'more Cheap Mortgages On The Way'

[TheCountOfNowhere]

http://www.bbc.co.uk/news/business-36885161

'More cheap mortgages on the way'

[streamingfreedom]

Sad. This bubble has a way to go yet. It is going to bring down the financial system when it goes.

[TheCountOfNowhere]

Sad. This bubble has a way to go yet.

Have you see the ****ing prices !!!!!

Did you see what happened to Bank/EA/Builder shares at the first sign of a change of course.

We have reached the end of the road.

[interestrateripoff]

More cheap money what can go wrong. ..

[zugzwang]

Nat West paves way for the introduction of negative rates.

https://www.theguardian.com/business/2016/jul/25/natwest-paves-way-for-introduction-of-negative-interest-rates

A major high street bank has paved the way for the introduction of negative interest rates for the first time in Britain by warning customers it may have to charge them to accept deposits.

The warning by NatWest was made in a letter changing the terms and conditions for the bank’s 850,000 business customers, which range from self-employed traders, charities and clubs to big corporations.

It could mean that an account holder with £1,000 in a NatWest account could see that shrink to £999 or less the following year as the bank charges a negative rate of interest.

In its letter to customers, NatWest said: “Global interest rates remain at very low levels and in some markets are currently negative. Dependent on future market conditions, this could result in us charging interest on credit balances.”

The taxpayer-owned bank – whose parent is Royal Bank of Scotland – said it had no plans to make changes to the terms and conditions of personal account holders to allow it to charge negative rates.

[Fully Detached]

So the price of houses or just about anything else going down is a really bad thing and should be stopped at all cost, but the price of debt going down is a really good thing and must be welcomed with open arms, right?

I think I've got this nailed now. It's just a case of understanding for whose benefit the country is being run.

[canbuywontbuy]

I really do think HPI has some life left in it yet. I think they can maintain/sustain HPI for a few years yet, notwithstanding some huge black swan event (which is possible of course). Even then, where will we be after the "big hosue price crash!"? 20% down? Whoopdy fu3kin' do. I really think a "crash" will not be much more than 20% because we already know the market seems happy with low volumes of sales. Therefore, prices fall 20% or so, then enough people rush in to buy, and prices stabilise/rise.

[spunko2010]

Nat West paves way for the introduction of negative rates.

https://www.theguardian.com/business/2016/jul/25/natwest-paves-way-for-introduction-of-negative-interest-rates

Crazy. A lot of businesses hold large cash reserves. All the money will head to overseas accounts.

[winkie]

Want me to borrow so called money to buy some overpriced bricks how much will you pay me?

[olliegog]

but I thought project fear was interest rates soaring, debtors on their knees

If this extends to personal accounts - unless you have loads of savings - take it out and keep it in cash or (my last resort) buy Premium bonds which don't pay interest anyway but I have always enjoyed a bit of a gamble!

I notice the blame for this move in some newspapers/rags is down to 'brexit' - *sigh*

[spyguy]

ZIRP doesnt work.

Not caught on yet?

[winkie]

but I thought project fear was interest rates soaring, debtors on their knees

If this extends to personal accounts - unless you have loads of savings - take it out and keep it in cash or (my last resort) buy Premium bonds which don't pay interest anyway but I have always enjoyed a bit of a gamble!

I notice the blame for this move in some newspapers/rags is down to 'brexit' - *sigh*

Yep can see that....top monthly draw prize a tenner.

[TheCountOfNowhere]

but I thought project fear was interest rates soaring, debtors on their knees

If this extends to personal accounts - unless you have loads of savings - take it out and keep it in cash or (my last resort) buy Premium bonds which don't pay interest anyway but I have always enjoyed a bit of a gamble!

I notice the blame for this move in some newspapers/rags is down to 'brexit' - *sigh*

[Blod]

I will be writing to the banks holding my cash for them to confirm that I will be able to clear the complete as cash.

I will forward copies of my communication to Hammond and Carney.

Is this a deliberate 'triggering' to crash the banking system.

[olde guto]

but I thought project fear was interest rates soaring, debtors on their knees

If this extends to personal accounts - unless you have loads of savings - take it out and keep it in cash or (my last resort) buy Premium bonds which don't pay interest anyway but I have always enjoyed a bit of a gamble!

I notice the blame for this move in some newspapers/rags is down to 'brexit' - *sigh*

To paraphrase the old saying for "the elite, banks, tptb, HPI maniacs" the referendum was bremain I win, brexit you lose.

[nome]

So the price of houses or just about anything else going down is a really bad thing and should be stopped at all cost, but the price of debt going down is a really good thing and must be welcomed with open arms, right?

I think I've got this nailed now. It's just a case of understanding for whose benefit the country is being run.

Quite simple really, they want us to be a population of powerless, disenfranchised debt slaves and obedient worker drones.

[fandanman]

I really do think HPI has some life left in it yet. I think they can maintain/sustain HPI for a few years yet, notwithstanding some huge black swan event (which is possible of course). Even then, where will we be after the "big hosue price crash!"? 20% down? Whoopdy fu3kin' do. I really think a "crash" will not be much more than 20% because we already know the market seems happy with low volumes of sales. Therefore, prices fall 20% or so, then enough people rush in to buy, and prices stabilise/rise.

I think you are right, I can see at least 5 years before this all unravels and by then what percentage rise will have happened in that time

[mubes]

Quite simple really, they want us to be a population of powerless, disenfranchised debt slaves and obedient worker drones.

