Mortgage deal ending

[Bazzmand Show]

Catastrophic for the banks yes but not for my kids or grand kids which is what anyone should care about

It will be catastrophic for literally anyone who already has a mortgage. I'm only 34 and have only recently got onto the property ladder, as have literally millions of others my age. Do you want us to be totally fucked so your kids and grand kids can get on as well?

 

[Kompany Car]

Catastrophic for the banks yes but not for my kids or grand kids which is what anyone should care about

The problem is its also catastrophic for many existing younger home owners with mortgages. If the house price halves then the LTV could easily be more that 100% in which case the banks say its very high risk and charge much more than the current interest rates. This makes the debt unaffordable to those young people who then end up losing their home.

 

[SWP's back]

Catastrophic for the banks yes but not for my kids or grand kids which is what anyone should care about

Yeah negative equity for everyone so your kids are fine.

Woop.

 

[BerkshireBlue]

It will be catastrophic for literally anyone who already has a mortgage. I'm only 34 and have only recently got onto the property ladder, as have literally millions of others my age. Do you want us to be totally fucked so your kids and grand kids can get on as well?

so....

I think you'll find it's your kids as well when you have them. Think of the bigger picture

 

[BerkshireBlue]

Yeah negative equity for everyone so your kids are fine.

Woop.

and your kids

 

[Bazzmand Show]

so....

I think you'll find it's your kids as well when you have them. Think of the bigger picture

I don't have kids because I cannot currently afford them and sorry - I don't really have much interest in your kids considering I've spent the best part of the last 10 years trying to get on the ladder.

 

[Kompany Car]

so....

I think you'll find it's your kids as well when you have them. Think of the bigger picture

There was, if you can remember back to the 90s, a house price crash where house prices fell by upto 34% in some areas. Yet 30yrs later (so roughly 1 generation) we're in a position where houses are unaffordable for many.

What did that crash actually do, well those who were cash rich could afford to hoover up properties at a discounted price, knowing that if they played the long game the market would come back and they would be quids in. It certainly didn't help with wealth redistribution or affordability in the medium term.

 

[BerkshireBlue]

I don't have kids because I cannot currently afford them and sorry - I don't really have much interest in your kids considering I've spent the best part of the last 10 years trying to get on the ladder.

selfish then. Wouldn't you want it easy for everyone to get on the ladder or would you prefer everyone to struggle as they are right now

 

[BerkshireBlue]

There was, if you can remember back to the 90s, a house price crash where house prices fell by upto 34% in some areas. Yet 30yrs later (so roughly 1 generation) we're in a position where houses are unaffordable for many.

What did that crash actually do, well those who were cash rich could afford to hoover up properties at a discounted price, knowing that if they played the long game the market would come back and they would be quids in. It certainly didn't help with wealth redistribution or affordability in the medium term.

that's why there should be regulations in place to stop this happening. 100% stamp duty tax for second home owners etc. the priority should always be moving one home owners or new buyers. Blame the government for that

 

[Kompany Car]

that's why there should be regulations in place to stop this happening. 100% stamp duty tax for second home owners etc. the priority should always be moving one home owners or new buyers. Blame the government for that

That is a very different discussion and limiting the purchase of second homes would be a step in the right direction for cooling the housing market.

The whole problem with the housing market stems from there being little to no social housing these days, which can be traced back to the Tories right to buy Housing Act of 1980.

This has driven the need for private landlords, which caused price inflation in the bottom end of the market which then rippled through to the upper end.

Building more good quality social housing is the key to getting out of this mess, it reduces the need for the new breed of landlords and should stabilise or slightly reduce property prices, without the collateral damage of a crash which would impact many in their late 20s and early 30s.

Just to add, I have a son who is currently at University (19yrs old) so I understand the concerns around affordability, but disagree that those in their late 20s/early 30s should suffer for the benefit of my son.