Thursday, April 10, 2008

Give a Banker an Inch and he will want a Mile

Bank of England will need to cut interest rates further, experts say

The graph in the article shows the average house price at 9x the average salary yet Micheal Coogan of the Council of Mortgage Lenders insists that Bank of England needs to coordinate successive base rate cuts with further injections of more widely available liquidity!

Posted by enuii @ 08:16 PM (777 views)
Please complete the required fields.



7 thoughts on “Give a Banker an Inch and he will want a Mile

  • i need a p3nis enlargement.. doesn’t necessarily mean i will get my wish.. unfortunately for these folks santa only come at christmas, so they are a bit to early.

    Reply
    Please complete the required fields.



  • It was because of people like him, not knowing when to bloody stop, that got us into this total mess in the firrst place!

    Reply
    Please complete the required fields.



  • “Responding to the announcement, Michael Coogan, Council of Mortgage Lenders’ director general, said: “In these dysfunctional markets… to improve the market in which lenders are operating and restore consumer confidence, the Bank needs to coordinate successive base rate cuts with further injections of more widely available liquidity.” ‘

    ……self serving VI dog.
    Slightly of topic: Just watched the BBC and was appalled by the total VI spin. Presenters questioning whether or not the lenders would pass on the rate cut, 10 out of 58 said they would: 1 out of 5, but not one comentator asked about the validity of the cuts when all they seem to be doing is increasing inflation and devaluing the pound. That said they had a woman on from moneysupermarket.com and she clearly said that we should all wait for at least six months and then put in silly offers to secure a bargain, but advice to sellers went a bit like this: if you didn’t have to sell and were in it for the long term then to sit tight (no timescale given to illustrate just how ‘long term’ this would be).

    Reply
    Please complete the required fields.



  • can someone explain to me how some people quote an ave house price figure of around 6 times ave earnings, and this graph show an ave of 9 times ave earnings?

    Reply
    Please complete the required fields.



  • gone-to-colombia says:

    Cutting interest rates would have some value if those rates were passed onto those with house loans.
    But they know this wont happen, so it really amounts to a form of legal theft.
    No small theft either, it must total millions per day.
    essentially we are being made to pay for others stupidity and greed.

    Reply
    Please complete the required fields.



  • Stupidity & Greed just about sums it all up. When I bought my first house, it was 1968. I bought a nice little 2 up 2 down bay & forecourt terraced house in Southsea. It cost £2,650 and I had a £200 deposit I had saved. Mortgage cost about 17 quid a month. But I was only a clerk – I earned about £950 a year. This small house was therefore roughly 3 times income on a fairly menial job. Mortgage was with the Nationwide, if I remember, they were paying four and a half percent on savings and charging six and a half for mortgages. Nobody rented out houses in those days unless they were mad or had inherited them or was called Rachmann, I recall that a Rent Act limited charging realistic rents and everybody bought their house as a home to live in. Happy days.

    Reply
    Please complete the required fields.



  • gone-to-colombia says:

    Yes Grey T, those were the days. Getting a mortgage was not easy, you had to show good intent and a real ability to pay. A house was for a home, not an investment.
    Frankly it was better then.
    Property fever is still thec passion here, the appartment where I live was 60million pesos 2 years ago, the asking price is now 330 million.
    Unsupportable, the crash will take about a year to get here.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>