Interest Rates

cuddlymarm

The CAB says that people are going to lose their houses if interest rates continue to rise

WHAT A SURPRISE!!!!

steve_cov

What do you mean, "continue to rise"?

They've gone up 0.25% in a year and might go up again in the next couple of months. It's hardly an established trend.

Martin and others have warned buyers about over-stretching themselves, e.g. "Could you pay the mortgage at 12% interest rates?" If they choose not to listen, there's little more that anyone can do.

cuddlymarm

Perhaps they know something we don't.

We don't want to get back to the days of mortgage rates of 15% (people of a certain age will remember this) when repossessions were extremely common.

rog2

cuddlymarm wrote:

Perhaps they know something we don't.

We don't want to get back to the days of mortgage rates of 15% (people of a certain age will remember this) when repossessions were extremely common.

Sure, but we were talking about mortgages of £20k, even less (happy days). The impact of a 1% rise on a £20k mortgage was minimal when compared with a 1% rise on a mortgage of £95k or more.

Pobby

I think many have been lured into thinking that interest rates will remain low.I have done a few recessions in my lifetime and prior to the recent very low rates,historically,they have pretty much averaged 8 per cent.

People that I have spoken to seem to base any lending they have as how much it will cost on a monthly basis and some have taken an enormous amount of debt upon themselves.If they can afford it and providing the rate is fixed I suppose it is not so bad providing that their income remains constant.

I really don`t want to doom monger but I think that we won`t see the 10% plus rates of yester year but could see a rise of a point or 2 over the next few years.

earwig

they have got put the rates up to try and calm down peoples spending people are still spending way to much on debt and the city boys are worried that its going to go bust