CityAM - Big mortgage borrowers rejoice, savers and renters getting hammered

Really2

DervProf wrote: »

Are they, or are the banks a bit less willing to lend ?

The number of loan offers landing on my doormat has shrunk to almost zero. In fact, I can't remember that last time one did.

Oh, so they are telling us to borrow big but wont lend it us.

This message is very jumbled.

FTBFun

Graham_Devon wrote: »

The comments sections on news articles are there to give, and gain opinion.

I seriously don't understand how the same people can disagree with absolutely everything. No matter what it is, even down to the comments / opinion sections on news articles and how stupid you are to take them as that, comment or opinion on the subject.

What else are the comments sections there to provide?!

Anyway, heres an article about said message:
http://www.thisislondon.co.uk/standard/article-23882523-message-from-the-bank-of-england-spend-dont-save.do

Heres another, warning us to spend, don't save:
http://www.confused.com/featured-articles/money/savings/economic-recovery-don-t-save-spend-3624928403

I suppose we shouldn't take news articles in any way seriously now.

Or indeed, deputy BOE governors.

This forum gets crazier as each day passes!

There's a grand total of 24 comments on that first article. Who cares?

RenovationMan

Graham_Devon wrote: »

Oh, simple.

It's not that difficult to buy a house, Graham. I believe you own one.

Kennyboy66

Graham_Devon wrote: »

The comments sections on news articles are there to give, and gain opinion.

I seriously don't understand how the same people can disagree with absolutely everything. No matter what it is, even down to the comments / opinion sections on news articles and how stupid you are to take them as that, comment or opinion on the subject.

What else are the comments sections there to provide?!

Anyway, heres an article about said message:
http://www.thisislondon.co.uk/standard/article-23882523-message-from-the-bank-of-england-spend-dont-save.do

Heres another, warning us to spend, don't save:
http://www.confused.com/featured-articles/money/savings/economic-recovery-don-t-save-spend-3624928403

I suppose we shouldn't take news articles in any way seriously now.

Or indeed, deputy BOE governors.

This forum gets crazier as each day passes!

This forum gets crazier as each day passes!
why so ?


Your links, are basically about the "paradox of thrift". Good for me if I cut back spending and save more - bad for the economy if everyone does the same.

You seem to ignore basic facts such that when interest rates where 10 times what they are now, people were MEWing like no tomorrow.

Since they have been cut to near zero people are both over-paying their mortgages and not increasing their debt.

If its a subliminal message to increase your debt, then where is the actual evidence ?

mbga9pgf

Its not too hard, just needs perserverence. You can find some real value out there at the mo, you just need to go for the shotgun approach, dont tie yourself to too prescriptive an area, and negotiate a big discount. 30% is what we managed.

Its been pretty hard since, a juggling act between paying down and rennovating the house, but we are getting there. The thing is, its under control now, and I am getting lots of ideas about what I want to do next with the place (Sorting the acre of garden out mainly).

HAMISH_MCTAVISH

steviej wrote: »

read to me like another hpc website victim with his fingers burnt

Poor little fellas......

geneer

excellent news for bearish ftbs who bought or will buy after peak i would have thought.

something the bulls just keep forgetting.

geneer

Turnbull2000 wrote: »

It's clear that the BoE's intention is to keep rates ultra low for many years yet. This could be a huge windfall for many borrowers, whether it be owner-occupier or BTL.

http://www.cityam.com/news-and-analysis/allister-heath/why-interest-rates-won-t-be-going

Not sure I agree with his 'gift' of devaluation though. Surely this only applies if wage inflation matches RPI?

not sure where you get "hammers renters" from. unless of course you are assuming that all renters have substantial savings. which is certainly not the case.

of course your assertion also infers that having savings is a bad thing.
mortgage lenders disagree.

finally why does wage inflation have to match rpi. surely it just has to be higher than hpi.

Conrad

The subliminal message I get from this thread is that those that were oh so puritanically cautious and expecting to be rewarded for such, are now pretty peeved that the risk takers (people who just got on with the business of living without some grand plan in mind) are benefiting from the current interest rate landscape.

My message to the new puritan is this; Go forward, you too will benefit in the long run, stop trying to be so clever, stop trying to time the market, do not let money and penny pinching be your God, just go ahead and cast your nets, for one day they will be brimming with sprats.

ultrawomble

But why jump in now if rates are going to be low for the foreseeable future. With the exception of London/SE (and perhaps Cornwall), house prices are dropping on a monthly basis.