Sir Douglas Flint has first-hand experience of meltdowns in the #mortgage market. The former chairman of HSBC steered the British lender back on track after the global #financial crisis left it reeling in 2008. The crash in US sub-prime mortgages hit HSBC particularly hard as it owned a $118 billion book of American loans. Now, the City grandee, 66, is warning that households should once again be wary of racking up giant debts to buy a #home just as interest rates begin to rise. 'I personally don't think this is the time to encourage people to over-leverage [borrow too much] in the housing market,' he told The Mail on Sunday. 'House prices, as a multiple of average income, are at an all-time high.' Flint's intervention comes just days after the Bank of England increased #interest rates from a record low 0.1 per cent to 0.25 per cent. Economists now expect further increases to Bank base rate in 2022 to curb surging inflation. And it also comes just as the Bank relaxes mortgage rules that were imposed after the financial crisis to stop borrowers taking on unaffordable sums. If interest rates start to rise rapidly to tame inflation – and without a clear and calm course set out by the Bank – those who have taken on large debts to finance a house purchase could easily come unstuck. http://archive.today/2022.01.01-211308/https://www.thisismoney.co.uk/money/mortgageshome/article-10342289/Ex-HSBC-bosss-stark-warning-young-people-property-debt.html
Congrats..you learnt copy and paste after all these years
And #add #obnoxious #hash #tags
Sir DF is still licking his wounds from 08. It’s a whole new world. Current housing market is driven by supply/demand. Housing starts are behind and not keeping pace with population growth. Also. Property debt can help hedge against the dollar in an inflation environment as your housing cost is fixed and purchasing power dwindles
Qualifications actually require evidence now! No ninja loans - except for w2 ninjas.
“This time is different” I think the one universal aspect of markets, regardless of global wars, financial crisis, or high inflation, is that they are cyclical. Getting internet didn’t change that. Globalization didn’t change it. There will eventually be a future period where housing isn’t hot.
Housing crash in UK will drown everyone from rich to poor. Government won't let it happen. That said, stocks provide a better return. And if you are buying a house to live long term, short term prices don't matter
Lol. What the fuhk is this guy talking about. The US literally has the third lowest Property price to median income ratio in the world, which is less than HALF of the UKs
https://www.numbeo.com/property-investment/rankings_by_country.jsp
The UK is an island. Why not compare say like Long Island to all of UK. All of US isn’t a fair comparison. We have a high proportion of useless land
“Not the time to over leverage”. 100% The time to leverage is in the beginnings of a post crisis victory. Like 2011-2012. It should shock no one if SHTF twice in the covid pandemic. Don’t confuse other buyer’s decisions as acting as rational agents. Ton of FOMO out there. Many buying for the wrong reasons.
Ok. I’ll just .. not live in a home…
It’s called renting
But i want land that I can improve
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Keep trying to time the market. You will be the winner fasho