www.iva.co.uk

Today's paper's headlines -

Mortgage slump points to house price falls
Mortgage approvals hit their lowest level for 16-months in August, prompting economists to predict a 10% fall by the end of 2011...

http://www.thisismoney.co.uk/mortgages- ... _id=8&ct=5

To be honest this won't affect me at all. I have plenty of equity but I do feel for those who haven't.

As long as you can ride it out, as I did in the early 90's, then you can come out better off.

For those in an IVA it will inevitably mean an extra 12 months payments.

As nomoremoney said in another thread.. The fact net-lending is STILL going down is a big problem.

The banks are basically taking the p!ss... but why would anyone be surprised at that...

I haven't got much equity so it could go towards me being debt free in 60 months rather than having the extra 12 months. Won't affect me too badly as I plan on selling up and shipping out once the IVA has concluded successfully x

What I infer from this article,perfect timing,is that BOE interest rate is now 0.5%....it ain't going to get better than this.The experts say that should get people borrowing and buying. But it just is not happening....

If rates go back up then there will be even les spending and mean more cheap prices for everything as people will wait till prices fall even further[deflation] incl houses...and the rub is...the 1 million Public job sector job cuts have not started yet! VAT rises next year.

This storm cannot be gotten out of...the medicine have all been exhausted...we are in it deep.

But house price will fall, so I drink to the common good.Nice spanking new affordable apartments coming near all first time buyers..reason to rejoice




And in the US the same with the their main street.

lesley I don't think you've read or understood your mortgage clause.

Hi
I am fairly sure that Lesley, a forum expert, is well aware of her remortgage clause in her IVA.
Regards

I agree Andy, Lesley is well aware of her mortgage clause, as am I!

I am aware and understanding of the re-mortgage clause, all this was explained to be pre-IVA and my IP I discussed anything I was unsure of in detail as I would never enter into an agreement I wasn't 100% certain of.

even though we are coming out of a world recession and the banks have been negligent.past governments have been guilty of wasteful expenditure,the dome,increases in public wages,quangos,the BBC,benefits,legal aid,expenses the list goes on and on.its about time we had a government that got a grip of the countries finances and did a mid term recovery plan to put this great country back in the black.

Disagree - I like this government.

It is going to hurt getting back on track. Wouldn't matter who was in power, these cuts would have to come.

didnt mean this government sorry just edited.

i dont want hurting jan[:D]
im in the same boat as lesley in that im in negative equity and as long as ive got £5000 or less when my time comes i too wont have too do another 12 months .
not planning on selling up anyway so not too bothered if house prices fall a bit more

Hi nomoremoney,

Using the BOE interest rate as a guide to lending rates is misleading. The experts know this and are being disingenuous to suggest otherwise.

For the past couple of years banks have been moving towards pricing off LIBOR because they don't buy their money from the BOE, they buy it from other banks. And LIBOR is waaaay higher than 0.5%. It used to be that LIBOR tracked base but it's diverged now because banks dont actually want to lend to other banks. People like us have upped the risk too much!!!

Also, they will need to recoup the money they write off our debts and this will be done through higher rates for people still borrowing.

Plus for every impaired loan, they have less money available to lend, so the resources are scarcer and price goes up again.

Sorry to burst your bubble, but we're not going to see rates come down for a while and they certainly won't be reflecting BOE. Me thinks this is a ploy to boost consumer confidence.

BTW, I am a debtor tho I sound like I'm defending banks. x