Friday, April 15, 2016

George reckons brexit will make your mortgage dearer

George Osborne says Brexit will drive up mortgage rates

Basically if X happens, then Y will happen and because Y happens it will cause Z and that will mean interest rates will rise from 0.5 percent and therefore your mortgage will go up. So be afraid, very afraid, and vote accordingly.

Posted by enuii @ 06:22 PM (4486 views)
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11 thoughts on “George reckons brexit will make your mortgage dearer

  • There is no long term economic justification for near zero, zero or negative interest rates. It simply blows asset bubbles, encourages companies to buy their own stock, penalises savers, prevents older people from downsizing from their properties as the cannot get a return on their money and stifles the prosperity of the next generation. George Osborne shows he does not have or understand the long term interest of the British society. If we Brexit there will be pain for a couple of years. Like wise if you have a hip replacement you will experience enormous pain for a couple of months. It is a pity that politicians are all about the short term here and now rather than the longer term.

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  • i remember the 90`s says:

    its Brexit for me all the way ,I cant stand this meddling from Europe .Although I don`t think it will happen the public don`t like the unknown.

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  • Whoever wins the referendum will lose in the public’s eyes in the medium term. If Remain win, the EU will still implode, it might be the refugee crisis, the rise of the far right or terrorism, but it wont be as we know it in 5 to 10 years time. Then everyone will say we should have got out when we had the chance. If Leave wins, then there will be a downturn this year, the pound could be hit and interest rates may have to rise. But this will only be part of the process of getting back to a normal economy. We will be the single biggest new business prospect for every country around the world and being the 5th largest economy will be able to forge new or better business links. But the immediate pain will be akin to having a bad operation where the positive results are only felt several years in the future. Sadly politics has become more and more short term. Totally for Europe, Vehemently against the EU.
    I suspect that house price speculators will be better of voting REMAIN especially for the immediate future. In the long term everything goes back to equilibrium. So expect the Remain to talk about house prices crashing if we vote out.

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  • Fantastic news for everyone priced out of the housing market, then!

    Generation Rent should vote Leave to ensure that house prices plummet to affordable levels!

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  • I think you’re right Sneaker. If you are of any age and wish to own your home this next vote is far more important than any general election to bringing this about.

    The uncertainty alone between now and 23rd June will bring about havoc in the markets!

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  • greenshootsandleaves says:

    I readily admit that the dramatic fall in oil prices came as a shock to me. I can forgive myself because I don’t claim to know a great deal about the oil market and, more importantly, many of the people who did were also taken by surprise. Now, I’m not having a go at the SNP over the projections it made in the run-up to the Scottish referendum. Those projections were made in good faith and, for all we know, oil could even rebound in the near future, but the point is that no one really knows what will happen (well, the result of the EU referendum, for a start). A rise in mortgages (triggered by a Brexit or by a Remain vote) would no doubt result in more repossessions, but would it affect cash buyers from China for instance, who may be more than willing to take up the slack? A lot would depend on post referendum government policy, wouldn’t it?

    All of which brings me to one prediction that I can confidently make (given that it’s a two-horse race): Whatever the result, the bullingdon club will be on the winning side.

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  • What if BREXIT is already priced in to markets? Do you not think people have already taken positions? Downside for Sterling would thus be not as extreme as suggested, and if a lower pound took inflation to 2%, without need for NIRP and more QE, then Britain just won the currency war.

    At most, you may see rates rise to 1%. It would not take much to shift capital from the Eurozone into Sterling in terms of rates, where rates are negative.

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  • Hmm….

    Government encourages the population into MASSIVE debts.
    Government then uses “your repayments will go up” threat as a scare tacit every time there is a vote.

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  • @7 an increase in repossessions – only after every and the kitchen sink had been thrown at it by the desperate homeowner-ist government of the time

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  • Libertas @ 7. The markets are pricing in the Central banks continuing their easy money policies indefinitely and Brexit not being allowed to happen. Easy money is the only strategy in town to keep the house of cards up. The markets do not price in black swan events. They didn’t price in the UK leaving the ERM, the 2008 crash. the dot com crash in 2000 or even on a smaller scale the Swiss franc removing its Euro peg. Brexit would be a huge black swan event possibly much bigger than the 2008 crash, because it would have impacts not only financially, but also politically as there will be a resurgence of Europeans demanding democracy.. I suspect the negative financial impacts would be far greater in the EU zone than in the UK. There is mutiny afoot in Europe and remember dear old Deutche bank with a derivatives book that is 20 times the size of the Germany economy. Pins and balloons come to mind.

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  • Libertas @ 7. The markets are pricing in the Central banks continuing their easy money policies indefinitely and Brexit not being allowed to happen. Easy money is the only strategy in town to keep the house of cards up. The markets do not price in black swan events. They didn’t price in the UK leaving the ERM, the 2008 crash. the dot com crash in 2000 or even on a smaller scale the Swiss franc removing its Euro peg. Brexit would be a huge black swan event possibly much bigger than the 2008 crash, because it would have impacts not only financially, but also politically as there will be a resurgence of Europeans demanding democracy.. I suspect the negative financial impacts would be far greater in the EU zone than in the UK. There is mutiny afoot in Europe and remember dear old Deutche bank with a derivatives book that is 20 times the size of the Germany economy. Pins and balloons come to mind.

    Reply
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