UK banks and lenders suspend offering new mortgages amid market turmoil

Post by highwaylights » Tue, Sep 27, 2022, 9:31 AM UTC

Neil44 wrote: post #19

highwaylights wrote: post #9

Earlier quoted context omitted.

Time is a factor here, too. The longer they wait the harder it’ll be to get it back under control - which may not even be possible at this stage, given that they’ve grossly underestimated the scale of the problem at every step. The thing that really worries me is that most people don’t understand how any of this works and are still worried about fuel costs. They have no idea that a further (minimum) 1.5% hike is immi…

You seem to be talking about inflation rather than interest rates

Post by krona » Tue, Sep 27, 2022, 9:34 AM UTC

mschuster91 wrote: post #11

simonswords82 wrote: post #7

Earlier quoted context omitted.

I’m sorry but I just don’t see how “many will lose their homes”. Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments. Evicting people is risky long winded and generally speaking their last option. Unless you've got some data to back up what you are saying in which case I’ll shut up. Edit: Lots of replies saying "but they're not charities etc…

> Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments. German mega-landlord corporation Vonovia announced just a few days ago that they will evict everyone too far behind on payments for heating [1], in order to pacify investors. Never trust rabid capitalism to keep the people in mind. For the beancounters, all that matters is the current st…

Post by roenxi » Tue, Sep 27, 2022, 9:42 AM UTC

the_mitsuhiko wrote: post #22

roenxi wrote: post #14

Not exactly on topic, but a good moment to think - are mortgages even fundamentally desirable? The price of a house is always going to be exactly savings + mortgage, if nobody was taking out mortgages the prices would adjust and people would end up in the same house as before. It is interesting to ask if mortgages should be rare. It isn't obvious why everyone needs to pledge years of their life to the wealthy in orde…

For as long as society thinks home ownership is fundamentally desirable so will be mortgages as most people won't be able to afford a place otherwise. Generally speaking life is so fast and unpredictable for people, that home ownership for many is probably individually a lifestyle choice but a fundamental risk. So I think if you want to question mortgages, it's better to question the entire idea of everybody being fo…

Post by Neil44 » Tue, Sep 27, 2022, 9:48 AM UTC

highwaylights wrote: post #12

dazc wrote: post #10

Earlier quoted context omitted.

Interest rates have been considerably higher in the past though. What is different now is that people have gotten used to an endless supply of cheap credit and thinking they are well off so long as the monthly payments can be maintained. Also, the social media pressure to have the apperance of a perfect life doesn't help.

I agree with all of this, and I’d argue that it’s even worse as I very much doubt anyone gave good advice to most of those people before they took out those mortgages. I mean, sure, some of us know better - but that’s probably because someone along the way made it clear in very stern terms that you never sign anything you don’t fully understand.

Post by Accacin » Tue, Sep 27, 2022, 9:51 AM UTC

the_mitsuhiko wrote: post #13

simonswords82 wrote: post #7

Earlier quoted context omitted.

I’m sorry but I just don’t see how “many will lose their homes”. Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments. Evicting people is risky long winded and generally speaking their last option. Unless you've got some data to back up what you are saying in which case I’ll shut up. Edit: Lots of replies saying "but they're not charities etc…

When I lived in the UK my experience was that not only me, but a lot of folks in my age range back then ("young professional") moved all the time. The tenant protections were pretty appalling, particularly if you rented from a private landlord. It does not seem very unlikely that people will lose their homes and have to move.