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Fairyland

Guaranteed Crash Trigger?

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If I have to name one thing that can cause a crash it would be 'IR rise'. It has kick started, don't know how/when it will gather pace. Any thoughts?

http://www.bbc.co.uk/news/business-41523941

Quote

The cost of taking out a fixed-rate mortgage has started to rise, even though the Bank of England has kept base rates at a record low.

Barclays and NatWest have become the latest lenders to increase the cost of some of their fixed-rate products.

At least nine other banks or building societies have also raised their rates in the past few weeks.

Anyone taking out a typical mortgage of £125,000 could now pay around £130 a year more as a result of the changes.

"Mortgage rates look like they're turning round from the record lows that borrowers have been enjoying," said David Hollingworth, associate director of London and Country Mortgages.

 

Edited by Fairyland

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3 hours ago, Fairyland said:

If I have to name one thing that can cause a crash it would be 'IR rise'. It has kick started, don't know how/when it will gather pace. Any thoughts?

http://www.bbc.co.uk/news/business-41523941

 

Heard this on news this evening and wondered how uncomfortable a lot of overstretched borrowers might be if they were also listening. 

The BBC voice kept saying this was only for FIXED RATE MORTGAGES. 

Sounded like the real message was to be sort of Move Along, Nothing To See Here for any of you on variable rates. 

 

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This is just imo 

I don't think a rise in rates will be enough to cause a crash a lot of people will just cut back in other areas. Unless it's very significant I.e rates hit 6%+. I am basing this simply on what I see around me I.e people with mortgages spending lots of money whilst I save hard on my deposit.

I think a modest rise in unemployment could devastate the market and leaving Europe may be that trigger.

Again this is imo and I have been wrong about everything to do with housing in the last 12 years.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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