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Repossessions to surge 50pc as rate rises squeeze households
SE10 replied to Gurgle's topic in House prices and the economy
Scroll down to the Boris video and part of your wish is granted https://www.bbc.co.uk/news/uk-politics-54950012.amp -
Peston - ‘Devestating recession has already begun’
SE10 replied to MarkD's topic in House prices and the economy
What's new? -
Popped the figures into a chart
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US Inflation rises "more than expected" and hits 7.5%
SE10 replied to Sausages's topic in House prices and the economy
I guess it'll be a stress test for the idea that the Euro is an optimal currency area. Here's a couple of hopefully interesting links. https://en.wikipedia.org/wiki/Optimum_currency_area https://www.forbes.com/sites/timworstall/2016/06/19/paul-krugman-is-entirely-right-about-the-disaster-that-is-the-euro-here/ -
What were the previous figures?
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BoE 3rd Fed 2022 rate decision...
SE10 replied to TheCountOfNowhere's topic in House prices and the economy
Be interested to know why? 😊 Also, including total cost was interesting, thanks. -
I don't see he west mids figures in the thread, Wales is there twice though?
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Don't ask for a big pay rise, warns BoE boss
SE10 replied to rollover's topic in House prices and the economy
He might be a clown, but I'd be a clown for that package! -
That didn't take long....mortgage rates going up.
SE10 replied to TheCountOfNowhere's topic in House prices and the economy
Mortgage rates will have more of an impact on prices than saving rates so that's fine. And of course... at some point the banks will have to fund the balance sheet outflows selling mortgages will cause so saving rates will have to go up now we're starting towards having a normal market in bonds etc. -
BoE 3rd Fed 2022 rate decision...
SE10 replied to TheCountOfNowhere's topic in House prices and the economy
I suspect by the end of the year mortgage rates will be above that level anyway, meaning it doesn't really matter. And at high interest rates, longer term mortgages mean compounding works against you significantly. Here's an example from money supermarket before we even get to higher rates: (filtered for a 5 year fix, sorted by monthly cost) Change to 35 years and: So 5 years longer term saves you £82 a month. But what if you take advantage of that to buy more house with the same deposit and monthly payments? So about 5.5% more budget. But what about at more historically relevant rates - say 7%? (using https://www.bbc.co.uk/homes/property/mortgagecalculator.shtml) And now 35 years.... Now you're saving about £59 a month, so let's see how much more that lets you borrow So about 4% more, hardly earth shattering. But! We have inflation above historical norms so let's try historically high mortgage rates: Savings now £42 a month, if we convert that to borrowing Just 2% more budget now. -
BoE 3rd Fed 2022 rate decision...
SE10 replied to TheCountOfNowhere's topic in House prices and the economy
This one? https://financialmentor.com/calculator/how-much-house-can-I-afford-mortgage-affordability-calculator is what I used to work out the bottom row -
Or its an indicator of what rate Lloyds sold 10 year bonds at to fund these mortgages?