Mervyn King warns mortgage rates are likely to soar and tells banks to slash bonuses

Jack_Johnson_the_acorn

geneer wrote: »

Indeed. Falling houses pricess will be very welcome for prospective first time buyers.

Even with soaring rates??? If you can't afford it now you may never be able to;)

geneer

Thrugelmir wrote: »

Then be prepared to pay a fee of say £10 per month just to have a current account with one.

Banks hold the upper hand.

Current accounts pay basically no interest.
Thats the charge.

geneer

Jack_Johnson_the_acorn wrote: »

Even with soaring rates??? If you can't afford it now you may never be able to;)

Don't you mean normalising rates Jack?

Interest rates can and do change.
A cheaper house price will always be a cheaper house price.

Do you not realise its the "affordability" meme which got us into this mess?

gailey_2

Even if the ftb can raise a deposit

They need to have near perfect credit rating slightest thging can affect hubbys bank cocked up a direct debit which meant being offered high rate on a loan-good old santander!

But even if slight drop the issue is

how many multiples of income is right

as 3-4times not that much in some areas.

They need top afford the monthly repayments and factor in slight rise in rates.
But if interest rates rise their monthly repayments be higher despite falling house values.

It has to be affordable long term not just buy property and hope for best that suddenly you will generate equity and although you stretching yourself to own knowing you cant afford it not exactly sensible.

Jack_Johnson_the_acorn

geneer wrote: »

Don't you mean normalising rates Jack?

Interest rates can and do change.
A cheaper house price will always be a cheaper house price.

Do you not realise its the "affordability" meme which got us into this mess?

No I think "your" title is soaring rates....... Make your mind up Geneer.:rotfl:

Wookster

There are actually 2 points here that will impact on property prices.

1. Lower bank bonuses/ financial services staff layoffs: Huge bonuses & high demand for staff in the city has buoyed London property prices hugely.
2. Lending will remain extremely tight, even in the face of forthcoming QE.

I look forward to the impact this will inevitably have on house prices.

purch

Interest rates can and do change

You've got some memory there chap :eek:

Swipe

As much as I wish it would, the BOE interest rate will not be going up any time soon. Their prime objective is to do whatever they can to ensure that it does not go up otherwise the economy as a whole will be shafted. Although, that's not to say mortgage rates won't rise for new mortgages if this new credit crunch takes hold.

geneer

purch wrote: »

You've got some memory there chap :eek:

Better than the bulls it seems.

geneer

Jack_Johnson_the_acorn wrote: »

No I think "your" title is soaring rates....... Make your mind up Geneer.:rotfl:

Try again.