to feel pissed off with selfish 'baby boomer' generation

[hermionepotter]

this was in response to a newspaper article where people surveyed wanted interest rates to go up. I could be BU I know. But it won't be those paying massive mortgages and debts who'll be wanting rates to go up, will be older people wanting interest on their savings and sod everyone else. So am I BU?

We need guns.

I'm with Noddy and AskBasil

Tread softly but pack an AK47.

They didn't teach that at Uni did they? [shocked]

Yes we do need a correction but any massive deflation in house prices is going to hurt some people very badly - as it did the last time house prices took a dive after the double MIRAS boom.

But noddy, MN (I find) is not a proportional representation of society. I know a lot more people IRL that I would care to admit, who freely admit they will not be able to cope if interest rates go up by much; they will default.

Ok, fine; their problem. Except it's not, is it? Because social housing will have to be found for them, when there is already a huge lack of it (though I appreciate that is another conversation!)

Also, banks will be left with assets worth less than they loaned out for. They're not going to be happy with that and take the hit are they? Surely?

I would be nice though if some baby boomers could at least acknowledge that not all younger people are feckless and work shy, and that many baby boomers only own expensive property and have decent pensions because of sheer good fortune

Most of us (certainly in my circle) are all too aware of how hard it is for young people. Many of us are supporting children at a time in their lives when they should be independent. Many of share our homes with adult children who cannot afford to move out. Many of us have children who've spent years in education only to find there are few opportunities for them.

Having that acknowledgement will make no difference to your generation, though. The only way you'll change things is through the ballot box - and I can assure you that the present UK government did not get my vote.

You didn't retire on a good pension at 55 because you worked harder than people today. You were just bloody lucky

The only person I knew who retired at 55 was a police officer. It's unusual, to say the least.

But as others have observed, all this scapegoating is distracting. Let's not hate whole generations for being "lucky", "feckless" or whatever.

While we're sniping at each other, the powers that be are doing precisely what benefits them and their wealthy cronies. Let's unite and get angry at them instead.

Agree a correction of the sort required would hurt some but there are going to be casualties of this and as long as you don't need to sell it isn't an issue. A close family member of mine bought a flat 6 yrs ago initial payments 1100 month after all the rates fell eventually they were paying about 225 and have been until now. They have spnt the extra and not over paid. Thy are going onto the base rate from April and will be paying about 550 I think and say how will we cope? Thy drive me nuts thy have been holidaying and new cars etc

But if a small rise would make you homeless you could never afford it

They will have to rent social housing is a thing of the past sadly. If you can't afford to buy ou rent we can't keep rates low because some people over borrowed. Current rates aren't normal.

great post babyboomersrock and this thread has been very enlightening for me

They don't need to ziggie- if you're repossessed, the bank take your home, and you still owe the debt. Banks will get their money, and more. That's why repossessions sell for so little- banks don't care how little they sell for (and the quicker they're sold on, the quicker a new mortgage customer comes along ) because they're still owed a debt on top of the house/flat.

But vworp, those people will just declare bankruptcy so they won't owe the debt anymore; it'll be negligible.

From what I understand, it's actually quite difficult to go bankrupt these days. Also- did you know that even if you go bankrupt, you still owe your student loan? That's nice, for all these 20-somethings, isn't it?

Bankruptcy will affect both home owners though and a couplt with no financial status would not be able to do much. I really think we will see carnage in the next 5 years if people keep burying their heads

According to articles I've seen in the press, there are many mortgage defaults already but the banks have not moved to repossess because they would incur a loss and also because the Govt introduced some relief plans to avoid repossession except in a last resort.

But it's coming. We are almost at the 7% that the GoftheBofE says would trigger a rise (and he pre-empted his own forecast while in Canada, where he let them rise before his target was reached)

I have a feeling the next 'scheme' will be some sort of deal where te govt own stake in your house They are already planning to make SMI a loan now rather than a bnefit

Must be the circles I have the good(?) fortune to mix in. I know a good number who retired between 55 and 60.

I don't hate bb'ers or think the blame lies squarely on their shoulders. I just hate the attitude of some bb'ers I have the pleasure of knowing. The sort who think they're terribly clever for having bought a house for tuppence and a half-chewed toffee and which is now worth five trillion quid.

Interesting you should say that about repossessions, wetaugust. I vaguely know a couple who have had a property repossessed recently, but it's been standing empty for over a year and I suspect the mortgage wasn't paid for significantly longer. It's now been sold for about £60k less than they paid.

I think you're right Noddy. Too many people will be affected this time for the Govt to let things take their natural course.

I can't understand how USA, Eire, Spain etc all suffered huge falls but we seem to have been immune. Unless the Govt intervention is already greater than we've been told.

But if you can't pay, you can't pay. And they won't just put families out on the streets; social housing will have to be found. So it's society's problem for those who can't pay. Don't get me wrong, I'd far rather live in a country that has welfare, but the point needs to be made.

People will default, get repossessed and fall back onto the state for help (as they should be able to, obviously). So that doesn't benefit anyone.

Excellent post babyboomersrock. I agree with every word of that.
I think my children are just as intelligent, possibly more so than DH and I, I know they are both hard-working and ambitious but I also know they are not as willing to live as frugally as we did which, combined with high property prices makes home-buying even more of a challenge.
Many younger people seem to think that things which we treated as luxuries are essentials.

I do think life is hard for young people now but to blame a whole generation is OTT. I am 53 so although I have been lucky enough to catch some of the boom it was just the tail end. As said upthread many of us are using what bit of good fortune we have to help out both our elderly parents and our young adult children

Yes, Chunderella. It would cheaper to keep them paying even a token amount in their own home than it would be to force them into (expensive) rented for which they would require rent top-up by housing benefit.

I wonder what the true number of these are. Coupled with the maturity of interest-only mortgages, it's a bit of a time bomb.

That's interesting the banks are reluctant to repossess. That says that they know prices are artificially high.

I have a group of friends who are mid to late 20's who have the deposit to buy/ability to buy within the next year, but won't because they won't pay current prices, they're biding their time. I guess I fit into that myself.

I wonder what that means, because I think that can't be uncommon either.

But if you rent ad the state have to fund it in part there is a limit You can't just select any house in any area you will be limited by rules.