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Shelts - here's what the FSA admitted about their part in the Northern Rock debacle:-
It was treated by the FSA as though it was the least risky bank in the UK: it received deep assessments of its operations less frequently than most other banks; FSA staff had far fewer meetings with Rock executives than they did with executives at other banks; and unlike what happened at other banks, there was no attempt to force the Rock to reduce the risks it was running. Still think we are better regulated than our American cousins? Also instead of focusing on the BOE interest rate, you might want to switch your attention to the LIBOR. It's currently at 6% & I would say it is more indicative of where mortgage rates are heading. I also believe that 1 in 5 mortgages were self certified in 2007. |
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So...THE AVERAGE HOUSE PRICE WILL FALL FROM 196,000 to 165,000 by December 2010...
This is the average, if you believe they will not fall this much, then why not make a fortune buying the spreads as they predict this... Indeed. Presumably Grey Shark has had the same idea and has sold as his prediction of a 15% drop this year would mean an average price of 168k by the end of 2008 alone. I guess we'll get our first proper indication of the spreads quoted on page 1 when April's figures are released. |
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Sorry. I meant when March's figures are released in April.
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Ive managed to bag 2 properties in the last 2 months for 70 % of the value reached last summer (overpriced back then) Im happy to be buying at 70 % and the rent is covering a repayment mortgage. I think the reduction over the next 18 months or so will only be 10-15%. I hope anyway. Or do you guys think even at 70% its still to high
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Up the owls.
Doesnt look like the pound needs much protecting against the dollar at the moment does it!! Northern Rock were not irresponsible with its lending they were irresponsible with how they funded the lending. What you need to understand is that Norther Rock although lending up to 125% of the value of the property would check clients income and affordability. The arrears on Northern Rocks books is actually very low in comparison to other lenders. In USA mortgage market wass not regulated at all. Here it is.That is a FACT. It is regulated very strictly and will become event more tightly regulated in the wake of recent events. Grey Shark. Only time will tell who is right so please at least offer some respect to the other side of the argument. Mervin King believes the UK ghousing market will remain at a similar level for teh next two years. He has also said that he is going to throw the kitchen sink at the situation in order to resolve it. Orders from above I guess. |
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Up the owls.
Doesnt look like the pound needs much protecting against the dollar at the moment does it!! Northern Rock were not irresponsible with its lending they were irresponsible with how they funded the lending. What you need to understand is that Norther Rock although lending up to 125% of the value of the property would check clients income and affordability. The arrears on Northern Rocks books is actually very low in comparison to other lenders. In USA mortgage market wass not regulated at all. Here it is.That is a FACT. It is regulated very strictly and will become event more tightly regulated in the wake of recent events. Grey Shark. Only time will tell who is right so please at least offer some respect to the other side of the argument. Mervin King believes the UK ghousing market will remain at a similar level for teh next two years. He has also said that he is going to throw the kitchen sink at the situation in order to resolve it. Orders from above I guess. |
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Shelts - when you say kitchen sink - you mean taxpayers money. In other words the BOE & Government have just nationalised all the risk that the Banks have been taking on over the last few years.
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Flying V.......
Just spoke to my selling agent . He was surprisingly frank & said that activity is basically non-existent. Yes this is the deadest of housing markets for many years , VI's are slowly realising it's all over , you said you'd exchanged are you buying or renting ?? Mortishian......... All the spread betting markets have been down on housing since last year , obviously no one wants to buy the spread unless it's much lower , all the value has gone . |
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In USA mortgage market wass not regulated at all. Here it is.That is a FACT.
the second sentence is a fact. the first is untrue. |
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uptheowls
Talking to shelts is like talking to a brick wall , he's so out of touch with the reality of it all , just passes it off as if it's nothing LOL , i mean just look at his pathetic reply about Northern Rock .........no idea . And this was the only reply he could give you convienantly ignoring all the other stuff on the previous page , the debt survey was particularly good . Partridge , If you've just bought a place and you plan to trade up in a few years any falls that come will help you as the next house up will lose more value bringing the next rung closer together , it all depends how long you hope to live there . Matt Quigley 70% of last summer prices sounds good on paper , depends on the yield after mortgage X's etc .and what type of properties they are , don't say there New build apartments . |
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here we go-mortgage lenders raising rates because of LIBOR. Comments Shelts? ;-)
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Nationwide says house prices are falling. What percentage of house sale come from chains? How can any buying chain function at his time? Unlikely you wil lselll your house easily multiply that difficulty with th members of your chain.
Also why buy with cash now when you can wait a while and earn some interest while you wait for the fall to kick in. I also predict that it will take a while before sellers see they must ask less. How long before fear kicks in and overcomes greed? A year? |
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Shark. I'm renting. Due to complete on sale today. Hope all goes through.
