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eric pebble

Interest Rate Rise Would Hit 90% Of Homebuyers, Says Analyst.

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Interest rate rise would hit 90% of homebuyers, says analyst.

An interest rate rise agreed on Thursday by the Bank of England's monetary policy committee would cut the disposable incomes of almost every mortgage payer in Britain after a massive shift by homeowners to variable rate loans, a City economist has warned.

With around 90% of homeowners opting for a tracker or variable rate mortgage after the slide in rates two years ago, the MPC risks adding to the costs faced by hard-up families and damaging the recovery, said Legal & General Investment Management economist Tim Drayson.

http://www.guardian.co.uk/business/2011/mar/09/mpc-decided-on-interest-rate-rise

Stating the obvious. The comments after the article make interesting reading....

I like this one a lot:

"Zarahustra

9 March 2011 10:44PM

Banking = money created from nothing, digitally by typing in the number in a 'account'. For this you are charged interest. It puts banks, and central bankers in positions of great power. It is no coincidence that Karl Marx put the creation of a Central Bank as one of the planks of the communist manifesto. It means central planners can plan the detailed lives of millions of people, make massive profits and capture the labor and 'productive capacity' of them in their banking trap. Everyone pays the banks with their labor and time, because banks have become linked with the government, protected by it and priviliged and licensed by it to rob you the worker."

Edited by eric pebble

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How long before you lot get it into your heads that they will talk about IR rises coming but that they have no intention of rising them this year or next.

Actually aren't you talking about BoE IR rises specifically. The banks have been increasing them for loans already. The disconnect between BoE and on the street rates is quite incredible.

Them not being raised again is interesting. Because the banks started to nudge up their rates in anticipation, the event not occuring will allow them to up them again when they eventually do! A doubly whammy that the majority of public fools will see as being a direct rise in relation to the BoE.

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It might hit mortgage payers but it would be a step towards cheaper houses and young people being able to afford to buy their own accommodation.

Who knows but it might even help to reduce the incentive of the likes of Tesco to offer UK management jobs to people in Slovakia.

Edited by billybong

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Interest rate rise would hit 90% of homebuyers, says analyst.

An interest rate rise agreed on Thursday by the Bank of England's monetary policy committee would cut the disposable incomes of almost every mortgage payer in Britain after a massive shift by homeowners to variable rate loans, a City economist has warned.

With around 90% of homeowners opting for a tracker or variable rate mortgage after the slide in rates two years ago, the MPC risks adding to the costs faced by hard-up families and damaging the recovery, said Legal & General Investment Management economist Tim Drayson.

http://www.guardian....erest-rate-rise

Stating the obvious. The comments after the article make interesting reading....

I like this one a lot:

"Zarahustra

9 March 2011 10:44PM

Banking = money created from nothing, digitally by typing in the number in a 'account'. For this you are charged interest. It puts banks, and central bankers in positions of great power. It is no coincidence that Karl Marx put the creation of a Central Bank as one of the planks of the communist manifesto. It means central planners can plan the detailed lives of millions of people, make massive profits and capture the labor and 'productive capacity' of them in their banking trap. Everyone pays the banks with their labor and time, because banks have become linked with the government, protected by it and priviliged and licensed by it to rob you the worker."

They craftily herded the sheep into another of their rip-off pens!

The banks can easily 'absorb' the interest rate rise because the disparity/gap between what they charge and the BOE base rate is at an all time high.

Using collective forgetfulness - the banks are hoping idiots have forgotten the usual long term interest rate gap/mark-up which they have manipulated upwards (unregulated!!)

Just spotted Redcellar's post - what s/he said too!

Edited by erranta

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It might hit mortgage payers but it would be a step towards cheaper houses and young people being able to afford to buy their own accommodation.

Who knows but it might even help to reduce the incentive of the likes of Tesco to offer UK management jobs to people in Slovakia.

Nop-- Welcome to the UK - a country that has no shame in ruining the lives of the silent majority - and of the young....

It amazes me the young haven't risen up - using twitter/facebook - and organised a mass sit-in on ALL major rads..... Bring the country to a halt - and DEMAND that bankers go on trial - and housing is REALLY made affordable - something perfectly possible if the bent moneylenders didn't get between you and the house.....

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  • 284 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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