House prices in the real world....

Mr._Pricklepants

Graham_Devon wrote: »

10% rates are one thing, but even 2% rates are a 400% rise.

400% rise from where?

wotsthat

Mr._Pricklepants wrote: »

400% rise from where?

It's best to just ignore Graham's percentage calculations and just go with the nominal numbers. I think he meant quadruple or even quadrupple.

Mr._Pricklepants

wotsthat wrote: »

It's best to just ignore Graham's percentage calculations and just go with the nominal numbers..

Ok, will do, cheer's wotsthat.

System

Graham_Devon wrote: »

This is cringeworthy.

Firstly you are upset about someone not believing your anecdotes which just so happen to back up your views. You then splurge out abuse while being all sensitive yourself.

You then, after all that, ask me to leave you out of it..... the only reason I piped up being that you were throwing accusations around when I wasn't even active on the thread. So seems you want to throw whatever accusations you like around, but don't wish for any comeback, otherwise you start getting upset.

Couldn't make it up. If you want to be left out of things, and don't want to find yourself snivelling, can I suggest you don't throw it around to start with?

Translation: I'm sorry for getting it wrong about the scheme already starting and for making a nonsensical accusation that you were lying when it transpires I was clearly wrong again. I'm afraid I don't know which view this anecdote backs up I just made it up because I'm a horrible little worm.

Thrugelmir

wotsthat wrote: »

Mortgage rationing has ensured that, for the last five years, only the most robust risks have been selected for mortgage lending.

No mortgage rationing. There's far fewer lenders.

Appears if the Co-Op may bail out of the market too in the longer term. As profitability gets squeezed further.

wotsthat

Thrugelmir wrote: »

No mortgage rationing. There's far fewer lenders.

Appears if the Co-Op may bail out of the market too in the longer term. As profitability gets squeezed further.

Mortgage rationing/ fewer lenders - it's semantics. You can be sure that anyone that got a mortgage in the last 5 years was at the lower end of the risk scale. Pre-existing mortgage holders whether by choice or not have 5 years of repayments behind them.

There will be a few who haven't used the last 5 years to strengthen their financial position as far as debt is concerned but that's their lookout.

The 'ticking time tomb' looks less likely to go off with every mortgage payment that passes.

Graham_Devon

wotsthat wrote: »

Mortgage rationing has ensured that, for the last five years, only the most robust risks have been selected for mortgage lending. Pre-existing borrowers have 5 years of payments behind them.

2% base rates would make only the tiniest difference in arrears or forbearance.

You may say that...

But we've actually seen a response to rates rising. Remember Bank of Ireland? You were quick to write this off as a handful of mortgages, but the example sheds light on the problems of low rates and what happens when they increase.

wotsthat

Graham_Devon wrote: »

But we've actually seen a response to rates rising. Remember Bank of Ireland? You were quick to write this off as a handful of mortgages, but the example sheds light on the problems of low rates and what happens when they increase.

As far as I remember people engaged in their normal initial response when faced with increased outgoings - they had a moan about it.

Then they made adjustments and got on with it.

Do you think something else happened?

Graham_Devon

wotsthat wrote: »

As far as I remember people engaged in their normal initial response when faced with increased outgoings - they had a moan about it.

Then they made adjustments and got on with it.

Do you think something else happened?

Yes - some started bankrupcy proceedings according to the news when that MP wanted an enquiry. (hence part of the reason for the enquiry)

wotsthat

Graham_Devon wrote: »

Yes - some started bankrupcy proceedings according to the news when that MP wanted an enquiry. (hence part of the reason for the enquiry)

Not because of the mortgage rate rise - it doesn't even come into effect until 1st May.