House Prices Now At 2004 Levels
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From: The far North
I am surprised Northern Rock have started doing 90% Mortgages again.
This is an interesting article with comments at the bottom of the page.
http://www.thisismoney.co.uk/mortgag...id=58&ito=1723
This is an interesting article with comments at the bottom of the page.
http://www.thisismoney.co.uk/mortgag...id=58&ito=1723
Scooby Regular
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But the interest rates on the 90-95% mortgages are huge. Northern Rock charge 6.59% on their 90% mortgage. Compared to 4.78% on the 70% mortgage.
So I assume they're at least building in a nice little profit for themselves even if they eventually have to repossess.
I've no idea if this was typical of the 90-100% mortgages a few years ago.
So I assume they're at least building in a nice little profit for themselves even if they eventually have to repossess.
I've no idea if this was typical of the 90-100% mortgages a few years ago.
Scooby Regular
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^^^^^^^^^^^^^^^^^^^^^^^^^^
Agreed.
I have a friend who is complaining every other day about interest rates and mortgage payments... And the most he has ever payed is 5.75%,and currently has defered to tracking the base rate +0.5% and it still whinging...
Within a few years i think there is some big rate increases due.
Agreed.
I have a friend who is complaining every other day about interest rates and mortgage payments... And the most he has ever payed is 5.75%,and currently has defered to tracking the base rate +0.5% and it still whinging...
Within a few years i think there is some big rate increases due.
Scooby Regular
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People are completely completely daft now and have been for years now.New TV's,cars,things for the house
They have no idea what is coming.Reposession I think
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I don't know how you lot think interest rates are going to go back to 15% any time soon. If the economy is still struggling now on a knife edge as it has done for a few years now any interest rate increase is going to top it over the edge currently - hence the BOE not raising rates for so long now despite pressure to do so. Inflation is not coming from people going out wildly spending, its coming from natural resource price increases such as oil and grain so fuel and food prices have shot up plus the increase in VAT. People are struggling with prices of every day items now and their monthly budgets so putting more pressure on the average household will only harm the economy.
You may dream for high interest rates but quite simply the economy can not afford it as businesses will die with raised interest rates, unemployment will rise from those businesses failing and then the economy starts to falter again.
Climbing out slowly is not something that happens in a year or two it's going to take a very long time before the average household recovers to a comfortable position again.
Of course this being scoobynet and the home of the rich most on here will shout boll0cks and they aren't struggling at all and interest rates should be put up immediately with absolutley no understanding of what knock on effect to the economy that will have.
You may dream for high interest rates but quite simply the economy can not afford it as businesses will die with raised interest rates, unemployment will rise from those businesses failing and then the economy starts to falter again.
Climbing out slowly is not something that happens in a year or two it's going to take a very long time before the average household recovers to a comfortable position again.
Of course this being scoobynet and the home of the rich most on here will shout boll0cks and they aren't struggling at all and interest rates should be put up immediately with absolutley no understanding of what knock on effect to the economy that will have.
Last edited by Bravo2zero_sps; Mar 5, 2011 at 11:52 PM.
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From: Surrey/London borders.
The historical average for interest rates is 6%.
I doubt we'll see this in the next 15 years or so. I'm fixed for 5 years at less than 2% for a BIG mortgage and expect to be paying over the odds for its term.
We're in uncharted waters re finance, but the rates on offer for those with capital make BTL very attractive now. Growing rental yeilds, particularly in the SE are hinting at prices only upping.
I doubt we'll see this in the next 15 years or so. I'm fixed for 5 years at less than 2% for a BIG mortgage and expect to be paying over the odds for its term.
We're in uncharted waters re finance, but the rates on offer for those with capital make BTL very attractive now. Growing rental yeilds, particularly in the SE are hinting at prices only upping.
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I don't know how you lot think interest rates are going to go back to 15% any time soon. If the economy is still struggling now on a knife edge as it has done for a few years now any interest rate increase is going to top it over the edge currently - hence the BOE not raising rates for so long now despite pressure to do so. Inflation is not coming from people going out wildly spending, its coming from natural resource price increases such as oil and grain so fuel and food prices have shot up plus the increase in VAT. People are struggling with prices of every day items now and their monthly budgets so putting more pressure on the average household will only harm the economy.
You may dream for high interest rates but quite simply the economy can not afford it as businesses will die with raised interest rates, unemployment will rise from those businesses failing and then the economy starts to falter again.
Climbing out slowly is not something that happens in a year or two it's going to take a very long time before the average household recovers to a comfortable position again.
Of course this being scoobynet and the home of the rich most on here will shout boll0cks and they aren't struggling at all and interest rates should be put up immediately with absolutley no understanding of what knock on effect to the economy that will have.
You may dream for high interest rates but quite simply the economy can not afford it as businesses will die with raised interest rates, unemployment will rise from those businesses failing and then the economy starts to falter again.
Climbing out slowly is not something that happens in a year or two it's going to take a very long time before the average household recovers to a comfortable position again.
