Saturday, Sep 30, 2006

A rate rise in November could be crucial

Firstrung: A quarter per cent interest rate increase could leave 1.1 million on the brink of insolvency

A quarter per cent interest rate increase could leave 1.1 million on the brink of insolvency, according to a survey by Thomas Charles.

Posted by converted lurker @ 12:16 PM (728 views)
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15 Comments

1. uncle chris said...

Well I'm sorry, but the Band of Englands job is not to bail out those who have been foolish enough to overstretched themselves. Perhaps they may have a claim againsts the banks about being mis-sold mortgages and loans that they clearly couldn't afford to repay. I suspect this will in fact be the next mis-selling scandal, which may well drive some of the more lax organisations into the hands of the receivers. It's a shame the government didn't regulate the industry more firmly before we got to this sorry state. That's what happens when you allow greed to run the market.

Sunday, October 1, 2006 11:14AM Report Comment
 

2. Retired Banker said...

After the 1990 property crash all the media were saying "this will never be allowed to happen again".

Being a cynic my reaction was "yeah,not until the next time".

Sunday, October 1, 2006 11:55AM Report Comment
 

3. sovietuk said...

An economy with well developed money lending systems and a peer pressure media/advertising driven 'must have it all and now' environment. The perfect combination for a slaughter. Believe it or not in some countries with less developed financial systems e.g. most emerging economies, there is still a 'save and then buy' mentaility. Of course it's people at the end of the day who must accept responsibility for their own decisions but with huge private and public deficits in the western world and surpluses in many emerging economies who will one day end up the better off.

Sunday, October 1, 2006 11:57AM Report Comment
 

4. harold said...

"Women are more likely to suffer as a result of the rise..."

Sorry to be so uncompassionate, but there seems to be some heavy handed emotional blackmail in this article - surprised he didn't add "the lame and the sick more likely to suffer".

Bring on the dire warnings ahead of the MPC.

Sunday, October 1, 2006 12:37PM Report Comment
 

5. bidin'matime said...

And don't forget that the banks have to add a margin to cover their bad debts (both actual and projected), so as more get pushed over the edge, so the interest rates charged will start to rise without the help of the BoE.

Sunday, October 1, 2006 05:13PM Report Comment
 

6. talking rot said...

Sorry - are we talking about grown adults here - ie not children. People are responsible (or should be) for their own actions as they have free will. If I drive dangerously and crash my car, do I blame the Council for making the road available to me? If some one gets into problems through greed (see the BBC's debt Diary) or stupidity it is their own fault. My only regret is that the Banks will raise charges in order to pay for the bad debts - this means I get to pay for the greedy and the foolish.

Sunday, October 1, 2006 07:06PM Report Comment
 

7. talking rot said...

Ooooops - Sorry all. I forgot the time of month. Just before the MPC meeting we get doom and gloom stories; following the meeting we get "Hurrah - House Prices rise further" stories. Or am I being cynical?

Sunday, October 1, 2006 07:16PM Report Comment
 

8. bidin'matime said...

TR - time of the month? Are we talking PMT here? (Pre-Mpc Tension..!)

Sunday, October 1, 2006 08:55PM Report Comment
 

9. sirgoogle said...

TR and Bidin'

I think you have both hit the nail on the head - its MPC-time again.

Perhaps to illustrate the VI nature of the press we should look at analysing the blog and plotting a crude graph correlating IR-rise doom stories before the MPC and house price rise stories afterwards.

The press (editors) really are so arrogant to think that they influence such major decisions. They should try reporting the news rather than trying to make-it-up/direct events.

Anyone want to place bets for an IR rise of .25% on the 5th ?

Sunday, October 1, 2006 09:08PM Report Comment
 

10. Mystie010 said...

I'm placing a bet that they are going to rise this month. I could be seriously wrong, but my money is on a rate rise this month.

Sunday, October 1, 2006 11:35PM Report Comment
 

11. Rimmer said...

What Rot...................Are ther people really that stupid that they cant survive a 0.5% rise in interest rates? if there are then sorry they deserve it.

Monday, October 2, 2006 12:31AM Report Comment
 

12. monty said...

I'm confused. Just who is the VI or evil editor here? The stats were produced by Thomas Charles "Specialists in Debt Help and Advice" and published by FirstRung.

Monday, October 2, 2006 10:00AM Report Comment
 

13. Ticktock said...

TR&Bidin, I think you are probably right.

But TR, just out of interest, what do you think should happen to 'stupid people' who cant pay their debts? How should 'fools' be prevented from doing 'foolish' things in your view?

Monday, October 2, 2006 10:38AM Report Comment
 

14. Cstanhope707 said...

I am going to put my neck out here and say they will put them up to 5.25% yes thats right 5.25% afterall according to the Telegraph we have no problems until they get to 8% since houses are just so affordable...

Monday, October 2, 2006 06:11PM Report Comment
 

15. indiablue19 said...

Monty...
Don't know if it answers your query, but Thomas Charles is also an estate agent, property manager and letting agent in Bedfordshire. If this is the same outfit, maybe they are skillfully benefiting from both ends of the property ladder hysteria: first by first creating the paupers and then by counseling them when they begin to lose their shirts and panic. Another interesting con. Who knows, maybe TC is also advising New Labour for a cut of the action?

Monday, October 2, 2006 11:56PM Report Comment
 

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