Negative Equity? Well yes, of course!

At last things are getting through to the media - it must be 15 months since we said the crash of '89 was here again, and now the Daily Mail have picked up on it, and BBC Tv & Radio News too

Vince Cable was spot on all those months ago, and he is again today - The IMF International Monetary Fund says there is a 25% chance of a world recession - pah! Get real you people, it is here, up on us, right now

So Co-operative Bank has joined First Direct in closing doors to new customers and others have followed suit - silly really because it should be a restriction on re-mortgages if they want to trade out of the situation, maybe we should tell Darlin Gofor Gordon what he is missing, the fool

Credit Crunch - UBS Rights Issue

Greed is what caused me, and so many others to lose so much money and or equity back in the Crash of '89 and now it is greed by the institutions

Blinded by the cash prompted buying the bundles of sub prime mortgages from the US or UK by investment managers brokers and deal makers

Folly is what burst their bubble - did they not stop to think it might not go on forever?

Did they actually think it would continue?

As someone interviewed on TV last evening said, anyone who thinks it does not effect them is wrong, right up from the lowest of us through to the millionaires will be effected - its just that more of 'us' rather than 'them' can afford to be as adversely effected as we will be

Mortgage Interest Rate Rises

Traditionally UK mortgage rates have been 1.5% to 2% over bank base rate - especially in the days of Building Society monopoly

Around Christmas this year we saw the differential between the two expand as the Bank of England fought inflation and mortgage lenders strove to accumulate cash reserves

This is continuing and we can see the gap widen ever further, don't be surprised if it doesn't even hit 3% over BBR

Mortgage Queues - Remortgages unlikely

At last the media are reporting what we have known for quite some time - Banks are not lending what little cash surplus they do have, to other bank

Spare cash is kept in house for balance sheet or future lending - LIBOR is now 6% or more and BBR Bank Base Rate is likely to fall

Last night it was publicly acknowledged the days of bundling loans and off loading them to then be able to re lend the money are well and truly over - Banks and Building Societies will for the foreseeable future be lending only their own money, or rather, your money coming in over the counter and what profits they can make

The whole economy, Bank of England Chancellor of the Exchequer, Treasury and Government will want, along with house builders and builders merchants and estate agents and conveyancing solicitors want to keep the housing market moving so remortgages will dry up, all money being used for purchases

Heathrow Terminal 5 BAA British Airways

It defies belief, doesn't it?

All those protests, all that money and all that persuasion and now, just like Wembley Stadium and the FA they can't organise famine relief in a soup kitchen

Just like British Rail or Network Rail none of the bosses responsible will even lose their bonus, let alone their job - in fact we bet they will be rewarded for having made us Brits the world laughing stock, again!

Nationwide Building Society House Price Index

Nationwide has today released its latest figures on the average house price indices

Guess what, prices have gone down, again! Well we all knew that and that it was going to happen - this is the fifth consecutive month the average house price has gone down but the 'experts' reckon the house value is actually up on last year - pah!

Compared to one year ago, house prices remain 1% higher, year on year that is, wow!

The slowed market is, it is claimed, reflective of the higher cost of borrowing, higher interest rates and a severe slowing of earnings growth - fear of redundancy is not yet quoted but we do recommend someone looking to protect themselves and sickness insurance also

Mortgage Rates remain higher

CML The Council of Mortgage Lenders state the obvious - mortgage rates will remain high, or higher for the foreseeable future - blimey, had their crystal ball clouded over?

Quite why these bodies either can't see these things sooner, or hide them amazes us - unless of course the 'non interfering' government tell them what to notice, that is

When Gordon Brown handed over base rate control to Bank of England all those years ago I for one did say to clients, do they really think we believe the Chancellor (Brown) will not telephone the MPC Monetary Policy Committee telling them what he wants and when?

USA revives itself

Interest rate cut of .75% seems to have revived the US market, how long for we don't yet know but Goldman Sachs have joined the bonus cutters

McCartney Woman devoid of reality - and that is news?

So the judge saw through her - is she really that stupid to think the judiciary live in her fantasy world?

