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

geneer

heathcote123 wrote: »

Zinger. Ka-pow,

Busted.

Yes you were.

geneer

Jack_Johnson_the_acorn wrote: »

Simples :rotfl::rotfl:

But Jack. If interest rates soar its a given that the property prices will correct.

Therefore increasing interest rates are quite good news for those waiting for the price of property to fall.

Simples.

Jack_Johnson_the_acorn

geneer wrote: »

But Jack. If interest rates soar its a given that the property prices will correct.

Therefore increasing interest rates are quite good news for those waiting for the price of property to fall.

Simples.

Well you simply can't state that as fact until it happens, you need a break I think.....

If interest rates hit 12% (soaring rates as per your title) and property costs £120k MASSIVE DROP then your rate of payment over 25 years is £1275 P/M

If interest rates are at 3.5% and property costs £166k then your rate of payment over 25 years is £839 P/M

Please advise how this would be good news for FTB's like yourself who can't currently afford to buy?:o

mcc100

Jack_Johnson_the_acorn wrote: »

If interest rates hit 12% (soaring rates as per your title) and property costs £120k MASSIVE DROP

If rates hit 12% the average house price will fall much lower than £120k ........

heathcote123

mcc100 wrote: »

If rates hit 12% the average house price will fall much lower than £120k ........

If rates hit 12% it will be in response to rampant inflation, and you won't be able to buy a house for love nor money.

heathcote123

geneer wrote: »

Yes you were.

Did you have a 6th birthday thread btw? - Can't believe I would have missed it?

ILW

heathcote123 wrote: »

If rates hit 12% it will be in response to rampant inflation, and you won't be able to buy a house for love nor money.

Seem to remember that inflation was around 4 or 5% when BoE rate hit 14% in the early nineties.

geneer

heathcote123 wrote: »

If rates hit 12% it will be in response to rampant inflation, and you won't be able to buy a house for love nor money.

And no one will be able to buy a house ever again.

Right you are heathcote.

Pobby

Interest rates. Well fill ya boots
http://news.bbc.co.uk/1/hi/business/7818717.stm

This gives you a picture of historical interest rates. Guess. on average we are looking at 8% or there abouts. The graph cuts off at 2009. Just wondering how long we can stay at this la la land of a low base rate.