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Debate House Prices
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Low interest rates will support house prices until 2014
Comments
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Just to clear something up, the reason I mentioned 4% above base is there are a few trackers that are close to this now, not only that but many mortgage rates now are way more than 4% above base rate. Do we expect the banks to be falling over each to cut their margins when rates move ?, generally it's only competition that would drive them down and I don't see where that competition is going to come from.
Like I say banks do not want to lend to many of the people who they were falling over themselves to get business from pre Autumn 2007, they'll be after a much smaller part of the market, those with loads of equity, leaving millions on crap rates.0 -
Considerably more I would say, in fact this was probably the biggest factor as to why rates fell so rapidly. Don't understand how some say things weren't fine before the drop in IR's, when they clearly weren't.
I (possibly we) are not saying things were fine in the general economy post crash just before interest rates were cut, just saying that as far as the mortgage goes it was ok and very managable to me as an individual.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
We have a very flexible talented workforce and a country that has the 6th largest manufacturing sector in the world that is in addition to being one of the world top financial centres.
A manufacturing sector which is likely IMHO to be reduced in size considerably over the next few years. As for the financial sector, I fear that you are living in the past/present and this is likely to be severely hit in the next few years, largely for the reason I state above. As we are heavily involved in the financial sector and it has paid a major part of our tax take, both directly and indirectly over the past few years, the new EU legislation will undoubtedly, IMHO, move much of this sector offshore.
Personal view Stevie, but I guess only time will tell!There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
We also have to remember all the help that is out there preventing repos.
If you become unemployed as the only wage earner then after 13 weeks your mortgage interest is paid up to 200k, for two years, and the interest rate they use is over 6% so if your rate is below that then its paying off some of the mortgage too. This will prevent many, many repos........Pawpurrs x
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We also have to remember all the help that is out there preventing repos.
If you become unemployed as the only wage earner then after 13 weeks your mortgage interest is paid up to 200k, for two years, and the interest rate they use is over 6% so if your rate is below that then its paying off some of the mortgage too. This will prevent many, many repos........
Yes, as we pointed out to the -70% club 12 months ago, obviously they didn't seem to think either that support or low interest rates would make any difference
in fact they laughed at my -20% and a bottom in the spring. 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
We also have to remember all the help that is out there preventing repos.
If you become unemployed as the only wage earner then after 13 weeks your mortgage interest is paid up to 200k, for two years, and the interest rate they use is over 6% so if your rate is below that then its paying off some of the mortgage too. This will prevent many, many repos........
A typical repossession "put off until later" scenario IMHO. There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
We also have to remember all the help that is out there preventing repos.
If you become unemployed as the only wage earner then after 13 weeks your mortgage interest is paid up to 200k, for two years, and the interest rate they use is over 6% so if your rate is below that then its paying off some of the mortgage too. This will prevent many, many repos........
I'd like to know the figures on this, I suspect it's virtually a handful.
Lets make no mistake, low IR's is the main tool being used to fend off repo's, trackers and SVR's make up well over 50% of the mortgage market at the moment (well over 5 million), if only 1% of those are being 'saved' and add that to the amount that have already been repossessed you would have the worst figures in history........ as I've said, I believe many, many more than 1% are being saved.
It's the simple reason that the house price indices haven't continued to fall off a cliff.0 -
Graham_Devon wrote: »So what happens after 2014?
2015
Or is it a time related question? if so it is 1/4 past 8 in the evening.0
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