mycbi money advice

Negative Equity? Well yes, of course!

2008-04-04T00:42:00.000-07:00

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

2008-04-02T04:30:00.000-07:00

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

2008-03-29T04:50:00.000-07:00

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

2008-03-28T23:10:00.000-07:00

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

2008-03-28T00:33:00.001-07:00

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

2008-03-28T00:07:00.000-07:00

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

2008-03-19T01:32:00.000-07:00

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

2008-03-19T01:30:00.000-07:00

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?

2008-03-19T01:25:00.000-07:00

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

2008-03-18T04:34:00.000-07:00

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

2008-03-18T01:52:00.000-07:00

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

2008-03-18T01:49:00.000-07:00

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

2008-03-17T10:17:00.000-07:00

Please log in to MyCbi RSS to recevie regular up dates of what mortgage changes are about

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

2008-03-17T10:12:00.000-07:00

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

2008-03-17T10:02:00.000-07:00

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

2008-03-17T03:02:00.001-07:00

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

2008-03-17T02:54:00.000-07:00

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

2008-03-17T02:43:00.000-07:00

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!

Inside TRack Property Club BTL Property Crash

2008-03-16T02:51:00.000-07:00

Some members of Singing Pig may be pleased to hear someone is taking an interest in the so called property investors club Inside Track though alas it is probably too late for too many
MyCbi has always shied away from such schemes, and a fee of £2,500 or more to learn what is already out there in the public domain or can be explained by any mortgage broker worth their salt must surely add insult to injury
Mail on Sunday Financial Mail head an article Landlords' Lament though at this stage it seems more a story than an investigation, maybe they are waiting for the rush to begin, rather than be seen to start the rush of negative reporting?
And Channel 4 - where are they going to sit on this one, will Dispatches ever take up the issues or will programme sponsorship override journalistic integrity?

Bear Stearns bail out

2008-03-16T02:46:00.000-07:00

American finance crisis deepens, even more so - Bear Stearns, supposedly a reputable giant amongst banks has been at least temporarily bailed out by the Federal Reserve via JP Morgan

More about all this later, we think

Shannon Matthews - Critical Daily Mail asks why 24 days

2008-03-15T03:19:00.000-07:00

Okay so Daily Mail needs stories but surely they should be rejoicing the girl is found, not criticising the police - at least they have found her and really, didn't they do all they could?

Carlyle Capital Corp Credit Crunch Casualty - 6 C's

2008-03-14T10:48:00.000-07:00

Bang, what a crash that one!
Supposedely safe fund sank by sub-prime, allegedly - just how much further is this going, along with its contagion the US sub-prime housing boom and bust has such far reaching effects
It is said that most or all of the CCC fund or investment was actually in prime mortgages as opposed to sub prime adverse mortgages
Apparently Deutsche Bank and JP Morgan were the one to pull the plug, watch this space, please
Anyhow, gold has shot up in price and banks still don't seem to be lending to each other despite cash being made available both in EU and USA

Sport Relief - Again

2008-03-14T10:36:00.000-07:00

At the risk of being called uncharitable, which we are not, nor am I don't you just get fed up with it being pushed and promoted all the while?
We do actually give to charity, Rainbows Children's Hospice in Loughborough and Marie Curie of course, though we are looking to widen our range so worthy suggestions are invited
BBC TV seems full of it, from 7.00 pm to 10.00 pm and again from 10.45 pm to 2.30 am on BBC1 and no doubt the Radio will have its bashing also - yes it is all for a good cause, if the 'celebs' are not charging (Terry £8,000 wasn't it, last year?) but to lose the only other decent channel for the whole evening. Oh well!

Shannon Matthews found apparently safe

2008-03-14T10:24:00.000-07:00

Shannon Matthews found, apparently safe - brilliant and thank you Lord

Maybe we can all learn something from this? Society isn't what it was, but even 50 or 60 years ago parents warned children and worried about them, it just seems modern technology, especially in the media, brings things like this to our national attention

There were very few telephones let alone televisions before the Coronation, lets not forget

$400 Billion Dollars American Sub Prime Mortgage Market

2008-03-13T16:28:00.000-07:00

So the total so far of dodgy loans, sub prime, made in the USA comes to an admitted 400 billion dollars - think about it, one hell of a lot of money, but then again not so much since its only 2% of the UK Stock Exchange value
But, this $400 BILLION dollars was, to a large part, in the main, borrowed!
How can they? Call themselves whizz kids, whizz pops (is more appropriate, as in whizz pop fart) the tossers, borrowing all that, or so much money, just to buy dodgy investments!
Tossers! If the investments were any good, would they be on the market? Of course not!
And the stupid Americans wonder why they are hated so vehemently - pah! Their naive stupidity defies reasonableness and now the idiots are taking the rest of the world economy down with them!
Rock on Obama, save us, please, all of us?