Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

7M Home Owners Threatened By Rising Interest Rates

Recommended Posts

http://www.telegraph.co.uk/finance/personalfinance/8207933/Home-owners-threatened-by-rising-interest-rates.html

Personal Finance
Home owners threatened by rising interest rates
More than seven million home owners are at risk of rising interest rates, the Bank of England warns today, as it says people need to start paying off their debts to avoid getting into difficulty as repayments increase.

But didn't the Muppets say a few days ago that the sheeple needed to borrow MORE and thereby increase their debt? Merv and his crew seem to be in a bit of a pickle don't they. All he can do is continue the years and years of vigilance (no nothing but watch carefully).

Share this post


Link to post
Share on other sites

Many risk becoming so-called “mortgage prisoners” – trapped in their homes, unable to move, because of the cost of borrowing.

Tough shit. Nobody forced them to rush out and pay over the odds for a house.

I wouldn't worry anyway, so far when these poor souls have got anywhere close to being in trouble the taxpayer has been called in and the next generation on unborn slaves mortgaged up to hell so the current generation of idiots can carry on regardless.

Share this post


Link to post
Share on other sites

They seem to love using this "typical £150,000 mortgage" figure, and a 1% rise on this amount is around £80 to £90 (depending what rate you are on). On a .25% - .5% rise this figure is only £20 to £50.

Lose the Sky TV, one takeaway meal a week, that new pair of shoes / jeans, and it's not really a big deal.

If rates suddenly shoot up to 3% then a lot of people are in the deep sh*t, but is that really going to happen in the next 12 months? Raising rates quickly will not kill inflation off as there is a significant lag between rate rises and inflation. If rates are risen and the economy tanks then we are back to square one.

Personally, I think that these articles are more along the lines of (for those with mortgages):

"Rates are low and you're paying f**k all on your mortgage right now, but get your s**t together and start paying off some debt otherwise pretty soon you're going to be f**ked".

Might be a good idea to print this again in The Sun, Daily Star etc?

Share this post


Link to post
Share on other sites

They want people with debt to pay it down and people with money to spend it.

Ideally, the people with debt would sell stuff to the people with money, then use the money to pay down debt.

Share this post


Link to post
Share on other sites

They want people with debt to pay it down and people with money to spend it.

Ideally, the people with debt would sell stuff to the people with money, then use the money to pay down debt.

Trouble is, Merv wants people to BORROW more which he has worked out happens when banks create more debt in the form of loans. If the rich just spend it isn't going to help the banks loan books expand and overall indebtedness to rise.

Share this post


Link to post
Share on other sites

Briefly mentioned on the Wright Stuff by one if the Asian characters of Eastenders (don't watch it, think he's the postie). Interest rates are only going to go up and with it mortgage rates. Simple speak for simple people - should make a few quake in their boots.

Share this post


Link to post
Share on other sites

1. They aren't "home owners", they are "Debt holders"

2. 7 million seems an awful lot - aren't there only 10 million or so mortgages anyway...? :unsure:

Share this post


Link to post
Share on other sites

Trouble is, Merv wants people to BORROW more which he has worked out happens when banks create more debt in the form of loans. If the rich just spend it isn't going to help the banks loan books expand and overall indebtedness to rise.

Do the "Borrow to spend!" brigade ever look at timescales, or haven't they yet grasped the simple fact that unless you're borrowing to invest in the long run you'll be able to spend more if you save to do so? Even with uselessly low interest rates. Only the lenders benefit from borrow to spend sprees, which might well be the real motivation.

Share this post


Link to post
Share on other sites

So millions of people were persuaded to take out huge mortgages to pay over inflated prices for houses, then pushed onto variable rates, then variable rates get

ratcheted up. Bit like boiling a frog but the frog cant jump out because the lids on the pot.

Share this post


Link to post
Share on other sites

Personally, I think that these articles are more along the lines of (for those with mortgages):

"Rates are low and you're paying f**k all on your mortgage right now, but get your s**t together and start paying off some debt otherwise pretty soon you're going to be f**ked".

Might be a good idea to print this again in The Sun, Daily Star etc?

Personal I read it as:- we know inflation is more than it should be but we just cant raise interest rates

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 317 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.