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Big Mortgage Rises On The Way

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A curiously frightening headline from the Express this morning, based on the 8% IR prediction discussed elsewhere over the weekend. Perhaps they retain their unshakeable belief that prices are set to SOAR (Hurrah!) anyway.

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A curiously frightening headline from the Express this morning, based on the 8% IR prediction discussed elsewhere over the weekend. Perhaps they retain their unshakeable belief that prices are set to SOAR (Hurrah!) anyway.

bit strange the express with headline like this,

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Maybe even the daily express has given up it's blatant property ramping and accepted the inevitable?

Got to ad a comment to this, they don't moderate it's brilliant you can literally write anything.

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I see Sibley's up early. dry.gif

NOT GOING TO HAPPEN....

23.08.10, 1:14am

The government will not allow rates to rise. Say what you want but it's not going to happen. We will have under 2% for at least 3 years. That's what homeowners need and we are the ones who pay for everything. Simple.

• Posted by: Sibley • Report Comment

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Good Headline.

You can imaging all the BBC staffers getting on the Train this morning, and seeing THAT headline on the pile...they WILL buy the paper.

The shock...the horror!

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A curiously frightening headline from the Express this morning, based on the 8% IR prediction discussed elsewhere over the weekend. Perhaps they retain their unshakeable belief that prices are set to SOAR (Hurrah!) anyway.

This makes perfect sense to me (IR sharply rising that is - can't for the life of me get my head around the editorial strategy of this trash rag). There was temporary euphoria in the markets as the Coalition made sweeping changes - now the backlash as reality kicks in.

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Anyone without a fixed-rate deal would see their monthly repayments soar by hundreds of pounds, leaving many facing the spectre of repossession.

I'd say this is one of the more way out prediction and of course includes is a trap of sorts being laid to help the banks.  If everyone suddenly switches to fixed rates which are generally higher and with larger arrangement fees then the banks profit margins rise.

I personally doubt that we will see 8pc for a very very long time. If it happened now the economy would go kaput and the banks would be bust and this isn't going to change in a hurry - perhaps in 5 years time 20% of the debt may have been paid down, but the debt will sure be hanging around for a long while yet.

If you want the counter argument to the Express story, check out the Faber thread.

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I'd say this is one of the more way out prediction and of course includes is a trap of sorts being laid to help the banks.  If everyone suddenly switches to fixed rates which are generally higher and with larger arrangement fees then the banks profit margins rise.

I personally doubt that we will see 8pc for a very very long time. If it happened now the economy would go kaput and the banks would be bust and this isn't going to change in a hurry - perhaps in 5 years time 20% of the debt may have been paid down, but the debt will sure be hanging around for a long while yet.

If you want the counter argument to the Express story, check out the Faber thread.

I can't see 8% base rates either, that assumes a responsible government and a genuinely independent Bank of England. Neither of which we have.

I can however see 8% LIBOR and can certainly see 8% SVRs happening.

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Big Mortgage Rises On The Way

I'm sure they must mean mortgage availability.

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Lolz @ Sibley's comment, wreaks of desperation. I don't normally take pleasure in others misfortunes but if these kind of people go down I only got one thing to say................. bhahahahahahahahaha, :lol::lol::lol::lol::lol:

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News is going mainstream...

The Mail and the BBC have it.

Maybe it will lead on the 6.00pm news tonight :lol:

Daily Mail

BBC

But it will be presented with a counter balance on the BBC. The papers rarely do this, or just bury it deep in the article, but the BBC will find someone saying the opposite.

One thing worth remembering is that the UK does have a double bluff against the bond market, as most of the debt is in Sterling. If the bond market tries to raise rates, then its printy printy time again and bond holders lose out. So much better for everyone to have a moderated process somewhere in the middle.

Edited by Mikhail Liebenstein

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& on the BBC site it states this

The Bank has already pumped £200bn into the economy under quantitative easing to help stimulate demand.

Either QE Droop has set in, or I never never ever not knew really which kind of demand ...........wtf!!? :blink:

& as for already pumped. Gosh what hard work it must be for this caring org. to create 000000000000000000 on a screen :angry:

What utter meaningless manipulative crap! - This is our very own honest national public broadcasting service folks.

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Lolz @ Sibley's comment, wreaks of desperation. I don't normally take pleasure in others misfortunes but if these kind of people go down I only got one thing to say................. bhahahahahahahahaha, :lol::lol::lol::lol::lol:

Homeowners pay for everything! Er, I think you will find that taxpayers do now...

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All they are doing is stoking the fires of the VIs - they don't believe it will happen but scaring enough people to be outraged by this will create a moral mondate of the MSM and sheeple before it happens. They can always sacrifice more of the prudent to keep reality from dawning on the financially feckless.

Sibley is officially a cun....

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But it will be presented with a counter balance on the BBC. The papers rarely do this, or just bury it deep in the article, but the BBC will find someone saying the opposite.

One thing worth remembering is that the UK does have a double bluff against the bond market,  as most of the debt is in Sterling. If the bond market tries to raise rates, then its printy printy time again and bond holders lose out.  So much better for everyone to have a moderated process somewhere in the middle.

I sort of get what you're trying to say but actually as soon as interest rates go up any existing bond holders have already lost out, as it means the actual principle value of what they hold has declined to result in that increased yield (effective interest rate).

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I'd say this is one of the more way out prediction and of course includes is a trap of sorts being laid to help the banks.  If everyone suddenly switches to fixed rates which are generally higher and with larger arrangement fees then the banks profit margins rise.

I personally doubt that we will see 8pc for a very very long time. If it happened now the economy would go kaput and the banks would be bust and this isn't going to change in a hurry - perhaps in 5 years time 20% of the debt may have been paid down, but the debt will sure be hanging around for a long while yet.

If you want the counter argument to the Express story, check out the Faber thread.

How many would have predicted 0.5% ir's 5 years ago? 8% ir predictions are no more strange than 0.5% ir's are now.

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A curiously frightening headline from the Express this morning, based on the 8% IR prediction discussed elsewhere over the weekend. Perhaps they retain their unshakeable belief that prices are set to SOAR (Hurrah!) anyway.

Nah, the message is BUY A HOUSE (GET YOUR MORTGAGE DEAL) NOW, BEFORE IT'S TOO LATE.

Edited by twatmangle

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I can't see 8% base rates either, that assumes a responsible government and a genuinely independent Bank of England. Neither of which we have.

I can however see 8% LIBOR and can certainly see 8% SVRs happening.

This I very much agree with. BoE base rates are very different to what the man in the street is offered by the banks.

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All they are doing is stoking the fires of the VIs - they don't believe it will happen but scaring enough people to be outraged by this will create a moral mondate of the MSM and sheeple before it happens. They can always sacrifice more of the prudent to keep reality from dawning on the financially feckless.

Sibley is officially a cun....

I do believe the people affected by a higher BOE rate will be in a very small minority, after all, I know someone who is using his lower monthly payments to spend more on holidays, Rise in rates means no holidays, boo hoo.

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  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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