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Subject: First Direct withdraws mortgages

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plainservice

Concerned Citizen

Posts:93

02/04/2008 5:53 AM	Alert
http://news.bbc.co.uk/1/hi/business/7325692.stm I wonder if this is the shape of things to come?

Asteve

Activist

Posts:930

02/04/2008 11:10 AM	Alert
I certainly think so. This is exactly as I expected... the first wave of mortgage resets from the spectacularly cheap 2/3 year fixes is just starting now - and, simultaneously, there are £30bn worth of Northern Rock mortgages being forced onto SVR unless they move. Things are going to get a hell of a lot darker for mortgagees - I'm pencilling in December 2008 as Winter Of Our Discontent II. Things are going to get very "hairy" in the UK.

plainservice

Concerned Citizen

Posts:93

03/04/2008 9:30 AM	Alert
This crisis for the banks will make it harder for buyers to get a good mortgage deal. In a sitation where houses prices fall, you will see that a buyer is not going to be better off! Bank were offering +0.39% above Bank Base for home-owners, but now it is going to be +1.25% above Bank Base. Here is an example two buyers Mr X and Mr S:- 1. Mr X bought his flat for £200,000 (BEFORE the credit crunch) - Deposit is £20,000 (10%) - Mortgage payment is £9,000 p.a. (5% interest - secured a good mortgage deal before the crunch) 2. Mr S buys his flat for £175,000 (AFTER the credit crunch). - Deposit is £17,500 (10%) - Mortgage is £9,450 p.a. (due to financial crisis, the best mortgage deal is 6%). Even though the Mr S bought his flat CHEAPER, he is paying £450 more for his mortgage!! There are pros and cons whether you bought before or after the crunch! But I think the odds are even in the long term!

lazen

Activist

Posts:326

03/04/2008 12:15 PM	Alert
Yeah I heard it on the radio and most everyplace else as everywoman meedya yapper went on....and on.....and on......whilst I scrubbed the floor,dont these people have anything better to do than get paid for yapping......? actually they can talk all they like we aint got a mortgage never had, we aint got a car never had we aint got a tv or a licence, weve hardly got one credit card between us and we hardly ever use it for food or petrol or car tax or.....bit tvs this mortgage debt thing its not really our prob....yawn.... notice the increase in talking...they linked up a dozen property spivs all yapping and monaing on the phone in......corresponds to the panic and the realisation that its all going awry 4 loads money property spivs.... young guys mainly,inexperienced,wet behind the ears,dismissive of history as bunk. guys who only know the 1980s and 1990s....never seen a real man size recession, dont know what its like to live on 50p a day,travel on the bus, actually have to save up for something before you buy it, like er.............a house?..........

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