Bank of England must use QE to buy 'bad mortgages'

ILW

StevieJ wrote: »

Fair enough, so you don't understand.

Seems our banks bought a load of rubbish bundled investments from dodgy US mortgage lenders. Why is that the Americans fault?

michaels

Whilst I agree with the general thrust of your argument I think the facts that you present are non sequiturs in this case. Also as per Hamish's point there is not necessarily any correlation between being in arrears and insufficient security for the banks.

Graham_Devon wrote: »

No.

2.4% of mortgages are in arrears of 3 months or more.

After 13 weeks, many people will get SMI help, so many of those in arrears never actually make it to the above figures, because of stimulus.

I'd suggest the number in arrears is higher, and will grow with interest rate rises.

I'd also suggest that the numbers in arrears above would be much much larger had it not been for the reduction to 13 weeks for SMI.

Smoke and mirrors.

System

Rather than buying the mortgages from the banks they should randomly choose people to clear the mortgages for, I'd enter that draw

StevieJ

DervProf wrote: »

I think I do. People will welcome anything that keeps the value of their homes up, because they feel that it`s what represents their wealth and financial wellbeing.

Personally, I don`t care too much about the value of my home, it`s my salary, my bank balance and the cost of the next meal/litre of fuel/pint of beer/loaf of bread than concerns me.

So being of the opinion that the credit crunch was caused by problems originating in the Us will actually, 'keep the value of their homes up' not sure how that works

ILW

Joeskeppi wrote: »

Rather than buying the mortgages from the banks they should randomly choose people to clear the mortgages for, I'd enter that draw

Just buy a lottery ticket.

System

ILW wrote: »

Just buy a lottery ticket.

Already done that. Won a tenner last week :j

ILW

Joeskeppi wrote: »

Already done that. Won a tenner last week :j

Did you pay off your mortgage with it?

Conrad

shortchanged wrote: »

I should flippin well hope so seeing as interest rates are rock bottom at the moment. But what happens Hamish when interest rates start to go up?

Less than 1% were repossessed in the last recession with over 3m unemployed and far higher interest rates.

Bearish types always overdo things - they told us in 2007 there would be carnage and mass repos but as ever they underestimate the Human capacity to muddle though.

michaels

With all the talk about the impact of increasing interest rates does anyone know what the impact would be - for example quite a few must have fixes and other can probably afford to pay much higher rates.

Personally (based on my mortgage advance) 11% would probably be putting me at the limit of what I could afford. How sensitive is everyone else?

shortchanged_2

Conrad wrote: »

Less than 1% were repossessed in the last recession with over 3m unemployed and far higher interest rates.

Bearish types always overdo things - they told us in 2007 there would be carnage and mass repos but as ever they underestimate the Human capacity to muddle though.

I don't think house prices were anywhere near what people have been paying for them over the last few years back then.