Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

" Mortgages To Rise As Crisis Grips The Markets"

Recommended Posts

http://www.telegraph.co.uk/money/main.jhtm.../cnrates207.xml

Mortgages to rise as crisis grips the markets

By Philip "Phil" Aldrick and Harry Wallop

Last Updated: 2:17am BST 07/09/2007

Home owners are facing fresh misery as experts predict mortgage rates will rise as a direct result of the crisis that has gripped the financial markets.
Q&A on the global financial turmoil
Sun is setting on Spanish property boom
:(
Mortgage rates could be hit by global money market turmoil
Any increase in rates would be a
severe blow to Britain's 17 million mortgage borrowers
, who have had to cope with five rises over the past year.
It would also be the first sign that the turmoil in the global money markets has crossed over the Atlantic and is starting to hit British consumers...../
Higher mortgage costs will be particularly harsh for two million home owners already expecting to be hit by a sharp escalation in their monthly payments, as their fixed rate deals - taken out at rock bottom rates around two years ago - come to an end over the next few months.
.../

As we know, September is "judgment day" for tens of thousands of overgeared borrowers who face sky high reset rates this month. The dawning horror that "it will happen here" is just beginning as up to now the sheeple believed that the problem was only affecting the US, Spain, France, Ireland and many E European ex "hot spots."

Edited by Realistbear

Share this post


Link to post
Share on other sites

I just watched the BBC Breakfast scan of most of the newspaper front pages. Only the Telegraph had a mention of this news with this article.

To their shame, virtually all the rest of the papers led with the Mc Cann mother being questioned by Portugal police, which is trivial in comparison.

The hysteria of the case, now approaching Princess Di proportions in terms of media hours of coverage, is a crucial device to divert attention from the financial crisis imo.

Edited by Saving For a Space Ship

Share this post


Link to post
Share on other sites

It might sound weird, but I think that little media coverage is a good thing for now. Wait until the resets kick in and then we'll have the Sun headlines.

"END OF THE MIRACLE". :lol:

Share this post


Link to post
Share on other sites
I just watched the BBC Breakfast scan of most of the newspaper front pages. Only the Telegraph had a mention of this news with this article.

To their shame, virtually all the rest of the papers led with the Mc Cann mother being questioned by Portugal police, which is trivial in comparison.

The hysteria of the case, now approaching Princess Di proportions in terms of media hours of coverage, is a crucial device to divert attention from the financial crisis imo.

Remember the mother has a high up friend in the media... hence the coverage.

Share this post


Link to post
Share on other sites
I just watched the BBC Breakfast scan of most of the newspaper front pages. Only the Telegraph had a mention of this news with this article.

To their shame, virtually all the rest of the papers led with the Mc Cann mother being questioned by Portugal police, which is trivial in comparison.

The hysteria of the case, now approaching Princess Di proportions in terms of media hours of coverage, is a crucial device to divert attention from the financial crisis imo.

Agree. It is intensely psychological. We are at the height of "denial" right now and newspapers that print doom and gloom will not sell. The US came out of denial several months ago but they had a long run of ignoring elephants in living rooms but once the news sank in the next stage, acceptance set in. My fear is that the "anger" stage will hit and people may turn violent as the repo men drive up to evict millions of people who blame the banks and--politicains. IMO Brown will feel the backlash soon and he will go from the "37th sexiest man alive" to the most disrespected politician of our times.

It makes me think what a vastly superior mind TB had. Love him or loathe him he was infinitely smarter than Brown.

Share this post


Link to post
Share on other sites

I wondered how long before someone made that remark :blink: What makes you say that? Old brown nose Blair blindly took us into the greatest foreign policy disaster since Suez and his premierships could be summed up by the word ‘Spin’.

Anyone know what Ken Clark’s made of the economy recently, he always seemed to be an authority on economic matters?

It makes me think what a vastly superior mind TB had. Love him or loathe him he was infinitely smarter than Brown.
Edited by PricedOutNative

Share this post


Link to post
Share on other sites
It might sound weird, but I think that little media coverage is a good thing for now. Wait until the resets kick in and then we'll have the Sun headlines.

"END OF THE MIRACLE". :lol:

Ah, The Sun. Never in history of journalism has it been truer that the pen is mightier than the sword than in the case of the raw power of The Sun.

When the paper that reflects the conscience of the sheeple print the "c" word the stampede will begin and it will happen so quickly that even the least overgeared BTLers will be trampled into the dust.

Share this post


Link to post
Share on other sites
I just watched the BBC Breakfast scan of most of the newspaper front pages. Only the Telegraph had a mention of this news with this article.

I saw that paper review. According to Breakfast's Susanna Reid, a Bristol uni, politics, philosophy and law graduate (ie good university, nousey subject):

" ..........although interest rates were held at 5.75%, the Bank of England is likely to raise mortgage rates."

