UK Landlord Forum / Life

I read an article over at citywire about whose to blame for the current state of the UK property market. Well, I partially read the article and skipped quickly onto the comments...

http://citywire.co.uk/personal/-/personality-finance/bricks-and-mortar/content.aspx?ID=300695&Page=2

A few people are blaming the lenders:

Quote
Agree with John D. lenders are the main culprits. A few brokers have a part to play in this drama as well. The wider availability of self-certifying mortgages so that the employed as opposed to the self-employed were using them to obtain inflated income multiples.

I never really understood how people could blame the lenders. But that's just me. People should take responsbilities for their own actions.

Anyways, who do you think is to blame (if you think you can point fingers)?

I say the borrower and the lenders.

The borrower for thinking they can repay and the lender for giving it to them.
At the end of the day its just greed greed greed.  This problem is self inflicted. xx imo

Im sensing abit of Deja Vu here....but nevermind.

I totally agree with fag .... how can you blame the broker/lender.. its not his job to make sure you can manage the mortgage repayments and if it was ... how would he test you are responsible enough!?

Just by the shear fact the lender and co, say we will give you 110% mortgages, plus also having rediculas borrowing options, ie, 5-6 times your income !, now that is the lenders fault.
It used to be the job of the broker to assure the lender that a new customer could pay well within there budget.

The problem has arisen quite simply,  You could once buy a house for 50k and your wages where 17kpa
They used to offer as i am sure you are awaire 3x main and 2 x second for a mortgage offer, this isnt the case now and lenders/Brokers know this but still let you borrow.
I feel its our fault for being greedy and also allowing to over borrow, and the lender/Broker alowing us to do so.

Meh. I can't agree. Sorry, B.

Just because something is available for purchase, it doesn't make it a good idea to buy!

I think the responsibility for anyone getting out of their depth financially has to rest firmly with the individuals involved (and I say that as someone on the brink of negative equity).

That said, there isn't a lot of financial education in the national curriculum, and there are lots of less than scrupulous sales tactics employed to get people to sign for financial products. That is a bad situation whether or not it lands the customer in hot water.

The dilemma of letting people fail remains; how unpleasantly do you allow them to do it? There will always be stupid people, but they are also usually the people most likely to decide that rich landlord who owns those houses must have had some advantage in life denied to them (believing this becomes quite appealing if you fail often), and set about smashing his car in with a crow-bar.


V

That's a good point, V. There really isn't financial education in the NC, at least not "real life education" that you'll actually use. I mean, teaching someone about mortgages is a lot more useful than learning how to complete a balance sheet! God, I hated business studies!

Um,
So we agree it is the punter where some of the blame lies.

Right this leeds me nicley into defending my post above,  I have said this before and you have got to open your eyes if you think i am wrong * argument coming up lol*.
In relation to education and people not being in the know ref what they are getting themselves into regarding a mortgage and what is being sold to them, dont you think any intune cognitivly aware sales person is going to see this and sell the product to him/her knowing they could well end up in the sh1t one day.
Yes i agree the broker/agent isnt to blame for someone taking out a mortgage with them, that is the customers, BUT they are ( not all) to blame for underhand practice in selling the product to the customer.  Now before im slated, we all know it goes on, and im not saying that everyone who is in the poo has been sold something that they unwittingly signing for, but some of the blame for this reason has to go to the trader.

So the customer and trader imo must take a lions share of the blame.
1: for being thick and not doing their home work on difo pacages and the home bying game in general.
2: For knowing and sussing a customer on first impression to see if THIS deal will buy that car

Ok we could go even deeper and start pointing fingers everywhere, the Government the developers, they have all got parts to play in this, so i dont think it lays with just one single outfit, but a collection of many.

One word comes to mind and I think it applies to everyone... greed.

I agree, the lender knows what they're doing when they offer these rediculous deals but like Fee said, how can they determine if the borrower can afford it or not?

I don't think that not being educated in money is relevant. I left school aged 16 and know what I can and cannot afford. However, I do believe that my good 'relationship' with money is down to my parents and with mortgages and other finances, their advice is priceless.

Whatever we buy it's over priced. I think it's all down to how you balance between what you want and what you need.

Quote from: Aunt Blodwyn on April 18, 2008, 08:12:04 AMsome of the blame for this reason has to go to the trader.

Dude ... that's what I said!


V

Gulp, sorry