cash with me!
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Teeheee! You're QUITE sure it's safe?
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Well if it's one of the big four, then it's as safe as it gets, if one of those went under the UK economy would pretty much collapse and the country go bankrupt.
Quote:
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I work in a bank!!!!! Im pretty sure we are well stood to weather the storm - deposit your cash with me!
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Teeheee! You're QUITE sure it's safe?
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Well if it's one of the big four, then it's as safe as it gets, if one of those went under the UK economy would pretty much collapse and the country go bankrupt.
dieseldog
Well-Known Member
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I listened to the news today, and it kept going over how people who bought houses a couple of years ago are now in neg eq, surely this is only relevant if you need to sell your house??
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It's not actually. If you were on a fixed rate mortgage which now needs renewing the value of your house does have an affect on who will lend you money as they look at your percentage ownership in the property. The more equity you have the better the rate.
I'm feeling very happy at the moment. I've fixed my mortgage at a very reasonable rate, I've fixed my fuel costs, I won't be made redundant because of where I work and today I also got a £7k pay rise because I passed an exam. For me life is good.
I listened to the news today, and it kept going over how people who bought houses a couple of years ago are now in neg eq, surely this is only relevant if you need to sell your house??
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It's not actually. If you were on a fixed rate mortgage which now needs renewing the value of your house does have an affect on who will lend you money as they look at your percentage ownership in the property. The more equity you have the better the rate.
I'm feeling very happy at the moment. I've fixed my mortgage at a very reasonable rate, I've fixed my fuel costs, I won't be made redundant because of where I work and today I also got a £7k pay rise because I passed an exam. For me life is good.
TarrSteps
Well-Known Member
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To be honest the real problem is/was America, what happened over there is total madness compared to the UK, we are largely being caught in the wake.
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To some extent, to be sure. (See my point about "temporarily disadvantaged millionaires" above.
) And if they go down they're taking the rest of the Western economic world with them, like it or not. BUT I do find it interesting that Canada (which is the only other country I have first hand experience of) which has a much more tightly controlled economic sector (lower interest rates, generally more cautions regulations about lending, investing etc.) and far less lenient mortgage laws than either the US or the UK, is holding up slightly better, at least in terms of bank security, the housing market etc.
Again, it's easy to point fingers but the truth is we've all been quite happy living on the edge. Interest rates, housing prices, the cost of living - all these things are CRAZY in the UK, particularly in the cities, relative to many other places. Yes, there are some "real world" reasons for this (being an island for one) but it's also because everyone has been so caught up in the upward spiral a lot of people just never seemed to see the inherent instability of the situation.
And of course, not everyone does badly in a recession (or whatever we're supposed to be calling it now) so perhaps the trick is just to be standing on the highest ground.
The fact is, it's here now. It's not a temporary downward blip, it's a "correction", which is not to say things won't improve again, just that the rate in the last little bit has just been to fast and extreme to maintain. Not fun news but it is alas, the way these things have always worked.
To be honest the real problem is/was America, what happened over there is total madness compared to the UK, we are largely being caught in the wake.
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To some extent, to be sure. (See my point about "temporarily disadvantaged millionaires" above.
) And if they go down they're taking the rest of the Western economic world with them, like it or not. BUT I do find it interesting that Canada (which is the only other country I have first hand experience of) which has a much more tightly controlled economic sector (lower interest rates, generally more cautions regulations about lending, investing etc.) and far less lenient mortgage laws than either the US or the UK, is holding up slightly better, at least in terms of bank security, the housing market etc. Again, it's easy to point fingers but the truth is we've all been quite happy living on the edge. Interest rates, housing prices, the cost of living - all these things are CRAZY in the UK, particularly in the cities, relative to many other places. Yes, there are some "real world" reasons for this (being an island for one) but it's also because everyone has been so caught up in the upward spiral a lot of people just never seemed to see the inherent instability of the situation.
And of course, not everyone does badly in a recession (or whatever we're supposed to be calling it now) so perhaps the trick is just to be standing on the highest ground.
The fact is, it's here now. It's not a temporary downward blip, it's a "correction", which is not to say things won't improve again, just that the rate in the last little bit has just been to fast and extreme to maintain. Not fun news but it is alas, the way these things have always worked.