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

chucky

shortchanged wrote: »

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

you're right... a great point

the FTB age was higher in the early 1990s than it was in 2007...
the affordability index was higher in the early 1990s than it was in 2007...
less people ownded property in the 1990s than they did in 2007...

gagahouse

michaels wrote: »

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?

Only the banks will know exactly the interest rate sensitivity of their mortgage books and only for themselves, not in the aggregate. It's almost impossible for us to know, we'd need to know the proportion of fixed to variable, the various segments within the fixed rates, the notionals outstanding in detail for each category as well as the incomes and outgoings of each and every mortgage holder. Actually it's impossible for us to know with any precision.

Interesting though that you personally are at around 11%, I would guess most have lower thresholds than you in the average probably.

System

ILW wrote: »

Did you pay off your mortgage with it?

Na, used it to buy a flatscreen tv, holiday, an ipod, that sort of thing.