repossessions fall 24% in 2010 compared to 2009

Generali

Batchy wrote: »

Which is exactly why they will hold off raising rates for as long as they can, You can say the words, but yet you still dont understand that MERV and co, just arnt willing to push the button.

These articles are there to support NO RATE RISES... not to support them to RAISE RATES!

If we have mass repossessions due to rate rises, etc, etc, etc, as well as many other knock on effects, banks lose more money as revaluations of debt has to be carried out, therefore shares go down (ie before government has a point in which it can sell off its forced investments in banks), pensions continue to lose value, businesses have more pressure to finance pensions effectively etc, etc, etc... its a huge merry go round.

Business/entrepreneurs have a higher cost of finance at a point when private sector needs as much support as it can get!

Is this what you want... Even MORE taxes, Even more Unemployment, Even more homeless... just so you can save another 10% on your house price, yet pay 50% more due to the increased mortgage rates!... Sigh...

OR are you simply a selfish CASH buyer... and want the right moment to make hay while the sun shines!?

I think this is a bit harsh. GD doesn't say (s)he wants rates to rise, merely that at some point they are likely to.

As rates are at an unprecedentedly low level in much of The West (SFW) it seems highly likely that they will rise sooner or later.

nicko33

Graham_Devon wrote: »

Story could be that the number in high arrears is still rising, even though BOE interest rates have not changed from their 300 year low.

by 700, and their mortgage may have nothing to do with BoE rate.
They may have been sensible and got a fixed rate

"The number of people in arrears by 2.5% or more of their outstanding loans also fell last year, by 13% to 169,600"

so 25000+ mortgages had their arrears improved
maybe that's the story

Batchy

Thrugelmir wrote: »

Precisely. Two years of record low interest rates.

Remember mortgage interest support has now been reduced down from 6.08% to 3.63%.

So fewer people will be profiting from the support.

mortgage interest support only lasts 12 months I believe.

At the end of the day... 27k of people who owe 10% of the mortgage in arrears... its not going to be the end of the world as we know it. it also doesnt come as a surprise.

these peoples mortgages are probably matched by unsecured debt.
They are probably in an IVA, after 5 years, there unsecured debt will be GONE written off, and they can resume payments as normal... its just part of the process, they are probably making small contributions to the mortgage knowing the situation will improve.

If you talk to lenders, in advance these things can be established. If you bury your head in the sand, nothing can be sorted. You get bullied.

Batchy

Generali wrote: »

I think this is a bit harsh. GD doesn't say (s)he wants rates to rise, merely that at some point they are likely to.

As rates are at an unprecedentedly low level in much of The West (SFW) it seems highly likely that they will rise sooner or later.

True, I will get off my high horse. Apologies to GD

Obviously, they arnt likely to go down from 0.5%... so without doubt, they WILL rise sooner or later.

Batchy

Graham_Devon wrote: »

So there we have it....you suggest that BOE interest rates are there to save the housing market.

Anyway, they can put them off as long as they want, as economists have said, the longer you put it off, the bigger the problems when you are forced to put them up.

No ... NOT THE HOUSING MARKET... the economy GD. Hence why I said as well as many other things including business's, blah blah blah.

chucky

Graham_Devon wrote: »

Story could be that the number in high arrears is still rising, even though BOE interest rates have not changed from their 300 year low.

Suggesting that when base rates do rise, these numbers will also rise quicker than they are doing now.

remind me where "BOE interest rates have not changed from their 300 year low" and "when base rates do rise" have anything to do with repossessions or will change mortgage rates?

Thrugelmir

Batchy wrote: »

mortgage interest support only lasts 12 months I believe.

2 years. In 2010 around 200,000 people were on the scheme.

Graham_Devon

chucky wrote: »

remind me where

All you need is common sense.

Please, do we have to go down the route of "show me exactly how many mortgagee's are better off, and what the relation is exactly to BOE base rates, and exactly how many will see thei rmortgage rise, and how you know mortgage interest will rise with BOE rates rise".

It's pure common sense. Loads of mortgages were affected by base rate falls. Loads will be affected by base rate rises.

Trying to pretend differently is a little silly, and plain argumentative.

de1amo

it would be interesting to see a survey on here that asks how many people class themselves as subprime which seems to be the root of the mortgage dilemma--rates will go up one day and we will see an unravalling of the situation--speaking for myself i have been prudent and can bring myself into remortgaging ratios if needed-

chucky

Thrugelmir wrote: »

2 years. In 2010 around 200,000 people were on the scheme.

that's 1.82% of all mortgages