Despite the likelihood of more significant falls, I would happily buy at the moment, just because I want a house...[obviously at the right price!] But, there is very little new coming on to the market. Spoke to another agent yesterday. [This time re buying.] He said he "feared for his future" and that conditions were the worst since 1989. They can't get any new properties on as no-one wants to take a lower price, but at the same time there are no buyers for any properties they have at these prices. Market is paralysed with inertia. See that Nationwide survey reports losses, and at the same time they are putting up their mortgage rates based on LIBOR [see Goose post]. |
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under the guise of we want to be less aggressive and taking on less risk....
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A lame excuse from the lenders. They are cashing in on being overrun with people wanting to borrow money. Because so many small lenders have shut up shop the big lenders can not deal with the workload. Wait until bank reporting time next year and see how much extra profit lenders will be making from mortgages.Poor old customers are the ones who will suffer.
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yellow jersey for back-pedalling.... :-)
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Shelts - this is not a liquidity crisis, this is a solvency crisis & it isn't going to go away for years.
I'm not one to defend the banks, but to accuse them of profiteering is plain wrong. Nationwide paid 9.5% last week to borrow some money last week. |
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Flying V
Yes i understand why you will have to buy , stability , security , if you have kids etc. , a house is for living in after all , at least your be in a good posistion chain free etc. I've been monitoring a area in Dorset theres about 20 4 bed houses in the town currently up for sale , many have been on for MONTHS a few have reduced { some will take a hefty lump off though } , only 2 or 3 have sold , some get sold then the deal falls through and there back for sale again .........it is pathetic . Rightmove boss came out this week telling sellers to be realistic with talk of dropping asking price by 10-15% . SHELTS Are you going to be gentleman and answer some of the posts directed at you from uptheowls at the bottom of the previous page or just ignore them like usual when it all becomes a bit to difficult for you ;) |
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UPDATE:
Well guess what...my buyer has not completed today. His mortgage lender has not got the cash over in time. !!!!!!!!!!!!????????? Should go through on Monday, otherwise I have to serve a "notice to complete" or something similar. |
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Notice that firms sensitive to spending fall are struggling. Unemployment and sub prime mortgages to come. Sad for youngsters and shameful to debt peddlers like the govt.
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It's a friggin' mess...that's what it is.
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Not sure what questions you are on about grey shark.. All I noticed from Up the Owls is that he thinks tax payers are being ripped off!!
Northern Rock needed bailing out but the amount of money that is being paid back each week is billions. Northern Rock have shut up shop. They will not lend extra money to people wanting to move home so they have to go elsewhere. They will not offer a good deal to clients when they get to the end of their Fixed rate. Clients either have to change lenders or pay Nortehr Rocks variable rate which is 7.59%. As time goes by therefore taxpayers will start to get better value for money. Not sure why he thinks cutting Interest rates has anything to do with taxpayers money... Feel free t enlighten me.. Bank Of ENgland although responsible for inflation is also responsible for ensuring financial stability.Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Banks surveillance and market intelligence functions. They are reduced by strengthening infrastructure, and by financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort. Have a good weekend guys. Pick this up again next week. Think you are just about winning this argument on points.It would be bnice to have someone else supoporting me on this thread, I am starting to doubt my own beliefs!! |
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Not sure what questions you are on about grey shark.. All I noticed from Up the Owls is that he thinks tax payers are being ripped off!!
Northern Rock needed bailing out but the amount of money that is being paid back each week is billions. Northern Rock have shut up shop. They will not lend extra money to people wanting to move home so they have to go elsewhere. They will not offer a good deal to clients when they get to the end of their Fixed rate. Clients either have to change lenders or pay Nortehr Rocks variable rate which is 7.59%. As time goes by therefore taxpayers will start to get better value for money. Not sure why he thinks cutting Interest rates has anything to do with taxpayers money... Feel free t enlighten me.. Bank Of ENgland although responsible for inflation is also responsible for ensuring financial stability.Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Banks surveillance and market intelligence functions. They are reduced by strengthening infrastructure, and by financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort. Have a good weekend guys. Pick this up again next week. Think you are just about winning this argument on points.It would be bnice to have someone else supoporting me on this thread, I am starting to doubt my own beliefs!! |
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Not sure what questions you are on about grey shark.. All I noticed from Up the Owls is that he thinks tax payers are being ripped off!!
Northern Rock needed bailing out but the amount of money that is being paid back each week is billions. Northern Rock have shut up shop. They will not lend extra money to people wanting to move home so they have to go elsewhere. They will not offer a good deal to clients when they get to the end of their Fixed rate. Clients either have to change lenders or pay Nortehr Rocks variable rate which is 7.59%. As time goes by therefore taxpayers will start to get better value for money. Not sure why he thinks cutting Interest rates has anything to do with taxpayers money... Feel free t enlighten me.. Bank Of ENgland although responsible for inflation is also responsible for ensuring financial stability.Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Banks surveillance and market intelligence functions. They are reduced by strengthening infrastructure, and by financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort. Have a good weekend guys. Pick this up again next week. Think you are just about winning this argument on points.It would be bnice to have someone else supoporting me on this thread, I am starting to doubt my own beliefs!! |
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Not sure what questions you are on about grey shark.. All I noticed from Up the Owls is that he thinks tax payers are being ripped off!!