That she got more than a house and an allowance to live on, £35,000 maybe plus maintenance for the child is injustice itself anyway - button it woman, disappear from the media, please, media, please ignore her, we are all now thoroughly fed up with her

McCartney - Heather loses again

Self promoting Heather McCartney has, apparently just been refused her appeal that details of the divorce are not published - and leave to appeal has been refused

Bravo, because now we can read what the judge heard and decided up on and hopefully not hear from her (that McCartney woman) again

It would also be nice not to hear from him either, as Yoko said, spoon rhyming with moon is hardly a song smith is it?

Macca, how can you get wound to ryme with pound - as in bank account wounded by loss of pounds?

Debts cancelled - they say it is true

Apparently it is quite possible to write off debts, even if you have been paying them, even if the loan is or had fallen in to arrears

Contract Law and promisory notes are being challenged and supposed 'lenders' asked to prove thier debt, in law

Rumnour has it that many of them just cannot prove thier debt, or rather legally prove the debt and so it becomes written off!

US Interest Rates

Today the Fed is expected to lower US bank rate a further 1% making US base rate only 2.25%

However, it is argued that a period of zero% - 0% to you and me, is needed - watch this space!

Fixed Rate Mortgages

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Avoid difficulties when coming to remortgage for better rates or new fixed ratess - all lenders are daily monitoring their offers and products are being withdrawn with little or short notice

Currently there are 789 different mortgages quoted on sourcing systems for a re-mortgage of 85% on a property valuae of £175,000 where this time last year there may well have been three times as many, if not more

The new mortgage of £148,750 on an interst only basis would cost anywhere between £581.36 per month and £1,188.76 per month - ( base rates being 5.49% or 8.24% ) 4.69% pay rate for a 3 year stepped discount ranging to £1,188.76 per month on a 2 year fix at 9.29% pay rate

So, good clean credit profile with a low income multiple, say 2.75 times salary could be £670.40 per month better off than the home owner that has suffered less than brilliant credit profile, even as apparently harmless as missed or late payments, especially if they were in the last few months and CCJ's or Defaults will obviously seriuosly effect a replacement mortgage at 9.59% costing £1,188.76 per month

Warning - Savers beware

The FSA protection for savers, as increased by Alistair Darling in the wake of Northern Rock relates only to one banking licence

HSBC for example also owns First Direct so £35,000 between the two is okay, safe, guaranteed but if you have £35,000 in each bank then compensation and guarantee is limited to £35,000 since, it is reported, HSBC has only one banking licence

So, split savings between unrelated banks - in the above situation put £35,000 in to say Barclays, or Co-op or another totally unrelated bank

Stock Market Crashes

Reported 10% of UK Bank Shares amid allegations of liquidity - suggested HBOS and RBS Nat West liquidity challenged
Stock Market lowest for 2 years

Shares Crash

London Stock Market Exchange crashed 2% in the first 7 minutes of trade this morning and more is expected
Okay so everyone keeps blaming the US sub prime mortgage market and that does seem to be the reason, but where and when this contagion is going to end who knows?

Fit Note - Sick Note

Fit Note? Now this is an idea that will most likely stir the Trade Unions if ever there was one!
Instead of making the Health Service and DWP or DSS more efficient, instead of sacking a few managers, or making a few managers actually work or produce something this government now want Doctors and your GP to sign patients fit!
So, this will no doubt hit the skivers and malingerers but how will it effect the very income replacement insurance the government want us all to provide for ourselves
Find out just how economically you can insure your wages by visiting The Sick Pay Club or its pages within our site, MyCbi, and how to get the most out of your Sick Note

Bear Stearns & JP Morgan - Northern Rock

So the Lesley Neilsen finally hits the fan - JP Morgan have bought Bear Stearns just as some argue Lloyds TSB should have been allowed to do with Northern Rock

Just how far this contagion will go remains to be seen, USA in recession is advised the best way out is to spend thier way out of it - UK won't be able to do that, UK Plc as Gordon Ed Balls Up Brown liked to call us don't have any money to spend, nor reserves because he sold all the gold! At least he got a poor price for it!
Who would have thought CMD Call Me Dave got it right - you know, his words to the Prime Minister that in the good times he put nothing aside, and they try to encourage we the public to save, save for a rainy day!