Saturday, April 23, 2011

Housing market needs constant life support

Nationwide director warns of big arrears rise if rates increase

Increases in the bank rate could force lenders to adopt harsher repossession strategies, according to Nationwide...........Wyles warned the Bank of England that the situation “could quite easily go into reverse if rates start to rise with any degree of rapidity”. Simplicity Financial Services principal Chris Downham says: “If rates went up, it would cost banks more to look after these people. If interest rates increased by any more than 0.5 per cent, I think it would cause massive issues for some borrowers.”

Posted by jack c @ 09:53 AM (2204 views)
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8 thoughts on “Housing market needs constant life support

  • all this article shows is that the housing market is on the edge of a cliff….even with interest rates at 0.5%…I cannot believe that so many apparently knowledgable people simply cannot accept that housp[rices need to fall.

    now buytolet will be replacing first time buyers????

    forget middle east….you’ll end up with riots on the streets here

    what planet is this government on?

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  • Thecountofnowhere says:

    If rates don’t rise it will be a massive issue for ALL savers.

    Ive gone right off the Nationwide today.

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  • I can’t even spend my money from my house sale. EAs being snappy and arrogant, vendors saying my 5% under asking price is “derisory”. It’s supposed to be a buyer’s market but no-one is being reasonable and letting me buy, Praying for interest rate rise to bring people out of this psychosis

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  • If this article is anywhere near correct, there are a number of really stupid people out there. Low interest rates don’t help capitalism, they just allow inneficiencies to exist. Some folk (it has to be said) should never have gotten into the property market at the prices which they paid – time to shake them out. I suspect they are far fewer than the Nationwide suggests. Budgetting for 4.5% – 5% rates a few years back wasn’t rocket science!

    Increases of 0.25% a few months back would encourage some owners to wake their ideas up and spend less on false nails and tanning. Alas, Mervyn and the MPC missed the opportunity.

    Banks are cushioned by a government mortgage support scheme, I seem to recall…

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  • “Trying to pay those mortgages broke most perfectly responsible borrowers in two. We have had the reverse effect this time round as interest rates fell significantly.”

    i.e. this time, it’s responsible savers that are being broken in two.

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  • history shows economies struggle to come out of recession without making and producing things and encouraging saving which encourages banks to lend

    however,we haven’t allowed a recession to play out,and banks no longer lend what they have on deposit….they are geared to the money markets so all extra cash means is they can hoard it to stay within their tier ratios laid down by boe/fsa

    everything is so skewed there is only one way its gonna end

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  • “Housing market needs constant life support”

    jack c, love the heading.

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  • Oh my goodness we must keep rates where they are – or better still cut them further.

    Forget about the currency being destroyed, savers being ruined and the economy being totally distorted.

    We mustn’t derail the recovery!

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