TonyBurns

iTrader: (3)

Oh i take it you were not around when the tories were in power then? or does 14.5% not do anything for you
The tories btw let you get your house on a morgage then the interest rates shot up from 5% to nearly 15%, honestly there were no house reposessions or the likes and people didnt end up with serious negative equity of a far greater type than just credit card debts.

Tony

douglasb

Please correct me if I am wrong, but I don't remember the Tories making it complusory for idiots to borrow beyond their means. I thought that the free market meant that lenders were more willing to lend money to people that might struggle to repay what they'd borrowed. Borrow more that you can repay - tough ****.

"credit limits" and ""mortgage multiples" are not government imposed limits - they are what the finance company are prepared to lend.

However, that wouldn't suit your "Blame the Tories even though the greatest leader of all time has been in power for nine years" agenda.

dpb

As far as i see it this countrys economy is literally propped up by these peoples willlingness to go into debt and the property 'bubble' which is a confidence thing - as soon as eastern european prices even out and China gains 'independence' this place will go to ****.

365

It sounds a great idea but we did the same with our two children. We gave them spending money in return for doing the dishes etc.. and then we also gave them their Family Allowance with the proviso they bought clothes etc.. They're 18 and 17 now and one spends like there's no tomorrow and was it not for me telling him that I want no debt associated with my address, would be up to his kneck by now. My daughter is the opposite, she works for 30+ hours a week for minimum wage but has managed to save nearly £2000 in 9 months because she wants a car when she's old enough to drive. My son borders on depression all the time and sadly all his life I've tried to make him happy by buying him things, I now regret it because it didn't make him happy and is now the cause of some resentment from me. I now realise, a little late that he's just a miserable person, similar to myself at his age in many ways, a spoilt brat you could say.

hades

Whilst property may be a good investment as well as somewhere to live, you can't lose sight of the fact that a mortgage is a debt, and the money you're paying into it is paying off that debt. You may have borowed money to invest (whilst paying for somewhere to live), it may well be at an interest rate that is less than the returns you've made out of it, and it almost certainly makes more financial sense than renting, but it isn't savings.

I'm sure a majority of britains are in debt, by nature of having a mortgage, even those relatively rare few who don't have other debts. Most who aren't have paid off their mortgage are in their twilight years (and too old to enjoy it, probably capable of donig nothng more than trolling bulletin boards or something), or don't own a house.

Having spent the last 10+ years not borrowing anything except the mortgage, buying cars cash etc, I am sure I've saved an awful lot of money in interest payments, and that money has improved my quality of life, whilst building up some useful savings. Also means I'm in the process of buying a nice 4 bed detached house in berkshire in my early 30s, the mortgage payments won't be crippling (<50% mortgage), and I'll still have enough money left over every month + savings to enjoy myself. Personally I much prefer this situation than declaring myself bankrupt on a regular basis!

john banks

Debt is great, without it I would be stuffed.

With no parental support I funded myself through five years of university so that by the time I graduated and bought/furnished a house and car I had six times my first job's annual gross salary in debt.

Eight years on, all that debt is now clear and I have no debt, no mortgage, and the same amount available as cash within a week as that debt I started with.

That is based on saving like mad, but also being prepared to take calculated risks with debts for things worthwhile... and waiting for the flash cars/expensive holidays so that no loans are required.

These low interest rates have been the time that the sensible amongst us have been making headway into our debts to clear them before the next big rise.

pslewis

There is going to be trouble when the next interest rate hike happens ....

When interest rates were 12% - a 4% hike was a 33% Increase in payments, bad enough you may think ....

But, now with interest rates at 5% - a 4% hike will mean a 80% Increase in payments!!!

Now, I am ok - I have no debt ...... but those who are managing OK at present - would they be if they had to find an extra 80% to fund their mortgages????

Pete

365

The biggest cause of the problems this country faces is the rise in property values. It means that people have an incredibly high value asset to borrow against and as a result many have borrowed way above their means. My sister is ALWAYS proudly quoting what their house is worth but they're up to their knecks in debt. She doesn't seem to realise that the only people that benefit from over inflated property prices are the ones that own more than one house, if you own only one (normal/average) property, it doesn't matter whether it's worth £1000 or £250,000. The only thing we are managing to do is price our own children out of the market or saddle them with MASSIVE debt at a young age in order to get on the property ladder.

pslewis

The property market is actually a free market and suffers from market forces, like it or not.

Interest rate hikes are the ONLY thing that will reduce house prices ... and the fact that demographics mean that we are having fewer children.

But, marraiges and relationships break down ... then you need two houses where one was enough before ... it's all about supply and demand.

