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John The Pessimist

Borrow Now!

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Lenders say take on more debt now..........

Garbage like this is what is making content behind paywalls look attractive.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11402902/There-may-never-be-a-better-time-to-buy-a-home.html

Comments are heartwarming ???

Edited by John The Pessimist

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"There may never be a cheaper time to *borrow money to* buy a house, analysts have said after official figures showed mortgages rates have almost halved over the past year."

Corrected to remove VI spin.

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What good is cheap money when the real problem is the size of debt that has to be taken on to buy something that cost only a fraction of the price only a few years ago.

Give me low debt and higher interest rates............low interest rates have only compounded the indebtedness.

This house was £150k.....now £500k interest free whoppeeee, interest free....take three. ;)

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cheap money is what puts asset prices up.

When its at its cheapest, so to, the asset price is at its highest.

Slogic.

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It says Telegraph sponsored at the bottom, I think that makes it a paid for advertisement.

That just refers to the advert-articles linked immediately below the "Telegraph Sponsored" line - the ones hawking "10 places to visit before you die" and "Win a holiday in Portugal" etc.

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That was last century. In fact that was last Millenia.

it was another age...we are in Aquarius now.

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Somehow I am able to resist vs INSANE HOUSE PRICES.

Oh no; there is advertising and marketing allowed in this world, and didn't you know bankers exist to cuddle you and ensure you're the bestest... nothing to do with selling their own stuff and making money. Scraping the bottom trying to find last of the chronically entitled HPI buyer geniuses.

Maybe when it's negative interest rates, on a 25 year fix, and they're paying me £2,000 a month to take a mortgage.

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I get the feeling that lenders are pooing themselves about the fall in demand for mortgages.

Think about it: the mortgages on their books are generating less profit every year at a rate of somewhere between 4% and 20% as the capital is repaid.

If they can't at least sell more at the same rate that accounts are closed, preferably at higher values since interest rates are so low, there will be some big falls in profits storing up for the future.

If lower interest rates aren't enough to stimulate demand, what strategies are left?

If it's true that 14% of mortgages are in forebearance, raising rates (ala West Brom) on existing mortgages isn't feasible for fear of mass default, even if they could get away with it.

It begs the question, at what point, if at all, it gets to the point where the best option is to foreclose on that 14% and hope it causes enough of a supply glut to lower house prices enough to stimulate demand.

It seems clear to me that they will get increasingly desperate for either lower prices, or more relaxed regulation (and the first report suggesting MMR is too restrictive is already out), or further government intervention to artificially stimulate demand.

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Guest Jemmy Button

I wish theyd put a firewall on that paper.

I wish they'd put a firewall on ALL the damn papers. They're all utter sh1te.

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but, advertising doesnt work according to Venger.

I wonder how many people will pick up that paper because of the headline?

If they're enticed to buy because of that, at these INSANE prices - picking the paper up because of that headline... pushing and falling over themselves to buy, and not be a dead-money renter... then they're HPI poisoned cretins, as those who suffered HPCs after buying at peaks in decades before... and fully deserve HPC.

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If they're enticed to buy because of that, at these INSANE prices - picking the paper up because of that headline... pushing and falling over themselves to buy, and not be a dead-money renter... then they're HPI poisoned cretins, as those who suffered HPCs after buying at peaks in decades before... and fully deserve HPC.

quite right.

I dont know why you are venting at me for pointing this out.

but, there are still huge forces encouraging them, reassuring them, not least the most powerful of all ( for they wont let it happen)...the Government with HELP to buy, etc etc.

the asleep are still asleep.

Thats not my fault. And neither have I called for forgiveness or forebearance.

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How long before you can get a one month fixed at negative rates?

Of course there will be an admin charge but, the details will be in very small writing, and you wont ask about it because you don't really want to know.

All you want is to get yourself into debt because the meedya says it's good for you, and you can be one of the crowd.

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I read this as 'rates are not going up for a long time yet'

I read it as 'Banks can't get people to borrow, however low they put their rates'. The bank's mainly make money on the fees in the short term, so people not taking out loans really affects their turnover. I wonder how long it will be before they start lending to people without a job! After all it is currently cheaper to pay a mortgage than rent! NINJA LOANS are coming back! :ph34r:

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