Lokki 7
WSU
No it's not. FTSE down less than 5%. Bad, but not the worst by some way.
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Another bank I hear are being bought tomorrow
- Thread starter Digweeds Trousers
- Start date
No it's not. FTSE down less than 5%. Bad, but not the worst by some way.
The CBI are forecasting a "shallow recession" but they are saying it WILL NOT be as bad as the one we suffered in the 90's
http://uk.news.yahoo.com/afp/20080914/tuk-britain-economy-business-a7ad41d.html
http://uk.news.yahoo.com/afp/20080914/tuk-britain-economy-business-a7ad41d.html
seagull_special
Well-known member
I think that so called stability was forced and is the equivalent of keeping someone alive on a life support machine, I think the world is about to change and us with it!
Uncle Spielberg
Well-known member
Bit off the pace, it is already worse.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,029
why would a house purchased from one of these companies be at any risk? sounds like too many 'beaters.
Lokki 7
WSU
Oh, and the US Govt has washed it's hands of Lehmans and is not getting involved.
(Bet you're glad to have me back Unc.)
Rusthall Seagull
New member
lucky you can access the internet from starbucks eh?
Lokki 7
WSU
Don't take it out on me Kent boy. Not my fault your firm can no longer afford City rates.
Gazwag
5 millionth post poster
I assume it means that any problems with the house would now be the owners responsibilty
I thought your house was owned by the bank until you pay off your mortgage.
If that's true, then when the bank goes bust and its creditors come knocking, they are entitled to liquidate the bank's assets to recoup the money. That could mean selling your house for you.
This may be wrong, but isn't that how it normally works? And Lokki is spot on when he say the US govt is washing their hands of Lehmans. They won't be bailing out wall street this time.
Rusthall Seagull
New member
Uncle Spielberg
Well-known member
Lokki 7
WSU
Which has been bought by Bank of America. This is a corporation, not a government body.
Scoffers
Well-known member
Sounds plausable, forcing you to pay back what you owe, and ending the mortgage agreement to pay off the creditors. So if one of the big lenders over here went bust, would it really force thousands of people to move, or could they just look to remortgage, assuming that they didnt have negative equity of course!
The mortgage book would be bought by another bank but the business itself would not. So the mortgages would move to another provider but the debts of the business would remain with the company.
This would mean the householder would have a new provider and new terms at the end of the mortgage agreement.
People would not be kicked out of their houses, but they may find that when their term expires they get very unfavourable terms on the re-mortgage.
Digweeds Trousers
New member
- Thread starter
- #36
The bottom line here is with a number of the incentives to attract new / first time buyers into the large developements that these types pof companies specialise in is that the whole revenue return model is now wankered.
According to some reports from independent bodies, over 2.5million people moved in the last 12 months on the basis of £100.00 to move in type offers - or we will pay your stamp duty approach - the mortgages and cash collection were based on this model - and that has left colossal holes in the liquidity of these businesses.
Now there is little additional debt to leverage formt he market os the ability to shore up a balance sheet or protect and optimise cash flow to be able to off set one challenge by investing is now a hudge problem.
Rightly or wrongly this is the approach that so many businesses like these have taken for many years.
The comment from whoever about Ocean Finance earlier is also inteesting - I think we will see a massive collapse in this sub prime market - because none of the companies lend their own money - they too ahve a massive bundled debt allocation and exposure - and more critcally they have the highest ratio of highly geared / risk category among all their customers.
According to some reports from independent bodies, over 2.5million people moved in the last 12 months on the basis of £100.00 to move in type offers - or we will pay your stamp duty approach - the mortgages and cash collection were based on this model - and that has left colossal holes in the liquidity of these businesses.
Now there is little additional debt to leverage formt he market os the ability to shore up a balance sheet or protect and optimise cash flow to be able to off set one challenge by investing is now a hudge problem.
Rightly or wrongly this is the approach that so many businesses like these have taken for many years.
The comment from whoever about Ocean Finance earlier is also inteesting - I think we will see a massive collapse in this sub prime market - because none of the companies lend their own money - they too ahve a massive bundled debt allocation and exposure - and more critcally they have the highest ratio of highly geared / risk category among all their customers.
Scoffers
Well-known member
Ok, so it's effectively just like moving mortgage providers,
aftershavedave
Well-known member
would they be the same people who literally CACKLED every time an interest rate increase went through a while back in the knowledge that they had fixed rate mortgages?
As long as you continue to repay the mortgage as per your agreement, the bank (or its purchaser or creditors) can do nothing. You own the house from day one - the bank just has it as security if you fail to repay as agreed. The most likely thing to happen if the bank goes bust is that your mortgage will be sold to another institution who will collect your repayments. The only thing to worry about is that if/when you come off any special interest rate deal you're on, you'll probably find the ongoing rate not very competitive so you may need to remortgage with someone else then.
Digweeds Trousers
New member
- Thread starter
- #40
no - not really (in my opinion) like moving mortage lenders - you do that by being able to choose from a variety of competitive offers.
In this situation it will be terms and rates forced on you with little or no choice for an alternative
In this situation it will be terms and rates forced on you with little or no choice for an alternative