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The Masked Tulip

Interest-Only Mortgage Holders Have Nothing To Fear

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http://www.moneyweek.com/personal-finance/mortgages/interest-only-mortgage-holders-have-nothing-to-fear-63807

The good news for Colin is that the full force of the government’s financial muscle is wishing him luck. I wrote last month about the way in which the endless announcements of programmes to 'help' the housing market are preventing prices in the south from falling to what we might think of as their fundamentally correct levels.

That’s really irritating for anyone without a house and who wants one, but it’s fantastic for anyone who bought a house with a mortgage they couldn’t really afford: low mortgage rates mean they don’t have to default, and high prices mean they don’t want to.

But the government is likely to do a whole lot more for Colin before it is finished. All modern governments are following much the same strategy. They are keeping interest rates low, indulging in one kind of quantitative easing or the other, and hoping for inflation. Not all countries are good at creating inflation, but the UK is something of a master at it when it comes to the business of changing the value of the pounds in its residents’ pockets.

The consumer price index (CPI) in the UK has averaged 3.1% over the last six years – and that’s before Mark Carney arrives to take up his new position as governor of the Bank of England in July. When he starts with his hinted-at unconventional monetary measures we might find ourselves thinking of a rate that halves the value of our money in a matter of 23 years as being a good thing.

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But this is all assuming that outside forces (outside the UK governments control) dont fc uk it all up.

there is alot of issues brewing around the world, which will impact the UK financially, and there will be a port where we can no longer extend and pretend.

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I think Merryn is trying to come up with a name for the over indebted mortgager,... a Colin. Maybe there is an acronym in there somewhere.

Edit. corrected for poster below.

Edited by crashmonitor

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I think Merryn is trying to come up with a name for the over indebted mortgagee,... a Colin. Maybe there is an acronym in there somewhere.

NB Mortgagee is the lender.

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Can someone explain how eroding disposable income and thus making it more difficult to save (via lower wage inflation than CPI) and ensuring whatever can be saved will fall in value in real terms (via lower savings rates than CPI) will somehow make things easier for IO borrowers?

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Can someone explain how eroding disposable income and thus making it more difficult to save (via lower wage inflation than CPI) and ensuring whatever can be saved will fall in value in real terms (via lower savings rates than CPI) will somehow make things easier for IO borrowers?

Please don't ask awkward questions just go with the flow....

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I think Merryn is trying to come up with a name for the over indebted mortgagee,... a Colin. Maybe there is an acronym in there somewhere.

Credit Owner Living In Neverland.

Credit Owning Loser, Indebted Numpty.

Credit Owning Loser, INsolvent.

Cannot Own, Loves INterest ?

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That’s really irritating for anyone without a house and who wants one, but it’s fantastic for anyone who bought a house with a mortgage they couldn’t really afford: low mortgage rates mean they don’t have to default, and high prices mean they don’t want to.

The first few repossession actions by the banks in 2009, against Labour trying to make it hard for banks to repossess were too much of a tragedy for some to stomach. The Colins of this world having their homes repossessed, and there were so many calls about it being heart-breaking and banks were to blame for their suffering. You can't have it both ways as I said at the time. Market corrections mean some have to meet the consequences of over-borrowing and leveraging their future on constant boom.

Anyway, a tragedy that was stopped, which has further condemned young professionals on HPC and coming through the system, who don't have any bomad support. That's really fair.

The Colins and BTLers. Recall the anecodote of one HPCer went to a viewing recently and hoped to chip the rental price down, asked the block-headed landlord what he does, "I buy houses, do them up and rent them out." Yay. The future of housing in the most deserving of people. Over-indebted and landlords and those who want to keep massive housing gains, above capable young people seeking to make their own way in the world.

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Credit Owner Living In Neverland.

Credit Owning Loser, Indebted Numpty.

Credit Owning Loser, INsolvent.

Cannot Own, Loves INterest ?

Carry on living in NeverNeverland

Clever owner lives insouciently now

Camerons obscene lending to incense nextgeneration

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The first few repossession actions by the banks in 2009, against Labour trying to make it hard for banks to repossess were too much of a tragedy for some to stomach. The Colins of this world having their homes repossessed, and there were so many calls about it being heart-breaking and banks were to blame for their suffering. You can't have it both ways as I said at the time. Market corrections mean some have to meet the consequences of over-borrowing and leveraging their future on constant boom.

Anyway, a tragedy that was stopped, which has further condemned young professionals on HPC and coming through the system, who don't have any bomad support. That's really fair.

The job of government is to pick the winners and the losers. That's what they have done.

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If real wages don't increase, then a real fall in prices won't help.

Yes nominal falls have been happening in some regions but are needed in the most-overpriced areas.

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  • 243 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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