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!

@StraightOuttaChorlton i’m in my 40’s with a mortgage that’s rising dramatically and 2 kids in school. Not in a dissimilar position to you.

But I can see how bad things now are and just want fairness. I have loads of friends stuck renting in shitty houses.

Seems pretty unfair on people who can’t afford to buy homes if the government bails out those who own them but are struggling to pay for them.

Do you think pensioners, who have got off their arses, and worked all their lives, shouldn't take something back? What about wealthy parents, who still take child benefit, or is it only OAPs you have a problem with?

So you want all mortgage paying homeowners to be evicted as a consequence of skyrocketing rates and then pay rent to landlords instead?
You know, those landlords making money of the houses they own.
The stupidity astounds.

But we would collectively be worse off as a whole if there is a bailout. I speak as someone with a 280k mortgage that I will be remortgaging next year..if inflation doesn't go down, I would have to double my salary just to keep up with inflation. Right now, even if my mortgage doubles, it's still 30% of my income.

For those bemoaning pensioners, I bet you have zero problem with public sector gold plated pensions.

Prefab housing might be a goer ? 8,000 are still going strong, many others have been demolished to make way for inferior developments

That would be nice! They’ve missed the boat on that one now I fear. Yet another sleepwalk into a potentially catastrophic situation, with no clear strategy. Despite the writing having been on the wall for a very long time.

Don’t know.. but maybe for similar reasons that when you fell on bad luck by whatever happened to cause your disability and couldn’t work, tax payers helped you carry on paying your bills.
Millions of people daily get a portion of tax payers money due to unfortunate situations they find themselves in or bad luck as you put it.
Most homeowners will be paying taxes and will have done so for many years and now they need help to afford their home (which they will have been stress tested on) due to the bad luck of a pandemic etc they get zip.
Yeah thanks a bunch. Might as well quit our jobs and claim UC then because by the end of these raises so many will be made homeless or living on less than that.

If the housing market plummets, this is the least of our problems. It won't happen in a economic vacuum. And THAT is why the government will try to avoid it - to avoid a total recession which is good for absolutely nobody, rich or poor.

The lack of economic understanding on this thread is scary.

People should also realise that housing values should increase over time due to inflation. If our homes didn't increase in value at all, they would be loss making over the lifetime of a mortgage in real terms.

Bloody windows, sitting in expensive houses, letting all the light in! I know a few doors in big houses too, bastards.

@Recoveringcynic If the housing market plummets, this is the least of our problems. It won't happen in a economic vacuum. And THAT is why the government will try to avoid it - to avoid a total recession which is good for absolutely nobody, rich or poor

Bit it’s not IF, it’s already happening. Have you seen the rates this week? I posted some up the thread/m- The BOE have said it’s going higher too. Core inflation is out of control.

@Whippetlovely PP above has had her rent increased by 65%. Dare you to tell her she has "pent up jealousy".

And THAT is why the government will try to avoid it - to avoid a total recession which is good for absolutely nobody, rich or poor.

I thought a recession has been factored in to this governments economic planning ? It should hit just as whichever party is in power takes over at the next GE, so if its the Conservatives, they have time to ride it out and given their track record of austerity over the last 13 years, I'm not sure it will feel that different to most voters, if its Labour then they get to blame the whole thing on Labour, win win !

I agree with some others that it was a real struggle to buy.

I hadn't heard of this idea and I expect it would only go to the "poorest"? The JAMs would surely not benefit?

However I disagree with your point that tax money is "renter's money". It isn't. It was taxpayers' money.

Taxpayers' money also goes to help people who rent, via housing benefit and social housing.

No idea of the further details however just going on what you've said.

Absolutely agree OP - more council/now called social housing is needed. No more developer-led estates with a tiny smattering of 'affordable' housing that diminishes like puffs of air. What is needed is more 'council' housing estates with maybe a smattering of private homes instead.

There really is no other way out of the current impasse - for the good of the country and all the people that live here it should be the National Priority. The UK has done it before in both post-World War periods and should do it again.

And I've lived in 3 prefabs in the early 2000s and really they make great homes and not to be sniffed at.

People should also realise that housing values should increase over time due to inflation.

Allowing for inflation I assume prices are falling in many parts?

You were the poster who suggested a no spend August?

when is the next election? I’m not sure I can manage 12 months of electioneering by the Labour Party. Please just be truthful about who you are. I actually think that labour will and should get in next time, but I absolutely hate untruths. We’ve had enough of that recently.

@underneaththeash what? Is that directed at me? I have no idea what you mean?

I agree with you @Laughingstock1991. Bailing mortgage payers out is a terrible idea and will be both politically very unpopular and will likely cause even more major financial problems for the UK (we are already at a cliff edge imo). The government and the BOE are clearly worried about the housing market and have been for some time but I think they would have to be feeling utterly desperate to go down this route. So far, Hunt has ruled this out.

The market turned in 2022 but I think the current mortgage crisis marks the start of more rapid falls. I think it will make sentiment turn, on top of the very obvious affordability issues, and people will start to realise that owning housing is not a sure fire way to get rich quick.

Rates are going up but the housing market is not plummeting yet. Demand outstrips supply. This is multi factoral and recent economic times have belied most precedents.

If you think the situation is so dire, why are you not concerned about negative equity? You'll have a huge concern on your hands if you bank holds a loan against a worthless asset. Might get you off your high horse about 'unearned wealth' then because you'll need to house your kids somehow.

This thread is the classic mumsnet race to the bottom.

Hmmmm

People should also realise that housing values should increase over time due to inflation. If our homes didn't increase in value at all, they would be loss making over the lifetime of a mortgage in real terms.

A bit like every loan you take out for every other thing you want to buy but can't afford outright ? Its just a loan from the bank for something you want, you pay the bank at the agreed terms of the loan and you get to own outright the thing you want. Nowhere on any mortgage does it say you will make a profit by borrowing the money. The bank does and that's why it lends the money to you !

For those bemoaning pensioners, I bet you have zero problem with public sector gold plated pensions.

They aren't gold plated anymore...

Well, surely it'll be taxpayers money whichever way it plays out - people ending up back in rented when they lose their home.and the possibility of being eligible for Housing Benefit or ensuring that people don't lose their homes?