Why Mortgage Interest Rates Will Remain High

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purch wrote: »

In the strange surreal world of the "Uber-Housing-Bear" these things are all good news, as apparantly it will have no effect of their 'master plans' to buy property at the exact point the market bottoms, and then profit hugely by rampant HPI.

I think the 'uber bear' has got it pretty good, the housing bottom won't last 'one day', then prices start shooting up again, it's going to last months, probably years, in which case if you have a huge amount of cash and no house to sell, you're laughing, after all it only takes the time for a phone call and offer to be accepted ( about 5 mins ), to step into the market.

We are more or less odds on to have no kind of HPI for at least 2-3 years, and then you would have to be an 'uber bull' to think that (my thoughts are no HPI for about 10 years, although I will be stepping into the market in 3 years time), in the mean time, the answer is simple, keep saving.

silvercar

mbga9pgf wrote: »

I agree, those on trackers are lapping it up, but the question is, how many are actually paying down debt at the mo in excess of their monthly mortgage rates? From recent retail spending, it would appear not that many. I agree some of the sensible ones will be. How many as a % of total borrowers are on these products? How many of those on those products have lost their jobs? How many as I have pointed out are doing the sensible thing and paying down the debt whilst they have the opportunity and are not instead spanking it up the wall on that 52 inch plasma they have always dreamed of owning?

Not much point in paying down debt when it only knocks peanuts off your monthly mortgage payment. That plasma will last me for a few years, whereas had I paid the cost off my mortgage it would have saved me exactly £1 a month. Take me over 66 years to break even.