To think no one has a right to make money off their house

[Laughingstock1991]

The general consensus among financial commentators this week has been that the housing market has turned. Interest rates are still going up and are unlikely to come down for a few years. The low interest rate financial experiment that has been in place since 2008 has ended and it’s unwinding is going to be painful. The housing boom was based on cheap credit.

My mortgage is likely to go up about 400 a month. Lots of commentators reckon we are in for a big fall in house prices. Good thread here:
https://twitter.com/EdConwaySky/status/1668987423643119623

What pisses me off is the absolute assumption made by some people (like my friend today) that the government should use public money to bail out mortgage holders. Most people were stress tested on their mortgage- I was- and yes it’s going to be tough but do I think public Money (renters money) should be used to bail out mortgage holders- fuck no! The Lib Dems have raised this also today.

House equity is unearned wealth. There are no guarantees. We have been through a boom and now it’s going bust. Hopefully sanity will return & housing will be seen as a home again- not an investment. Its not a ‘market’.

And I say all of this as a homeowner who is going to have to pay a lot more. I want everyone to be able to afford a decent home- not just those with money.

I don’t think that’s unreasonable!

I hadn’t heard of stress-testing on mortgage loans, but as it was introduced after 2008, I wouldn’t have, as being older (not empty nesters, though! Our DC still live with us), we paid our mortgage off after 33 years and three consecutive properties/mortgages a few years ago.
However, having started out in life working in the mortgage business in the 1980’s through to the 1990’s, when the rates rose from 11% to 16.75% for some people, I am questioning the stupidity of the banks only stress-testing to 6%, and lending people any more than 3 x salary/joint salary.
If they had stopped lending earlier, the prices of property (and rentals) would have, and should have stagnated long ago. But no, they “had” to lend MORE people far too much, otherwise they wouldn’t have been able to keep inflating their own (too high) salaries using both the mortgage over-lending trick, coupled with closing most of their branches down and getting rid of their lower-paid employees.
Hindsight, as I’m sure some will point out, is a wonderful thing, but the banks appear to have cynically ignored historical facts at borrower’s peril. That the banks should get away with this, especially since many of them have been bailed out already by public money, is a disgrace.

And that support going into landlords pocket.

Yes and contrary to Daily mail opinion, the vast majority of unemployed, chronically ill and disabled actually want to work. Also choosing to be unemployed is very rare and it never leads to being gifted a big house, £20k + per year and a free 50" TV. Both my partner and I have spent 8 of the last 15 years unemployed thanks to having the temerity to turn 50 and be made redundant from our real jobs. And of course, also contrary to Daily mail opinion we haven't been entitled to a penny in benefits.

please cite your evidence for this claim.

This idea that the owner makes this magical money from buying a house is not true.
First many had to work your ass off saving for the deposit, cutting back wherever they could. Married couples living in flat shares and working full time or even multiple jobs - you read about it all the time.
They invested time and money into bank and legal appointments, house viewings, getting messed around in chains etc.
They took on the risk of home ownership, the mortgage, crazy neighbors, the lot. Can’t make a complaint to the council if you don’t want to risk your equity. No landlord to call if your boiler breaks or you start getting damp.
And then there’s people like us, we’ve invested around 100k updating our home to make it fit to live in. And we’re crammed as a family of four into something too small because actually we are in an area where it’s cheaper to rent than buy.
The main people buy is it’s an investment, so it should eventually pay off. If people make money from their homes, we’ll that’s the whole point in the first place isn’t it?
But also agree that’s the risk. There’s no guarantee. So governments don’t have to bail us out for our right to equity.
They might do for their own reasons. E.g they haven’t built enough rental homes to take care of a population who doesn’t buy.

But you could say this about all government help. Where do you stand on forcing people on benefits to take more work? On the nhs treating people with sports injuries, lifestyle induced diseases etc. paying people more money in benefits when they have kids? Help with fuel payments?

if people lose their homes what cost to government then? Just the renting of homes for them (not to even factor in the additional cost of more broken families etc). Money being taken out the economy as homeowners use all their cash to pay for their mortgage, likely to lead to massive job loses elsewhere. It’s a domino’s effect. Stress testing does not factor in those kinds of things.
It really doesn’t take a genius to think these things through (no surprise the Lib Dem’s can’t work it out)

Genuinely can’t think of anything worse than the govt undertaking a massive housbuilding programme. Covering the country with low quality, ugly barracks to ‘house’ the workers. Sounds horrendous

FFS that is like saying that UC isn’t a benefit as it goes into TESCO’s pockets. HOusing benefit is used to fund housing for the r ooo which is exactly what it does.

Always with the personal insults - and you have been the same with me & other people on other threads.

How about just making your points without personal insults?

The banks will take some responsibility for helping to stop home owners from being repossessed. They do stress test new mortgage applications and have done for many years on government instruction, they do also offer

They do also offer mortgage breaks, interest only periods and extending the mortgage term where possible.

