Mark Carney Reinforces Warning On Rising Interest Rates For Home Owners

[interestrateripoff]

http://www.theguardian.com/business/2013/oct/02/mark-carney-warning-interest-rates

Mark Carney, the Bank of England governor, has delivered a warning to home owners about the risks of rising interest rates as Threadneedle Street made clear it was keeping a close eye on developments in the housing market.

Carney said that people should check to see if they could still afford their repayments on their home loans, when he said, "rates rise, as they will, when the recovery takes hold".

Speaking on ITV News Anglia, he reinforced the message from another senior bank official, Paul Fisher, saying both borrowers and lenders should be careful not to overstretch themselves.

Fisher, Threadneedle Street's executive director of markets, rejected the idea that a property bubble was emerging but stressed that the bank was alert to the risks of another boom-bust.

If I'm a home owner Mark I don't have to worry over the repayments as I own the fecking house. I think you mean "mortgage holders" need warning over the threat of increasing interest rates.

[spyguy]

I understood his claim that they'll pick an IR level and put it in the calculation to determine if he person qualifies for HTB.

I'm guessing the HTB numbers will be somewhere south of 5,000.

[arby1]

http://www.theguardian.com/business/2013/oct/02/mark-carney-warning-interest-rates

If I'm a home owner Mark I don't have to worry over the repayments as I own the fecking house. I think you mean "mortgage holders" need warning over the threat of increasing interest rates.

I don't see where he said what you're stating- it appears it is the newspaper headline that makes the homeowner statement, while he only talks to those with mortgage debt- so he's saying exactly what the people need to hear- be prudent and don't take on too much debt- these rates won't last for 25 years.

[Wurzel Of Highbridge]

But carney guaranteed rates until 2015 - essentially giving everyone a fixed mortgage. (he knows he talks $hit, this proves it)

Fisher said: "I must say that I don't see any evidence of bubble behaviour as yet, with mortgage lending still subdued relative to what is likely to be normal levels of activity. The housing market is recovering from a number of years of very low transactions, with house prices having risen well below the inflation rate."

Recent house price surveys have shown that the cost of property is increasing by about 5% for the UK as a whole and by 10% in London.

http://www.ons.gov.uk/ons/key-figures/index.html

AWE annual growth rate - regular pay 1.0% (May-July 2013)

down 0.1 on April-June 2013 (Monthly), GB. Last updated: 11 September 2013

[arby1]

But carney guaranteed rates until 2015 - essentially giving everyone a fixed mortgage. (he knows he talks $hit, this proves it)

Fisher said: "I must say that I don't see any evidence of bubble behaviour as yet, with mortgage lending still subdued relative to what is likely to be normal levels of activity. The housing market is recovering from a number of years of very low transactions, with house prices having risen well below the inflation rate."

Recent house price surveys have shown that the cost of property is increasing by about 5% for the UK as a whole and by 10% in London.

http://www.ons.gov.uk/ons/key-figures/index.html

he didn't guarantee rates until 2015, again, that was a media interpretation of what he said. Also, even if he did absolutely guarantee rates until 2015, that would make his statement above even more pertinent by stressing that even though the next two years might be secure, don't fool yourself into thinking it will be that way forever.

[interestrateripoff]

I don't see where he said what you're stating- it appears it is the newspaper headline that makes the homeowner statement, while he only talks to those with mortgage debt- so he's saying exactly what the people need to hear- be prudent and don't take on too much debt- these rates won't last for 25 years.

http://www.itv.com/news/anglia/story/2013-10-02/east-firms-optimistic-about-future/

Full interview is here. And yes perhaps it's the paper rather than Carney using the homeowner tag. I've not had chance to listen to the actual interview.

[arby1]

http://www.itv.com/news/anglia/story/2013-10-02/east-firms-optimistic-about-future/

Full interview is here. And yes perhaps it's the paper rather than Carney using the homeowner tag. I've not had chance to listen to the actual interview.

i do agree with what you've said though- that the term home owner is used much too loosely and I would certainly hope he would know the difference! HHowever, there is something to be said for speaking the language that the intended audience understands- I'd rather he gave a clear message that the majority understand rather than fighting so much over semantics that the main message gets lost. I'd guess that the vast majority of actual home owners are either smart enough to already know this or have lucked into their position and would pay no attention to what he's saying anyway

[moonriver]

Carney must of been watching and learning from day time tv earlier this week, because Martin Lewis on This Morning, and the lady panelists on Loose Woman all strongly warned about increases in interest rates, to anybody thinking of taking out these 95% mortgages.

[moonriver]

... perhaps it's the paper rather than Carney using the homeowner tag.

the MSM are terrible for doing this.

Imo it is probably done because by using the term "home owners", rather than "mortgage debt holders", these people still sound a social step above mere tenants.

Even though, as we know, in reality, all those on IO mortgages are mere tenants of the banks.

