How long before all the repossessions can not be postponed any longer?

PaulF81

By which time my mortgage will have halved.

Mortabrey

RUN_RABBIT_RUN wrote: »

the current rates are considered to be at an 'emergency' level reflecting the state of the financial sector and the wider economy.

there's no law to say that rates will go up, it all rather depends how quickly the economy recovers. at the moment the markets don't think we'll see a rise until at least 2017 -

http://www.thisismoney.co.uk/money/news/article-2151147/No-base-rate-rise-2017-say-markets-eurozone-crisis-batters-British-economic-prospects.html

Some think 2014 rates will go back to normal.

Everything is tanking right now stocks commodities everything. This is a deflationary spiral because there is adebt collapse going on around the world.

Merv at the B.O.E has turned up the currency abuse but the Bernank over the other side of the pond is delaying abusing the main currency in the world. The next round of QE (currency abuse) is 100% guaranteed from the Bernank, not a qustion of if just a question of when.

WHEN it does come round again all markets will pick up for a short while then, deflation will pick up again as the worlds debt collapse continues. Merv, The Bernank and their counterparts around the world will all turn up the currency abuse around the world to fight the deflation.

This will just flood the world with units of currency. Maybe by QE5 or 6, no matter how many zero's they type into their bank accounts the markets wont pick up. I could see one day soon the Bernank anouncing $1.5 trillion units of fiat currency to be typed into his bank account and injected into the supply. But people will not believe its worth anything even if he made it $1.5 Quadrillion.

Inflation is guaranteed and along with big inflation comes interest rates going up. This is also guaranteed.

Its just a question of when not if.

paulmapp8306

the question isnt if/when/how high interest rates will go up - its whether wage rises will match it.

if mortgage rates go from 4 to 8% say , it really doesnt matter if your wages are going up 3/4/5% a year TBH.

What will hurt is if wages continue to be frozen (or even cut for some) while inflation (so cost of living) rises, mortgage rates also go up.

Mortabrey

paulmapp8306 wrote: »

the question isnt if/when/how high interest rates will go up - its whether wage rises will match it.

if mortgage rates go from 4 to 8% say , it really doesnt matter if your wages are going up 3/4/5% a year TBH.

What will hurt is if wages continue to be frozen (or even cut for some) while inflation (so cost of living) rises, mortgage rates also go up.

That is so true. It is looking likely that only unemployment is going up, wages are going down in real terms, or not going up as fast as real inflation.

Also in the UK all the cuts to housing and other benfits are going to lower average rents.

So mortgage repayments will be going up every year while average rents will be going down.

thor

PaulF81 wrote: »

Can I ask why do rates have to return to historic averages? Which law of nature states this will happen, and what's not to say 0.5%~2% isn't the new status quo?

Exactly right! Economics is not a science and long term influences nothing. Quite frankly there is nothing to stop house prices really going down the pan in the future. Just saying that property will always increase in the long run does not mean it will stay true in the future.

dlk

Mortabrey wrote: »

The bad news is things always revert to the long term norm. The good news is things always revert to the long term norm. :rotfl:

If that was indeed the case then House price inflation would also revert to the long term norm and rather than be repossessed they can just sell there house at a huge profit!

NB (I neither believe interest rates or house price inflation will return to long term norms for quite some time)

yertiz_2

Mortabrey wrote: »

It was supposed to be 18months but there would be huge numbers of repossessions and the government want to do everything to keep house prices defying gravity.

I wouldnt worry there have been some getting their mortgage interest paid for years now. They will not stop paying it because it would lead to huge numbers of repossessions. It will happen anyway when interest rates go back up to the normal 8% for the last few decades. They just want to postpone the repossessions as long as they can, the longer they kick the can down the road the bigger the problem gets.

See my thread Spam? Someone reported this as'spam', when i brought it to attention and consequently it was deleted, I have no interest in the selling of gold etc... just thought some of the comments were thought provoking/worrying. Obviously some of the commentators on here didnt like it. From Moneyweek (shortened):

RUN_RABBIT_RUN

yertiz wrote: »

From Moneyweek (shortened):

<nowt>

now thats the kind of moneyweek article i like! short and inoffensive

homelessskilledworker

yertiz wrote: »

See my thread Spam? Someone reported this as'spam', when i brought it to attention and consequently it was deleted, I have no interest in the selling of gold etc... just thought some of the comments were thought provoking/worrying. Obviously some of the commentators on here didnt like it. From Moneyweek (shortened):

You putting that up has made me realise something this morning that never crossed my mind before.
I know there is a us and them element to this board, bears v's Bulls.
When when you post on this board something that is bearish, and it is irrelevant if you believe it or not, your whole character is put through a microscope and you are fair game to any abuse.

I honestly thought that many of the Bulls had belief in what they were posting and were just being a little passionate in a really odd way, I mean who would take offence in normal day life to other people making different life choices and decisions, it happens all around us thousands of times a day. But on here there is real HATE!!.

I realise now that many of the Bulls on this site and probably all the otherproperty sites understand the power of sentiment and the media, they are probably more aware and frightened of a property crash than the ones that are seen as bears and are open about it.

The so called Bulls are just wolves in Bull clothing:).. they are just attacking and poster anywhere that dares to say that property prices might collapse.

THEY ARE FRIGHTEND!!

chucknorris

homelessskilledworker wrote: »

You putting that up has made me realise something this morning that never crossed my mind before.
I know there is a us and them element to this board, bears v's Bulls.
When when you post on this board something that is bearish, and it is irrelevant if you believe it or not, your whole character is put through a microscope and you are fair game to any abuse.

I honestly thought that many of the Bulls had belief in what they were posting and were just being a little passionate in a really odd way, I mean who would take offence in normal day life to other people making different life choices and decisions, it happens all around us thousands of times a day. But on here there is real HATE!!.

I realise now that many of the Bulls on this site and probably all the otherproperty sites understand the power of sentiment and the media, they are probably more aware and frightened of a property crash than the ones that are seen as bears and are open about it.

The so called Bulls are just wolves in Bull clothing:).. they are just attacking and poster anywhere that dares to say that property prices might collapse.

THEY ARE FRIGHTEND!!

Ok I will bite, what am I supposed to be frightened of? The bottom of the market was 2009 (although we are still just above the bottom and will be for a while yet, but there is no 'crash' on the way).

Incidently I did not report that other post as spam, it was too stupid to waste any time on.

EDIT: In fact I really don't know why I am wasting my time typing this (note to self: it's a nice day outside get your trainers on and take the dog for a jog, do something useful).