Mortgage costs soar despite rate freeze

Rinoa

HammerSmashedFace wrote: »

... yet decent articles have dried up in the hope that not talking of it will somehow make it better.

They can't write about stuff that isn't happening Hammers.

stueyhants

Gorgeous_George wrote: »

The bottom line, as has been mentioned many times before, is that lenders do not borrow long term funds at 0.5% and savers want a decent return for their money.

Those borrowers on long term trackers and SVRs that are linked to BofE base rate are enjoying extraordinarily low rates. Lenders need to compensate for this by charging other borrowers a premium over and above that which would ordinarily be required.

GG

So the longer people enjoy the 0.5% rates and the bigger the differential between BOE and money market rates the more punitive rates new borrowers will have to endure. I can't see this being good for FTB who are meant to be the life blood of the market. I can see 2010/2011 being another standoff between sellers who won't sell and buyers who can't afford. (Note: That doesn't mean prices will crash though !)

HammerSmashedFace

Rinoa wrote: »

They can't write about stuff that isn't happening Hammers.

Come on mate, even you have to admit the 'other side' of the argument is never given any airtime whatsoever, there is never any debate in the mainstream media that will give the opportunity to people think about the situation.

People are so brainwashed about high house prices = good, that even parents encourage their children to get into the kind of debt that would have made them shudder when they were younger. You can only back yourself into a corner for so long though and low IR's, static wages, rising house prices and higher taxes, spells only one thing going forward........ crash, along with another load of misery for thousands of people.

It would be easy to stop, if someone in governement had balls.

Rinoa

HammerSmashedFace wrote: »

Come on mate, even you have to admit the 'other side' of the argument is never given any airtime whatsoever, there is never any debate in the mainstream media that will give the opportunity to people think about the situation.

There was plenty when the banks were in danger of failing and the economic situation at the time. There was also plenty of news in 2008 telling us that house prices were falling like a stone. But that's now history.

Today's papers are full of stuff about ice and snow. But they won't be in a few weeks time when the daffodils appear.

HammerSmashedFace

Rinoa wrote: »

There was plenty when the banks were in danger of failing and the economic situation at the time. There was also plenty of news in 2008 telling us that house prices were falling like a stone. But that's now history.

House of cards, built on nothing at all sustainable, the election will bring us closer to the truth.

Peelerfart

HammerSmashedFace wrote: »

House of cards, built on nothing at all sustainable, the election will bring us closer to the truth.

All the election will bring is,either, the same load of selfish people or a different lot of selfish people.

Net result = nil .

StevieJ

HammerSmashedFace wrote: »

. Other recessions didn't have to cope with peak oil and the inflation that rising prices due to demand overtaking production will bring to economies around the world.

We are on borrowed time. No if's, no but's. It's like a watching a car crash in slow motion.

Maybe not peak oil but the mid 70's recession saw a dramatic increase in the price of oil as the Arabs realised that they could get more bucks for their bang, then the early 80's recession and the Iran - Iraq war.

http://en.wikipedia.org/wiki/File:Oil_Prices_1861_2007.svg

Cleaver

HammerSmashedFace wrote: »

House of cards, built on nothing at all sustainable, the election will bring us closer to the truth.

Can you expand on that? Apart from the Tories cutting public sector jobs and spending, probably being a bit harsher with things such as mortgage protection and generally just being a bit more toff-like, what major things do you see changing? In my opinion all parties are pretty much the same nowadays, just with different coloured ties.

From reading posts on here you'd think the Tories were led by Nouriel Roubini.

Gorgeous_George

stueyhants wrote: »

So the longer people enjoy the 0.5% rates and the bigger the differential between BOE and money market rates the more punitive rates new borrowers will have to endure. I can't see this being good for FTB who are meant to be the life blood of the market. I can see 2010/2011 being another standoff between sellers who won't sell and buyers who can't afford. (Note: That doesn't mean prices will crash though !)

That's a good summary of how see it.

GG

Graham_Devon

Cleaver wrote: »

Is it often said on here that there are 25 million households in the UK. So if out of those households 300,000 are experiencing 3 month arears it means that 98.8% of households aren't in arrears?

How does this compare with any other type of loan? I have no idea to be honest, but the blunt stats don't sound too bad to me.



Y'know, I could have sworn that you've mentioned it just once or twice.

I'm sure I read it was 8% of the mortgage market in arrears, meaning 92% are not. (not saying this is right, just sure thats what I read somewhere....).

You've taken the amount of households, and a lot of them will own and not have a mortgage to be in arrears. So the numbers for those in arrears look better, but include those who can't even be in arrears.