Yep it's bad for Gov if we are not in debt. It's especially bad for gov, if we are hoarding cash and not spending it.

Cutting rates to negative is a direct tax on holding cash. Designed to get us spend more on houses or whatever.

Permitting inflation is an indirect tax on holding cash. They benefit via reduced deficit.

Seems all very deliberate. The larger question for me, is what is going to stop them doing it? UK Banks seem secure. Gonna take a shock from outside the UK i think.

They seem motivated to not let prices (of anything) drop, other than the £.

[janch]

..".......it makes me so angry that the reckless are constantly supported with their addiction and I have to pay for the treatment."

GS above.....it's easier said than done but we have to be grateful that we are not as stupid and so can feel morally superior. Our reward will be in heaven (if you like). Feeling so angry is very bad for your health....practise gratitude instead

(Sorry if this is sanctimonious twaddle and it makes you even more angry)

[ElPapasito]

I have read articles in recent months about interest rates being slashed and just giggled, you think to yourself whatever they do with rates now is just for show and headlines, you just wonder how much am I going to be a whore to the "UK homeowner". Then yesterday, not sure where, I read an article about zero interest rates and how savers with money in the bank would have to actually watch their money reduce yearly because of the costs they would have to pay. Are we finally at the point now where we are having to pay the price so that over leveraged speculators and sadly even those who just borrowed way too much money for their overpriced homes cannot cope when it is supposedly never been better. If these people cannot cope with record low interest rates now, when will they.

It has really sunk in, not that I was not aware before, Carney is a one trick pony, bubble home prices or nothing. Like most people I will take my money out of the bank and invest it in some other way if the BOE decide they will continue to forever reward debt. I am old to remember the time when those living forever on the never never and constant debt and overdrafts who had the attitude of "live now and pay later" would be hit hard in the future and those who were sensible would reap the rewards. Well those days seem to be long gone, and it makes me so angry that the reckless are constantly supported with their addiction and I have to pay for the treatment.

Exactly what they want you to do. Carney et al want you to splurge your money on tat adding to GDP, or invest it in overpriced shares or houses further boosting asset prices. Or even buy forex and further push down the £ so that foreign investors rebalance with inward asset purchases. all those are just fine but DO NOT BUY PMs - that would be unpatriotic.

[adamLancs]

Have you see the ****ing prices !!!!!

Did you see what happened to Bank/EA/Builder shares at the first sign of a change of course.

We have reached the end of the road.

People were saying this in Feb/March but we didn't reach the end of the road. If you look at historic real estate bubbles in other countries then you can see just how crazy it can get. This was before all this ZIRP and NIRP madness, which is basically a global experimental phenomenon. It could backfire badly. There is a huge wealth divide opening up.

[Patient London FTB]

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the latest survey evidence on house price expectations, as well as profit warnings issued by estate agents since the vote, suggested mortgage demand had fallen further in recent weeks.

He said that although the Bank of England was expected to cut interest rates at its policy meeting next week, the lower cost of borrowing was unlikely to be fully passed on by high street banks.

“Although the monetary policy committee likely will cut interest rates next week, probably to 0.25% from 0.50% currently, banks likely will increase lending spreads to account for the higher risk of borrower default, due to the much weaker economic outlook.”

https://www.theguardian.com/business/2016/jul/26/business-borrowing-falls-for-first-time-this-year-brexit?utm_term=Autofeed&CMP=twt_b-gdnnews

[Fromage Frais]

He better act quick

I viewed this house and it sold right away @ £365,000 November 2015

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=36223980&sale=2110930&country=england

This one down the road is the same....but without grass in the garden and listed just now for @ £450,000 the house has been working hard and has grown by £9000+ a month ;-)

http://www.rightmove.co.uk/property-for-sale/property-55351828.html

We must act decisively to prevent people having to reduce the asking price of their homes 18% to november last year prices.

Get those rates down property is collapsing in front of our eyes!

[nome]

I have read articles in recent months about interest rates being slashed and just giggled, you think to yourself whatever they do with rates now is just for show and headlines, you just wonder how much am I going to be a whore to the "UK homeowner". Then yesterday, not sure where, I read an article about zero interest rates and how savers with money in the bank would have to actually watch their money reduce yearly because of the costs they would have to pay. Are we finally at the point now where we are having to pay the price so that over leveraged speculators and sadly even those who just borrowed way too much money for their overpriced homes cannot cope when it is supposedly never been better. If these people cannot cope with record low interest rates now, when will they.

It has really sunk in, not that I was not aware before, Carney is a one trick pony, bubble home prices or nothing. Like most people I will take my money out of the bank and invest it in some other way if the BOE decide they will continue to forever reward debt. I am old to remember the time when those living forever on the never never and constant debt and overdrafts who had the attitude of "live now and pay later" would be hit hard in the future and those who were sensible would reap the rewards. Well those days seem to be long gone, and it makes me so angry that the reckless are constantly supported with their addiction and I have to pay for the treatment.

You really need to get with the program, being prudent and living within your means is so last century, it's 2016 and these are the new winners in the game of life (happy reading)....

http://forums.moneysavingexpert.com/showthread.php?t=115430#topofpage

[spunko2010]

http://www.dailymail.co.uk/news/article-3707831/Natwest-set-NEGATIVE-rates-accounts-Bank-hit-firms-credit-change-terms-condiitons.html

Getting picked up by many now. Wonder if this'll start a back run?