Pete

hades

Your figures are extremely flawed, even if the principle of your argument has good sense (which is rare in itself). Most loans/mortgages have this strange idea that you are also repaying the original capital investment, so the hike is much less than you're making out. Example, a mortgage of £100k over 20 years at 5% would cost ~£670/month. At 9% it's ~£910/month. That's "only" ~36% increase, not 80% - admittedly, still a major hike. Also worth noting that you'd probably find even now that the average mortgage rate paid in the country is well over 5%, probably more like 6-7%

365

It also isn't helped by people owning 20, 30 or 100+ houses. How many people are 'property developers' these days?

pslewis

Quite a few ..... although I haven't quite got 20 yet!!

And every single one is being paid for by someone else ....... but I get to keep them at the end!!

Pete

dpb

20 static caravans that is..

Suresh

Not the only thing Pete IMHO. Improvements in tenants rights would mean that renting could be an attractive alternative. The UK market is quite immature in this respect. Such legislation would have a considerable knock-on effect on the BTL market, as owners couldn't liquidate their portfolio without giving considerable notice. In fact where I live BTL is only a viable investment if you are providing basic student accomodation - then you are pretty sure that they will be gone within a few years. Ordinarily, the renter has considerable rights and you can't just kick them out on a whim and sell the property.

From my time in Switzerland I recall that home ownership was at around 25%. Tenants have massive protection though - for example increases in rent could only be justified by major renovation work or raises in interest rates. Conversely, falls in government lending rates would have to be passed on to the tenant..

dpb

quelle surprise..

hades

Your point being?

saxperience

:0o

SD

No, Hades is spot on with his post. Pete's sentiment about large rises in mortgage repayments after a period of low interest rates is fine, but his figures are out as mortgage repayments include capital repayments too. Mind you, I remember correcting him on the same thing some months ago, but obviously he's forgotten in his senile old age...

2000TLondon

As I said in post # 29.........

Quite an adult view on the world there, saxperience, you are mature and wise beyond your years.

P.S Can I bring my washing round for you Mum to do? I'm sick of doing it! Cheers!

lozgti

I really hope my eight month old twins are so different from this.Mind you,they are displaying far more maturity even now.

Someone from Labour decided the American Bankruptcy system was better.It certainly just encourages people to run up debt.

As for lending,adverts saying CCJ's? Bankruptcy? Homeless?No chance of paying us back?

No worries.Just call us on 08000800800cash line

It WILL all go pear shaped.People have no idea about being responsible anymore because they believe there is nothing to worry about.

BMW's have become the cars of the poor.Everyone has everything.A credit nation portraying a totally false view of what the economy actually is.

Leslie

You should get your facts right Tonyburns and at least tell all of the truth.

The world was in a deep recession which was not the fault of the Conservatives. Also the only real debts most people used to have then was a mortgage and/or a car. The high interest rates were unavoidable and it at least kept people out of more debt because of the cheap money which is being flashed around now. Until the IMF says enough. "Crisis, what crisis?"

Students at university did not have the threat of an enormous debt on their shoulders before they were even able to start earning a crust!

The Conservatives turned the economy around and put it on a solid basis by the time that Billy Boy and his rather queer cronies were elected and they were then able to "**** it against the wall" by creating an enormous and demonstrably expensive and useless bureaucracy. They have achieved nothing of note so far except to tell us what they are going to do and never actually do it. Every bit of an organisation etc. that they touch turns to worms! Starting with the Dome and then so on etc etc.

Their form of repressive lefty PC government wanting total control over the electorate does not fit in with the British traditional way of life and they have spent the last nine years dragging this country of ours into the cack!

When you start knocking the Conservatives with out of context attacks, you would do well to include the whole story. The sleaze that NL were shouting about with regard to the Conservatives pales into insignificance compared with their own for the last nine years. What a bunch of hypocrites!

The endless swanking and particularly unpleasant comments made by PSL do not help either. He seems to have the same demeanour as "Shaggy Two Fats" when he has the vulpine grin on his face whenever his obscene perks and free trips to the Indian Ocean to go Scuba diving in the pretence that he is studying the ecology and global warming are mentioned! Its all "look at me" and see how much better I am off than the rest of you! (Yow) Thats PSL to a T!

Les

DazW

iTrader: (1)

Q: Have NL labled themselves 'the party of family values'?

A: No ...& hence why they'll never quite manage to reach the hyprocrisy levels that the Tories did!

saxperience

ii

unclebuck

Another tosspot for the ignore list.

saxperience

Sorry,

Everyone is not as clever as you. How about do something about your knowledge of the world instead of moaning and whinging on a internet forum

Scuuby_wrx

I will be debt free in about three years and ill be thinking twice before i borrow again

2000TLondon

Am I supposed to know who Simon Adams is? Is he the older gentlemen who will keep you in the style you have become accustomed to when your parents kick you out?

Careful a bigger boy doesn't take your car keys off you!