In the light of Reid's words, I invite you to speculate as to what % of the population understands the forces determining mortgage rates.

My guess .... hmmm, .... 2%?

Maybe 2/3rds of those don't have a mortgage. In otherwords, practically nobody has a clue. Interesting and educating times ahead I feel ....

Edited by Sledgehead

Share this post


Link to post
Share on other sites
Guest wrongmove
It makes me think what a vastly superior mind TB had. Love him or loathe him he was infinitely smarter than Brown.

:blink:

Labour have managed to stay in power because the economy has held up.

Their biggest problem has been Iraq, "genius" Blair's big adventure.

I can't really stand either of them, but I'm not sure there is any evidence that Blair is "infinitely smarter" than Brown. Are you referring to his property deals? :lol:

Share this post


Link to post
Share on other sites
I saw that paper review. According to Breakfast's Susanna Reid, a Bristol uni, politics, philosophy and law graduate (ie good university, nousey subject):

" ..........although interest rates were held at 5.75%, the Bank of England is likely to raise mortgage rates."

In the light of Reid's words, I invite you to speculate as to what % of the population understands the forces determining mortgage rates.

My guess .... hmmm, .... 2%?

Maybe 2/3rds of those don't have a mortgage. In otherwords, practically nobody has a clue. Interesting and educating times ahead I feel ....

We're getting to a stage in the UK where many arts graduates are almost scared of numbers. At which point they promptly switch off, and assume that it's 'someone else's problem', and that had they wanted to go on safari and hunt 'big maths', they'd have chosen different A levels, etc etc.

By extension, areas such as finance or economics or physical sciences become scary places and hence no-go zones for genuine understanding amongst people with that attitude.

In addition, I suspect we're fast approaching a situation where (because journalist salaries are now so low) we're only going to get more and more dopey innumerates rehashing press releases.

I hope I'm wrong.

Share this post


Link to post
Share on other sites
:blink:

Labour have managed to stay in power because the economy has held up.

Their biggest problem has been Iraq, "genius" Blair's big adventure.

I can't really stand either of them, but I'm not sure there is any evidence that Blair is "infinitely smarter" than Brown. Are you referring to his property deals? :lol:

For one thing, TBs sense of timing was impeccable.

Time will tell on the Iraq issue. Had Saddam remained in power the war with Iran may have escalated and he may have carried on with his plans to annex Kuwait and Saudi Arabia. Had we waited to see what Uncle Adolf was going to do in Europe things may not have been so easily contained. Sometimes a little nipping in the bud is a good policy. While Iran and the neolibs are not happy with the Iraq policy the Kurds and Kuwaitis seem to be pleased. Some say Saddam was only about 2 years away from gassing the entire Kurdish population which was causing the Turks some angst as it was almost on their patch. No one is sure if the mass graves uncovered to date are all of the bodies that Saddam dispatched. Had Saddam remained in power he was planning to name his sons as his successors and there are rumours that they were even mor eunpleasant than dad. The only error the US and UK made in relation to Iraq was in trying to nation build in a region that is run along nomadic or tribal lines with loyalties determined, in the absense of a brutal regime, not by borders but by which branch of Islam you subscribe to. In a history "timeline" the Middle East is the rough equivalent to the Britain as it was in the dark ages following the withdrawal of the Roman garrisons. It took centuries and a brutal regime (Normans) aided by an oppressive religion (Roman) to nation build. The ME is not Europe and the concept of "Nation" is centered on the regime of the day. All we have done is create a vacuum ready for the next brute to fill.

Share this post


Link to post
Share on other sites
For one thing, TBs sense of timing was impeccable.

True - be it either luck or judgement, he's got out just before this mortgage situation is going to get a whole lot worse.

Politicians tend to carry the can for everything happening right now, whether it's their fault or not. If there's a perceived 'problem' with being able to afford stuff, whoever's in charge tends to take the hit.

Nearly everything he did was focused on 'looking the part', with decisions purely optimised for the superficial. He knew he'd be long gone before the long-term consequences of his style of government happen to surface.

Share this post


Link to post
Share on other sites
In addition, I suspect we're fast approaching a situation where (because journalist salaries are now so low) we're only going to get more and more dopey innumerates rehashing press releases.

I hope I'm wrong.

noting Declan's absence this morning (he being an HPC fave), I thought I'd do a little research into his "credentials"... thanks to wikipedia for the following...

Curry was born and raised in Strabane, Co Tyrone, Northern Ireland; he moved to London to study chemistry at Imperial College.

