Mortgage Misery: Repossessions soar by 30% in a year

Discussion in 'Diamond Lil's' started by slim, Aug 3, 2007.

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  1. Who really is to blame for the rapid increase in the price of houses?
    my view is that the financial institutes must accept at least part of the blame. When I bought my first house mortgage lenders loaned two and a half times salary. Later this increased to three times. I believe that you can now get 4 times or even more these days.
    Now if money was more difficult to borrow, house prices would be lower. How about a return to three times salary loans. Then perhaps house prices would have to fall and perhaps level off at a reasonable state.
  2. I was looking at buying a brand new build flat, sorry apartment, at beginning of year - price £150,000.

    I should of moved in during May this year but I backed out when the mortgage company kept upping the monthly payments - the flats are still being built and to my knowledge they are now being targetted to the buy to let market buyers........

    I cant now afford to buy a house where i live.....
  3. How very noble of you? I am sure you would love to see your house price plummet I am sure that you would be willing to sell your house to one of the young folk. Slim you do talk a load of old bollocks some time get your face out of the daily wail and do some independent thinking.

    Yes it is a shame that the young folk can't buy at a reasonable price, but thats life. I couldn't afford my first place. Through that the bankers will lend more and more to anyone. My two young folk are finding it hard to coup, but they will overcome.

    Have we not brought this on to our kids by saying you MUST get on the housing ladder. That doesn't happen in most of Europe, or the USA, so why do we insist that it is the way ahead......

    Must be Mail readers. :money: :money: :money:
  4. Pinch
    Believe it or not I would love to see my house price plummet along with everyone else's. Now I would be stupid to sell my house at below market price because I would then have to buy another to live in. However at the moment all my greatly inflated house price is doing is making me take steps so that my children can inherit it without having to sell it to pay the government the inheritance tax.
    A house is an object to live in, no matter what my property is worth it is worthless until it comes to selling it.
    As for not being able to afford a house, my son is in the same boat, however as he keeps putting off buying so the prices are rising, and more quickly than his salary is.
    Putting your money in bricks and mortar has always been a sensible option, however to buy a property (especially for the first time) requires the purchaser to go without many things that some consider essential. No holidays, having to run an old banger instead of a nice car, eating the most basic of foods, switching off power when possible, not heating the house to a comfortable level and much more. However at the end of the day you will own a bit of real estate. Worth it? well I thought it was.
    Don't try and lecture me on my daily mail attitude. I bought my first property in 1974, the year of the first housing boom. Properties rose 50% in value in six months and I bought at the top.
    Life was hard for any years but I believe it was right for me, now whether it is right for everyone is another subject.
  5. As an example - my local news last week was talking about house prices as we are getting 400 new homes built by the guy off Ch4 'Grand Designs' and apparently the average house price where I am is going up by £50 a week at present. Cant afford to buy as all my deposit money is being spent on rent

    What we need are low cost good quality houses that are on a 1st Time Buyer Purchase Scheme where you can buy as much as you can afford and the Government 'owns' the rest which you can buy as and when you can afford OR if you sell up then the Government gets the profit from their share of the house and you get the rest.

    There was such a scheme but even though I could afford a 3 bed house with garage, because there was only 2 of us, it was deemed we only needed a 2 bed flat and that was all they were prepared to sell us - OH at the time was very upset as at the time we had been discussing kids and a 3 bed house would of been ideal for us

  6. UK Daytona
    The scheme that you are suggesting is already in use, it's called shared ownership. However the problem is that they you may be buying a 50% share in the property, the other 50% is owned either by the Local authority or housing association. they of course expect you to pay rent on that percentage. You are paying virtually the same as if you were buying the whole property. Not a very shrewd move.
    The ones who really benefit are council tenants who theoreticaly get discounts of up to 60% dependant on time spent renting.
  7. Not the case anymore I'm afraid Slim.
    I looked into buying my house last year, while under the impression I'd get the 60% discount. However, its been capped now. The most you can have off the price of your house now is £26,000.
    You can still have a 60% discount, but this is providing that the total amount does not exceed £26,000
    Furthermore, if you want to sell it within 5 years, you have to pay the discount back

