We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
Home owners struggling with 1/2% intererst rates
Comments
-
IveSeenTheLight wrote: »Where can I get this 0.5% mortgage interest rate?
I'm currently paying 1.6% and feeling ripped of if I can pay less than a third of the interes
Would you be paying 1.6% if base rates were at 5%?0 -
-
calm down dear, you're so predictable, it amuses meGraham_Devon wrote: »You really can be an utter k*ob at times.
but let's leave you trying to avoid the questions... how about answering the belowwhy 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?we've been through this before with you quite a few times now and you don't seem to get it...
and if house prices drop 30% which banks are going to lend to people to buy property? let's have an on topic coherent answer please or at least try.
the more house prices drop the less people are able to buy property - it happens each and every time but you seem to think that "it's different this time".
dream on.0 -
Am I missing something or are you really suggesting that the mortgage holders who are benefiting from 0.5% mortgage rate (e.g. tracker mortgages taken out before the recession) are the ones defaulting?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Would you be paying 1.6% if base rates were at 5%?
No I wouldn't and neither would I be struggling at those base rates.
It's important to be clear and understand that nobody has a 0.5% mortgage interest rate.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Graham_Devon wrote: »So you can't state how wages would fall.
All you can suggest is they may not got up so much.
I can't see anyone recieving a pay cut, with the reason being "well house prices are falling". Which is why I thought it was rather a bizzare suggestion.
No they would fall because of the deflationary pressures.
this progressed from the below quoteQuote:
Originally Posted by HAMISH_MCTAVISH
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.
If the banks receive less interest, they would pay out less to savers.
They would also have less profit meaning that due to the burdance of wages, peaople would have to be paid off.
With more competition for places, employers would be able to offer new positions less of a salary
If the landlord has less profit, he's spending less on the economy.
He's spending less on maintenance.
The washing machine repairman, a furniture salesman, an electrician or gas safety check company wouldn't be able to charge do much for their services as the work dries up.
If there was a significant and sustained reduction in house prices, the deflationary impacy on the economy would be far worse than you've ever seen Graham.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
God, this is like a goldfish convention.
That report was discussed yesterday. There is a MARGINAL increase in defaults, reported by lenders. The actual report is linked to in the thread on the subject which also contains such nuggets as higher LTV ratios are being allowed because of competition and an increase in BTL. It's all good stuff and largely confirms what HPI moderates have been saying.
On the newspaper headline (and again, why on earth do we discuss the headline when the report is available, apart from laziness and confirmation bias), there is NO evidence that those defaulting are on low rates specifically, and there is NO INFORMATION on absolute numbers. The BBC analysis earlier in the week (remember that? a few times back round the goldfish bowl?) gives a better basis for determining absolute impact of rate rises.
Story resolves to TABLOID PAPER OVERSENSATIONALISES A REPORT TO GAIN SALES
end of.0 -
I find it quite confusing.
How can home owners struggle with 0.5% interest?
If they took a tracker mortgage they should be singing merrily at this time.
If they took non-tracker mortgage, their mortgage mostly stayed the same (they'd struggle only if lost job etc.)
If they have re-mortgaged, they are likely to get a reasonable deal now.
So why they are all struggling of a sudden?
My take on this is simply 'they are mostly not'
Speaking for myself and many of my homeowning friends we have all made substantial savings in recent years on Mortgage interest.
It;'s not just those on trackers either. I remortgaged in late 2009 and am nearly 1.5% better off in terms of my fixed rate than I was in 2007. This saves me 000's per year, which I have used to help reduce the capital owed (and thus saving me more)Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger0 -
Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
-
IveSeenTheLight wrote: »No they would fall because of the deflationary pressures.
this progressed from the below quote
If the banks receive less interest, they would pay out less to savers.
They would also have less profit meaning that due to the burdance of wages, peaople would have to be paid off.
With more competition for places, employers would be able to offer new positions less of a salary
If the landlord has less profit, he's spending less on the economy.
He's spending less on maintenance.
The washing machine repairman, a furniture salesman, an electrician or gas safety check company wouldn't be able to charge do much for their services as the work dries up.
If there was a significant and sustained reduction in house prices, the deflationary impacy on the economy would be far worse than you've ever seen Graham.
Did wages fall last time house prices fell.. whether thats in 2008 or back in the early 1990's...
If not then whats different now?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards