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Debate House Prices
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Interest rates will rise faster and higher than anyone expects
Comments
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If other economies start to push up intersest rates, the BOE will have to follow.
Like this http://www.bbc.co.uk/news/business-13600783 ???0 -
oh i did. i was more worried about you.you may not have realised (i'm not sure if you have) but the worldwide crisis affects the entire world.....
i wasn't sure that you understood interest rate mechanisms and the different fiscal policy tools to try to tackle inflation that's all.0 -
As the Bernake often says "central banking is an art" I wonder how good our own Merv King will go down in history as an artist during this crisis.
When you do not use free market money any more like the world did before 1971 then interest rate mechanisms and the different fiscal policy tools to try to tackle inflation are any ones guess what might happen.
When you think about it, if you believe them that they are in control then its even more worrying when you look at the world economy
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people expected rates to be low for a short period.
people expect the the uk economy will be in this mess well past 2015, that would be 5 years.
If in 2015 the economy is well clear, then rates will rise, so too will prices, which means no negative equity.
Its not all doom and gloom.
There are 60m people in this country who would all, based on UK desires ... like to be house owners, out of those 60m NONE of those want to be mortgage holders. Price is driven by affordability, if people cant afford to pay cash, then they have to raise finance, they still have to compete with cash buyers, Who care not about interest rates! But about returns and expectations.
Safe as houses springs to mind!Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
people expected rates to be low for a short period.
people expect the the uk economy will be in this mess well past 2015, that would be 5 years.
If in 2015 the economy is well clear, then rates will rise, so too will prices, which means no negative equity.
Its not all doom and gloom.
There are 60m people in this country who would all, based on UK desires ... like to be house owners, out of those 60m NONE of those want to be mortgage holders. Price is driven by affordability, if people cant afford to pay cash, then they have to raise finance, they still have to compete with cash buyers, Who care not about interest rates! But about returns and expectations.
Safe as houses springs to mind!
Yes us cash buyers will be in a powerful position when houses bottom out in a few years time. I just feel sorry for those buying property at these high prices.0 -
UK growth is up the creek----higher interest rates will kill it
p.s.---im not merv king£48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
debt/mortgage free 28/11/14
vanguard shares index isa £1000
credit union £400
emergency fund£500
#81 save 2018£42000 -
7% would be carnage, how could the average person who bought a house in recent years afford to keep paying their mortage?
And he is saying higher than 7% faster than anyone expects?
If he is right then the auction houses will be busy, we will be following the USA house price crash and theirs was before interest rates go back up.
most people... why?
Most people will have over paid for the last 2-3 years anyway... buying themselves plenty of time to miss a few payments. with lower capital also, the interest having less of an impact.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
Not the people buying now at these high prices. When rates go up and unemployment continue to go uo as well, there will be a lot of banks sending red letters that your house will be sold very cheap at auction and you will be responsible for the rest.0
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Not the people buying now at these high prices. When rates go up and unemployment continue to go uo as well, there will be a lot of banks sending red letters that your house will be sold very cheap at auction and you will be responsible for the rest.
Its unlikely to say the least.0
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