Wednesday, December 5, 2007

This is not a good reason to cut BASE rate… by the way, it will not make the situation any better for borrowers

Alex Brummer: 'Rates must be cut - now!'

"It would now appear that some of Britain's mortgage lenders, particularly in speculative areas such as buy-to-let, may have been as foolish as the Americans and made sizeable loans to people who cannot afford to make the interest rate repayments. Matters have been made worse now that some two million or so cut-price, fixed-rate mortgage deals are coming to an end. The risk must be that, as in America, residential properties will be dumped on the market, dragging down values and discouraging house builders."

Posted by confused76 @ 06:49 AM (464 views)
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3 thoughts on “This is not a good reason to cut BASE rate… by the way, it will not make the situation any better for borrowers

  • To coin a well used phrase:

    UUUUAAAAAAA AHAHHAHHA HAHAH HAHAHHAH AHHAHAH HA AH

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  • IMO the subtext for the highly unusual warning from the FSA yesterday is that Brown wants interest rates to come down to keep the bubble inflated, King looks like he wants to keep interest rates up to fight inflation and so Brown is using all the spin and pressure he can to try to force the MPC to do what he wants. For example, why was the finance director from Tesco saying yesterday that food inflation was only 1% so the BOE should reduce rates now?
    There was a tri-partite difference of opinion on Northern Rock and I reckon each party is now digging its heels in for the fight ahead.

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  • dohousescrashinthewoods says:

    BTL = Subprime.

    Whoever spotted that originally is being proved right.

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