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Ash4781

Mortgage Affordability Peaks But Experts Warn Rate Rises Loom

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10247265/Mortgage-affordability-peaks-but-experts-warn-rate-rises-loom.html

Home loan repayments have fallen to levels of affordability not seen since 1999, according to a study by Britain’s biggest mortgage lender.

The improvement, driven by new lows for mortgage rates, has tempted thousands of first-time buyers to tentatively step on to the property ladder.

However, experts have urged caution amid signs that rates on new mortgages may be about to head higher.

....snip

Ray Boulger of John Charcol said: "I can see no point in borrowers waiting for rates to fall further. Swap rates are rising and Mark Carney's attempt to engineer low rates over the medium term has clearly failed. There is no indication mortgage rates are going to suddenly shoot up, but they certainly will rise."

I've butchered the article but Carney seems to face a real issue of credibility. Even Ray Boulger gets a quote.

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"There is no indication mortgage rates are going to suddenly shoot up, but they certainly will rise."

He is the master of talking shite that guy. Bottom line is he doesn`t know, but he still wants you to borrow to the max?

I have long since decided that Boulger is one of those people who say exactly what he thinks will influence people to do as he wants them to do, no more and no less. There are many such people, I think. When you see where they are coming from you just end up ignoring what they say.

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He works for a mortgage company. These are the sort of things he's not allowed to say :

- You'd be stupid to borrow now assuming low rates for even the first year of your 25 year term.

- Interest rates can rise so quickly you won't know what hit you. They almost doubled in a single day not so long ago.

- People should only be buying with cash, or with very high deposits that they can afford to lose.

- The government does not care about you - interest rates are only low because they need them that way, not because they want to help you buy a home.

- I wouldn't lie on that mortgage application form if I was you. Tell me honestly about all your monthly commitments and don't lie about your overtime.

just checking 10 year fixes last week; at least 5.5 to 6% - I assume that banks know what is comming ???

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buying a leveraged asset when costs to borrow are at their lowest is the very time NOT to buy....any rise in costs will reflect in a fall in the Capital value of the asset.

Sky were saying that mortgage costs are only (IIRC) 27% of the average buyers income...I assume they mean the average of ALL mortgage holders.

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just checking 10 year fixes last week; at least 5.5 to 6% - I assume that banks know what is comming ???

Either that or they see the small, scared sector of the market with traditional values and sane fears that they know they can milk dry with almost no risk to themselves.... Or competition.

Makes me feel like a mug not buying on 125%a decade ago.

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Either that or they see the small, scared sector of the market with traditional values and sane fears that they know they can milk dry with almost no risk to themselves.... Or competition.

Makes me feel like a mug not buying on 125%a decade ago.

Did they do those 10 years ago?....2003 was the time the TV started talking about council and utility Key workers being priced out, and still talked of traditional criteria the banks were stating they lent on.

Course, brokers were lending to a whole different audience...and critieria were not required.

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Ray Boulger of John Charcol said: "I can see no point in borrowers waiting for rates to fall further. Swap rates are rising and Mark Carney's attempt to engineer low rates over the medium term has clearly failed. There is no indication mortgage rates are going to suddenly shoot up, but they certainly will rise."

It's just a surprise that he didn't add something like and house prices are going to go up 8% next year as he seemed to be suggesting on the radio the other day.

The whole casino ploy aimed at panicking people into buying.

It's no way to run a country.

Edited by billybong

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just checking 10 year fixes last week; at least 5.5 to 6% - I assume that banks know what is comming ???

Or just maybe to fund 10 year fixes at a profit they are borrowing long term and want to minimise their losses if rates increase?

I assume the banks want to make a profit.

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