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Latest Data Shows Borrowing Now Equals Total U K Output

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http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770

Soaring house prices lead to record borrowing

By BECKY BARROW, Business Correspondent 14:53pm 18th August 2006

Mortgage lending reached £30.4 billion in July
Headlines
Soaring house prices forced home-owners to borrow more money last month than any July since records began.
In a stark warning, people on the verge of taking out a mortgage were urged to check they can afford the monthly repayments if interest rates go up again.
Mortgage lending reached an extraordinary £30.4 billion in July, a record for the the month and the second-highest figure ever reached in this country.
In just one month, Britons took out home loans equal to nearly half the total figure borrowed in the whole of 1997.
It comes as Britain's mortgage debt has reached £1 trillion, or one thousand billion.
Rising prices
Rising house price have pushed up homeowners' total debt so that it almost equals the country's entire economic output of £1.2 trillion.
Figures from the Council of Mortgage Lenders show home-owners borrowed nearly 20 per cent more in July than the same month last year.
Michael Coogan, director-general, said: "Another month, another record leading figure."
He said the rise was being fuelled by "a strong appetite" among borrowers for remortgaging in a bid to cut their monthly repayments.
In a cautious note, he added that the Bank of England's decision to raise interest rates for the first time in two years could cause a slowdown...../
Adrian Coles, director-general of the Building Societies Association, said the booming market in home loans simply cannot continue..../
Mr Coles urged people who are thinking of taking out a new mortgage to check that they will be able to afford the repayments if rates go up again.
He said: "Potential borrowers need to check that another rate rise would not take their monthly mortgage payments out of the realms of affordability."

Like water heated in a glass bubble, just as it reaches boiling point it bursts! :o:o:o

Seems MEW is the reason behind much of the borrowing--raising money on the home to pay for council tax and gas bills?

Edited by Realistbear

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Too late for the banks as the horse has already bolted !!!

Oh dear. I bet the banks wish the MPC will inflate them out of trouble but fortunately for us bears I don't the MPC will let it occur. If they do, the currency speculators will hammer Sterling so hard, it'll be on a par with a banana republic.

I nearly forgot. Another characteristic of a bubble is that it's latter stages are often the most profitable - it spikes. All falling into place nicely.

The big winners from all of this economic carnage will be 'us' and all the plutocrats who'll be busy hoovering up good assets, from desperate sellers or liquidators at cut price. Plus ca change!

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Oh dear. I bet the banks wish the MPC will inflate them out of trouble but fortunately for us bears I don't the MPC will let it occur. If they do, the currency speculators will hammer Sterling so hard, it'll be on a par with a banana republic.

Well Sterling is so low at the moment it is very vulnerable. Is it not?

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http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770

Soaring house prices lead to record borrowing

By BECKY BARROW, Business Correspondent 14:53pm 18th August 2006

Mortgage lending reached £30.4 billion in July
Headlines
Soaring house prices forced home-owners to borrow more money last month than any July since records began.
In a stark warning, people on the verge of taking out a mortgage were urged to check they can afford the monthly repayments if interest rates go up again.
Mortgage lending reached an extraordinary £30.4 billion in July, a record for the the month and the second-highest figure ever reached in this country.
In just one month, Britons took out home loans equal to nearly half the total figure borrowed in the whole of 1997.
It comes as Britain's mortgage debt has reached £1 trillion, or one thousand billion.
Rising prices
Rising house price have pushed up homeowners' total debt so that it almost equals the country's entire economic output of £1.2 trillion.
Figures from the Council of Mortgage Lenders show home-owners borrowed nearly 20 per cent more in July than the same month last year.
Michael Coogan, director-general, said: "Another month, another record leading figure."
He said the rise was being fuelled by "a strong appetite" among borrowers for remortgaging in a bid to cut their monthly repayments.
In a cautious note, he added that the Bank of England's decision to raise interest rates for the first time in two years could cause a slowdown...../
Adrian Coles, director-general of the Building Societies Association, said the booming market in home loans simply cannot continue..../
Mr Coles urged people who are thinking of taking out a new mortgage to check that they will be able to afford the repayments if rates go up again.
He said: "Potential borrowers need to check that another rate rise would not take their monthly mortgage payments out of the realms of affordability."

Like water heated in a glass bubble, just as it reaches boiling point it bursts! :o:o:o

Seems MEW is the reason behind much of the borrowing--raising money on the home to pay for council tax and gas bills?

This reminded me of the image of the snake or dragon eating its own tail, a quick look on the internet and I

found out it is the symbol of Ouroboros, it represents the cyclical nature of things, eternal return, and other things perceived as cycles that begin anew as soon as they end.

Spooky.

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This reminded me of the image of the snake or dragon eating its own tail, a quick look on the internet and I

found out it is the symbol of Ouroboros, it represents the cyclical nature of things, eternal return, and other things perceived as cycles that begin anew as soon as they end.

Spooky.

That reminds me of one of the best episodes of Red Dwarf where Lister was discovered as a baby in a box with Ouroboros written on it, but the people that found it and became his "parents", thought it was his name - Our Rob, or Ross.

Completely off topic, but worth a mention.

P.s How come he's known as Dave Lister then? <_<

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Nobody is going to take notice until IR rise to a painful rate - and that is not going to happen IMO

They'll raise rates a couple of notches to scare people - if that bluff doesn't work then they'll back off and redefine 'inflation' again...

Edited by dnd

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Nobody is going to take notice until IR rise to a painful rate - and that is not going to happen IMO

They'll raise rates a couple of notches to scare people - if that bluff doesn't work then they'll back off and redefine 'inflation' again...

But people will till have to fork out more money for the "non inflationary items" so they may see common sense but i doubt it!

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  • 302 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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