House prices to crash

[Uncle C]

if rates go up fast a fith as quick as they come down were all f***ed!!!!

Nope, only those that overstretched.

 

[Uncle Spielberg]

This is my final words on the matter.

 

[ridda]

“God you lot” We had over ten years of a house price super cycle that has now ended, in that time house prices outperformed the stock market which is not the norm.
We are now going back to the norm, house prices will fall over next few years in real terms if you include inflation by about 20%, which would bring prices down to somewhere near where they should be.

 

[beorhthelm]

You haven't heard the FSA's proposals for mortgages for the self employed in the future then ?.

thats another issue you keep on about... proposals are just that, not actually set in stone rules. but anyway, what use is a mortgage broker to self-employed if they were fully put into effect (which they wont be). are you campaining to see that these rules are dropped, or just crying about about it?

 

[Gwylan]

No offence mate, but would you put your mother in the area's or flats that have come up? Serious question.

Peacehaven or Telscombe? Nothing much wrong with them TBH Perfect retirement places.

The real problem is that even one-bed places are dearer than the three-bed place that she has in the north-east, which is why we're looking at Worthing now.

 

[Uncle Spielberg]

There is no point as the FSA as they have proved will just do what they want anyway.

 

[Bozza]

Part 1 - so you are agreeing with me as Simster was not worried about the SVR and I said he should be.

Part 2 - Well actually mortgages arranged 2 years ago would have shown and svr now of over 7% and they are around 3.5% on average.

Brokers would have explained the svr. You can bet your bottom dollar Bank " advisors " would not.

So you have agreed in the importance of my role.

Thanks mate

It is my experience that brokers, and every single mortgage I've had was placed with a broker, skim over the SVR and future repayments because it was the done way to just re-mortgage at the end of the largely standard 2/3 year fixed/discount period.

As well as being to the advantage of the punter - why pay a high SVR when there were cheaper deals about - it was also massively in the interest of the broker. Arrange someone a 2 year fix and, after 21 months or so, diarise a task to pick up the blower and arrange their next mortgage for them. Nice, easy repeat business with nice, easy, re-occuring commission.

Who'd have thunk that model would all but collapse in the not too distant future?

 

[Bozza]

You haven't heard the FSA's proposals for mortgages for the self employed in the future then ?.

Should the FSA make some wide-ranging reform of mortgages for the self-employed then he'd be f***ed whether he went to a broker or not, wouldn't he?

 

[Bozza]

This is my final words on the matter.

Thank god for that. We can finally get back on topic.

There is no point as the FSA as they have proved will just do what they want anyway.

Oh FFS - you bloody liar.

 

[beorhthelm]

There is no point as the FSA as they have proved will just do what they want anyway.

no, they will do as their political masters will tell them. many of whom have been or have relatives/friends/colleages who are self employed. its not just chippies and plasters who are self employed, journalists, PR wonks, directors all come under that umbrella too.

 

[Mr Burns]

Actually the FSA's proposals will make it very difficult for the 4 000 000 self employed in this country to get a mortgage again.

What if the Bank base rate is back to 5% in 3 years time and you are paying 7.5% and not able to re mortgage ?.

So the FSA are going to make 4 million self employed tax paying workers unable to get a mortgage?? Get real FFS

These sort of proposals will not ever happen. At a time when the governement is trying to get people off of handouts, your going to potenally make 4 million people, working, tax paying people homeless! People pay you for your advice? I think I'd end up cutting my wrists its I had a hour finanical meeting with you

As I said, if I have absolutely no doubt I can remortgage in two years time. If rates go up (which I doubt they will for at least two years) I will get another deal.

 

[Uncle Spielberg]

So the FSA are going to make 4 million self employed tax paying workers unable to get a mortgage?? Get real FFS

These sort of proposals will not ever happen. At a time when the governement is trying to get people off of handouts, your going to potenally make 4 million people, working, tax paying people homeless! People pay you for your advice? I think I'd end up cutting my wrists its I had a hour finanical meeting with you

As I said, if I have absolutely no doubt I can remortgage in two years time. If rates go up (which I doubt they will for at least two years) I will get another deal.

Good luck then. I am just telling you the way it is take it or leave it. If you had done my job for 1 week you would actually know where I am coming from.

 

[Uncle Spielberg]

So the FSA are going to make 4 million self employed tax paying workers unable to get a mortgage?? Get real FFS

These sort of proposals will not ever happen. At a time when the governement is trying to get people off of handouts, your going to potenally make 4 million people, working, tax paying people homeless! People pay you for your advice? I think I'd end up cutting my wrists its I had a hour finanical meeting with you

As I said, if I have absolutely no doubt I can remortgage in two years time. If rates go up (which I doubt they will for at least two years) I will get another deal.

And I don't charge a fee so my advice is free.

 

[Bozza]

And I don't charge a fee so my advice is free.

Your advice seems to be it will be (next to) impossible for the self-employed to get a mortgage.

That's a big chunk of your shrinking market gone then, right?

 

[Uncle Spielberg]

Correct.

 

[Chicken Runner61]

I think someone already posted it on here but what will happen is that the self employed will start showing a profit on there books TO GET A MORTGAGE as opposed to writing their books down to save tax.

As Mr Burns said - if not the self employed will just become employed.

 

[Uncle Spielberg]

What if they can't become employed ?. What happens then ?.

 

[Chicken Runner61]

Your missing the point US People always find away round the system - sometimes the system will find away round for them.

Ypu only have to go back 30 years and most people were not self employed and did not use brokers. You could say that brokers became abundant because so many people became self employed and could easily write their own proof of wages

Its only the end of the world for some people not everyone.

 

[beorhthelm]

What if they can't become employed ?. What happens then ?.

self-employed become employed by umbrella companies that pay them PAYE like thousands of IT contractors and many others have done since IR35. not that this will come to pass, it will be dropped as its self-cert mortgages that are under the spotlight, not the self-employed. accounts will be required, thats all.

 

[Chicken Runner61]

self-employed become employed by umbrella companies that pay them PAYE like thousands of IT contractors and many others have done since IR35. not that this will come to pass, it will be dropped as its self-cert mortgages that are under the spotlight, not the self-employed. accounts will be required, thats all.

Exactly - and anyone that can show that they actually can afford the mortgage they seek will get one.

Its not the getting of a morgage thats the problem now its the proof and affordability thats the problem.