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The Masked Tulip

Suddenly Mortgage Rates Now A Buyer Stumbling Block

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TPTB have really painted themselves into a sticky corner - "so, we need inflation, no wage rises, bank recapitalisation, no defaulters, loads of enthusiastic borrowers, high consumption - any of this likely to be a problem? Oh, and our productivity's sh1t."

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I was playing around with a mortgage calculator.

If we moved and kept our existing house I'd need to borrow £300k.

At current rates the rent on my existing house (assuming the perfect tenant!) would pretty much cover most of a £300k mortgage.

If I had no expectations at all that rates would rise I'd be a fool not to take that deal.

However they surely can't stay low forever and if they went to even 4.5% I'd be utterly screwed financially.

Taking on a big mortgage now seems a HUGE gamble to me.

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TPTB have really painted themselves into a sticky corner - "so, we need inflation, no wage rises, bank recapitalisation, no defaulters, loads of enthusiastic borrowers, high consumption - any of this likely to be a problem? Oh, and our productivity's sh1t."

:lol: It is going to end badly isn`t it? Glad I didn`t buy an overpriced shitbox :lol:

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You can just see that next 'mis-selling scandal' is going to be along the lines of "My mortgage company never told me that my payments could double/triple/etc"

The only person I know who's bought recently used cash, anyone borrowing should ask themselves how much the rate affects the payments. I remember the day that rates hit 15% (ERM chaos) and people had always thought that "the government won't let it happen" :o

Oh God, what will it take for them to lose control again, rates forced up to even 3 or 4%?

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What scenario are you hoping for and how will it help your position?

Maybe he just likes to watch things burn? TBH it's pretty much all that's left now. I don't think an elected government in our country is going to be able or willing to solve this mess.

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What scenario are you hoping for and how will it help your position?

A scenario where the banks, government and indebted lose control of the madhouse, a scenario where people just accept that their little city centre Edinburgh flat is worth about 50-60k, and where daft nimbys and pensioners just get it through their skulls that younger people are not going into a life of debt servitude to finance their retirement dreams. Simply put, a scenario where the BBC have to stop droning on about the royals and admit that house prices are collapsing :lol: How it helps my position, if I even bother with buying property, is that I buy for cash or pay the mortgage down relatively quickly and feed the banks for less time.

Edited by dances with sheeple

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Maybe he just likes to watch things burn? TBH it's pretty much all that's left now. I don't think an elected government in our country is going to be able or willing to solve this mess.

Then we'll get a Grand Coalition of all three, expressly in opposition to UKIP. There's no material difference between them anyway, not in anything important. Absolute consensus over EU membership, foreign policy, deficit spending, censorship, Prism, house price inflation etc.

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Taking on a big mortgage now seems a HUGE gamble to me.

Not at all sir- we here at HMGOV have just the product for you- we call it 'Help to Buy'. Using this innovative product the risk of default is lifted off your shoulders and moved onto those of your taxpaying next door neighbour- but don't worry he won't complain- he's too busy worrying that a single mum might have a spare bedroom in some shite social housing complex to realise that we are lining him up to take the fall when those interest rates finally do go up.

It's a win win sir- you get to take on a bloody great debt without much skin in the game- we get to win the next election. And don't worry about that neighbour- we've already planted some new welfare horror stories to keep him occupied- he'll never know what hit him. B)

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It is in America people, but mortgage rates are on the rise there.

http://www.marketwat...lock-2013-07-22

Benny's done the double. Housing Bubble 2.0, mission accomplished. Prices have risen 13.5% in the last 12 months to a median price of $214,000, a non-seasonally adjusted 21% hike in the last four months alone. Those are bubble metrics driven by ZIRP and QE which have led to a buying panic where supply is restricted. Prices are now within 7% of the all-time US bubble high in 2006.

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One of the reasons I am waiting and hoping to buy in cash is that debt servitude will restrict my choices in terms of job/family/security. If I own a place outright and it all goes pear shaped and I have to move 3000 miles, I can do it without sweating over how I pay off a yoke to the bank first.....

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One of the reasons I am waiting and hoping to buy in cash is that debt servitude will restrict my choices in terms of job/family/security. If I own a place outright and it all goes pear shaped and I have to move 3000 miles, I can do it without sweating over how I pay off a yoke to the bank first.....

Yes, avoiding that is my main goal as well, there are many downsides to being shackled to a mortgage?

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  • 259 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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