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Debate House Prices
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People will adjust their spending habits in order to afford their mortgage
Comments
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Is it a Merc?
I have to wait another year for my Merc to be worth less than £1000 so I can apply for a DRO.
Nope, it's a Fiat. 3 door....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »Nope, it's a Fiat. 3 door.
Surprised that one hasn't fallen off given it's age.
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Timing belt? Very costly if this goes.
Hasn't gone yet, and if it does, then we can get a newer car. But it's fine at the moment....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »Hasn't gone yet, and if it does, then we can get a newer car. But it's fine at the moment.
Worth checking next time you get it serviced;). They do need replacing some from 35000 miles.
That said it may even have a chain which aren't the same issue."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »Really?
Seems to me you are just stating this rather than having it backed up with anything. Nearly everyone I know finance their second hand cars on a loan. They are not going crazy, these are 3-4k cars.
If most people you know are so bad at planning ahead and budgeting that they borrow for eminently predictable expenses then I can understand why you have such a pessimistic outlook at how people will be able to react to rate rises.
I know people from all ends of the financial spectrum (working class upbringing and family, senior investment banker now, and have friends from the proper high-end of wealth), and don't know any who'd struggle if rates went up quite a way. Those on very low incomes tend to have very modest homes and lifestyles, leaving enough to live perfectly well. Those who earn six figures drive very nice sports cars, or have properties around the world, and those at the top end, well, they have yachts.
None would suffer hugely if rates pop higher. Those at the bottom would stop going to the pub, would lose their family camping holiday, and have to give up the hobbies, but they'd not starve. Those in the middle would step down to a used Porsche instead if a new Zonda, and those at the top would not notice.
I don't know anyone unemployed, but they are going to be struggling no matter where interest rates are.0 -
So out of interest, as the majority appear to feel there will be no real impact on families when rates rise....why did Mervyn King state many in their 30s and 40's would find it unsustainable if rates rose?
Load of nonsense?Outgoing governor of the Bank of England, Mervyn King, has warned that homeowners aged in their 30s and 40s with large mortgages would not cope if interest rates were to return to more normal levels.
In his final public appearance, Sir Mervyn King said that borrowers have not taken advantage of record low interest rates to pay off their mortgage debt and escape unaffordable deals. He warned that should interest rates rise sharply, these households could struggle to keep up with their mortgage repayments.0 -
I don't think anyone's saying that there won't be an impact, but that's different from foreseeing a crisis.
I don't know anyone who buys cars through a loan. It seems a very odd thing to do, to me, to buy a depreciating asset via expensive financing!...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Graham_Devon wrote: »So out of interest, as the majority appear to feel there will be no real impact on families when rates rise....why did Mervyn King state many in their 30s and 40's would find it unsustainable if rates rose?
Load of nonsense?
merv has a long history of being right?
why didn't he say something and ACT when he had the power?
hint: it wasn't a long time ago.0 -
neverdespairgirl wrote: »I don't think anyone's saying that there won't be an impact, but that's different from foreseeing a crisis.
I don't know anyone who buys cars through a loan. It seems a very odd thing to do, to me, to buy a depreciating asset via expensive financing!
People buy cars on loan for all sorts of reasons. At one point, my job demanded I had a car under 5 years old. Had to look OK when visiting clients.
Plus a bit more reliability in general. If you are doing 15-30k miles a year, would you want to do it in a £1,000 car? I wouldn't. Been there done that and spent too much time trying to fix things and being stranded.
I don't actually have a car loan, but I would if I had to. Plus I don't think 7% interest is particularly expensive for a general loan?
If I was doing under 5k miles a year, I'd certainly be on the side of buying something, anything. But I'm doing closer to 20k a year.0 -
merv has a long history of being right?
why didn't he say something and ACT when he had the power?
hint: it wasn't a long time ago.
To be fair, it's long been one of the reasons on here as to why rates won't go up. This thread wa sa result of a certain scotsman stating rates won't go up as too many will struggle. Now, it appears this isn't the case at all.
Heres one post in response to Mervyn stating great, interest rates will stay low then. Note I got accused out of the blue of completely the oppsite of what I'm being accused of on this thread!Probably why Mervyn King said that rates are unlikely to return to normal anytime soon.
Amazing how wotstahts thoughts have suddenly changed so radically on this thread.
Rates have to stay low because of the damage it would do if they went up....but, people would cope if they did...Seems to change dependant on whether someone is arguing for rates to stay low, or arguing that if they did go up, house values wouldn't be effected.0
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