Of course this being scoobynet and the home of the rich most on here will shout boll0cks and they aren't struggling at all and interest rates should be put up immediately with absolutley no understanding of what knock on effect to the economy that will have.
Scooby Regular
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Don't get me wrong,I don't want 15% interest rates or interest to rise at all!! I have a business loan linked to base rate
As you rightly say,the country/economy is on a knife edge and this is the biggest screw up I have ever seen
Scoobynet might be rich but we have a vast array of friends in good jobs/normal jobs all of whom are feeling pretty sick at the moment with the cost of everything and even a tiny nudge on the interest rates will send them over the edge
As you rightly say,the country/economy is on a knife edge and this is the biggest screw up I have ever seen
Scoobynet might be rich but we have a vast array of friends in good jobs/normal jobs all of whom are feeling pretty sick at the moment with the cost of everything and even a tiny nudge on the interest rates will send them over the edge
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And that is exactly why interest rates haven't been able to go up, it would kill any 'green shoots' of recovery stone dead and this is where the BoE is stuck between a rock and a hard place.
Scooby Regular
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From: Old Codgers Home
Only 40% of Households have a mortgage .. and there are many more savers than borrowers.
I say hike Interest rates up 0.5% each month from March 2011 until March 2012 ... that will take us up to 6.5% Base Rates.
Which is where we should be in any case! Let's get to the chase and have a clear-out!
I say hike Interest rates up 0.5% each month from March 2011 until March 2012 ... that will take us up to 6.5% Base Rates.
Which is where we should be in any case! Let's get to the chase and have a clear-out!
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Only 40% of Households have a mortgage .. and there are many more savers than borrowers.
I say hike Interest rates up 0.5% each month from March 2011 until March 2012 ... that will take us up to 6.5% Base Rates.
Which is where we should be in any case! Let's get to the chase and have a clear-out!
I say hike Interest rates up 0.5% each month from March 2011 until March 2012 ... that will take us up to 6.5% Base Rates.
Which is where we should be in any case! Let's get to the chase and have a clear-out!
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From: Runway two seven right.
What's a 0.25% increase on a 100k mortgage? £25 a month?
Sorry but if you can't afford that you shouldn't have the mortgage in the first place. Millions of OAP's (Pete) are being screwed by reckless BTL'ers who have over-leveraged themselves on the alter of property. It's time for a sacrifice.
Sorry but if you can't afford that you shouldn't have the mortgage in the first place. Millions of OAP's (Pete) are being screwed by reckless BTL'ers who have over-leveraged themselves on the alter of property. It's time for a sacrifice.
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You are basically advocating a form of socialism.
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What's a 0.25% increase on a 100k mortgage? £25 a month?
X several !!
Sorry but if you can't afford that you shouldn't have the mortgage in the first place. Millions of OAP's (Pete) are being screwed by reckless BTL'ers who have over-leveraged themselves on the alter of property. It's time for a sacrifice.
X several !!
Sorry but if you can't afford that you shouldn't have the mortgage in the first place. Millions of OAP's (Pete) are being screwed by reckless BTL'ers who have over-leveraged themselves on the alter of property. It's time for a sacrifice.
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those replies above just about sum up the total lack of understanding of the economy - it's not just about your bloody savings or people's mortgages when interest rates are talked about (Pete excluded as he is just trolling as usual).
Last edited by Bravo2zero_sps; Mar 6, 2011 at 09:36 PM.
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From: Runway two seven right.
So you really believe IR's of 0.75% will bring armagedon?
Because I don't.
The banks are still up to their necks in overpriced property. A crash will show just how much and how exposed they are. And we're quickly back to 2008 and handout time.
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And in contrast what difference is 0.25% going to make to your savings, bugger all. The fact is a rise in interest rates affects businesses and squeezes their already desperate bottom line to the point of either falling back into the red or further into the red than they already are (excluding the profiteering banks who are now rolling in it again). That means price rises in the goods they sell to try and offset which brings up inflation plus a cut in their costs in other areas which often equates to staff cuts and higher unemployment.
As I said the BoE is stuck between a rock and a hard place as there is no easy solution.
As I said the BoE is stuck between a rock and a hard place as there is no easy solution.
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From: Scotland
Too many saps and free loaders in this country wanting a free lunch and being subsidised for it. Let the market do the work and get rid of them, it needs a good rinse. In the words of Charlie Sheen: "they should have read the instruction manual before they came to the party." 
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Only 40% of Households have a mortgage .. and there are many more savers than borrowers.
I say hike Interest rates up 0.5% each month from March 2011 until March 2012 ... that will take us up to 6.5% Base Rates.
Which is where we should be in any case! Let's get to the chase and have a clear-out!
I say hike Interest rates up 0.5% each month from March 2011 until March 2012 ... that will take us up to 6.5% Base Rates.
Which is where we should be in any case! Let's get to the chase and have a clear-out!
