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Debate House Prices
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UK Gross Mtge Lending Eases To GBP10.3B In May - CML
Comments
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Graham_Devon wrote: »To be honest, it makes no difference IMO. Were still lending less.
It's like the stuff yesterday on claimants vs unemployment. Makes no difference how many claimants there are, still x number unemployed.
i think that you're missing the point or trying to confuse the issue here.
new mortgages for home buyers is increasing - more than likely due to QE.
people who have mortgages doen't need to remortgage as there SVR is now lower than it's ever been. QE has zero impact here and would never have any impact here.
how could QE force people who are on SVR's to re-mortgage? why would they want to do that if it's cheraper not to remortgage?0 -
Graham_Devon wrote: »Thanks both. So nothing really like now. That's what I was trying to look at.
NOTHING, has ever been like now. EVER!
Thats why it is pointless comparing it to any over recession, or financial catastrophe.Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
In the early 80s I believe that Howe as Chancellor increased rates above 15% but then that's a story for another evening children.
Oh go on, do tell!
Along similar lines, as a whipper snapper, could someone outline for me the speed/level at which interest rates climed in or around the "crashes"/recessions of the 70's/80's/90's if they'd be so kind?It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Interest rates never went to 15% in the early 90s.
Interest rates rose after the 'Lawson Boom' (largely caused by interest rates being kept low as Lawson tried to get the BoE to have the Pound unofficially shadow the Deutschmark) and a house price boom caused by the pre-announcement of the ending of MIRAS (a scheme which allowed some mortgage interest to be offset against personal taxes I believe).
They then fell back a little but were increased rapidly to prop up the value of the Pound against the Deutschmark as a part of a fixed exchange rate agreement the UK was a part of by that time in Europe known as the ERM (the precursor to the Euro). Norman Lamont announced that rates were going to rise from 13% to 15% but never actually got the chance to put words into action as the Pound was withdrwn from the ERM instead, rates rapidly cut and the economy made a pretty rapid return to health.
In the early 80s I believe that Howe as Chancellor increased rates above 15% but then that's a story for another evening children.
you're right about the 15% another MSE urban myth
here are the BOE rates for that period
1991 Sep 10.50
1991 Jul 11.00
1991 May 11.50
1991 Apr 12.00
1991 Mar 12.50
1991 Feb 13.00
1990 Oct 14.00
1989 May 14.00
1989 Nov 13.00
1989 Aug 12.00
1989 Jul 10.500 -
inspector_monkfish wrote: »NOTHING, has ever been like now. EVER!
Thats why it is pointless comparing it to any over recession, or financial catastrophe.
Well, there's always this
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0 -
Oh god no, not that picture / painting / chart / doodle.
I'm unsubscribing from this thread!0 -
Graham_Devon wrote: »Oh god no, not that picture / painting / chart / doodle.
I'm unsubscribing from this thread!
LOL
Don't go, just wanted to raise a chuckle 
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Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
you're right about the 15% another MSE urban myth
here are the BOE rates for that period
1991 Sep 10.50
1991 Jul 11.00
1991 May 11.50
1991 Apr 12.00
1991 Mar 12.50
1991 Feb 13.00
1990 Oct 14.00
1989 May 14.00
1989 Nov 13.00
1989 Aug 12.00
1989 Jul 10.50
Its amazing when you look at those rates and think that even though the lowest bank rate is 21x what it is now, house prices didn't crash with anything like the speed they have done so far. Food for thought for our over-valued, over-leveraged housing market.0 -
Its amazing when you look at those rates and think that even though the lowest bank rate is 21x what it is now, house prices didn't crash with anything like the speed they have done so far. Food for thought for our over-valued, over-leveraged housing market.
you forgot to add that the salary multpliers were much lower and mortgage amounts were lower too, so repayments were easier to maintain..
you also forgot to mention that comparing recession to recession there were more reposessions then than now, even with there being more owner occupiers now.
i'm sure you were going to add these points weren't you 0
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