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Frank Hovis

Home Debtors Being Warned Of Interest Rate Rises

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The Daily "House Prices to Soar!" Express has certainly had a change of tack of late. Ok they are not saying it's a good thing, but they are saying it's coming and will hurt home debtors, especially the IO halfwits. Lead story on the news page. Now if they could start following that through with:

interest rate rises -> lower prices -> more affordable houses which is a good thing

Then we are on our way.

INTEREST RATE RISES ON WAY

The Bank of England is under pressure to raise interest rated because of inflation

Wednesday February 16,2011

By Macer Hall and Sarah O'Grady

HOME owners were last night warned to prepare for a rise in mortgage rates amid fears that prices are spiralling out of control.

Official figures yesterday showed inflation hitting a two-year high last month, putting pressure on the Bank of England to raise interest rates.

The threat provoked concerns that millions of people could face “unaffordable” mortgage payments as early as May.

Figures released by the Office for National Statistics showed that the Consumer Prices Index reached four per cent in January, double the Bank’s inflation target.

The other measure of inflation, the Retail Prices Index, which includes mortgage payments, hit 5.1 per cent.

After the figures were released, Bank of England governor Mervyn King admitted: “Inflation is likely to pick up to somewhere between four and five per cent over the next few months.”

The employers’ body, the Confederation of British Industry, forecast that higher-than-expected inflation would force the Bank to raise rates this spring and that they could rise by 2.25 percentage points to almost six times the current rate of 0.05 per cent within two years.

This could have dire consequences for the seven million home owners with variable-rate home loans.

According to the Council of Mortgage Lenders, almost three million people would have mortgages that are not defined as “affordable” by the Financial Services Authority.

Even if rate rises were more modest – between one and two percentage points – an estimated 1.6 million mortgages would still be “unaffordable”, according to the guidelines.

An interest rate rise of two percentage points would push up the cost of a £150,000 interest-only mortgage by £250 a month.

http://www.express.co.uk/posts/view/229342/Interest-rate-rises-on-way

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They are sick people, they've been ramping prices up, now they rub their hands with glee watching people burn. This is the second prominent bearish headline. Perhaps the top chief at the Express has unloaded his property.

They are SICK, two faced people! At least on HPC we are upfront!

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  • 312 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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