Jump to content
House Price Crash Forum
Realistbear

" Big Rise In Payments" - Nationwide Warn Rates About To Soar

Recommended Posts

http://www.telegraph.co.uk/money/main.jhtm...nfixedrates.xml

'Big rise in payments' for borrowers on fixed rates

By Emma Thelwell
Last Updated: 1:43am BST 18/05/2007
Borrowers with fixed-rate mortgages due for renewal
could be in for a shock
, Nationwide Building Society has warned.
Graham Beale, Nationwide's chief executive, said: "A very high percentage of borrowers have fixed-rate mortgages, which were the most popular product two years ago, and so they have been desensitised to rising interest rates. They will face quite a big hike in mortgage repayments in one go."
..../
The average household's mortgage payments have risen by 15pc since last year, while net earnings have gone up by 5pc over the same period, according to Woolwich Mortgage Affordability Research.
...../
But Nationwide said it was picking borrowers carefully. After seeing its share of the consumer lending market climb to more than 9pc, it has adopted a
"cautious approach" to unsecured lending,
focusing on credit quality.

As in the US the "reset" phenomena is about to happen and its effects will usher in Great Crash 2 in all its awesome majesty and power as it lays waste to Gordon Brown's folly that was once known as a "Miracle Economy."

This is the second bearish report from Nationwide in 24 hours. Now the Woolwich are turning! When the bulls turn--watch out!

Edited by Realistbear

Share this post


Link to post
Share on other sites
http://www.telegraph.co.uk/money/main.jhtm...nfixedrates.xml

'Big rise in payments' for borrowers on fixed rates

By Emma Thelwell
Last Updated: 1:43am BST 18/05/2007
Borrowers with fixed-rate mortgages due for renewal
could be in for a shock
, Nationwide Building Society has warned.
Graham Beale, Nationwide's chief executive, said: "A very high percentage of borrowers have fixed-rate mortgages, which were the most popular product two years ago, and so they have been desensitised to rising interest rates. They will face quite a big hike in mortgage repayments in one go."
..../
The average household's mortgage payments have risen by 15pc since last year, while net earnings have gone up by 5pc over the same period, according to Woolwich Mortgage Affordability Research.
...../
But Nationwide said it was picking borrowers carefully. After seeing its share of the consumer lending market climb to more than 9pc, it has adopted a
"cautious approach" to unsecured lending,
focusing on credit quality.

As in the US the "reset" phenomena is about to happen and its effects will usher in Great Crash 2 in all its awesome majesty and power as it lays waste to Gordon Brown's folly that was once known as a "Miracle Economy."

This is the second bearish report from Nationwide in 24 hours. Now the Woolwich are turning! When the bulls turn--watch out!

:lol:

Share this post


Link to post
Share on other sites

Couldn't agree more RB. The bear faced cheek that Gordon Brown had when he said that we have a Miracle economy that is now immune to boom and bust really used to annoy me.

Even back in 2002 when i was a mere 20 year old i knew something was "not quite right" and mathematically what he was proclaiming did not make sense.

About a year or two ago i began seeing things for what they are..... GC2 is real, very real and lots of people [non home owners and the financial prudent included are going to feel a lot of pain]

Share this post


Link to post
Share on other sites
As in the US the "reset" phenomena is about to happen and its effects will usher in Great Crash 2 in all its awesome majesty and power as it lays waste to Gordon Brown's folly that was once known as a "Miracle Economy."

:lol::lol::lol:

Share this post


Link to post
Share on other sites

I see fear catching up and locking horns with greed. The foolish amature BTLs, recent buyers and FTBs are lining up behind fear.

How long can Prof' investers hold out behind greed before fear's shear weight of numbers CRUSHES THE GREEDY TO DUST UNDER BRIGHT BANNERS OF VICTORY.

SOON, ALL OF CREATION SHALL TREMBLE BEFORE THE FLAMING STANDARDS OF HELL.

:lol::lol::lol::lol::lol:

Edited by Hell House

Share this post


Link to post
Share on other sites
I see fear catching up and locking horns with greed. The foolish amature BTLs, recent buyers and FTBs are lining up behind fear.

How long can Prof' investers hold out behind greed before fear's shear weight of numbers CRUSHES THE GREEDY TO DUST UNDER BRIGHT BANNERS OF VICTORY.

SOON, ALL OF CREATION SHALL TREMBLE BEFORE THE FLAMING STANDARDS OF HELL.

:lol::lol::lol::lol::lol:

With a crash of Biblical proportions about to break loose why not describe it as such! :lol:

I can see the scene now: There is Chuck Heston as Moses with his arms and staff stretched out over Gordon's HPI-MEW miracle as he pronounces: Behold, Great Crash 2 is upon you, his long grey hair with black and white streaks blowing in a violent wind, the skies darken and the thunder is crashing, bolts of lightning zap BTLs in all directions, EA offices evaporate in smoke, Gordon is crouching under his desk at No. 10 with his jaw dropped and dark brooding lifeless eyes staring manically into space as all around him is collapsing. Then a whirlwind breaks loose and tears into houses made with cards that are scattered to the wind amid shrieks of terror and wailing.

