Resentment against SVR hikes grows, Economists call for BOE to drop rates to 0%

chucknorris

Emy1501 wrote: »

Nope by cutting their mortgage cost you giving them the illusion that they have money to spend which in due course you will take away suddenly. It bit like giving a drug addict more drugs then suddenly taking it off him in one go rather then weaning him off it.

I really think you need to take a step back and think about what you are saying. You just are not making any sense at all, but you obviously can't see it.

Increasing someone costs in order to give them time to think of ways to cut down their costs doesn't make any sense.

Emy1501

would_be_FTB wrote: »

I don't have a mortgage but if my landlord asked me if I wanted an additional 0.5% rent rise or keep it at the same level for 5 years then put it up to what would would be anyway. I'm damn sure that I would opt for not paying that additional 0.5%.

Who said you would opt for anything else?

Ok let's say your rents 1k a month. After 3 years you have had no rent rises so you assume you are never going to get any so you go out and take loan out over 10 years for say £300 month then next year your landlord says by the way the rents gone up £500 a month and you are locked into 2 year contract and you live month by month and can't cut your costs. Not a good example as no one would sign a rent contract like that. But if your stuck on mortgage you cant change an rates rise by say 3% over few months that's what you could find.

If you knew the rises were coming each year you could plan for it likely not lose your house.

Of course any financially sensible person would not over stretch themselves so would chose the way you say but not everyone understands you have to bear in mind possible rate rises.

HAMISH_MCTAVISH

Emy1501 wrote: »

Nope by cutting their mortgage cost you giving them the illusion that they have money to spend which in due course you will take away suddenly. It bit like giving a drug addict more drugs then suddenly taking it off him in one go rather then weaning him off it.

People understand that during a recession and it's aftermath, when incomes are stagnant or falling, unemployment is rising, and the economy is weak, then rates will be lowered so they can spend more and stimulate the economy (as the BOE wants to happen).

They also understand that when the economy improves, incomes start rising, employment starts increasing, etc, then it is inevitable rates will rise as the need for that stimulus reduces.

Your incredibly bizarre "solution" is to keep rates high all the time, to punish borrowers and treat them like children.

It's such a mentalist proposition one really does have to wonder what your ulterior motive is Emy....

suburbanwifey

Maybe Emily is like me, a home-owner with no mortgage. Maybe she has lots of savings and resents the low interest she is being paid now due to low interest rates. I am a saver now too, but I personally don't moan about low rates as I used to have a mortgage and I know what its like to be in fear of interest rate rises and losing your home. Thank Goodness I am out of that stress now, so maybe that is why Emily has those attitudes, she's a saver not a mortgage holder. I see no other reason for her comments at all.

Emy1501

HAMISH_MCTAVISH wrote: »

People understand that during a recession and it's aftermath, when incomes are stagnant or falling, unemployment is rising, and the economy is weak, then rates will be lowered so they can spend more and stimulate the economy (as the BOE wants to happen).

They also understand that when the economy improves, incomes start rising, employment starts increasing, etc, then it is inevitable rates will rise as the need for that stimulus reduces.

Your incredibly bizarre "solution" is to keep rates high all the time, to punish borrowers and treat them like children.

It's such a mentalist proposition one really does have to wonder what your ulterior motive is Emy....

Where have I said rates should be kept high? IMO rates have fallen far too low for too long now and dropping further will in the end cause more harm than good.

It's an opinion just like yours is an opinion.

We are in the unknown with these base rates and QE.

Also your punishing anyone. Your helping less than probably 5% of the mortgage market manage their finances

Emy1501

suburbanwifey wrote: »

Maybe Emily is like me, a home-owner with no mortgage. Maybe she has lots of savings and resents the low interest she is being paid now due to low interest rates. I am a saver now too, but I personally don't moan about low rates as I used to have a mortgage and I know what its like to be in fear of interest rate rises and losing your home. Thank Goodness I am out of that stress now, so maybe that is why Emily has those attitudes, she's a saver not a mortgage holder. I see no other reason for her comments at all.

No I have 70% mortgage and few savings.

suburbanwifey

No it won't do more harm than good Emily, it will keep those in their homes that were forced *yes forced* to buy homes at ludicrous prices as that is the price they were on sale for. Its not buyers fault that prices kept rising (no idea who to blame for that, but it certainly wasn't Mr & Mrs average who just wanted to buy a home to live in was it, they wouldn't choose to pay more than they had to would they? (hey! let me pay 160k for this shoebox instead of 80K yeah!) get real. Of course if you think all those people who had no choice but to pay sky high prices deserve to lose their homes, then keep hoping for interest rate rises, you can sit and smile as thousands are repossessed, but you are alright Jack eh?

Graham_Devon

HAMISH_MCTAVISH wrote: »

That has to be the dumbest statement you've made in ages Graham, and you make some pretty dumb statements.

You're talking about billions of pounds a year.

Which can obviously change a fragile recovery back into a recession, when things are as finely balanced as they are.

Billions is a bit of an exaggeration. (I'm being nice with the "bit") So let's not start throwing the dummy and the insults.

The halifax has hit the most customers. 1m customers. The increase is £30 per £100,000 outstanding mortgage.

That's £30m if each and every one has an outstanding mortgage of 100k.

Hell, I'll play fair. Let's suggest every one of those customers has an outstanding mortgage of 200k. It's still £60m.

Which is no where near billions. So let's not go down the ridiculous argument route eh. You get more desperate by the hour.

suburbanwifey

Emy1501 wrote: »

No I have 70% mortgage and few savings.

So WHY on earth would you want rates to rise? you like giving your hard earned money away to people who just sit there getting fat and rich on your back? its better in your pocket no? I paid off my mortgage as I didn't like paying 400 pounds a month in interest which is chucking it down the drain!

Emy1501

suburbanwifey wrote: »

So WHY on earth would you want rates to rise? you like giving your hard earned money away to people who just sit there getting fat and rich on your back? its better in your pocket no? I paid off my mortgage as I didn't like paying 400 pounds a month in interest which is chucking it down the drain!

I do not want rates to rise personally but this isnt about me. Its about the economy and house prices.

If rates rise suddenly all in one go I believe there will be lots of repos.

It's just an opinion. It was an opinion also given by the economist on newsnight the other day