On May 23, 2005, he became the 'most prominent BBC news scab' when he crossed a picket line of staff striking against announced pay cuts. [1] [2]

<_<

Share this post


Link to post
Share on other sites
I saw that paper review. According to Breakfast's Susanna Reid, a Bristol uni, politics, philosophy and law graduate (ie good university, nousey subject):

not that boss-eyed bint ! she might read it out, but I bet she doesn't have a clue what she's talking about....probably thinking about what she's going to wear on 'children in need' night when all bbc news readers treat us to why they never made it at stage school....

Share this post


Link to post
Share on other sites
noting Declan's absence this morning (he being an HPC fave), I thought I'd do a little research into his "credentials"... thanks to wikipedia for the following...

<_<

Yeah, I don't watch BBC breakfast so have no idea how good he is. But the point about pay cuts highlights the trend. Perhaps my sense of negativity is skewed by coming into contact with those horrible freebie London papers every so often, but salaries are generally low, and hours fairly long.

A certain well-known defence publication - several years back - hired (I am told) a relatively inexperienced, low-cost someone to deal mainly with financial matters. He needed to be filled in quickly, as he wasn't aware of the ratings agencies, or what they were all about. This sort of thing ties in well with Sledgehead's comment above.

Somewhat coincidentally, I did Chem at Imperial myself - but wasn't tempted by journalism or the BBC.

Share this post


Link to post
Share on other sites
Guest wrongmove
For one thing, TBs sense of timing was impeccable.

Time will tell on the Iraq issue. Had Saddam remained in power the war with Iran may have escalated and he may have carried on with his plans to annex Kuwait and Saudi Arabia. Had we waited to see what Uncle Adolf was going to do in Europe things may not have been so easily contained. Sometimes a little nipping in the bud is a good policy. While Iran and the neolibs are not happy with the Iraq policy the Kurds and Kuwaitis seem to be pleased. Some say Saddam was only about 2 years away from gassing the entire Kurdish population which was causing the Turks some <snip>

That is all as maybe. But Blair said we should invade Iraq because of WMDs. There were no WMDs. This upset a good many people.

If Blair thought we should invade because of your points above, then that is the case he should have made. As it is, Iraq is in choas, and the standard of living there has dropped significantly due to our intervention.

Share this post


Link to post
Share on other sites
I just watched the BBC Breakfast scan of most of the newspaper front pages. Only the Telegraph had a mention of this news with this article.

To their shame, virtually all the rest of the papers led with the Mc Cann mother being questioned by Portugal police, which is trivial in comparison.

The hysteria of the case, now approaching Princess Di proportions in terms of media hours of coverage, is a crucial device to divert attention from the financial crisis imo.

...The Times lead with an article claiming a 'hardline' taking over British Mosques....as a topic this is just as important if not more so for all faiths, non-faiths and for Moslems themselves within the UK...there are other topics just as important as Finance (this weekend football and rugby for all faiths and non faiths)......I must admit during the '88-95 crash I was too busy to even notice it at the time and did not have the instant access to information, which the internet now provides..... <_<<_<<_<

Share this post


Link to post
Share on other sites

Ive never been one for RB's hyperbole (although I do like his rhethorical flourish) but this is starting to resemble, dare I say it, GC2....

With UK PLC kept afloat by cheap credit, plasma borrowing levels and the wizards of greed in the city, the 'good' times look like they may be unravelling rather fast.

Around 8 months ago Prof Miles' report stated that sentiment is crucial to propping up the market. The HPD drumbeat beats a little faster every day....boom, boom, boom.

[ Moderator :Merged Topic ]

-------------------------------------------------------

http://www.dailymail.co.uk/pages/live/arti...amp;ito=newsnow

Mortgage rates could rise as crisis grips international finanical markets

Last updated at 10:50am on 7th September 2007

Comments Comments (1)

Homeowners could face fresh interest rate misery after experts predicted that mortgage rates will rise again, despite the Bank of England keeping them on hold yesterday for the second month in a row.

Any rise will be as a direct result of the crisis that has gripped the international financial markets.

An increase in rates would prove a severe blow to Britain's 17 million mortgage borrowers, who have had to contend with five rises over the past year.

scroll down for more

Any increase in mortgage rates would prove a severe blow to Britain's 17 million mortgage borrowers, who have had to content with five rises over the past year

It would also be the first sign that the turmoil in the global money markets has crossed over the Atlantic and is starting to hit British consumers.

Despite the Bank of England leaving base rates on hold at 5.75 per cent, City experts fear that high street banks - under intense pressure from the financial chaos - will be forced to act sooner rather than later.

Evidence is emerging that banks are preparing the way for higher mortgage rates.

Five banks have increased their savings rates to around 6.7 per cent in the past few days, according to financial research firm Moneyfacts.co.uk.

This is good news for savers, but economists warn that there is likely to be a sting in the tail.

Danny Gabay, an economic consultant and former adviser at the Bank of England, said: "It is not in the nature of banks to offer savings rates higher than their mortgage rates. This is a precursor to higher mortgage costs.

