House prices suffer biggest drop since 2009 - Nationwide -2.6%

Thrugelmir

DervProf wrote: »

I read an article recently stating that personal insolvencies were at a low level. The end of "easy credit" is probably helping people to avoid getting into high levels of debt.

Or low mortgage interest rates are enabling many people to keep their heads just above water.

RenovationMan

Thrugelmir wrote: »

Or low mortgage interest rates are enabling many people to keep their heads just above water.

I thought the 'bear' stance was that only a few people have access to these low rates and that most people, especially sub-primers are on much higher rates?

Are we now saying that everyone is on a low rate tracker? I can't keep up with the shifting 'bear' position. No doubt if BoE rates go down, the 'bears' will be saying that it's irrelevent because most people are on higher rates that are de-coupled from the BoE rate. :rotfl::rotfl::rotfl:

Graham_Devon

RenovationMan wrote: »

I thought the 'bear' stance was that only a few people have access to these low rates and that most people, especially sub-primers are on much higher rates?

Only a few are on the BOE trackers at 0.5% above base.

It's been made clear enough many times that many many people are on low SVR's at the moment.

Not really sure what's hard for you to understand about what's been said in the past. Actually, I'm not entirely sure you are even confused, rather just trotting out yet another made up, irrelevant soundbite in order to attract yourself some more attention.

In which case, I've just fallen hook line and sinker.

As far as the insolvencies go, it's mainly because the figures exclude those on debt management plans. Debt management plans are increasing at quite some pace. It's all about how the numbers are presented.

RenovationMan

Graham_Devon wrote: »

Only a few are on the BOE trackers at 0.5% above base.

It's been made clear enough many times that many many people are on low SVR's at the moment.

Not really sure what's hard for you to understand about what's been said in the past. Actually, I'm not entirely sure you are even confused, rather just trotting out yet another made up, irrelevant soundbite in order to attract yourself some more attention.

In which case, I've just fallen hook line and sinker.

What rates are these 'low SVR's' at?

Graham_Devon

RenovationMan wrote: »

What rates are these 'low SVR's' at?

Around 2-4% I'd guess on average. All depends on the lender and product.

shortchanged_2

RenovationMan wrote: »

I thought the 'bear' stance was that only a few people have access to these low rates and that most people, especially sub-primers are on much higher rates?

Are we now saying that everyone is on a low rate tracker? I can't keep up with the shifting 'bear' position. No doubt if BoE rates go down, the 'bears' will be saying that it's irrelevent because most people are on higher rates that are de-coupled from the BoE rate. :rotfl::rotfl::rotfl:

Just another made up statement from renoman.

Why would the bear argument be that very few people are on these low rates?

The argument would be that some people are just keeping their heads above water thanks to being on low rate SVR's or trackers, hence the low rate of repossessions.

It's been argued for a long time that the low interest rates is one of the props helping keep house prices high.

RenovationMan

Graham_Devon wrote: »

Around 2-4% I'd guess on average. All depends on the lender and product.

http://www.bbc.co.uk/news/business-17371515

"Bank of England figures show that the average SVR at the end of February was 4.17%. The CML says that this remains relatively low by historical standards"

http://www.moneyextra.com/guides/mortgages-the-basics.html
"The standard variable mortgage rate SVR over the first seven years of the new millennium has averaged 5.42 but from early 2007 as the effects of the US sub prime debt crisis began to be felt in the UK the mortgage market here began to contract and many SVRs now stand at or around the 7 mark "

sabretoothtigger

I very nearly added 'assuming the same mortgage rate throughout the term' but I'd already used one set of brackets and I didn't think you'd be that pedantic anyway.

We have 0.5% rates. Its not pedantic to point out the costs change massively as soon as we go back to 5%.

Interest is the largest cost of buying house. It cant be a throwaway comment when its the most important factor determining costs and therefore likely future prices

Graham_Devon

RenovationMan wrote: »

http://www.bbc.co.uk/news/business-17371515

"Bank of England figures show that the average SVR at the end of February was 4.17%. The CML says that this remains relatively low by historical standards"

Isn't that exactly what was stated? You found the evidence for us.

RenovationMan

Graham_Devon wrote: »

Isn't that exactly what was stated? You found the evidence for us.

You said between 2% and 4% and it's actually over 4%. The sort of people who will be struggling with their mortgages will be the ones whose finances are rocky and these will be on the poorer SVRs, towards the 7% mentioned in the second article I linked to (and you seem to have forgotten to quote).

Incidently I found the evidence you YOU, who is us? Is that the legion of sockpuppets you run, or are you a member of the royal family? :rotfl: