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Mortgage Debt Arrears improving markedly
Comments
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No you didn't understand my post. Keeping IRs at 0.5% indefinitely is kicking the can down the road.
I don't understand it because it doesn't make sennse.
Rates at 0.5% are allowing arrears to be paid off.
When the arrears are paid off, rates can be raised without such a negative impact.
It's the opposite of kicking the can.
If keeping rates at 0.5% meant that arrears were staying the same, then I'd agree with you.
Unless you have some odd definition for "kicking a can" compared to everyone else.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
I don't understand it because it doesn't make sennse.
Rates at 0.5% are allowing arrears to be paid off.
When the arrears are paid off, rates can be raised without such a negative impact.
It's the opposite of kicking the can.
If keeping rates at 0.5% meant that arrears were staying the same, then I'd agree with you.
Unless you have some odd definition for "kicking a can" compared to everyone else.
Will try once more.
As I've already said twice, it's the keeping IRs at 0.5% that's kicking the can. Any repayment of debt is good but what we're talking about here is a drop in the ocean & won't make any noticeable difference in the face of even something like a 2% rise in IRs (which would take us to a historically extremely low 2.5%). The fact that even with IRs at historically low rates for such a long time all we have is this pitiful tiny amount of repayment illustrates the situation perfectly. People should have been paying off boatloads of debt during the last couple of years. They haven't because they require IRs to be close to zero just to be able to meet their regular payments.0 -
Rates at 0.5% are allowing arrears to be paid off.
When the arrears are paid off, rates can be raised without such a negative impact.
You would never get to that point though, and the BOE and economy can't wait around until people have paid their mortgage arrears at low rates.
As soon as you increase them, you'll have arrears again.0 -
I can't understand the mentality of some people. Why is all good news met with derision? It really gives an insight into their personalities:
The economy is booming and everyone is doing well: "This is terrible, there will be a reckoning, everything is going wrong".
The economy is tanking and people are doing badly: "Well, it serves people right, they should have listened to me for all those 10 years of the boom when I was saying there would be a reckoning. This will go on for centuries, it's the end of civilisation as we know it"
The economy is growing in a sustainable fashion: "This is terrible, there is no boom on the horizon and we are just bumping along on the bottom.
These guys should just go along to the Docs and get some Prozac or something to sort themselves out. No wonder they don't have wives and girlfriends, who would want to hang around with such depressing people?0 -
Reno, it's slowly dawning on me that it appears you could well be MrRee and MrPricklepants and all the other names.
I could well be, and probably am, wrong. But the writing style is getting ever closer the more you write. The whole wives / girlfriends thing did it for me.....it's in exactly the same style as the "mummie" stuff.
The more you go for the psycological and "it amazes me" stuff, the more you look like Ree / Prickle / Nollag.0 -
Will try once more.
As I've already said twice, it's the keeping IRs at 0.5% that's kicking the can. Any repayment of debt is good but what we're talking about here is a drop in the ocean & won't make any noticeable difference in the face of even something like a 2% rise in IRs (which would take us to a historically extremely low 2.5%). The fact that even with IRs at historically low rates for such a long time all we have is this pitiful tiny amount of repayment illustrates the situation perfectly. People should have been paying off boatloads of debt during the last couple of years. They haven't because they require IRs to be close to zero just to be able to meet their regular payments.
I thought that the type of debt that these people have would be on credit cards and sub-prime mortgages, neither of which have ever had low rates or any connection with the BoE base rate.
From what I have read recently, what is causing these people to reduce their arrears is their inability to obtain more credit. This is borne out by the BoE's own statistics on MEWing. People can't keep consolidating debt onto their mortgages and instead now have to tighten their belts and actually repay it instead of moving it around.0 -
Graham_Devon wrote: »Reno, it's slowly dawning on me that it appears you could well be MrRee and MrPricklepants and all the other names.
I could well be, and probably am, wrong. But the writing style is getting ever closer the more you write. The whole wives / girlfriends thing did it for me.....it's in exactly the same style as the "mummie" stuff.
The more you go for the psycological and "it amazes me" stuff, the more you look like Ree / Prickle / Nollag.
It dawned on me a long time ago that you run the rewired 'thank' sockie, who only ever logs on when you do, and only ever 'thanks' on threads that you have contributed to.
When you go on holiday, so does rewired.
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RenovationMan wrote: »It dawned on me a long time ago that you run the rewired 'thank' sockie, who only ever logs on when you do, and only ever 'thanks' on threads that you have contributed to.
When you go on holiday, so does rewired.
Rewired will have a big grin on his face reading that.
I do too.
I have no idea who rewired is. All I know is I love him, and he (she) loves me.
You carry on going down the nollag / mrree / pricklepants route. You'll lose the respct of not just those you seem to detest so much.0 -
Graham_Devon wrote: »Rewired will have a big grin on his face reading that.
I do too.
A confession.
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Unless IRs are kept at 0.5% for the next 25 years this is just one more variation of kicking the can down the road.
Ir doesn't need to be.
My remortgageing planinvolved reducing the amortization period each remortgage.
I could afford as our household income had increased and we also made overpayments.
Taking a BOE linked loan when the rates are historically low is a good time to do so.
Far better than paying a higher rate for that loan.
Make hay while the sun shines. Capitalise on the low rates.
when rates rise, be ready and able to pay down more capital.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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