When interest rates to go back to normal many more distressed sellers?

purch · 19 January 2011 at 7:32PM

if there is a lot of foreclosures

We don't use that term over here MrP.

I know we like to copy the Yanks, but hopefully we can continue with our traditional methods which fall short of foreclosure, and allow the home owner some room for manoeuvre.

MikeJ74 · 3 February 2011 at 11:49AM

purch wrote: »

We don't use that term over here MrP.

Over ere, we say repos, init!

MikeJ74 · 27 February 2011 at 4:56PM

MrPThomas wrote: »

Its obvious when rates rise there will be more distressed sellers. The question is how many, if there is a lot of foreclosures then this will have a big effect on house prices.

But maybe rates wont rise for a while yet.

Nikel · 27 February 2011 at 4:59PM

IronWolf wrote: »

A bag of crisps just went up 5p at my local shop, thats 10%!

Inflation is rife i tell you

Pfft, thats not how to do it. You keep the price the same and reduce amount in each packet, like Cadbury/Kraft,

Element47 · 28 February 2011 at 1:33PM

MikeJ74 wrote: »

But maybe rates wont rise for a while yet.

Even if base rates are kept down payments on mortages can still go up.

Jimmy_31 · 21 May 2011 at 2:36PM

HAMISH_MCTAVISH wrote: »

Why does this site attract people with below average intelligence?

Or those people with superiority complexes.

mbga9pgf · 21 May 2011 at 2:38PM

Anyone thinking 5% rates would be normal any time soon needs to do some research into basic economic theory. In particular, the velocity of money and have a bl00dy good look at the Bank of Englands M4 graph.

Whilst people hoard cash, money velocity will remain low. The only liquidity that we currently have is in the financial markets and in particular a flight to commodities, something raising base rate cannot solve. The Bank of England know this; their current job is to educate the masses that actually, a base rate rise is the last thing we want.

And to all those boomers whining about their savings rates, I say, "Suck it up". Maybe you are starting to see how it feels to have your future wealth taken away from you. All that is currently happening is a generational transfer in wealth from old to young that is well and truly overdue.