Home owners struggling with 1/2% intererst rates

macaque_2

THE number of home owners defaulting on their mortgage payments is rising, the Bank of England announced yesterday.

Read more: http://www.express.co.uk/posts/view/238019/Mortgage-defaults-up-unexpectedly-Mortgage-defaults-up-unexpectedly-#ixzz1IDoAmPLp

diable

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Loughton_Monkey

diable wrote: »

and?

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He thinks none of us can read. There cannot have been any sensible, rational, informative, or provocative comment or question. Otherwise he would have written it down wouldn't he?

diable

Loughton_Monkey wrote: »

He thinks none of us can read. There cannot have been any sensible, rational, informative, or provocative comment or question. Otherwise he would have written it down wouldn't he?

In English please..........

Pobby

Are these figures true. Then again, 0.5% BOE, hardly applies to those that pay mortgages. Some lucky folk have a decent mortgage rate. Some do not. As for savers, don`t start me up.

Oh the joys of HPI . Housing benefit, how much is taken from the economy to sort that problem out? Perhaps if housing had stayed at a proper level, and I mean not the crazy levels they reached, we may have had a different state of affairs.

wymondham

I think this is more to do with sudden changes in circumstances than anything else yet as rates are still low .... unemployment etc....

HAMISH_MCTAVISH

Pobby wrote: »

Housing benefit, how much is taken from the economy to sort that problem out? .

Just to correct you, as this particular piece of misinformation seems to be popping up more frequently these days, housing benefit does not take anything from the economy.

Benefits are paid to landlords, who then use the money to do a variety of things "in the economy".....

1. Debt service. Money paid in interest to banks through a mortgage, then goes to pay savers a return on their savings. The banks take a cut and use it to pay their employees, their shareholders (like our pension schemes), their taxes, etc.

2. Maintenance. Money paid to people for goods and services to repair and maintain housing. Are you claiming that a washing machine repairman, a furniture salesman, an electrician or gas safety check company, are not part of "the economy"?

3. Profit for the landlord. Who then spends it "in the economy".

Some posters on here seem t think housing is a big black hole completely unrelated to the rest of the economy. Which is obviously absurd.

Even house prices rising does not take anything from the economy. All money allocated in housing is eventually returned to the younger generations. And unless we abolish death, it always will be.

Graham_Devon

HAMISH_MCTAVISH wrote: »

1. Debt service. Money paid in interest to banks through a mortgage, then goes to pay savers a return on their savings. The banks take a cut and use it to pay their employees, their shareholders (like our pension schemes), their taxes, etc.

2. Maintenance. Money paid to people for goods and services to repair and maintain housing. Are you claiming that a washing machine repairman, a furniture salesman, an electrician or gas safety check company, are not part of "the economy"?

3. Profit for the landlord. Who then spends it "in the economy".

This is desperate at best.

All of that would happen with lower prices and familes owning the houses.

Indeed, with lower prices, the entire housing benefit system would cost less.

chucky

Graham_Devon wrote: »

This is desperate at best.

why is that desperate, because you say so and you don't have another answer???

how about coming back with a coherent argument that actually stays on topic and doesn't have you running away like a little girl when people rip your arguments to shreds?

IveSeenTheLight

Graham_Devon wrote: »

This is desperate at best.

All of that would happen with lower prices and familes owning the houses.

Indeed, with lower prices, the entire housing benefit system would cost less.

You would also find that wages were also lower as a result.

Indeed, the net result would likely be less purchasing power after housing costs were deducted

Graham_Devon

IveSeenTheLight wrote: »

You would also find that wages were also lower as a result.

Indeed, the net result would likely be less purchasing power after housing costs were deducted

Why would wages fall if house prices fell?

Lets say prices fall 30% in the next 2 years....what are the reasons for wages falling?

Less purchasing power after prices fall? First time I've seen that one mentioned.