Cyprus-Forum.com

[GreekIslandGirl]

Don’t worry Britain there’s always the crown jewels to fall back on… oh hang on, the country’s most valuable possessions are privately owned!

Yes. They belong to India!

Truth be told, "the end of Britain" started with the end of Colonialism and the EMPIRE. Once all the freebie benefits of enslaving people and arresting the development of their countries had to stop, the UK had a limited lifespan.

It's up to *us* to save Britain!

[apc2010]

Even those scummy, drug addict, fried mars bar eating mob want independence......

[Paphitis]

Unemployment is not declining.

You've just swallowed the candy coated bullshit pill.

The goal posts have been moved. Unemployment is not declining.

Businesses are going bust regularly, businesses are tightening their belts and letting people go. If you have no money coming in, you can't spend it employing people. I've told you the benefits shake up is a mockery.....there's another load of unemployed shifted somewhere else to make the figured magically better.

Paphitis, don't take unemployment figures as gospel. The realiity is far more grim when the wool isn't over your eyes.

This will probably make some of you laugh hysterically. We would rather live in Cyprus at times, even given your financial climate it would be suicidal.....doesn't that say something?

FH,

the exact same arguments you pose about Britain also exist in Australia and US. Sometimes people talk about their own perceptions of how tough it has got or that the authorities manipulate the figures by pensioning off the unemployed. This however is not true. Some unemployed are in fact unemployable.

However, you can't deny the real figures of how many jobs were created and how this has translated into a reduction of unemployment, increased consumer confidence and GDP Growth.

[Paphitis]

...The UK spends its cash on fuel for the car, fuel for the house, fuel for your belly,mortgage/rent and council tax, debt(GiG will love that)....and not much else.

Debt repayments tend to be on paying off the interest only, and not the capital, because national and personal debts keep growing. I read somewhere that there's going to be a real property meltdown in a few years time when mortgages that were taken out with interest-only repayments (during the heyday) are going to start maturing. There's going to be a glut in the property market as people become desperate to sell to repay their mortgage loan and move to somewhere smaller or into rental. You can tell who is going to snap these up - foreign investors and the already-rich.

This is where you and FH show yourselves up for not knowing anything about economics.

Interest Only products are great and ideal for people who have tax deductible debt such as businesses, property developers or those that invest in commercial or residential properties.

They only work if the investor has a small Principal and Interest debt on let's say their home.

It is not a product suited to first home buyers!

I have many such loans, for various business interests from trusts, developments and commercial retail properties and it is all Interest Only because I reduce my tax and concentrate on paying off my home with the assistance of other investments.

[Paphitis]

The Daily Star on Sunday (hard copy) reports that voters will turn their backs on the conservatives

Cameron will struggle to win next years general election, according to new polling data because life is getting harder for many and showed no signs of getting better.

This is despite the recovery they keep hearing so much about.

Yes well aside from a possible change in Government which remains to be seen, I am still waiting to see why Britain is about to implode!

I am sure the people will find life a little easier in about 2 to 3 years time. Don't expect this overnight. That is unrealistic and unfair.

[kurupetos]

Even those scummy, drug addict, fried mars bar eating mob want independence......

Huh?

[Paphitis]

...The UK spends its cash on fuel for the car, fuel for the house, fuel for your belly,mortgage/rent and council tax, debt(GiG will love that)....and not much else.

Debt repayments tend to be on paying off the interest only, and not the capital, because national and personal debts keep growing. I read somewhere that there's going to be a real property meltdown in a few years time when mortgages that were taken out with interest-only repayments (during the heyday) are going to start maturing. There's going to be a glut in the property market as people become desperate to sell to repay their mortgage loan and move to somewhere smaller or into rental. You can tell who is going to snap these up - foreign investors and the already-rich.

I've already seen signs of desperation selling. Usually in the way of just investigating actual house selling prices in an area, via the internet, and asking prices...coupled with a stagnated time on the market. People who bought in 2008 for example are shitting themselves. The Market has slumped drastically since.

I'm lucky on that front. Quite shrewd with mortgage products, and would never touch interest only with a barge pole. Im possibly one of the few who has 50% of the house value in my back pocket when I sell up! Iffff I sell, because the area I live in isn't too popular, and its a small property, aimed at first time buyers which there are few of. Another twist to the UK financial problem. Young people!!


Personal debt for us comes in the form of 'the ex wife'

FH,

Interest Only Loans are not for home buyers at all. These products do not suit the needs of Home Buyers. If these borrowers can only afford Interest Only, then they shouldn't be getting a loan in the first place.

