Three-quarters of homebuyers fear interest rate hike that could 'push them over the e

johnwarner75

Surely the answer is simply, do you maths, work out if interest rates go up, then can I still afford this property.

robmatic

wotsthat wrote: »

I didn't see it that way.

The point was made that bears couldn't read then you came along, proved the point by asking for data contained in the OP and further confused yourself by mixing up total mortgages with new mortgages.

If "just as it was getting interesting" means you saying "oh no it isn't" a few times then yes, she went at that point.

Isn't what you've just described otherwise known as 'credible analysis' followed by a 'devastating argument'?

wymondham

If interest rates did go back up to normal, and people started defaulting I think it would be different this time. The Govt have a habbit of thinking it can control everything and would come up with a 'stay in your house regardless if you can afford it' scheme, which would be very expensive and largely ineffective, but increase our debt! I notice the pattern!

People buying houses in the last few years have seen this safety net approach and I think assume it will always be there for them.

wymondham

johnwarner75 wrote: »

Surely the answer is simply, do you maths, work out if interest rates go up, then can I still afford this property.

The problem is that rates have been this low for so long that they are considered the 'norm' - a whole generation of people have never seen rates above a few percent and hence have not budgetted accordingly.

Interestingly I got caught out with 'when rates go high' rather than 'when rates go back to normal' a few posts back, and I've paid rates of 15% on my mortgage in times gone by!

wymondham

llubdlog wrote: »

So what will be normal interest rates in a few years time? Around 7%?

That's anyones guess! With interest rates being such a hot political potato I'd be very surprised if the BoE has the final say in things!

TedButler

llubdlog wrote: »

So what will be normal interest rates in a few years time? Around 7%?

As has been said 15% were normal in recent times, 7% is not as unusual as the current 0.5% for so long.

Those on trackers would be wise to fix now at least they will sleep well at night for the term of their fix anyway.

Graham_Devon

llubdlog wrote: »

That is what they have been trying in the USA. Huge numbers used to just send the keys back to the bank and stop paying their mortgages.

Now they just stop paying their mortgages and stay in the home.

I can see similar things happening here, but then the entire housing market will fall apart and have far more serious problems than we see now.

I don't think it could happen here in all honesty.

The amount of resentment and anger from those who cannot afford houses paying for those they are looking in on... those sitting in houses they too, cannot afford, would be immense.

robmatic

llubdlog wrote: »

The only thing that is certain is that rates will go up. But no one knows by how much, some are saying 7% in 2 years but that is not a ceiling.

Who says 7% in 2 years, and how or why would they rise to that level so quickly?

I wouldn't be surprised if you've gleaned this from one solitary crank on Youtube...

geneer

wotsthat wrote: »

I didn't see it that way.

Well what a shocker! :rotfl:

wotsthat wrote: »

The point was made that bears couldn't read then you came along, proved the point by asking for data contained in the OP and further confused yourself by mixing up total mortgages with new mortgages.

Well as we are in fact interacting using text based communication
the assertion that bears can't read does seem somewhat silly.


Actually I thought you were refering to where she randomly made the intellectually void assertion that Bears are constantly trying to redefine what constitutes a Crash,
immediately before one of her bullish pals popped in to attempt to redefine the crash.
Comedy gold!

wotsthat wrote: »

If "just as it was getting interesting" means you saying "oh no it isn't" a few times then yes, she went at that point.

I thought it might be the bit where its explained that proportionately FTB mortgages are holding their own against BTL therefore completely negating JulieQs one note assertions.

Could be that.

robmatic

llubdlog wrote: »

No it was star hedge fund manager Crispin Odey who said back to 7% faster than anyone expects.

So it's one guy, not 'some'.

The manager said he continues to believe rates will stay low for some time in the UK and he said he was not sure when rates and inflation will surge, but told investors in his £286.6m CF Odey Opus fund it could be as early as 2012.

He also says that when they rise it will be as a result of massive wage inflation. What will this mean for people with mortgages?