Jump to content
House Price Crash Forum
campervanman

Boe Warns Of Impact Of Ir Hikes On Repossessions

Recommended Posts

http://www.telegraph.co.uk/finance/personalfinance/borrowing/8418437/Bank-of-England-warns-of-rise-in-loan-defaults.html

Unexpectedly repossessions are increasing during 2011. Unexpectedly interest rates may have to rise as inflation remains unexpectedly high due to the unexpected weakness of Sterling. Unexpectedly the overindebted will struggle to pay back the money they borrowed. Unexpectedly the sun will rise in the morning.

Edited by campervanman

Share this post


Link to post
Share on other sites

So now the BoE are coming straight out and saying they won't raise IR because the want to keep the overleveraged in their homes.

So, negative real interest rates (not just here but compounded by the same policy across the West, especially the USA) drive up inflation, so the overstretched homeowner ends up to unable to pay his mortgage anyway because he;s squeezed by rising consumption costs instead. Unfortunately the drowning man drags down everyone around him too, because everyone else sees the value of their savings and earnings destroyed by inflation as well.

Not all bad though, gold had a nice little boost today.

Edited by General Congreve

Share this post


Link to post
Share on other sites

Britain’s biggest mortgage lender, Halifax, yesterday took steps to guard against people defaulting on their home loans by announcing a clamp down on interest-only mortgages.

It now requires a deposit of 25 per cent for interest-only mortgages, up from 15 per cent.

Melanie Bien, of mortgage brokers Private Finance, said: “By switching from repayment to interest-only, homeowners can significantly reduce their monthly costs which may make the difference between keeping the roof over their heads or falling into arrears and possibly losing their home to repossession. By severely restricting the availability of interest-only deals, lenders may be denying desperate homeowners a vital lifeline.

I read on here once, if you're going to panic make sure you're the first one - given that its likely most borrowers in trouble have less than 25% equity, could that be Halifax?

Share this post


Link to post
Share on other sites

Yet in the heading of the article it says:

The number of home owners unable to keep up with their loan repayments is expected to rise, the Bank of England has warned.

So it was unexpected but is now expected or what?

Share this post


Link to post
Share on other sites

Yet in the heading of the article it says:

The number of home owners unable to keep up with their loan repayments is expected to rise, the Bank of England has warned.

So it was unexpected but is now expected or what?

Oh what?

Did we say that, sh1t

Er.......

It started in America

Share this post


Link to post
Share on other sites

..dunno if this has been posted before...

http://www.dailymail.co.uk/news/article-1371826/Rise-mortgage-defaults-house-prices-rise-confidence-ebbs.html

Interesting bearish comments, such as...

What a load of twaddle. House prices are not rising. My friend sold her house last summer and it was up for sale for £185,000. She needed to sell and after after being on the market for 8 months finally sold it for £165,000. My own house was valued at £199,000 last year. There is a similar one for sale around the corner for £159,000! Just another load of rubbish that is being put out to show that the country is on the up. I am now redundant again - twice in two years. It took me 8 months to get my most recent job. I am now in a position where I feel that I will never get a job - I am 56. My house is now in jeopardy. I just don't know what to do.

Share this post


Link to post
Share on other sites

Mervyn is such a groundhog.

Phil did not see his shadow and thus spring is just around the corner!

The legend of Groundhog Day is based on an old Scottish couplet: "If Candlemas Day is bright and clear, there'll be two winters in the year."

Every February 2, people gather at Gobbler's Knob, a wooded knoll just outside of Punxsutawney, Pennsylvania.

Residents contend that the groundhog has never been wrong.

The ceremony in Punxsutawney was held in secret until 1966, and only Phil's prediction was revealed to the public. Since then, Phil's fearless forecast has been a national media event.

The groundhog comes out of his electrically heated burrow, looks for his shadow and utters his prediction to a Groundhog Club representative in "groundhogese." The representative then translates the prediction for the general public.

If Punxsutawney Phil sees his shadow, it means six more weeks of winter. If he does not see his shadow, it means spring is just around the corner.

Approximately 90% of the time, Phil sees his shadow.

The groundhog is like most other prophets; it delivers its prediction and then disappears.

- Groundhog Day Quotes by Bill Vaughn

Edited by billybong

Share this post


Link to post
Share on other sites

It's been said before but is entirely true. Man farts in china etc hold interest rates. Why don't savers get of their arses and do something about this. It is called being mugged. Euro bailouts + crap interest on savings surely has to get peoples blood boiling. Why are people not getting more angry about this? There must be more than 250000 people affected by this who shouuld be marcing/protesting and some of them are not even the parasites bleeding the system dry. Why in the hell are we having to bail the EU out and whoever agreed to this sh"t is/has done more harm to the UK than any expenses fraudster. How can the people being robbed stop all this BS?

Also this is unrelated but when I saw Grant Shapps on the T.V. today I actually wanted to put boot into it, he is going to F*ck all HPCers over with his poxy ideas. Why does no media ever question the old line trotted out by politicians about trying to create affordables housing and at the same time pulling out all the stops to prevent it returning to it's maket value (30% down).

U.K. is not agood place to be and I want out of this sh*te hole. Not one crdible political alternative exists in this country for anyone who wants to work and get on.

Rant over.

Share this post


Link to post
Share on other sites

http://www.telegraph.co.uk/finance/personalfinance/borrowing/8418437/Bank-of-England-warns-of-rise-in-loan-defaults.html

Unexpectedly repossessions are increasing during 2011. Unexpectedly interest rates may have to rise as inflation remains unexpectedly high due to the unexpected weakness of Sterling. Unexpectedly the overindebted will struggle to pay back the money they borrowed. Unexpectedly the sun will rise in the morning.

OMG, it's all so unexpected! :)

And yet a wombat could have predicted it.

Share this post


Link to post
Share on other sites

If the boe don't raise rates repos will rise due to inflation. If they do raise rates repos will rise due to interest rates. So it doesn't matter if they do or they don't. Even the bank themselves admits it will be 18 months before inflation comes down. I think that may be too late for many.

Share this post


Link to post
Share on other sites

If the boe don't raise rates repos will rise due to inflation. If they do raise rates repos will rise due to interest rates. So it doesn't matter if they do or they don't. Even the bank themselves admits it will be 18 months before inflation comes down. I think that may be too late for many.

When do people give in to it though. I don't have mortgage but could easily cut consumption of nice things by 90%. If I had motgage this would no way be eaten up by inflation or interest. I think a lot of people have a lot of slack left to go yet. Hardship is something I'm not seeing yet amongst people I know. Maybe a few less meals out per week but nowt serious.

Edited because of the spelling again. I blame keyboard

Edited by wired01

Share this post


Link to post
Share on other sites

When do people give in to it though. I don't have mortgage but could easily cut consumption of nice things by 90%. If I had motgage this would no way be eaten up by inflation or interest. I think a lot of people have a lot of slack left to go yet. Hardship is something I'm not seeing yet amongst people I know. Maybe a few less meals out per week but nowt serious.

Edited because of the spelling again. I blame keyboard

The boe survey shows people already are giving in to it. You can't cut back on nice things if you already don't buy any. Inflation is causing the increase in defaults. Granted there have been some job losses but nothing significant. Every time inflation rises it tips more people over the edge and pushes the next lot to the brink. If you had a choice between paying you're mortgage and paying for a weeks petrol to get to work what would it be? Or a weeks food?

You may not be in this situation but many are. One I know personally.

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • 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.