Size, I don't share the view that people are going down the IVA path again if they want credit. The safeguards are in place - no more lending on CC based on income multiples,interest rates are prohibative but for the most well off,sharing of CC information between banks to identify rate tarts doing 0% transfers for life!
The days of getting 100K in CC with a 20K salary is over..Banks will now lend according to affordabilty. Hopefully, we will not need debt advice websites like CCCS and others in the future as reckless built up debt will be a thing of the past like killer dieases.Restricted lending means little persoanl debt just like in Deutchland. I'll vote for that resoundingly.
Last edited by kalla on Tue Jan 20, 2009 1:37 pm, edited 1 time in total.
Kalla, I always enjoy your posts as I feel you do take, mostly, a different viewpoint to many and healthy debate is no bad thing in my opinion but I am not sure I have understood your last one?
The point I was making was not that people are going down the IVA route for further credit, but merely for information purposes only and was not meant to convey or imply anything else. If banks didn't lend post IVA then there would be no second IVA scenarios at all and, whatever your viewpoint on that, it is a concern to a lot of people as to whether they will be eligible for credit again in the future.
As for reckless lending being over, well for me that remains to be seen. I worked in the credit sector during the early 80's through a very bad recession, and endured another one during the 90's as well. All lenders, large or small, have to sell to survive, they cannot just collect or they will go out of business. History has a habit of repeating itself, however unfortunate that may be, and whether long term lessons will be learned is certainly open to debate. It is not after all, at least as far as I am aware, bad credit card and personal loan business that is the cause of the current situation.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I think that if you have had a IVA you can wave goodbye to any chance of getting a mortgage.My IVA has just about been completed a year. I have called just about every bank in the last month or so and as soon as you say IVA they slam the door. I hope that Tony Parsons can find us a good deal as we have plenty of equity in our house. Now its early days but the best Tony has come up with so far is 8.4%. I hope that he will find something better but at the moment things look and feel very grim.
I also lived through the last couple of recessions and had periods of struggling hand to mouth through debt. I cleared it (including mortgage and endowment policy arrears at that time), and once that was done and dusted and the boom arrived, people threw money at me and I took it!
I think this will happen again as people have very short memories where borrowing is concerned.
Fortunately, me and hubby will be old gits when our IVA is finised (he already is!), so we are unlikely to need credit again, but I won't even let myself contemplate it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I do not think that the IVA is the major cause of the remortgage problem. A couple of years ago there were hundreds of products available at competitive rates but now there are very few even for first time buyers. Those still lending to IVA clients face little competition and can charge what they like but when the markets free up rates will come down again.
I agree with size5 that it will all turn again but the question is when?
'whicheverway', your sypnosis on the credit worthyness confirms my feeling that once you have been on an IVA lenders don't look to want to lend again. Not what I wanted to hear but feared is the case, we now have evidence.So much for credit building then???
8% for a home loan when the average is 4%....thats sounds very wrong.And thats from one lender??
Size, this extraordinary Recession is got some of the hallmarks of the previous ones but it is far more,much more.It takes an extraordinary approach to understand it....everyone including the journalists, the experts on TV have got its number wrong - NOTHING TO WORRY ABOUT -they told us a year ago.Like a cold. Well,they are still thinking conventionally and playing catch up.
We have been Chequemate by the recession so far Getting out of this one as in the 90s...don't bet on it.When one gets beat on the chess board its time to change ones game.
Last edited by kalla on Tue Jan 20, 2009 3:21 pm, edited 1 time in total.
I do like the way you put things Kalla, and I can certainly empathise with some of the things you have said.
This situation is definitely different in many ways from the last 2 or 3, but also bears remarkable similarities as well. I well remember Spitting Image doing a sketch about News at Ten where a stern faced Trevor McDonald announced tens of thousands of redundancies at places like (probably) British Leyland and British Steel etc, only to then say that "in brighter news, Tesco's have announced vacancies for 17 new shopping trolley collectors" The media as a whole is doing similar things now I am sure you would agree.
Mortgages will eventually fall back into some sort of normality again as well, as Michael says. If we can hang on to small mercies here then at least we are not facing, and are highly unlikely to, at least in the immediate future, the rates of 15% plus which were very common last time around.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Yes, we should be thankful for small mercies - I remember the interest going up to 15% and going into deep panic about how I was going to afford my mortgage!
Sooner or later it will all turn around again - it always does.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think if I can manage for 5/6 years on a budget, then I can carry on with it afterwards.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The words 'UK is Bankrupt' has been mentioned by money men of the City today - they say get rid of your ££ and other things.The slide of vital 'life support' signs is on.
I wasn't in the country in 76, but I know the country was Bankrupt then.Dennis Healey was at the helm. So what's the big deal now then...well, we didn't have the level of UK PLC debt.Its worse now because of this - when you are heading for 'Bankruptcy' you don't borrow to get out - you seek protection -of not to pay! But we are seeing debt piled on businesses and government.
As a Nation along with its Banks it they can't get their budgets right all below it- businesses,people will be made to pay.Wealth creation ends! Abject poverty continues. The country's I/E books don't balance and there is no write of for government debts.It had been sold to bond holder, the Mercers of the world. The scale of credit and not justice is tilted out of its axis.
We are like mules been used by the government to pay for this burgening debt.Other countries have more debt and worse like Spain and Argentina.Is it any comfort to be compared with them.The latter have nationalised its pension fund to pay for its debt??
That's why I take such a stand point about the UK's money problems - its uniquely unique in way. A 10 year downturn has been mooted today
Ahh, but surely this now becomes a political debate, rather than one for which this forum is designed?
I will be interested to see if this thread has got any further tomorrow when I get back into the office (I can't check tonight as my PC at home has blown up, which is why you haven't seen that much of me over the last few days)
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi Everyone!
This is one big worry for us - in the future we are going to need to try for a Mortgage. We are currently renting & never got on the property ladder - prices just went to high. We have tried for 6-7 years to get on property chain & have finally given up for now. We def never want another credit card again! But we may need to get a loan or HP for a car - as we just don't have any funds to save towards anything & cars dont last forever. (I will post later about another problem we are having). On the mortgage front - when my elder parents pass away (hate talking about it but dad insists on facing up to it)I will be inheriting 1/2 the estate which will enable us to either buy a house (hopefully) or put a large deposit down towards a mortgage (Im thinking after the IVA) Am I ever gona be able to get this form of lending again?!?! I certainly am more aware of debt & more sensible with money now - but a mortgage & car loan may be essential in years to come after the IVA.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
As car loans can be secured on the vehicle these will be easy to come by(yes car credit etc etc),as for mortgages it will possibly become even harder for 1st time buyers as massive deposits will be needed to ensure no one takes a really big hit if you default and the house goes to the mortgage company.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