Share this post


Link to post
Share on other sites
With a crash of Biblical proportions about to break loose why not describe it as such! :lol:

I can see the scene now: There is Chuck Heston as Moses with his arms and staff stretched out over Gordon's HPI-MEW miracle as he pronounces: Behold, Great Crash 2 is upon you, his long grey hair with black and white streaks blowing in a violent wind, the skies darken and the thunder is crashing, bolts of lightning zap BTLs in all directions, EA offices evaporate in smoke, Gordon is crouching under his desk at No. 10 with his jaw dropped and dark brooding lifeless eyes staring manically into space as all around him is collapsing. Then a whirlwind breaks loose and tears into houses made with cards that are scattered to the wind amid shrieks of terror and wailing.

At this point RB decides to reveal himself as the new Messiah :D

Share this post


Link to post
Share on other sites
With a crash of Biblical proportions about to break loose why not describe it as such! :lol:

I can see the scene now: There is Chuck Heston as Moses with his arms and staff stretched out over Gordon's HPI-MEW miracle as he pronounces: Behold, Great Crash 2 is upon you, his long grey hair with black and white streaks blowing in a violent wind, the skies darken and the thunder is crashing, bolts of lightning zap BTLs in all directions, EA offices evaporate in smoke, Gordon is crouching under his desk at No. 10 with his jaw dropped and dark brooding lifeless eyes staring manically into space as all around him is collapsing. Then a whirlwind breaks loose and tears into houses made with cards that are scattered to the wind amid shrieks of terror and wailing.

The unceasing worm shall seize him (Gordon's back benchers)

Their shall be a grinding and gnashing of teeth (torys at question time)

LEGS FURIOUSLY PUMPING, ALL HOPE IS LOST. DIABLO, LORD OF TERROR STRIDING TRIUMPHANT IN OUR DESPARE, PLUCKS THE UNVIGILANT. THE LOST, WITHOUT SHELTER, SHIVERING AND DRENCHED WITH THE TEARS OF POVERTY STRICKEN CHILDREN.

Their will be no escape from the chaos.

Share this post


Link to post
Share on other sites

The wonders of huge principles combined with higher rates, it has a wonderful multiplier effect. This is what makes it so much worse than the early 90's, I'd rather have have a £40k mortgage @ 15% rates than the current predicament, higher rates also meant higher wage inflation eating away at the real cost of your loan.

Big loans + high rates + low wage inflation = world of pain.

cclaim13big.gif

Things are so much worse than the early 90's. With a rising tax burden we also have negative real wage growth, ouch!

post-2525-1179476670_thumb.jpg

Edited by BuyingBear

Share this post


Link to post
Share on other sites
Guest d23
With a crash of Biblical proportions about to break loose why not describe it as such! :lol:

I can see the scene now: There is Chuck Heston as Moses with his arms and staff stretched out over Gordon's HPI-MEW miracle as he pronounces: Behold, Great Crash 2 is upon you, his long grey hair with black and white streaks blowing in a violent wind, the skies darken and the thunder is crashing, bolts of lightning zap BTLs in all directions, EA offices evaporate in smoke, Gordon is crouching under his desk at No. 10 with his jaw dropped and dark brooding lifeless eyes staring manically into space as all around him is collapsing. Then a whirlwind breaks loose and tears into houses made with cards that are scattered to the wind amid shrieks of terror and wailing.

and some people have the cheek to dismiss this site as full of overexcited doom mongers

Share this post


Link to post
Share on other sites
Guest grumpy-old-man
The wonders of huge principles combined with higher rates, it has a wonderful multiplier effect. This is what makes it so much worse than the early 90's, I'd rather have have a £40k mortgage @ 15% rates than the current predicament, higher rates also meant higher wage inflation eating away at the real cost of your loan.

Big loans + high rates + low wage inflation = world of pain.

cclaim13big.gif

Things are so much worse than the early 90's. With a rising tax burden we also have negative real wage growth, ouch!

it's nice to see those stats in a side by side chart. It's so obvious isn't it, I am amazed that a resiliant few can argue against what we are saying. :blink:

Share this post


Link to post
Share on other sites
Gordon has a moving in date for no. 10, he no longer cares about the economy as it's the next chump who will take the blame.

Indeed - wouldn't be surprised once HPC kicks in to see Gordon say "housing now much more affordable since I became PM". :blink:

Share this post


Link to post
Share on other sites
it's nice to see those stats in a side by side chart. It's so obvious isn't it, I am amazed that a resiliant few can argue against what we are saying. :blink:

Oe notable feature about the interest vs inflation chart is the narrowing of the differential since about 2002. If the BOE restored the differential to where it was in 1997/98 then interest rates would be over 8% I think.

Share this post


Link to post
Share on other sites
The wonders of huge principles combined with higher rates, it has a wonderful multiplier effect. This is what makes it so much worse than the early 90's, I'd rather have have a £40k mortgage @ 15% rates than the current predicament, higher rates also meant higher wage inflation eating away at the real cost of your loan.

Big loans + high rates + low wage inflation = world of pain.

cclaim13big.gif

Things are so much worse than the early 90's. With a rising tax burden we also have negative real wage growth, ouch!

Is that the best you can do? Where's the fire and brimstone?

This clip captures the future for BTL:

Share this post


Link to post
Share on other sites
Is that the best you can do? Where's the fire and brimstone?

This clip captures the future for BTL:

Yeeesssss nicy. AND JUST.

This however. is more like what i had in mind.

Notice the puny BTLer cowering behind the piller. :lol:

Share this post


Link to post
Share on other sites

Indeed good post RB, fixed rates have delayed the crash considerably and served to make the bubble bigger...people borrow more if they think the risk is lower! Ooops appocalypse

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 354 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.