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apom

Peter King, Said A Cut Would Benefit First-time Buyers

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http://www.manchesteronline.co.uk/men/pers..._the_cards.html

Duncan Pownall, mortgage development manager at Bradford & Bingley, said: "The slowdown in the economy is not as marked as some may suggest.

"We believe it is likely that base rate will remain on hold for the rest of the year unless there is very firm evidence of further weakening in the economy."

Peter King, the National Association of Estate Agents' chief executive, said a cut would benefit first-time buyers struggling to get on the property ladder.

Peter.. No it won't...

Essentially high interest rates will help us as it will drive prices down.

Most of us can't see ourselves affording the debt and we are aware that a long term massive loan on variable rates is not more affordable if we get the loan out at a period of low interst rates.

Because we are not stupid.. Chances are those people who might agree with you.. they have bought already..

Thinking perhaps that their loan was affordable at 3.5% and gettting a little concerened now its 4.5%

Also.. we would like pensions and savings to perform as well.

Peter King, you won't read this.. but if you do..

We know that you are aware that low interest rates are not something to base long term borrowing on.

More and more people are concerend that you wish to be percieved as an educated voice, but you choose to use that to misleed people into commiting financial suicide.

Think about this as you go about your business.

and Duncan..

You know that the slowdown is more marked then you thought...

You also know that dropping the rates would only go toward putting of the problem.. and making it worse..

You know that you won't get your precious drop just yet.. perhaps never.. You know why..

its not actually that complicated.

Edited by apom

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http://www.manchesteronline.co.uk/men/pers..._the_cards.html

Duncan Pownall, mortgage development manager at Bradford & Bingley, said: "The slowdown in the economy is not as marked as some may suggest.

"We believe it is likely that base rate will remain on hold for the rest of the year unless there is very firm evidence of further weakening in the economy."

Peter King, the National Association of Estate Agents' chief executive, said a cut would benefit first-time buyers struggling to get on the property ladder.

Peter.. No it won't...

Essentially high interest rates will help us as it will drive prices down.

Most of us can't see ourselves affording the debt and we are aware that a long term massive loan on variable rates is not more affordable if we get the loan out at a period of low interst rates.

Because we are not stupid.. Chances are those people who might agree with you.. they have bought already..

Thinking perhaps that their loan was affordable at 3.5% and gettting a little concerened now its 4.5%

Also.. we would like pensions and savings to perform as well.

Peter King, you won't read this.. but if you do..

We know that you are aware that low interest rates are not something to base long term borrowing on.

More and more people are concerend that you wish to be percieved as an educated voice, but you choose to use that to misleed people into commiting financial suicide.

Think about this as you go about your business.

and Duncan..

You know that the slowdown is more marked then you thought...

You also know that dropping the rates would only go toward putting of the problem.. and making it worse..

You know that you won't get your precious drop just yet.. perhaps never.. You know why..

its not actually that complicated.

If they lend me 5 times of my salary with a low interest rate, I would like to buy one. Otherwise, cutting the interest rate won't make much sense to me. Don't know about others, who might only concern about the repayment/interest rate, without the affordability problem. :P

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Peter King, the National Association of Estate Agents' chief executive, said a cut would benefit first-time buyers struggling to get on the property ladder.

Peter.. No it won't...

Essentially high interest rates will help us as it will drive prices down.

Most of us can't see ourselves affording the debt and we are aware that a long term massive loan on variable rates is not more affordable if we get the loan out at a period of low interst rates.

Peter would not mention of course that FTBs who have managed to save

a sizable deposit would actually likely to benefit in high IR / lower prices situation

due to a significant reduction in gearing.

At least he admits affordability problem, somewhat unintentionally though.

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Guest Bart of Darkness
Peter King, the National Association of Estate Agents' chief executive, said a cut would benefit first-time buyers struggling to get on the property ladder.

A cut in house prices would certainly help.

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A cut in house prices is the only thing that will really help: and it will help the people who want to trade up to a bigger house as well. Why would any sane person _not_ want a cut in house prices?

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As ever with these numb-nuts they don't quite see the key problem for FTBs.

It is that they are now competing with BTLs for traditional "FTB" properties... and BTLs have bid prices up to silly levels.

So, when the stamp duty level is increased they say this is great for FTBs... it isn't, BTLs get the same benefit and FTBs are no better off in comparison to BTLs. A £1,000 saving on stamp duty for a BTL just means he can pay £1,000 more for the property and make the same return he was going to make before the cut. The FTB has to up his offer by £1,000 to compete (if the price doesn't go up it is because it was too fuggin high in the first place). The FTB is NOT better off as a result of this change.

Similarly, a 0.25% cut in interest rates will make the same property more attractive to a BTL (as TTRTR will tell us) so the BTL is now willing to pay more, so the FTB needs to be willing to pay more to compete... so he pays less in interest and more in capital (and potentially higher interest in the future). The FTB is NOT better off as a result.

If any of these fug-wits REALLY wanted to help FTBs they'd lobby for changes (such as stamp duty changes) to benefit FTBs but NOT BTLs.

This, of course, will never happen because the truth is these guys don't give a fug about FTBs. Thye care about shifting property and taking commissions. They are upset at present because they cannot sell to BTLs at current prices (not in enough volume anyway) and they cannot sell to FTBs either... no sales, no commission... so clearly life's not fair, the MPC need to help us out etc etc.

Alternatively, these just need to get sellers to become realistic about prices. :D

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http://www.manchesteronline.co.uk/men/pers..._the_cards.html

Duncan Pownall, mortgage development manager at Bradford & Bingley, said: "The slowdown in the economy is not as marked as some may suggest.

I just had a look on the National Statistics website - GDP growth has fallen from over 3.5% a year in mid-2004 to 1.5% now (more than a 50% fall in our GDP growth) to a level well below our long-term trend (about 2.5%).

That seems like a fairly "marked" slowdown to me. Presumably Pownall is just happy we are not in recession(who the fug would take advice on the economy from a mortgage development manager anyway?).

National Statistics - GDP growth

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  • 302 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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