Dave
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From: Old Codgers Home
Too many saps and free loaders in this country wanting a free lunch and being subsidised for it. Let the market do the work and get rid of them, it needs a good rinse. In the words of Charlie Sheen: "they should have read the instruction manual before they came to the party."
Mortgages are already factoring in a hike and are detached from the Base Rate ... not much will change in this area with a pathetic 0.25% or 0.5% Base Rate increase.
ISA's are available currently at 5% over 5 years - so, the Banks think rates will be around 3.5% in 36 months.
People always want help when they make a bad choice ... it's pathetic.
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From: Runway two seven right.
"The warning about the fragile state of household finances comes as the Bank of England decides today whether to end two years of the lowest rates in British history. Economists expect policymakers to leave rates unchanged at 0.5pc.
LGIM's research suggested that the economy is not yet strong enough to withstand the 2 percentage points of rate rises markets are expecting before the end of 2012.
"It would mean the kind of monetary tightening we had pre-crisis and we don't feel the economy is resilient enough to withstand that," Tim Drayson, LGIM economist, said. "If banks pass on any rate rises, which seems likely given pressure to rebuild [their] capital levels, many homeowners will quickly experience a meaningful impact on their cashflows."
A 2 percentage point rate rise would add about £170 a month to the cost of a £100,000, 25-year mortgage – or £2,000 a year – by increasing the average mortgage rate from 3.25pc to 5.25pc.
LGIM's analysis means that more than 10m of the 11.2m households with total mortgage debts of £1.2 trillion are vulnerable. In the past decade, fixed rates have never accounted for less than 20pc of the total market.
LGIM's data contradicts statistics from the Financial Services Authority that show 68pc of households are on variable rates. However, Mr Drayson said the FSA does not quantify the volume of borrowers who have not remortgaged but simply moved onto standard variable rates at the end their fixed terms"
Welcome to fooked Britannia, it's good to see the FSA on the ball as usual.
Still it's all contained, Merv's being vigilant and the BOE stands ready to act.
LGIM's research suggested that the economy is not yet strong enough to withstand the 2 percentage points of rate rises markets are expecting before the end of 2012.
"It would mean the kind of monetary tightening we had pre-crisis and we don't feel the economy is resilient enough to withstand that," Tim Drayson, LGIM economist, said. "If banks pass on any rate rises, which seems likely given pressure to rebuild [their] capital levels, many homeowners will quickly experience a meaningful impact on their cashflows."
A 2 percentage point rate rise would add about £170 a month to the cost of a £100,000, 25-year mortgage – or £2,000 a year – by increasing the average mortgage rate from 3.25pc to 5.25pc.
LGIM's analysis means that more than 10m of the 11.2m households with total mortgage debts of £1.2 trillion are vulnerable. In the past decade, fixed rates have never accounted for less than 20pc of the total market.
LGIM's data contradicts statistics from the Financial Services Authority that show 68pc of households are on variable rates. However, Mr Drayson said the FSA does not quantify the volume of borrowers who have not remortgaged but simply moved onto standard variable rates at the end their fixed terms"
Welcome to fooked Britannia, it's good to see the FSA on the ball as usual.
Still it's all contained, Merv's being vigilant and the BOE stands ready to act.
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From: Scotland
Last edited by GlesgaKiss; Mar 10, 2011 at 01:49 PM.
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Well I think Merv has made the correct judgement again .We have a long way to go yet ,to get out of the woods as a Country .I reckon another 12 months at least ,what with oil prices up and Gov cuts here there and everywhere ,but stick with it and we will come out the other side smiling !!!
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Ooh look some actaul experts quoted explaining the situation:
http://news.sky.com/skynews/Home/Bus..._For_Two_Years
as opposed to the Scoobynet versions who appear to think the only thing that matters is mortgages and their savings Unfortunately for you the economy involves a little more than that and that is why interest rates haven't increased. As i've pointed out previously, negatively affect fragile manufacturing/retail and say bye bye to any recovery.
If anything needed to be done to assist the economy and allow for interest rates to rise it would be to cut the amount of tax on fuel, not only assiting hauliers and transport costs but also helping to reign in inflation which has been hit by the large increases in fuel prices. But of course we all know no Government will do that as it's an easy tax to earn from.
http://news.sky.com/skynews/Home/Bus..._For_Two_Years
as opposed to the Scoobynet versions who appear to think the only thing that matters is mortgages and their savings
Unfortunately for you the economy involves a little more than that and that is why interest rates haven't increased. As i've pointed out previously, negatively affect fragile manufacturing/retail and say bye bye to any recovery.If anything needed to be done to assist the economy and allow for interest rates to rise it would be to cut the amount of tax on fuel, not only assiting hauliers and transport costs but also helping to reign in inflation which has been hit by the large increases in fuel prices. But of course we all know no Government will do that as it's an easy tax to earn from.
Last edited by Bravo2zero_sps; Mar 10, 2011 at 02:41 PM.
