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Personal debts are now over £1 trillion. That means that people are paying £50b in interest charges or £1000 a year for every man, woman and child in the UK. A 1% rise in interest rates costs the nation £10 billion per year extra. This has to be wholly unsustainable and possibly catastrophic in a climate where world interest rates are on the increase.

Banks seem to be waking up to the developing crisis. Barclays have recently put up their credit card interest charges by 2% and they acknowledged that this was related to risk. Lenders are also making greater use of people's homes to protect and recover debt. In this climate it is also inevitable that lenders will quietly tighten up their rules. Perhaps we have seen the last of loans at 4 or and 5 times earnings.

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I doubt we have seen the last of the big multiples.... :(

and don't forget with low inflation there are many people out there with mortgages taken out at 3.5% who thought that they could afford their 25 year loan..

Self Cert...? 1/3rd of all lending...

How many multiples do you think these guys were borrowing?

9 times..?

This link is good for a mortgage calculator..

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

note the cool warning.. it also calculates to a 12% loan rate..

Read the news.. three day working week... massive profit warnings.. the winter of discontent...

Labour have always created economic turmoil...

And this time the signs are worse the the 70's..

oh dear...

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I doubt we have seen the last of the big multiples.... :(

and don't forget with low inflation there are many people out there with mortgages taken out at 3.5% who thought that they could afford their 25 year loan..

Self Cert...? 1/3rd of all lending...

How many multiples do you think these guys were borrowing?

9 times..?

This link is good for a mortgage calculator..

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

note the cool warning.. it also calculates to a 12% loan rate..

Read the news.. three day working week... massive profit warnings.. the winter of discontent...

Labour have always created economic turmoil...

And this time the signs are worse the the 70's..

oh dear...

You are probably right about the big multiples. I suspect however that the more extreme multiples will become the speciality of lenders who do home visits with Rotwielers.

The mortgage calculator only goes up to 25 years but many people are now taking out interest only loans.

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  • 301 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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