Tuesday, July 15, 2014
Carney tells MP’s that High House Prices make EVERYTHING unaffordable
What the members on here have been saying for years........ Carney said that as house prices rise, individuals become increasingly overstretched financially in order to afford to buy a house, prompting them to cut spending on other things. "What we were trying to address was the indirect risk from indebtedness ... and the macroeconomic consequences of that. Because history shows British people pay their mortgages, there are very low default rates on mortgages. What happens if households are borrowing at high multiples is they have to economise on everything else in order to pay their mortgages.