Are you going to default on your mortgage?
Discussion
There's been a load of threads on here in recent time about the supposed banking crisis, including Tonker's recent "it's not just US sub-prime", enabling all the prophets of doom to spread their gloomy message. The banking issues in USA have been triggered by people defaulting on their motgages.
So, for a full-scale crisis in UK we need the same thing to happen here.
Right, let's have a clear "hands up" from all the PHers who are going to default on their mortgage in the next 12 months. Raise your hands please.....
Come on now, don't be shy! Unless we see some hands in the air there simply isn't a crisis!!
So, for a full-scale crisis in UK we need the same thing to happen here.
Right, let's have a clear "hands up" from all the PHers who are going to default on their mortgage in the next 12 months. Raise your hands please.....
Come on now, don't be shy! Unless we see some hands in the air there simply isn't a crisis!!
We've heard plenty of stories of how the chav class are borrowing to the hilt, so although PH isn't your average cross section of society, there are probably going to be plenty who will default.
It won't just be chavs either, with house prices as they are - plenty of first time buyers and others who have over stretched are likely to be in trouble.
It won't just be chavs either, with house prices as they are - plenty of first time buyers and others who have over stretched are likely to be in trouble.
I work in corporate IT so most of my colleagues I've worked with over the last few years are reasonably well enough. However I would say that if many of them lost jobs or couldn't find a new contract fast enough they would be in trouble. Or even if they couldn't find a contract with a rate high enough.
How many here could cope with the loss of their job, I'd say a lot of people would start being in serious trouble after 12 weeks, possibly a lot earlier in many cases.
How many here could cope with the loss of their job, I'd say a lot of people would start being in serious trouble after 12 weeks, possibly a lot earlier in many cases.
kiwisr said:
I work in corporate IT so most of my colleagues I've worked with over the last few years are reasonably well enough. However I would say that if many of them lost jobs or couldn't find a new contract fast enough they would be in trouble. Or even if they couldn't find a contract with a rate high enough.
How many here could cope with the loss of their job, I'd say a lot of people would start being in serious trouble after 12 weeks, possibly a lot earlier in many cases.
I'm between contracts at the moment, but have enough money to pay off the mortgage if I choose to and go a couple of years before I work again, however I was amazed a couple of years ago working at a place where contractors were taking pay every week because they needed the money. I usually only invoice every three months and take money out of the company once every year.How many here could cope with the loss of their job, I'd say a lot of people would start being in serious trouble after 12 weeks, possibly a lot earlier in many cases.
spikeyhead said:
kiwisr said:
I work in corporate IT so most of my colleagues I've worked with over the last few years are reasonably well enough. However I would say that if many of them lost jobs or couldn't find a new contract fast enough they would be in trouble. Or even if they couldn't find a contract with a rate high enough.
How many here could cope with the loss of their job, I'd say a lot of people would start being in serious trouble after 12 weeks, possibly a lot earlier in many cases.
I'm between contracts at the moment, but have enough money to pay off the mortgage if I choose to and go a couple of years before I work again, however I was amazed a couple of years ago working at a place where contractors were taking pay every week because they needed the money. I usually only invoice every three months and take money out of the company once every year.How many here could cope with the loss of their job, I'd say a lot of people would start being in serious trouble after 12 weeks, possibly a lot earlier in many cases.
POORCARDEALER said:
very easy for a couple who bought a year ago, one loses job, they have probs...........sorry state of affairs and they have to live somewhere
[tonker mode on] they should have envisaged that they might have lost their jobs and bought a house much cheaper, one that they could afford on Tesco chechout wages, just incase this happened [/tonker mode off]
kiwisr said:
What a stupid thread. Dont you know that everyone on PH is financially sound and have no debts. 
spikeyhead said:
I'm between contracts at the moment, but have enough money to pay off the mortgage if I choose to and go a couple of years before I work again, however I was amazed a couple of years ago working at a place where contractors were taking pay every week because they needed the money. I usually only invoice every three months and take money out of the company once every year.
Yes, we PHers are all men of means, rolling in loot, in fact I asked my boss to stop paying me last year, as I have so much money I don't need a salary. I find it hard to believe ANYBODY would actually need paying every week, the bleddy paupers....
Its all about greed and ego,s when peeps live beyond there means,purchase on finance and live in a pile of bricks they cant afford just to keep up with the jones,s there bound to run into trouble if the interest rates go up.
Heres a novel idea,save some money,buy a house you can comfortably afford and screw what the jones,s think and you wont have any problems if we go into a recession.
Heres a novel idea,save some money,buy a house you can comfortably afford and screw what the jones,s think and you wont have any problems if we go into a recession.
Ozzie Osmond said:
There's been a load of threads on here in recent time about the supposed banking crisis, including Tonker's recent "it's not just US sub-prime", enabling all the prophets of doom to spread their gloomy message. The banking issues in USA have been triggered by people defaulting on their motgages.
So, for a full-scale crisis in UK we need the same thing to happen here.
Right, let's have a clear "hands up" from all the PHers who are going to default on their mortgage in the next 12 months. Raise your hands please.....