[“Nasty Piece of work”]

Carney / Loose Women / Martin Lewis / This Morning - what about Strictly or the X Factor to further improve this viewing.

[billybong]

From Cameron's conference speech yesterday:

.jobs are up.

.construction is up.

...manufacturing is up...

.inward investment.

.retail sales.

.homebuilding...

.business confidence.

.consumer confidence - all these things are up.

And to anyone who wants to talk our economy down, let me tell you this.

Since this conference began, over 100,000 jet planes have soared into the sky on wings made in Britain.

Every single day in this country, over 4,000 cars are coming off the production line - ready to be exported around the globe.

Last year, Britain overtook France as Germany's top trading partner...

...not bad for a nation of shop-keepers.

And that's the point.

Exports to China are up.

Exports to Brazil are up.

.exports to India, Russia, Thailand, South Korea, Australia - all up.

From the list you would never think that the base rate still has to be at it's lowest level in history.

If what he says above is true? then for sure interest rates must rise very very soon.

Delay in doing that would be as irresponsible and as damaging to the UK economy as all the crazy policies that brought about the 2007 crisis and collapse.

Edited October 3, 2013 by billybong

[Bloo Loo]

Carney cannot possibly guarantee interest rates that borrowers pay to lenders.

[winkie]

he didn't guarantee rates until 2015, again, that was a media interpretation of what he said. Also, even if he did absolutely guarantee rates until 2015, that would make his statement above even more pertinent by stressing that even though the next two years might be secure, don't fool yourself into thinking it will be that way forever.

[cybernoid]

It was a few short weeks ago carney was promising low interest rates for the foreseeable future??

Now he says be careful they might go up.

Ok then. Fortunately he doesn't hold any position of responsibility. Whats that? No, really? What? Jesus.

[Ah-so]

http://www.itv.com/news/anglia/story/2013-10-02/east-firms-optimistic-about-future/

Full interview is here. And yes perhaps it's the paper rather than Carney using the homeowner tag. I've not had chance to listen to the actual interview.

You are the legal home owner. It is just that you have a loan secured against the property.

[The Masked Tulip]

He has covered his **** now hasn't he.

[shindigger]

He has covered his **** now hasn't he.

Hes "Cabled" himself in fact.

[pjw]

Mark Carney CONNED Osborne.

He was brought in to be Mr QE Max - and as soon he took up the job he opposed QE and now he is warning house buyers to beware of interest rate rises.

Osborne - you were HAD!

[“Nasty Piece of work”]

Carney does not have the economy in his grasp. Neither does the Idiot. They have minor inputs, but are back-seat drivers - you can shout as you hit the wall.

[doomed]

Mark Carney CONNED Osborne.

He was brought in to be Mr QE Max - and as soon he took up the job he opposed QE and now he is warning house buyers to beware of interest rate rises.

Osborne - you were HAD!

Posts like this amuse me. You really think this Carney chap is not a puppet simply following orders?

[Ash4781]

Too late now Carney!

Lenders only do the affordability checks at current iinterest rates. No one will listen to this warning as the apr's and rates are so low and lenders will lend more. I am told Natwest will say yes and will go to above x4 on the multiplier.. Ftbs are maxing out but remember Carney issued forward guidance that is not very clear.

[happy_renting]

Recent house price surveys have shown that the cost of property is increasing by about 5% for the UK as a whole and by 10% in London.

The only survey that matters is the one of actual sold house prices.

Nationally, the Land Registry shows prices risin 1.3% YOY. (recently released August figures).

Headline – August 2013

The August data shows that London experienced the highest annual increase in average property value with a movement of 7.1 per cent. The North East experienced the greatest annual price fall with a decrease of 2.2 per cent.

All the other surveys are VI guff.

Edited October 3, 2013 by happy_renting

[dances with sheeple]

It was a few short weeks ago carney was promising low interest rates for the foreseeable future??

Now he says be careful they might go up.

Ok then. Fortunately he doesn't hold any position of responsibility. Whats that? No, really? What? Jesus.

Exactly. The guy`s a f*ucking a*rse.

[Ulfar]

BOE base rate ceased to have any relevance to most mortgages some time ago. Unless you were stupid enough to get a base rate tracker recently, in which case you would have a claim for mis-selling due to being insane.

[Harry Monk]

It's the most bizarre self-delusion to think that Mark Carney, the Bank of England or the Government have any control over interest rates. They don't. We are a piddly insignificant country with delusions of grandeur. When the US raises interest rates, then we will follow, end of.

I can't see any UK recovery happening while inflation is running at 7- 8% and wage inflation is less than 1%. When interest rates rise, and the most the Government can hope for is that this won't be until 2015, then "homeowners" will face large rises in mortgage payments,the BTL brigade will clear out in droves as they will be able to get a much better return in bonds or even just savings accounts,and house prices will be toast.