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Interest rates will never go up...


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https://www.cityam.com/banks-hike-mortgage-interest-rates-amid-boom-in-applicants/

 

Banks hike mortgage interest rates amid boom in applicants

 

IRs and mortgage rates were detached from each other for 5 years until those #### at the boe brought in the FLS and term funding scams. 

 

My only question now is why is the new term funding is not having the same effect this time.... Are they using it to lend to actual real businesses this time? 

 

Somethings very odd is going on. 

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https://www.cityam.com/banks-hike-mortgage-interest-rates-amid-boom-in-applicants/

 

Banks hike mortgage interest rates amid boom in applicants

 

IRs and mortgage rates were detached from each other for 5 years until those #### at the boe brought in the FLS and term funding scams. 

 

My only question now is why is the new term funding is not having the same effect this time.... Are they using it to lend to actual real businesses this time? 

 

Somethings very odd is going on. 

Mark Carney isn't here making it happen.

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Essentially a small group of lenders are throttling demand by either blocking new applicants or being uncompetitive to turn business away because they can't cope with the workload. 

Inflation was up marginally month on month with the ending of the eat out scheme but it's still massively below target and not the BOE has a mandate to overshoot in a bid to make up lost ground. 

I don't expect base rates or mortgage rates to increase more than half a % over the next few years and that's best case. 

Worst case will have NIRP. But if we have to have that I'll hope for it when i remortgage next year. 

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Essentially a small group of lenders are throttling demand by either blocking new applicants or being uncompetitive to turn business away because they can't cope with the workload. 

Inflation was up marginally month on month with the ending of the eat out scheme but it's still massively below target and not the BOE has a mandate to overshoot in a bid to make up lost ground. 

I don't expect base rates or mortgage rates to increase more than half a % over the next few years and that's best case. 

Worst case will have NIRP. But if we have to have that I'll hope for it when i remortgage next year. 

When you remortgage next year i hope rates are 10%

You and every other troll on here need to feel the pain the rest of us have for a decade and more 

 

Edited by TheCountOfNowhere
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When you remortgage next year i hope rates are 10%

You and every other troll on here need to feel the pain the rest of us have for a decade and more 

 

That's right, i wasn't stuck living at home for a decade post graduation to save enough for a deposit. 

The whole world is a conspiracy against you and everyone that's bothered to get on with their lives is the enemy. 

You told me back in 2017 not to buy a house, if I'd listened to you if be in a far worse position,  not just financially but emotionally and from a security point of view too.

To continue to hurl abuse at anyone calling out your increasingly desperate, ill thought out and half witted posts stinks that you're aware deep down you're the troll. 

Covid hasn't caused a crash.

Brexit hasn't caused a crash.

Most homeowners are not the mindless sheep you think they are. Rather, I'd counter that you've almost brainwashed yourself by virtually inhabiting an echo chamber.

Still you continue on your crusade of housing wealth inequity in a way that benefits no one least of all yourself.

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So low house prices with high interest rates gradually over recent years went to high house prices to almost free cost for borrowing.....at a time when wages were rising linked to an inflation rate not linked to house price inflation.....those days are over, no place for interest rates to go.....no longer will debt be eroded by ever cheaper borrowing rates, and high employment with rising wages that match or exceed the cost of living.....nowhere left to go, nowhere to hide.;)

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So low house prices with high interest rates gradually over recent years went to high house prices to almost free cost for borrowing.....at a time when wages were rising linked to an inflation rate not linked to house price inflation.....those days are over, no place for interest rates to go.....no longer will debt be eroded by ever cheaper borrowing rates, and high employment with rising wages that match or exceed the cost of living.....nowhere left to go, nowhere to hide.;)

But how long has that been trotted out? From a high level view you're of course correct but really this ignores unconventional measures. 

How many of us held off buying in the mid 2000s on the basis it was rising too quickly etc. How many held off after 2009 thinking that interest rates would soon rise and we'd all be back on pre crisis rates?

I genuinely think we'll see negative base rates before the end of Q1 2021. Then there's the seemingly bottomless government pocket for ever more props.

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When you remortgage next year i hope rates are 10%

You and every other troll on here need to feel the pain the rest of us have for a decade and more 

 

This is genuinely sad. It’s awful that you feel this way.

Unfortunately, you need to wake up to the reality that prices are unlikely to crash. There will be a global currency devaluation coming along with rampant asset inflation. The beneficiaries will be those with big mortgages. You’ll be on the sidelines shouting abuse still. You should just buy somewhere whilst you still can.

 

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This is genuinely sad. It’s awful that you feel this way.

Unfortunately, you need to wake up to the reality that prices are unlikely to crash. There will be a global currency devaluation coming along with rampant asset inflation. The beneficiaries will be those with big mortgages. You’ll be on the sidelines shouting abuse still. You should just buy somewhere whilst you still can.

 

If that happened then higher nominal interest rates would dampen, at the very least, house prices. We've already had rampant property inflation, other less leveraged assets would catch up instead.

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Shouldn't you be rushed off your feet telling your clients that their asking prices are too high?

He's too busy to answer you, hastily looking up the definitions of complicated words.

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Holding off buying was and is the right thing to do. Saying it was wrong just because circumstances happened to go in a different direction is akin to saying it's fine to drink drive but only if you don't kill anyone. High house prices have already caused a hell of a lot of problems (2008 wasn't good, really) and even higher prices can only cause bigger pain.

10% IRs would be lovely though. Reward savers, make the feckless debt junkies feel the consequences of their pisspoor judgement, and all is fair and equitable.

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When I first found this forum I bought into it all. It all seemed logical, or course prices are too high and of course they’re gonna crash. Until the penny finally drops when you realise that any proper asset measured in sterling will be rising. >£700bn of QE helps.

Anyway, you guys do what you like. I’d be salty as ******, too, if I’d been on this forum for 13 years with 31,000 posts, watching all the ‘feckless’ normies getting on with their lives whilst enjoying asset appreciation.

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Isn't the important thing  the interest rate charged by high street lenders to Joe bloggs overstretched members of the public? Even if NIRP happens the high street lenders are still going to add their healthy profit margin right?

 

I'm not sure what this hike is? I'm seeing 10 year fixed rate mortgages for 1.79%! Two years at 1.19%

Do you have a link for the above? Love to see the eligibility for this.

 

Essentially a small group of lenders are throttling demand by either blocking new applicants or being uncompetitive to turn business away because they can't cope with the workload.

A small group?

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  • 442 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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