  8. Seems like different councils give different discounts these days. However none seem to give the same percentages of yesteryear.
    This really is a shame as the previous scheme put many low wage earners on the first rung of the property ladder. Looks like it's a Labour Government induced rule.
  9. If people are stpuid enough to pay over the odds for property then the price will always continue to rise!Supply and demand.Cut the demand and the price will drop.Having said that,my parents house has been on the market for 2 years and no takers so far.
  10. I think the arse has got to fall out of it at some point.
    I hope it does'nt go on forever
  11. Thanks Slim, I don't whole heartedly agree with all you said, I can see the point from both sides, I was the dumb bugger who bought 6 months before interest rates fit 16.5%.....

    My point is should we push the kids into buying now, or as the wonderer said don't buy the arse will drop out of the market. Rent until then.

    I was brought up on a council estate in manchester in the 50's and 60's. My next door naughbour was a station manager british rail, two doors down was a senior bank clark, and my old man was a works manager. The gardens were well kept, and the roads where clean. So why can that not happen again.

    All the above bought the houses they lived in under the right to buy, and that was in the early 70's, under a labour council.

    Why the local councils can not use the money from sales to build new stock is beyond my understanding. Thus the kids have to buy, or live in some sink estates....

    I am too confussed. Does anyone have an answer... I do like wonderers idea best :thumright: :thumright: :thumright: :thumright:
  12. The buy-to-let explosion hasn't helped, as soon as planning permission is given for flats 50% are sold off plan to landlords who use their other properties as collaterall.
    This reduces the supply of stock available to 1st time buyers
    When part of St Nicks avenue were being sold off by Annington homes the amount of people who could afford to camp out for weeks on end without working had to be seen to be believed and as soon as the flats were released a large amount had 'to let' signs on the monday morning A large number of the 'queuers' were doleys being paid by landlords to hold places in the queue.
    We looked at a part buy part rent scheme by Portsmouth Housing Association in St Georges Barracks Gosport bearing in mind these were supposed to be affordable housing for PHA tenants(which my partner was at the time) You were expected to fund a £100K mortgage and pay a rent of £400 pcm a combined total of £1000pcm affordable my arse!!
    IMHO it was just a ploy by the developer to obtain planning permission from the council
    As has been stated before it is the culture in this country and I feel the term 'buying a house' is a misnomer for taking on a huge debt and alot of people are taking on more than they can afford thus relying on overtime to provide living money and if that dries up they are in deep poo, I've seen this happen to guys at work
  13. Pinch
    Like many others I applauded Maggie's right to buy. What I did question was the fact that having sold the housing stock councils were not allowed to use the revenue raised to build more houses. I couldn't understand it at the time and still can't.
    Like yourself I was brought up in a council estate (Peterlee Co Durham) but even then there were good and bad areas. I bought my first house soon after I was married (used the RN LSAP to help with the deposit). My reason for this was that people who are struggling to pay a mortgage will look after their property and their neighbourhood even if only to protect their investment.
    My advice to anyone is invest in property, and live in it. If it is in a poor area stay for five years or so and when property prices have risen move to a better area.
    There really should be no such thing as sink estates. All council houses are built to a good standard, in many cases a superior standard to private developments. Unfortunately the council have a duty of care and have to home many people who seem unable to live within the community, only takes a few of these to wreck an estate.
    My belief is that those who have never had to work for a living and have been given everything on a social security plate do not appreciate the value of what they have been given.
  14. Quote "Like many others I applauded Maggie's right to buy. What I did question was the fact that having sold the housing stock councils were not allowed to use the revenue raised to build more houses."

