Thursday, Nov 15, 2007
Even if BoE drops rates IT WILL NOT MATTER
Times: Standard Life increases SVR
It is credit risk repricing that has made mortgages more expensive. Mervyn is powerless, unless... unless he decides to fund the lending a la Northern Rock for all the other lenders. Painted in a corner, the UK house market has nowhere to hide. God bless the Pound. I spare you my usual laugh, but I am laughing... this time at Mervyn.
Posted by confused76 @ 06:53 PM (624 views) Add Comment
5 Comments
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1. tyrellcorporation said...
'There may also be shock for borrowers who have secured a fixed rate with Standard Life, but added the original fee to the loan. This is because when Standard Life adds fees to a mortgage, the fees are charged at the SVR rather than the pay rate. As a result, even fixed rate borrowers will see a rise in their monthly repayments as a consequence of this change.'
...oh no, my ribs, no, stop it!
2. japanese uncle said...
As every reasonably minded economist is aware, reduction of the base rate will not work under the credit crunch regime. It is hardly imaginable or impossible actually that Merding King does not know the odds of his new relaxation policy. If the BoE is still cutting the rate, there must be only one real intention, i.e. precipitating GBP into obliviilon. But that would undoubtedly raise the inflation rate. What would he do then? Anyway it is almost certain that as always those filthy financial thugs are making billions just by be being informed beforehand what would be the headlines tomorrow.
3. the northerner living in oz said...
I have been expecting this for some time
It sounds to me like the BoE will lower interest rates
To devalue the pound in a last ditch attempt to save the U.K
Housing market and economy
Not sure if this will work but it the only option left to the U.K
My guess is 15% devaluation by this time next year.
4. sara said...
My dad rang me last night to tell me that a house he was going to look at had been taken off the market. The EA told him that this had happened quite a bit in the last few days as people are expecting that house prices will have stopped falling in the spring and if they wait they will be selling in a rising market once more! Let's hope we see a few more of these articles splashed accross the front of papers.
5. sold out said...
Sara:
"will have stopped falling in the spring and if they wait they will be selling in a rising market once more!"
Sounds like typical EA logic to me, based on hope more than anything.Anyway if a significant number of deluded house sellers do wait till spring they will only be adding to the rush of BTL losers in April.Happy days HPC bloggers party still on for june 08 me thinks.Yippee