tag:blogger.com,1999:blog-2948538160252327076.post3407622632406873510..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: Average mortgage loans down 19 percentAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2948538160252327076.post-56406311991411212972009-05-04T16:16:00.000+01:002009-05-04T16:16:00.000+01:00This is a wonderful opinion. The things mentioned ...This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.<br />Rider<br /><A HREF="http://www.homemortgage247.net" REL="nofollow">Home Mortgage</A>rider21https://www.blogger.com/profile/06895006342626570369noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-22102305555448451982008-10-28T16:26:00.000+00:002008-10-28T16:26:00.000+00:00Thank you for your comments and post. I think tha...Thank you for your comments and post. I think that a <A HREF="http://www.checkcity.com/corporate/mortgage.html" REL="nofollow"> mortgage </A> will always have issues and questions, so it's good to stay abreast on the lates issues.Unknownhttps://www.blogger.com/profile/10852074845583209601noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-32974289286295062802008-10-26T18:50:00.000+00:002008-10-26T18:50:00.000+00:00only down 19 percent?only down 19 percent?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-56893793241125368312008-10-25T12:35:00.000+01:002008-10-25T12:35:00.000+01:00On the series of LTV.5% 10% 20%For each of those a...On the series of LTV.<BR/>5% 10% 20%<BR/><BR/>For each of those adjustments the house prices would halve, i.e. 5->10 house prices halve. 10->20 house prices halve.<BR/><BR/>Going from 5% LTV to 20% LTV, which is what the banks have done, actually quarters the amount you can, and so basically quarters housing prices. 75% off !Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-35142794770565161912008-10-25T12:31:00.000+01:002008-10-25T12:31:00.000+01:00Totally disagree, you misunderstand, any LTV adjus...Totally disagree, you misunderstand, any LTV adjustment has a hugely disproportionate effect on prices.<BR/><BR/>90% LTV -> 84% LTV.(HUGE DIFFERENCE)<BR/>Typical deposit 20K.<BR/><BR/>So first scenario affordable house price would be 200K.<BR/><BR/>Second scenario affordable house price would be - 125K -.<BR/><BR/>Decreasing LTV even slightly kills the housing market stone dead. Thats not an adjustment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-77760060726045777732008-10-25T11:50:00.000+01:002008-10-25T11:50:00.000+01:00This implies that loan to value ratios are becomin...<I>This implies that loan to value ratios are becoming more prudent.</I><BR/><BR/>... that depends on house prices; all things being equal, if loan sizes are down 19% and house prices are down 13%, that could mean: average LTV down from 90% to 84% (not a huge difference); if could mean that nobody is buying/selling big houses any more but people are still buying/selling cheaper properties with the same high LTV's.<BR/><BR/>@ Rentergirl, about 85% of the debt bubble was related to rising house prices (and we can include MEWing in that category). Sure, some poor sods have unsecured loans, but they only make up 15% of total household borrowing.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-61182079572796993132008-10-25T10:14:00.000+01:002008-10-25T10:14:00.000+01:00I obviously need to go through my understanding of...I obviously need to go through my understanding of matters again. I was under the impression that the whole system is dependant on a permanently increasing debt level, with inflation being hopefully at a low but positive value.<BR/>So how exactly can we pay down the debt this being the case ? I understand the problems come from excessive debt, but if the value can't shrink....<BR/>Do you mean that we don't take anymore debt on until wages catch up to debt levels, as in general inflation catches up to house price inflation?<BR/>Sorry to be dumb. Is it possible to pay down debt? I thought that the net creditor countries such as Japan were such because they were holding foreign currencies, but all money being debt so for example, yen debt is held by the government.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-25614899001383886942008-10-25T09:50:00.000+01:002008-10-25T09:50:00.000+01:00If you spend more than you earn it means your sens...If you spend more than you earn it means your sense of entitlement is too high. It's no excuse for going into debt to say you wanted a higher standard of living than you had earned.<BR/><BR/>People don't want to face the fact that Britain isn't as rich as they want it to be, and that they aren't either. But that's what happens under socialism - taxation and government interference progressively allocates capital away from its productive uses, so total wealth creation falls, so the country gets poorer.<BR/><BR/>They try to cover up the effects by ramping up the debt load. Then it crashes.<BR/><BR/>So colour me unimpressed by the "I didn't earn it but still wanted to spend it" line.Nick von Miseshttps://www.blogger.com/profile/03985951853422897135noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-74479865273068580592008-10-25T09:36:00.000+01:002008-10-25T09:36:00.000+01:00I agree that personal debt levels were too high, b...I agree that personal debt levels were too high, but isn't always down to greed and conspicuous consumption. Wages were low. Increases were below inflation. Some people felt obliged to buy petrol and food on credit. It was always going to end in tears, but that debt mountain didn't all go on shoes and trinkets.RenterGirlhttps://www.blogger.com/profile/12556830109922784321noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-78985182062933484462008-10-25T07:12:00.000+01:002008-10-25T07:12:00.000+01:00I don't wish to trivialize the pain of a recession...I don't wish to trivialize the pain of a recession, but the UK economy has entered a painful adjustment. To their credit, banks are beginning to understand this, and they have taken the first tentative steps towards recovery. Households are also starting to understand that personal debt levels need to fall, and consumption is falling back to more sustainable levels. This has inevitably led to a fall in output.Anonymousnoreply@blogger.com