Think about the mortgage you are taking on, the debt you are taking on

Graham_Devon

States Carney, in a warning to potential home owners.

Blimey, I'm starting to like this bloke.

"Think about the mortgage you are taking on, the debts you are taking on," Carney said when asked what his message was to those aspiring to get on the housing ladder. "You are taking at least a 25-year mortgage, maybe a 30-year mortgage.

"Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher? Or are you counting, even subconsciously, on the price of your house keeping going up and if something happens an ability to sell it quickly and not facing the consequences of not being able to pay?"

http://www.theguardian.com/business/2013/nov/29/mark-carney-bank-of-england-home-buyer-warning

He also notes in his interview with the Guardian that the bank could act to impose a cap on LTV ratios.

Seems he is somewhat at war with HPI.

Loughton_Monkey

Mark my words. I will not allow any cap on banker bonuses. And when inflation starts going up, your mortgage is going to be this tiny. I recommend that everyone fills their boots now and buys the largest house they possibly can....

wymondham

is he distancing himself from the coming storm?

Road_Hog

wymondham wrote: »

is he distancing himself from the coming storm?

He's ex-Goldman Sachs, he'll make a mint out of what ever happens.

vivatifosi

A mortgage is the biggest financial commitment most people will ever make. Surely it has always been the case that people should consider affordability over the term of the loan. I'm struggling to see what's new or different.

wotsthat

Graham_Devon wrote: »

Seems he is somewhat at war with HPI.

I've told you a million times about exaggerating.

Sensible comments though. Always best to think before making big commitments although I'd like to know how people are meant to know what they are thinking subconsciously.

CLAPTON

What an absolutely cop out.

He is advising ordinary people to prepare for higher interest rates and the uncertain future.

He himself is not willing to forecast interest rates in 6 months time let alone what they will be in a 1 year or 5 or 10 or indeed what wage inflation will be in the future.

If he is unwilling to give any guidance how does he expect ordinary people to be able to estimate the future likely levels.

Well of course he doesn't but it does mean he can say 'I told you so' whatever happens

absolutely useless.

Generali

CLAPTON wrote: »

What an absolutely cop out.

He is advising ordinary people to prepare for higher interest rates and the uncertain future.

He himself is not willing to forecast interest rates in 6 months time let alone what they will be in a 1 year or 5 or 10 or indeed what wage inflation will be in the future.

If he is unwilling to give any guidance how does he expect ordinary people to be able to estimate the future likely levels.

Well of course he doesn't but it does mean he can say 'I told you so' whatever happens

absolutely useless.

He's talking about 25 and 30 year periods of time. Do you really expect him to be able to predict what will happen to interest rates over that time period?

What he's doing is trying to reduce the chances of a house price bubble getting going. He's saying to people, 'you can borrow £250,000 from the Nationwide and pay £700 a month for a couple of years but you have to consider that when the fixed rate is up you'll possibly be paying 7% (5% average base rate + 2% spread) which is over a grand a month more in payments'.

I suspect nobody will listen and everything is being put in place for another big run-up in UK house prices. He is doing his best to stop it but I doubt it'll work. He'll have to crank up interest rates in the end.

moneyinmypocket

If he tries to halt HPI or cause prices to dip he will be forced out. The gov will assist house prices to remain strong at all costs as everything is underpinned to the housing market

CLAPTON

Generali wrote: »

He's talking about 25 and 30 year periods of time. Do you really expect him to be able to predict what will happen to interest rates over that time period?

What he's doing is trying to reduce the chances of a house price bubble getting going. He's saying to people, 'you can borrow £250,000 from the Nationwide and pay £700 a month for a couple of years but you have to consider that when the fixed rate is up you'll possibly be paying 7% (5% average base rate + 2% spread) which is over a grand a month more in payments'.

I suspect nobody will listen and everything is being put in place for another big run-up in UK house prices. He is doing his best to stop it but I doubt it'll work. He'll have to crank up interest rates in the end.

No I don't expect him to be able to predict the future anymore than I expect the man in the street to do so either.

He could however give some guidance than the state the bloody obvious.

Road_Hog

Carney is a globalist who is a preacher of New World Order.


"The theme of this conference – "Adapting to a New World Order" – suggests that it is clear how global commerce and finance will be reorganized in the wake of the current crisis. However, the outcome is far from preordained. How we manage the rebalancing of the global economy could profoundly influence how open, equitable, and prosperous the New World Order will be.

Globalized product, capital, and labour markets1 lie at the heart of the New World Order to which we should aspire. However, the next wave of globalization needs to be more firmly grounded and its participants more responsible. In recent years, a belief in the power of markets has not always been accompanied by a commitment to build resilient markets. Moreover, at times, policy-makers and the private sector did not live up to their responsibilities.

In my talk today, I will outline an agenda to redress these failings in order to build a more responsible, more resilient globalization. But first I want to highlight the current challenges that stem from several key imbalances. Across economies, demand must rotate from deficit to surplus countries. Within our economies, major stock adjustments in inventories, labour, and capital will be required. Excessive levels of private debt must also be reduced. To offset the resulting shortfall in private demand, public demand must increase. The role of public demand is to bridge a gap. To do so successfully, it must be temporary, credible, and accompanied by measures to relaunch an open, resilient, and responsible global economy"


http://www.bankofcanada.ca/2009/06/publications/speeches/rebalancing-global-economy/


See Agenda 21 and private property ownership for what is envisaged.