Credit Mad Britain

[Shaun]

Originally Posted by Graham

There is a difference between a "nanny state" saying "you shouldn't see/ watch/ do that because it's bad for you" and the state regulating an industry which seems intent on forcing you to play "find the lady" if you want to use their products at all.

Sorry Graham, I don't see the difference, the info is there if you look, they have to provide you the facts by law, if you don't check up on what your being told thats your fault. Although I confer on the "confusion marketing" theory.

I also agree that the financial market need more regulation but people that argue against a nanny state can't have it both ways

[paulyoung666]

Originally Posted by aafc01

I work in the mortgages industry, in the area I work, the level of self-certs is less than 10%.

People are NOT allowed to over borrow on mortgages, it is strictly regulated (by the mainstream lenders) and there is a limit on what you can borrow.

Earn less than 20K? - 3.5x salary plus second salary
Earn more than 20k? - 4x salary plus second salary

just out of curiousity , i earn roughly 25k / year , wife earns roughly 5k / year , so that means we could get a maximum of 105k mortgage , roughly how much does that work out per month

[Ramrod]

Originally Posted by Graham

Just a point, however, "nectar" points and other such schemes are, frankly, virtually worthless.

If you look at just how much you actually have to spend to get anything worthwhile you'll realise that the return is a fraction of one percent, which is even worse than the "money back" schemes that pay 0.5% and are only useful if you spend huge amounts on your card.

True but every bit helps

[Julian]

Originally Posted by paulyoung666

just out of curiousity , i earn roughly 25k / year , wife earns roughly 5k / year , so that means we could get a maximum of 105k mortgage , roughly how much does that work out per month

Have a go at the calculator - Here M8.

[paulyoung666]

Originally Posted by Julian

Have a go at the calculator - Here M8.

thanks for that , just as i thought , if i borrowed the maximum i am allowed it would swallow up almost half my monthly income , then all i would need is the interest rate to go up a couple of % and that would be it

Originally Posted by punky

Nobody likes credit cards, but everyone is quick to use them. I think people who try and blame credit card companies should try take responsibility for themselves for once.

Erm - I like my credit cards thank you.

Originally Posted by dellwear

Sorry Graham, I don't see the difference, the info is there if you look, they have to provide you the facts by law, if you don't check up on what your being told thats your fault. Although I confer on the "confusion marketing" theory.

Which is the point I'm trying to make. It's not just a matter of the information *being* there, it's that it's *understandable* to the average consumer.

If it's buried deep in the very small print or couched in impenetrable financial speak, even if you *know* what to look for, it's going to be difficult for anyone to make sense of it.

I also agree that the financial market need more regulation but people that argue against a nanny state can't have it both ways

But it's not "having it both ways". Regulating an industry that is selling stuff to the public is not the same as *telling* the public what they should or shouldn't do or buy.

Originally Posted by Graham

Which is the point I'm trying to make. It's not just a matter of the information *being* there, it's that it's *understandable* to the average consumer.

If it's buried deep in the very small print or couched in impenetrable financial speak, even if you *know* what to look for, it's going to be difficult for anyone to make sense of it.



But it's not "having it both ways". Regulating an industry that is selling stuff to the public is not the same as *telling* the public what they should or shouldn't do or buy.

SHOCK! HORROR!

For once I agree with Graham.He speaketh very good sense.

Incog.

Staggering >>>> Link

I can see the country going along the lines of boom & bust if this carries on much longer.

£1 Trillion on credit beggars belief

Companies & Banks offering credit should be guided by stronger credit laws issued by the government, that sounds a bit "nanny state", but at least it should put the brake on further indebtedness, or the rest of us will have to help out by paying higher interest rates.

Its ok if people have a bit put by, but it is the interest rate that keeps going up for my mortgage that is very worrying.

[paulyoung666]

Originally Posted by yesman

Staggering >>>> Link

I can see the country going along the lines of boom & bust if this carries on much longer.

£1 Trillion on credit beggars belief

Companies & Banks offering credit should be guided by stronger credit laws issued by the government, that sounds a bit "nanny state", but at least it should put the brake on further indebtedness, or the rest of us will have to help out by paying higher interest rates.

Its ok if people have a bit put by, but it is the interest rate that keeps going up for my mortgage that is very worrying.

i fear the same tbh

[SMHarman]

I read somewhere recently that about 70% of this is actually revolving and cleared monthly, we now also have a culture of charging everything to earn the reward points, carry less cash and then pay it all in a lump sum at the end of the month.

I'm currently looking for a new house and applied for a mortgage "agreement in principle".

I've had no problems except that, because I've got a £3000 balance on a credit card the mortgage company has said they'll lend me £3000 less than I asked for.

They don't seem to be interested in the fact that a) I've been transferring that amount around 0% deals for the last three years (originally it was £5000 quid) and b) the money to pay it off is sitting in another account earning interest

[Pierre]

Originally Posted by Graham

I'm currently looking for a new house and applied for a mortgage "agreement in principle".

I've had no problems except that, because I've got a £3000 balance on a credit card the mortgage company has said they'll lend me £3000 less than I asked for.

They don't seem to be interested in the fact that a) I've been transferring that amount around 0% deals for the last three years (originally it was £5000 quid) and b) the money to pay it off is sitting in another account earning interest

In that case I would go to a different mortgage lender. Screw 'em.

Originally Posted by Pierre

In that case I would go to a different mortgage lender. Screw 'em.

They're offering a better deal than anyone else at the moment.

Frankly it doesn't matter a damn to me, it's just that in the context of the topic, what people have in savings doesn't seem to get reckoned into the equation.