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Martin Lewis on the agenda ripping Osbourne to shreds
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Martin's main point is that banks are now ripping off the public in the spread from base rates. When rates rise, the rates paid will be even bigger than before. The govt are encouraging this further with HtB, rather than just letting the market fall a bit.
Osborne doesn't have a clue. You can see it in every interview he gives.0 -
Graham_Devon wrote: »What was incorrect about what he said?
As Ed Conway noted today....
http://www.edmundconway.com/2014/02/what-todays-inflation-report-means-for-you-and-your-mortgage/The main message of today’s Inflation Report is that the Bank of England won’t be lifting interest rates anytime soon.
However, the supplementary message is that when rates do rise, it’ll happen very gradually.
And they won’t get high for a long, long time.
Indeed, while before the crisis a “normal” level for rates might have been 5%, the “new normal” is likely to be closer to 2.5%.
And don't forget, in addition to this, it's been made pretty clear by the BOE previously on a number of occasions that they expect mortgage margins above base rate to reduce when base rates finally do rise.
Or as Mervyn King put it to the Treasury Select Committee, when base rates rise "the spread between the bank rate and the rates banks charge would undoubtedly narrow".
So to recap, base rates staying low for a long time, and only rising gradually when they do rise, the new normal for rates likely to be 2.5%, and mortgage margins above base to shrink.
Not much of a ticking time bomb..... More like a damp squib.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »I'll ask again. What was incorrect about what he said?
...and I'll tell you again. For maximum exposure you should be loud, shrill, populist and, for added credibility, make sure there's a sprinkling of truth. Seems to help if you talk over the person with whom you're having a conversation like a demented schoolgirl too.
- 'mortgage ticking time bomb' - sensationalist journalistic nonsense
- 'mortgages will be quite simply unaffordable if/when rates rise
leading to defaults' - mortgages won't be unaffordable when rates rise (note the grain of truth - there will be increased defaults - not as many as the tone suggests).
- 'Extortionately expensive mortgages including help to buy and you're encouraging them to buy property at this time' - mortgage affordability is pretty much at an all time low.
I bet he ran back to MSE towers to count the hits before reporting to his masters at moneysupermarket.
Sorry to break it to you but your hero is a self-promoting millionaire businessman and a good one at that. The site has changed from a site set up to allow people to live the same lifestyle on less money to an increasingly silly activist site. Not a problem for me - I've made and saved fortune due to this site (and the forums in particular).
I still take a pinch of salt with it - suggest you do too.0 -
LOL! Handbags at dawn!
Jesus wotsthat. My "hero" because I've asked you a question?
Running back to MSE to count the number of hits? His masters?0 -
Graham_Devon wrote: »You still haven't stated what was incorrect by the way.
He hasn't, but I have.....
Expect you'll be ignoring that though.;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »He hasn't, but I have.....
Expect you'll be ignoring that though.;)
You certainly haven't. You've just said "everything will be alright cus base rates are staying low" in a nutshell.
That doesn't prove Martin incorrect on his point, infact, only highlights it, as he was talking about people taking on large debts at such low rates.0 -
- 'mortgage ticking time bomb' - sensationalist journalistic nonsense
That's what property speculators said about the US Alt A and Option Arm mortgages. Well that so called time bomb blew up massively and the lending conditions in the uk are very similar.
http://www.youtube.com/watch?v=QojNUjP3wxQ- 'mortgages will be quite simply unaffordable if/when rates rise
leading to defaults' - mortgages won't be unaffordable when rates rise (note the grain of truth - there will be increased defaults - not as many as the tone suggests).
If we can't put up interest rates now with out damaging the recovery then your argument does not hold water.- 'Extortionately expensive mortgages including help to buy and you're encouraging them to buy property at this time' - mortgage affordability is pretty much at an all time low.
So what happens when the help to buy 2 year mortgage fixes end. Rates are low but you have to balance that out with debt levels which are higher making people more exposed.
Martin is right to highlight the dangers. People are buying and stretching themselves at todays affordability a record low. People should look to see if they can pay at base rates of 7% or so.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Martin's main point is that banks are now ripping off the public in the spread from base rates. When rates rise, the rates paid will be even bigger than before..
[STRIKE]Osborne[/STRIKE] Martin doesn't have a clue. You can see it in every interview he gives.
Osborne wasn't on the show to represent the banks.
Martin has jumped on a bandwagon without understanding how banks finance themselves. Or in fact how banking works.
Poor poor journalism. Martin should keep to consumer issues.0 -
That's what property speculators said about the US Alt A and Option Arm mortgages. Well that so called time bomb blew up massively and the lending conditions in the uk are very similar.
http://www.youtube.com/watch?v=QojNUjP3wxQ
Never heard of it.So what happens when the help to buy 2 year mortgage fixes end. Rates are low but you have to balance that out with debt levels which are higher making people more exposed.
Martin is right to highlight the dangers. People are buying and stretching themselves at todays affordability a record low. People should look to see if they can pay at base rates of 7% or so.
Highlighting risks doesn't make them any more or less likely to happen.0
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