"Banks fear this is a problem that will stick around."

Higher mortgage costs will be particularly harsh for two million home owners already expecting to be hit by a sharp escalation in their monthly payments, as their fixed rate deals - taken out at rock bottom rates around two years ago - come to an end over the next few months.

The Nationwide building society estimates that a quarter of a million mortgage holders will see their payments increase by £200 each month from October.

But not everyone agrees, the Royal Bank of Scotland has claimed the Bank of England could be forced to slash rates to counter the effects of a credit crunch in the financial markets. UK economist Geoffrey Dicks said borrowing costs could fall as low as 4.75 per cent by the end of 2008, arguing 'the case for lower rates is clear'. Other lenders are also coming to a similar conclusion. A poll by Reuters showed that four-fifths of City economists now think rates have peaked for 2007. Investment banking giant Citigroup said there could even be a cut as soon as next month.

Home repossessions have soared to a record high in America, and this news raises fears that Britain could be headed the same way.

Some 0.7 per cent of American borrowers were given notice they would have to surrender their houses in the second quarter of the year, the Mortgage Bankers Association said.

It was the third time in a row that the figure set an all-time high.

Separately, there is evidence that the public are going to find it more difficult and expensive to borrow to fund their spending in the coming months. This is the result of the "credit crunch" triggered by the failure of thousands of risky mortgages in the United States. Banks are finding it more difficult to borrow money on favourable terms on international money markets with the result the cost to consumers will rise. CBI Chief economist, Ian McCafferty, said: "The economy is at an important juncture. High street retailers have had a disappointing summer, household budgets are under pressure, and the recent markets turmoil is another reason for caution. A rate rise today would have been poorly signalled and unwise. "July's surprisingly sharp slowdown in inflation has taken some of the force out of any argument to increase rates again. A long period of stability is what the economy now needs." Economic adviser to the British Chambers of Commerce, David Kern, said: "The MPC must acknowledge that further interest rate increases should now be off the agenda, at least for the time being." The Council of Mortgage Lenders' director general Michael Coogan said: "There is now much clearer evidence that the cumulative effect of five rate rises since last August is slowing activity in the housing market. "The Bank is right to wait and see, and if market conditions produce a further tightening of credit, it will strengthen the case that the next decision should be that rates go down, not up."

Share this post


Link to post
Share on other sites
noting Declan's absence this morning (he being an HPC fave), I thought I'd do a little research into his "credentials"... thanks to wikipedia for the following...

<_<

He crossed the picket line. Good on him. Far too many sheeple joining the collectives everywhere.

Declan = awesome. :rolleyes:

Share this post


Link to post
Share on other sites
For one thing, TBs sense of timing was impeccable.

Time will tell on the Iraq issue. Had Saddam remained in power the war with Iran may have escalated and he may have carried on with his plans to annex Kuwait and Saudi Arabia. Had we waited to see what Uncle Adolf was going to do in Europe things may not have been so easily contained. Sometimes a little nipping in the bud is a good policy. While Iran and the neolibs are not happy with the Iraq policy the Kurds and Kuwaitis seem to be pleased. Some say Saddam was only about 2 years away from gassing the entire Kurdish population which was causing the Turks some angst as it was almost on their patch. No one is sure if the mass graves uncovered to date are all of the bodies that Saddam dispatched. Had Saddam remained in power he was planning to name his sons as his successors and there are rumours that they were even mor eunpleasant than dad. The only error the US and UK made in relation to Iraq was in trying to nation build in a region that is run along nomadic or tribal lines with loyalties determined, in the absense of a brutal regime, not by borders but by which branch of Islam you subscribe to. In a history "timeline" the Middle East is the rough equivalent to the Britain as it was in the dark ages following the withdrawal of the Roman garrisons. It took centuries and a brutal regime (Normans) aided by an oppressive religion (Roman) to nation build. The ME is not Europe and the concept of "Nation" is centered on the regime of the day. All we have done is create a vacuum ready for the next brute to fill.

we have been meddling in Iran since the 1950's and the current dictatorship can be traced back to us forcing out the elected government and imposing an unpopular monarchy, when will we learn not to interfere?

it's none of our business

Edited by punter

Share this post


Link to post
Share on other sites
we have been meddling in Iran since the 1950's and the current dictatorship can be traced back to us forcing out the elected government and imposing an unpopular monarchy, when will we learn not to interfere?

it's none of our business

I would also add that the British promised the Kurds their own state before WWII. When we found out that there were huge deposits of oil there, we changed our minds. The Kurds being not that pleased about the change in strategy decided to rebel and were carpet bombed by the British. In fact the decision to bomb them was made by someone called Winston Churchill

But getting off the subject :blink:

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 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.