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33% Will Struggle If Rates Increase

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One third will struggle if rates rise

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32% of borrowers overall would find it hard to meet payments with a 2 percentage point rise; in the south-east the figure is 39%
Rates won't go up as it will kill the economy dead and reveal the illusionary wealth for what it is. The illusionary wealth must be maintained at all costs.

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Worth remembering that only 37% of properties in the UK have a mortgage attached to them, so if you take off the BTL mortgages only about 1 in 3 households have any owner-occupier mortgage debt at all. So that 33% of borrowers who would struggle with a 2% rise in rates is only about 1 in 9 households.

The proportion of households who are carrying significant mortgage debt is really much smaller than politicians and the media like to make out, probably something like 25% of households which is not that far above the proportion of households who rent privately (about 17-18%). Given the amount of fuss made about people with big mortgages you'd think it was 80%.

Edited by Dorkins

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Guest Jemmy Button

Worth remembering that only 37% of properties in the UK have a mortgage attached to them, so if you take off the BTL mortgages only about 1 in 3 households have any owner-occupier mortgage debt at all. So that 33% of borrowers who would struggle with a 2% rise in rates is only about 1 in 9 households.

The proportion of households who are carrying significant mortgage debt is really much smaller than politicians and the media like to make out, probably something like 25% of households which is not that far above the proportion of households who rent privately (about 17-18%). Given the amount of fuss made about people with big mortgages you'd think it was 80%.

But then you've got the personal/credit card debt on top of that...

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But then you've got the personal/credit card debt on top of that...

That's loose change compared to mortgages, plus I bet the people with the big mortgages and the people with loads of personal debt are pretty much one and the same.

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6 years of low IRs.

Anyone with a thimble of sense should have been throwing the everything at that debt to get it down.

I think these people would just struggle full stop.

Saying that, pre- MMR did see some stupid loans being made.

My favourite is to a couple I srot of know.

Her - 25, ex-hairdress of 2 years, now working 1 day a week @ NMW.

Him - 27, general drop kick, contract in social enterprise. 22K

Mortgage taken out Jan 2014 - 180K.

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Tis true.... Not having the need to borrow as much means fewer will struggle......it is not the rate charged per se, it is volume of debt that is now required that is the killer.

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The politicians make out that they're worried about mortgage holders, that's their cover story.

The real debt is held by the government and also banks borrowing to pump up the stock market amongst other things. If rates rose to 5% stocks would have to collapse to justify yields and Pnozi pension schemes would be exposed.

Like is said above, low interest rates are not for the benefit of the average tax payer/mortgage holder.

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Suffer these crappy savings rates or no-one will be able to buy your house off you when you're ready to downsize/ emigrate and cash in on that unearned wonga. The boomers understand the stakes, that is the reason why this is the current status quo.

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Yes, more about trying to keep assets/security high value and the cost of government/our debt low.

Why they could always move anywhere they wanted and rent it out to the next generation for cash....

Edited by winkie

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