    My thoughts too........ Only snag with this one is that the Right to Buy was infact a Labour Idea from the early 70's which was enhanced at the beginning if thatcher's era. During the early 70's in Manchester the reciepts from the sales WAS used to build new social housing, so why did it stop in the 80's

    But what was her motivation? A synic like me would say that "home owners can not afford to strike"
  15. You may well be correct in your thinking. However I prefer to think that it was to give a chance of those who could not save a deposit onto the housing ladder.
    I remember seeing a change for the better on many council estates, especially those where the majority of tenants took the option. Gardens were being tended, exteriors painted, new doors and windows fitted. all things that previously would have been left to the council to do. many ex council estates are now almost indistinguishable from private developments.
    Perhaps now that councils are starting to use new laws to evict anti social tenants we will eventually see the end of so called sink estates.
    Oh and I remember far too well those 16% interest rates, and it was all down to the Tory policy of trying to control inflation by interest rises.
  16. One trick ponies, or one club golfers
    Or something along those line I can not do the french but I HAVE NO REGRETS..... Good old Norm Lamont :rambo: :rambo: :rambo:
  17. i cant really get down to this level of discussion about policy without being out of my depth so go easy on me.

    however (deep breath)

    i am one of the buy-to-let scum that exists today and prospers because the amount of houses neeeded if far inferior to what is required. we were lucky enough to be left some inheritance and bougth 3 properties with it - and why not.

    i could have bought something nice or even cleared my mortgage but took the long term view.

    to simplify you have made it in this country if you were lucky enough to buy your house ten years ago. if you didnt my sympathys but this only goes so far. i certainly dont want house prices to drop so that in a while i can sell and make enough to give my kids a head start. i know that this is a selfish view and if everybodys house price dropped we would be at the same position but its just my capatilist mouth talking - sorry.

    right = i'm off to raise my tenants rent
  18. At the moment the with the present state of the housing market there is a
    think tank recommendation that its better to rent at the moment !!
    This is due to the 'owners ' having the problems of paying off mortguages that they hoped the rent income would pay from letting.With interest rates rising and overheads the profits are getting very small .

    The other big money buyers are the developers ---buy a house with a large garden and then build another two houses there.

    My house is paid for ---- however in 1967 when I bought my first house for
    £2,770 we only earned about £30 pw and it was hardship .However we did manage to live .
    My second house bought for £10,000 sold for £33.000 in the late seventies .Interest rates then peaked at 16% and people are complaining about 6% at the moment!!

    :nemo: :nemo:
  19. Seaweed

    Seaweed War Hero Book Reviewer

    1. Obviously some people get badly caught by it, but raising interest rates DOES control inflation. For anyone on a pension (which NEVER really keep pace with inflation) inflation is the BIG enemy that they can do nothing about once they are old.

    2. One big bounce in house prices was caused by all the wimmin caterwauling that their income wasn't taken into account because the lenders figured that when the babies started coming young couples wouldn't be able to keep up payments. The wimmin with much noisy fuss got this changed so INSTANTLY all their incomes could be used to pay mortgages - so, INSTANTLY, UP went house prices as much more money was chasing the same number of houses.

    3. Right to Buy was what peole wanted - they voted for it with their pockets. One result (as already remarked) was a huge investment in just thos eproperties which has transformed SOME council estates. You can tell who isn't on board by the old front doors and chicken-wire fences.

    4. As to houses being unaffordable, someone must be buying them! The higher prices provide a rationale for more building and in some areas this is beginning to bite as new houses are coming into the market and prices are levelling off - but as always this is a patchy thing and only true in some areas, not others. A neighbour of mine is on his third agent so his house is obviously over-priced. We need the buy-to-let sector in order to achieve labour flexibility and we need that in order to keep the economy modern.

    4. Life isn't meant to be fair.
  20. may I comment from the sharp end some of the reasons for this:-

    1. Silly people taking out a certain mortgage with an additional £30000 unsecured loan under the Consumer Credit Act. This invariably means that they are immediately in negative equity. Why not take out only what they need and don't take take extra for plasma screen TVs and holidays. Get your furniture from family and friends until you can afford new stuff.

    2. Your average smallie sailor is £35000 in debt. I heard an interesting fact recently that COs of training establishments - Collingrad and the like - now do not fine but give 9s - kids do not have the money and being kept on board is a punishment. Compare that to 30 year ago when handing over your dosh was a punishment and being forced to stay on board was an opportunity to earn extra cash by doing an oppos duty.

    3. I have not had to deal with any repos since I took over in my new job. Currently I have 4 on the go. They are most certainly on the up.

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