Northern Rock needed bailing out but the amount of money that is being paid back each week is billions. Northern Rock have shut up shop. They will not lend extra money to people wanting to move home so they have to go elsewhere. They will not offer a good deal to clients when they get to the end of their Fixed rate. Clients either have to change lenders or pay Nortehr Rocks variable rate which is 7.59%. As time goes by therefore taxpayers will start to get better value for money. Not sure why he thinks cutting Interest rates has anything to do with taxpayers money... Feel free t enlighten me.. Bank Of ENgland although responsible for inflation is also responsible for ensuring financial stability.Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Banks surveillance and market intelligence functions. They are reduced by strengthening infrastructure, and by financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort. Have a good weekend guys. Pick this up again next week. Think you are just about winning this argument on points.It would be bnice to have someone else supoporting me on this thread, I am starting to doubt my own beliefs!! |
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LOL :^0 SHELTS
you can't even work the forum properly , although i expect your a harmless old buffer , i can't help but think your the sort of guy who regularly makes a t1t of himself . you write............. I am starting to doubt my own beliefs!! I think your coming out of the denial stage now and realising all this housing wealth is just an illusion , it was all a big lie , meltdown is imminant , prepare yourself for the financial tsunami thats coming . Flying V I hope everything goes ok for you m8 , i think???? if you've exchanged then your safe anyway they will have to pay out a sizeable sum to you if it falls through . |
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And we are still waiting a reply on the 'changing mortgage' thread Shelts, after the utter drivel you posted.
You have a great knack of telling people they don't know what they are talking about, then posting a bucketful of sh*t. And posting it twice does'nt make your comments any more feasible. |
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Shelts - I've just had Stuart Rose on from Marks & Spencers. He took a punt on a boat load of pants & socks, but now it turns out nobody wants to buy them. Not to worry I got on to Mervyn King at the Bank Of England who agreed to crank up the printing press & exchange Stuart's pants & socks for a lorry load of crisp twenties.
Everybody is happy & Stuart is off to look for his next investment opportunity. Do you get me? |
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What this country needs is a good dose of inflation.
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Please you do not mean house price inflation?
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what i need is a good dose of deflation.
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I agree with Charlatan here. Deflation will make the reckless bare the pain - bankers, financial service providers, mortgage brokers, estate agents, overextended borrowers, marginal over borrowed businesses. Inflation will bail these people out and subject the careful and sensible to the economic pain
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Yet another thread full of hope that prices are going to come down. The news today must really depress you. Another 3 months and a couple of interest rate cuts and the take off will really gather pace.
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At last some-one to argue with. But Harry surely there are many other places where economic experts are saying house prices willcome down. Congratulation for being the first person to say they will rise. BTW this place is not just full of negs on house prices it is unanimous. As a minority of one don't you think sentiment mght play a part in avoiding rises.
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Harry - are you referring to the headline on the front page of the Daily Express?
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In the interests of balance...here is the link:
http://www.dailyexpress.co.uk/posts/view/39552/House-prices-still-on-the-rise I am a bit confused by their conclusions....but hey...that's journalism. |
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This is the same paper that constantly ran the headline 'house prices set to crash' from about 1999 to 2003. Harry, discard your copy of the Express & put forward a few reasoned arguments.
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A good read and some valid points,just cannot help feeling the fall in prices will turn into a rout only if UNEMPLOYMENT starts to increase,which I personally think can only be a matter of time.
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Yep knock on from yank resession+rising prices+rising mortgages+no-one dong up houses to sell+ general zero confidence=spending down. Spending down = unemplyment. Sadly.
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Harry Crumb .. The only man on the Forum to agree with me. Not quite sure how credible a news report is suggesting house prices are rising but even so....
Up the owls is really on a downer. Suggesting that banks arent solvent!!! Are you sure about that?? Mark my words. Lenders are making more money now giving mortgages to 50% less borrowers. Funding is still there for low risk mortgages. It is the lenders profiteering from a delicate situation that is forcing the cost to the consumer up. About time idiots like you showed some evidence when suggesting Banks arent solvent. Dont quote Northern Rock because you know it is not the same!! Look at the Banks annual reports . Look very carefully because there really is no evidence to suggest any are going to the dogs. If you feel there is evidence please provide it. I am getting fed up of people on this thread posting sweeping statements with no evidence to back it up. I suggest many on here are jealous of any kind of business or person doing well for themselves. Is the glass half empty or half full? Interest rates to come down on Thursday? maybe even a proper .5%. Give everyone a touch of the feel good factor.. Happy days could be here again!! |