The problem will arise where, for a small minority of home owners especially recent FTBs with little or no equity, these interventions are not enough. Being pragmatic, I do think the government will offer some financial support to the people in this situation. Because that would be cheaper to them than having to find them council accommodation, which we don't have enough of anyway due to government policies from Thatcher onwards. And no one wants to see more homeless people, do we? If they are genuinely in need then they will fall under the umbrella of requiring help from the state.

But the first call will be for the banks to do everything they can to prevent repossessions.

Genuinely can’t think of anything worse than the govt undertaking a massive housbuilding programme. Covering the country with low quality, ugly barracks to ‘house’ the workers. Sounds horrendous

Blimey you're a snob. If you were having your home repossessed I doubt you would turn your nose up at the housing you were offered.

I live in an ex council house, the rooms are bigger and the build is a much better quality than the last private builder estate i lived on. The house I had before that was a Victorian semi which was built to "house the workers"

1.1 million household in the private renting sector claim benefits, the average LHA for the private sector is £110pw - that's 6 billion a year going from the government to private landlords. That's before you have the top ups made by the tenants and the 4.4 million who don't claim but pay £1000s in rent every month. But God forbid should we provide sensible social housing.

Labour wanted to build more social housing, this would be happening now if people hadn't voted for Boris Johnson, maybe people will realise their mistakes when the houses start being repossessed, and there's nowhere to go.

But Labour also didn’t build enough social housing in 13 years did they ? You can’t know for sure that they would have built any more of has they have won the last GE

All we see is the government build new builds which are for private home owners and a tiny amount for social housing.

So people have to either buy - which many can’t do ,or are stuck in private renting.

It's not based on luck at all, do your research and follow the markets you know when the right time to buy is, some have some have not and that's life I've been on both sides

I know I should have bought in the late 90s or early 00s but I was still at school 🙄

I'm surprised it took this long to invoke Godwin's Law, but here we are.

Social housing doesn't have to be ugly. Our local HA are building a few around here, and they are nice houses, with gardens, that blend in well with the area.

The trouble is that not enough of them are being built.

Whoever gets in next really needs to put massive investment into social housing - it would solve a lot of problems.

Far better than propping up over committed mortgage payers. The banks should be finding solutions for those situations.

Corbyns socialist Labour Party was very different to Blair's tory lite Labour Party. Corbyn wanted to build housing and renationalise the trains and water companies. All stuff that desperately needs to happen. But people didn't vote for that, not because they didn't believe he'd do it, but because they didn't want him to.

So here we are, taxed to the hilt and nothing to show for it. No social housing, high interest rates and a looming recession.

I said this before but surely the answer is to stop increasing interest rates? I know they did it to curb inflation but surely millions of people losing their homes would be a more disaster than paying more for inflation?

I know we pay more for goods with higher inflation, but surely that would
be dwarfed by the alternative which is paying thousand of pounds a year more rent or mortgage payments?

Not sure it’s the case that people didn’t want those thing to happen- people just didn’t want to vote Corbyn in. He was seen a bit like Neil Kinnock, too left wing. Corbyn was seen as unelectable.

I think most people would want the trains and water companies to be nationalised.

The housing crisis is a mess but I can’t see any sign of it improving.

Interest rates are due to go up again next week.

The thing is historically they're not high. And will probably not go back below 4% anytime in the next 10/20 years. There can be no bail out or help as this is the new normal. ☹️

Crikey the hatred, misinformation, division and outright bigotry this post has exposed!

To those who diss people who don't work and do nothing to help themselves: What about those who can't help themselves - people with disabilities, mental illness, trauma, etc. Yes, those - the ones who takes up all that social housing. If anyone thinks people choose a life on benefits because it's easier and more comfortable than working, then they're more than welcome to jack in their jobs and live a life of penury and insecurity. No? Not for you? Right.

People - give your collective heads a wobble!

The only way to achieve normalisation of house price: salary ratios without entirely trashing the economy is to improve productivity so that there can be sustainable, real-terms salary rises. That has been what is lacking for the last 20 years. Crashing the housing market will do nobody any good.

If you don't like it, report it @Twiglets1 .
If you recall, on the previous thread, you attacked me when I had not made a personal insult and ignored the other poster's personal insults to me simply because you disliked my opinions. The other poster subsequently had several posts removed and mine were not. Why don't you check as this clearly bothers you so much that you need to chase me to a different thread!

@TheThinkingGoblin what actually does the state exist for then? Is it for £100 a day in Lunch expenses?

The hilarity of it is the comments on this thread that if you cant afford your Mortgage . You better work harder, and you better get a better paying job which would lead to increase spending an increased inflation.
I’ve had a 10 grand pay rise since Christmas. It sure as hell isn’t going into savings.