Come on now, don't be shy! Unless we see some hands in the air there simply isn't a crisis!!
Not me.So, for a full-scale crisis in UK we need the same thing to happen here.
Right, let's have a clear "hands up" from all the PHers who are going to default on their mortgage in the next 12 months. Raise your hands please.....
Come on now, don't be shy! Unless we see some hands in the air there simply isn't a crisis!!
King Herald said:
kiwisr said:
What a stupid thread. Dont you know that everyone on PH is financially sound and have no debts.
spikeyhead said:
I'm between contracts at the moment, but have enough money to pay off the mortgage if I choose to and go a couple of years before I work again, however I was amazed a couple of years ago working at a place where contractors were taking pay every week because they needed the money. I usually only invoice every three months and take money out of the company once every year.
Yes, we PHers are all men of means, rolling in loot, in fact I asked my boss to stop paying me last year, as I have so much money I don't need a salary. I find it hard to believe ANYBODY would actually need paying every week, the bleddy paupers....I appreciate that not everyone is earning above average money, there's been plenty of times in the past when things have been tight for me and I know there's plenty of people out there that aren't having that easy a time of it, but I just wish people would learn to live within their means.
I don't have a large house, just a three bed semi in an average area of Luton. Sure, I've got a Boxster S in the garage but its a car I paid £14k for and it has sensible running costs. I choose not to run a Fezza even though I could just about stretch to that and a 4 bed detached in somewhere desirable. Life's a lot more pleasant when you don't have to work every hour available just to pay for things that aren't necessary. If someone chooses to, then fair enough, its their choice but those type of people don't tend to whinge about the hard times.
Homicidal maniac said:
POORCARDEALER said:
very easy for a couple who bought a year ago, one loses job, they have probs...........sorry state of affairs and they have to live somewhere
[tonker mode on] they should have envisaged that they might have lost their jobs and bought a house much cheaper, one that they could afford on Tesco chechout wages, just incase this happened [/tonker mode off]Depends on the job markets really. Most people on here with salaried incomes and mortgages could face financial ruin over the next couple of years. It could happen to anyone, just depends on the job market. If the crdit crunch goes on much longer, many companies will be stopping all extra spends - many companies for instance have canned or are canning major IT projects, and I understand building work is also looking surprisingly shaky.
anonymous said:
[redacted]
No, that's not what I'd have said. I'd have said, push youself if you will be able to sleep at night with that debt, but get yourself in a position to be able to overpay your debt or have a rainy day fund as fast as possible INSTEAD of upgrading to business on that holiday of buying that new car on the never, never. Get yourself ahead, so you can cope, don't stretch it too far. There is nothing wrong with wanting to do well and going for it, but look at the risks and change the odds in your favour as much as you can as soon as you can. Don't presume the good times will last forever....
[there was a guy I worked with - he was making well over £150K a year, did not have a pot to piss in and was maxed on credit - we ended up subbing him for drinks and cash at the end of the month. ]
I know someone like that too, he and his wife have 4 cars between them (on the drip they can't get out of them becuase of the negative equity), a huge income between them, a big house in the country, but they have pay for their weekly shopping on credit cards because he told me they do not have cash to pay for it! When your earning what they are earning, but working just to live, that must be a s
t situation!TVR Moneypit said:
If had bought 2-3 years ago, and was now looking at the end of my fixed term, then I may well be looking at defaulting.
As it stands, I could see this accident waiting to happen, so I chose to rent instead.
All borrowers should be able to carry their mortgages if rates rise, say 4%. Not comfortably perhaps but certainly cope.As it stands, I could see this accident waiting to happen, so I chose to rent instead.
Affordabilty should be based on projected worst case rates not the current one.
spikeyhead said:
King Herald said:
kiwisr said:
What a stupid thread. Dont you know that everyone on PH is financially sound and have no debts.
spikeyhead said:
I'm between contracts at the moment, but have enough money to pay off the mortgage if I choose to and go a couple of years before I work again, however I was amazed a couple of years ago working at a place where contractors were taking pay every week because they needed the money. I usually only invoice every three months and take money out of the company once every year.
Yes, we PHers are all men of means, rolling in loot, in fact I asked my boss to stop paying me last year, as I have so much money I don't need a salary. I find it hard to believe ANYBODY would actually need paying every week, the bleddy paupers....I appreciate that not everyone is earning above average money, there's been plenty of times in the past when things have been tight for me and I know there's plenty of people out there that aren't having that easy a time of it, but I just wish people would learn to live within their means.
I don't have a large house, just a three bed semi in an average area of Luton. Sure, I've got a Boxster S in the garage but its a car I paid £14k for and it has sensible running costs. I choose not to run a Fezza even though I could just about stretch to that and a 4 bed detached in somewhere desirable. Life's a lot more pleasant when you don't have to work every hour available just to pay for things that aren't necessary. If someone chooses to, then fair enough, its their choice but those type of people don't tend to whinge about the hard times.
As you say you are running a business, if you don't invoice and get that money in then you are introducing risk.
And you are losing the interest if you dont invoice for 90 days.
Edited by rich1231 on Sunday 13th April 22:06
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