'One million buyers have never seen a rate rise'

Percy1983

wotsthat wrote: »

This story highlights a 'problem' that only exists if it's assumed that a) every FTB since 2009 is mortgaged to the hilt and b) stupid.

There is many levels of how much of a problem it will be, as you say the mortgaged to the hilt and stupid will be hit first, nd from there each 0.5% increase will drag more people into trouble.

I don't think it would cause i huge problem on the whole and I can't see rates passing 3% even if they do rise.

As with any erroding ledge, some will fall while the edge gets closer for everybody else.

wotsthat

Percy1983 wrote: »

There is many levels of how much of a problem it will be, as you say the mortgaged to the hilt and stupid will be hit first, nd from there each 0.5% increase will drag more people into trouble.

I don't think it would cause i huge problem on the whole and I can't see rates passing 3% even if they do rise.

As with any erroding ledge, some will fall while the edge gets closer for everybody else.

I was being ironic - it's been somewhat difficult for a new FTB since 2009 to get themselves mortgaged to the hilt. Always tough starting out but there are other vulnerable groups too - there are around 250,000 on SMI now (who by definition can't afford the mortgage already). However I can't see major problems on the whole either.

I don't think there's really an immovable ledge either. It's in a state of flux because inflation, pay rises, normal repayments etc. all move the ledge away.

IveSeenTheLight

movilogo wrote: »

House price is going up faster than inflation (fact). That means IR should go up to control inflation.

If you want to control House Prices, Adjusting Inflation Rates makes little difference and will affect a far wider picture.

The answer to controlling house prices is to encourage more building.

IveSeenTheLight

Percy1983 wrote: »

There is many levels of how much of a problem it will be, as you say the mortgaged to the hilt and stupid will be hit first, nd from there each 0.5% increase will drag more people into trouble.

I don't think it would cause i huge problem on the whole and I can't see rates passing 3% even if they do rise.

As with any erroding ledge, some will fall while the edge gets closer for everybody else.

Most will adjust spending without falling off a cliff when rates rise.

Thrugelmir

IveSeenTheLight wrote: »

Most will adjust spending without falling off a cliff when rates rise.

How? Disposable income is falling. Low interest rates have merely papered over the cracks.

dotdash79

Thrugelmir wrote: »

How? Disposable income is falling. Low interest rates have merely papered over the cracks.

Is it?

Wages have been raising but not as fast as inflation, the actual amount hasn't reduced but the worth has.

floridaman

Young people need a break we have been screwed over by the banks and the greedy ones

Bantex_2

floridaman wrote: »

Young people need a break we have been screwed over by the banks and the greedy ones

Thousands of young people are buying every week. Ask yourself why you are not one of them.

Thrugelmir

dotdash79 wrote: »

Is it?

Wages have been raising but not as fast as inflation, the actual amount hasn't reduced but the worth has.

I know of many people that have taken pay cuts following redundancy in order to find employment. Some as much as 50% less salary.

dotdash79

Thats something that happens even when the economy is growing and wages are rising fast than inflation.

I don't know anyone who have taken a pay cut, for any reason apart from a career change.