It is in the interest of any home buyer to pay their home loan and buy equity ion their home.

Interest Only products are only suited for tax deductible loans. Ideal for Business and Investors.

[Archimedes]

Yes I do live in the UK, and I live in a place other than that fabled London place where house prices have just risen by 14%, and migrants think the streets are paved with gold.

I live where you can't sell your house(so far I've not succeeded and am looking to lose 25% on the asking price of five years ago when I tried to sell previously) shops are empty, business is dreadful, FOOD BANKS exist here and they have risen in number by 66% compared to 2010!
Banks are state owned to save the economy because of bankers greed, banks are shady and getting fined with hefty amounts for conning people.
Someone mentioned loans of 1000%.....yes they are legal, they are payday loan companies. They popped up like fleas in recent years because people are struggling to eat or pay rising bills. Preying on vulnerable low earners. They offer short term loans of small denomination that are to be paid back over weeks rather than months. Eg 100 pounds over 20 weeks, 50 pounds interest IIRC.
I'm absolutely broke(until I sell my house) and when I do get money it stays under the mattress because I don't trust the bank as far as I could throw it! I'm a 'House manager'(housewife sounds rubbish) a rarity here in the UK.

Sounds like Cyprus?! It's quite similar in some ways.

Yes, we have our own currency, doesn't mean much!

If you sell your house where are you to live? The stable?

[Flying Horse]

Yes I do live in the UK, and I live in a place other than that fabled London place where house prices have just risen by 14%, and migrants think the streets are paved with gold.

I live where you can't sell your house(so far I've not succeeded and am looking to lose 25% on the asking price of five years ago when I tried to sell previously) shops are empty, business is dreadful, FOOD BANKS exist here and they have risen in number by 66% compared to 2010!
Banks are state owned to save the economy because of bankers greed, banks are shady and getting fined with hefty amounts for conning people.
Someone mentioned loans of 1000%.....yes they are legal, they are payday loan companies. They popped up like fleas in recent years because people are struggling to eat or pay rising bills. Preying on vulnerable low earners. They offer short term loans of small denomination that are to be paid back over weeks rather than months. Eg 100 pounds over 20 weeks, 50 pounds interest IIRC.
I'm absolutely broke(until I sell my house) and when I do get money it stays under the mattress because I don't trust the bank as far as I could throw it! I'm a 'House manager'(housewife sounds rubbish) a rarity here in the UK.

Sounds like Cyprus?! It's quite similar in some ways.

Yes, we have our own currency, doesn't mean much!

If you sell your house where are you to live? The stable?

Nope....Spreading my wings

[Robin Hood]

Paphitis:

Interest Only Loans are not for home buyers at all. These products do not suit the needs of Home Buyers. If these borrowers can only afford Interest only, then they shouldn't be getting a loan in the first place.

I think your conception is wrong on that! I bought my first house in the UK with an interest only mortgage in 1970. I moved four times, each time raising the level of mortgage, before quitting to live in Cyprus in 1994. The principal is not just that you don’t pay back the capital but it was a case of getting tax-relief on the interest and using that as the premium payment (or part of) on Whole Life Insurance Policies that had a final value including predicted bonuses, equal to or greater than the capital sum borrowed. In my case I sold the house in ‘94, paid off the mortgage (easily) and then later the policies paid out considerably more than the policy life assured value.

However, what I would say is that it would not work now as the returns are insufficient/unstable and this will hit many who took out mortgages on an interest only basis some years after I did.

BTW: This is an interesting thread and my answer to the original question would be YES .......... but the UK will not be alone and neither will they be the first to go under. What seems to be missed on here is the fact that all these ‘expert’ predictions are being made by the same people that, in spite of their abundant knowledge and crystal ball gazing, just managed to miss ..........Lehman Bros failure, Sub-Prime Mortgages, the Dot.Com bubble; the housing bubble, LIBOR rate fixing, the risk to the world economy of Derivatives and the even greater risk to the world economy of an out-of-control banking and financial 'industry'! An ‘industry’ which has managed to turn a service sector provider for wealth creation, into a dysfunctional ‘industry’ that has proved that wealth creation is no longer necessary to get rich!!! So their opinion is as valid as predicting the future using Tarot Cards!

Until these ‘experts’ get together and completely re-structure the banking and financial sector and put the creation of ‘money’ in the hands of Central Banks that belong to the people (Governments) and not the Bankers ........ the slippery slope will just get steeper and more slippery!