Exactly, so they have to live in the conditions of their time no different in most respects. Same as our parents had to live in the conditions of their time.
Mortgage Rate Rises
- Thread starter glenimp617
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It was for us. We needed more deposit because the max they would lend wasn't enough for the house
Got something to back that claim up? The 70s and 80s had exceptionally low rates of repossession.
The 90s had a blip, and then a bit of a blip after 2008.
Right so either the people who got repossessed in the 80s/90s made stupid choices or the people in the 00s/teens/now didn't. It's really simple?
So what happened in the early 1990s? The UK economy shrank during the recession of 1992 on the back of which they were record bankruptcies, high unemployment and interest rates of up to 15 per cent. Yes 15%!! Thousands of homeowners, who had borrowed heavily to buy their properties at then record prices in the late 1980s, became unable to afford their mortgage payments. Some tried to sell their properties but discovered that in the midst of the recession property values had declined, and they had fallen into the “negative equity” trap meaning that their mortgage debt was higher than the price at which they could now sell their property. Mortgage lenders would only allow so much time for the borrower to clear the mortgage arrears and/or repay the mortgage capital and eventually would take possession proceedings to recover the property.
At least twice as many properties were repossessions as against the so called great recession of 2008 in to 0.7% of all properties with a mortgage.
As someone up the page noted you have to live in the period.
In addition nearly all mortgages were variables, mo fixed and no trackers? If the interest rate shot up so did your mortgage payments instantly.
Interest was also recorded annually so ip to that anniversary you owed the same as the previous one.
At least twice as many properties were repossessions as against the so called great recession of 2008 in to 0.7% of all properties with a mortgage.
As someone up the page noted you have to live in the period.
In addition nearly all mortgages were variables, mo fixed and no trackers? If the interest rate shot up so did your mortgage payments instantly.
Interest was also recorded annually so ip to that anniversary you owed the same as the previous one.
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I remember the 90's more so because it was in the news quite often. Before then it wasn't really mentioned on the news.
Not necessarily, like I said unemployment was probably more of a factor or just rising costs that weren't taken into consideration. It doesn't really matter what decade it happened in, but the whole mortgage industry is different to the 80's and 90's, due to the changes made because of what happened then.
Nobody has really said that, just our perspective of going through it is different to those who didn't and just rely on statistics. The housing market and mortgages are not the same today as in the 80's and 90's yet people still try to make them the same.
Nah but things were different then, you didn't pay your mortgage you got repossessed.
Now it's like, but if you repossess my house little Timmy who's got ADHD, and is neuro divergent might get depressed, so you know it's my human rights to live here and my 9 children on benefits, and the courts bend over backwards and let them pay £10 a month.
Soldato
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What's your point here? That there should just be unrelenting repossessions, sod the consequences?
Strangely enough our generation had to go though just that.
Soldato
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I think that the issue here is a classic case of anchoring.
Interest rates, until recently, were at a 300 year historical low, and they're not any more.
This doesn't sit well with many people who haven't known any different than very low rates, but their experience is exceptional when compared to historical rates.
Interest rates, until recently, were at a 300 year historical low, and they're not any more.
This doesn't sit well with many people who haven't known any different than very low rates, but their experience is exceptional when compared to historical rates.
Soldato
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So what?
Yes it was tough in the 90s. I remember how hard my parents had it. Luckily they both had jobs but we were still very close to the poverty line. They built up a lot of debt.
People had it tough in the second world war too. And the first one. And the medieval times. And the Roman times. And when we were cavemen.
Do you want to inflict pain on the current generation just because you had to go through it?
Soldato
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The point is it's all relative to the rest of the economy. An economy with lower debt can withstand higher rates. Debt was lower in the past therefore rates could be squeezed higher. That headroom is gone.
It's childish poor me nonsense.I think that he was having a rant.
If you have followed the posts, you would see that I have said that 'I hope that this time they don't have to go through it'. This is because I was near to losing our house in both the 80's and again in the 90's. However the governments have changed the way things are handled now to reduce the problem.
At the risk of saying i told you so Rachel, I told you so. Meanwhile in other news, one hundred years since Maggies birth we have a couple of Michael Foot wannabes on the horizon.
Zarah Sultana launches fundraising drive for new leftwing party
MP pushes on with plans after week of confusion after announcement she would co-lead party with Jeremy Corbyn
www.theguardian.com
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Soldato
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Ok. But the apparent lack of sympathy if it does happen, "because a previous generation has to go through it", I'm not sure what that adds to anything.