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Daily Express Ramping Again

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Guest pioneer31

Yep, it's never going to end unless BOE raise IR to curb it - and that's not going to happen...

They may not have a choice

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Guest Alright Jack

Tomorrow's front page :

1439038.jpg

The express is telling the truth. Home loans have soared yet again to new highs.

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The express is telling the truth. Home loans have soared yet again to new highs.

Quite. Would this indicate more HPI? Interesting enough the BoE stated that the increase in broad money supply is partly fueling inflation. Implying that they want to cut it down somehow (IRs?).

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They missed the best part that some of the slightly better quality rags included:

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!

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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Only a few days ago they were saying it was madness to raise rates, the opinion column said there was no evidence consumers were borrowing too much. Then they print this. Time to raise rates.

Edited by simon99

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They missed the best part that some of the slightly better quality rags included:.................

Michael Coogan, director-general (of the CML), 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.

That's the gist of it RB. Much of the increase in borrowing is remortgaging, often, I suspect, by increasingly hard-pressed borrowers struggling to meet their debt commitments. The walls are closing in on growing numbers of them.

That's something the headline writers at the Express and some of the posters on this thread don't like to talk about in their increasingly desperate attempts to ramp the market :rolleyes:

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we are rapidly becoming a two-tier nation:

on one hand there are those who rent cheaply from a landlord, have repairs etc. taken care of for us and who can save money on the side

the other tier are those who rent from the bank, pay twice as much for that 'feeling' of ownership, yet who are paying less and less towards actually owning AND have to meet their own maintenance bills

of course there are still many old-fashioned owners who actually repay their loan, but if you believe half of what you read, these are becoming fewer and further between

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  • 301 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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