You can blame those who borrowed more than they realistically should have, if they can't sustain a 0.25 rise in interest rates then they've clearly got too big a mortgage and are clueless - hence, their own fault.

 

So you have £500k sat in the bank?

 

The reason why this hasn't happened already is that the Government have been urging the banks to be more forgiving for those who fall behind payments. The banks leniency offered to customers with bad mortgages from Bradford and Bingley and £44bn of that from Northern Rock can only be sustained for so long and pressure is just building up until something will tip this market over the edge, and this being if interest rates rise too quickly.

 

Great, the banks influenced by politics to be nice now as well. Just what we need. They made a bad enough mess of managing risk before... now we've got the evaluation of risk going out the window in favour of being 'forgiving'.

As for the net spenders in society - or those with a constant deficit (or those who would have without this transfer of wealth) - their time will come to an end soon. Doesn't really bother me to be honest - what I miss out on now I'll happily take back when they're bankrupt and can't sell their houses quick enough to put food on the table.

 

You can blame morons who borrowed 6 7 and 8x salary to fund a house.
You can blame the bankers that dreamt up ways of allowing them to borrow more than they could afford.
And you can blame the BoE who are propping it all up with ZIRP.

 

I've budgeted for 20% interest rates for my purchase if I remain in work. If I become long term sick and cannot work I will only be able to afford 10% interest rates, and that is as close to the wire as I'd like to go. That people would go bust with small rises means they deserve to go bust. They should never have bought in the first place.

 

One of the reasons the country is F***ked is because the country is beyond Full .
Full of people who contribute nothing but take everything for free .
We are subsidising all of these Im afraid and if we carry on as its going then interest rates will be the least of our problems .
We need to get shot of 10 million who contribute nothing to the country !!!
All though Im going off Topic .

 

It's quite staggering how quickly the retail sector has gone to the wall from when the credit dried up ....... when people can't buy on credit, they don't buy.

No-one is buying property at the moment - except a few who get a chain together and Buy-To-Let Landlords who are mopping up 7% Yields.

First Time buyers still haven't a hope in hell while BTL's are mopping up the lower end properties .... for more than 1st time buyers can afford to pay.

The House Market is built on confidence - and there is very little of it outside London (where the Russians and Chinese see bargains).

Can't see it changing anytime soon.

Jimpreza - post above - yes, you are quite right ..... in the region of.

 

the entire world financial system is built on confidence, nothing else

 

So is your ability to maintain an erection.

So?

 

Mervelous !!
Yet again Merv has kept rates at .5% .He is determined to get this country back on its feet .Others also agree with his thinking .


The chief economist of the British Chambers of Commerce, David Kern, backed the decision not to change rates.

"Tightening policy in reaction to higher utility prices and internationally generated inflation would be a major mistake," he said.

"Premature rate increases, at a time when the government is tightening fiscal policy through its deficit-cutting programme, could damage jobs and growth and should be avoided."


Those with 500,00k in the bank should not need to worry as he helps the rest out .

 

They simply can't raise interest rates yet and they won't for some time. Only in the next 12 months will the full force of the government cuts be felt. And yet people on here with a bit of cash in the bank want an extra 1 or 2 % a year.
The entire world is broke for god sake, not just the UK. Cost of living is rising like no tomorrow, which contrary to what many people believe, is not inflationary driven. By that I mean it isn't by the normal cause of people spending more.

If everyone had to budget for 20% interest rates, nobody would ever move, so the small amount of people that can afford to purchase at the moment, would disappear quicker than a hookers last fix.

 

Spot on.

 

Well credit only moves purchases fwd, so if you can't afford credit you would postpone buying a house.

The market would tick over eventually just there would be a gap whilst people saved.

Contrary to propaganda from the 'home-owning special interest group' the world would not end if house prices fell or more people started renting. If anything it would probably be better for social and geographic mobility....would help the economy from that POV.

 

Add this to it and ......
House prices increased by £67 a day last month, giving hope to homeowners after months of gloom.
The £2,000 month-on-month rise is due to record low interest rates, cheaper mortgages and rising employment – all of which have boosted confidence.

does it mean the country is getting back on track ???

 

 

Well, get ready for the House Price Crash that should have happened in 2008 - yet it wasn't even tickled ....... this is part 2 and the correction that has been on the cards is about to happen.

Brace yourself and get ready to mop up the spoils when the Interest Rates increase and the Repo's start rolling in .................. Dip Yer Bread!!

 

Have to say,I know my £225,000 three bed semi should really have only cost me £140k in 2008.Oh well,not moving for a while

We went blooming bananas in this country.Don't give two hoots if it crashes

 

YEP HALIFAX SAY HOUSE PRICES ROSE BY .3% LAST MONTH !!!!!!

 

Have you ANY idea how small the Halifax sample number is??

It is a tiny drop of a small pond and therefore can be swayed by a single large (or small) sale ..... they also only monitor Mortgaged properties ..... Cash Buyers pay a lot less, as it's their own money they are spending.

How is it that the Rightmove average asking price is around £250k - yet the average sale price is around £165k?

It's because the properties actually being sold are being sold at 30%+ OFF the asking price. Yes, a few idioits are paying close to the asking - but not many these days, thank god!!

The Mortgage Valuation soon bring the valuation down to size and then sales fall through .......

 

Keep hoping Pete.
I suppose if you keep saying the same thing for 20 years or so, law of averages say you will be right at some point.

 

Lets be honest though.....

House prices are not going up are they ?

 

3 months on the bounce by all accounts !!

 

Yep

 

I did say "lets be honest"...

Show me examples of houses that have increased in price,and i will show you a hundred that have fallen..

 

Use Property Bee to see that nearly every single house for sale has been reduced in price ......................

OK, we all know that Agents are overvaluing houses to get them onto their books - then work on the vendor to lower the price.

The whole thing is smoke and mirrors .... only 7 out of every 10 propertires placed on the market in January 2011 has been **EDIT** UNsold ** - and here we are in August ....

 

.... only 7 out of every 10 propertires placed on the market in January 2011 has been sold - and here we are in August ....[/QUOTE]

So 70% have sold .That does not sound to bad to me !!

 

70% sold ??

I doubt it,nothing seems to be shifting or very low volumes..

 

Oooooops, sorry 70% remain unsold ..... I got it mixed up - I'm allowed to as I'm very old!!

7 out of 10 houses placed on the market in January 2011 remain unsold .... is what the correct facts are.