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Debate House Prices
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Only going one way now!
pbouk
Posts: 251 Forumite
It looks like the lenders have got it into their heads now.
http://www.yourmoney.com/your-money/news/2332362/cost-of-borrowing-creeps-up-as-lenders-price-in-2015-rate-rise
http://www.yourmoney.com/your-money/news/2332362/cost-of-borrowing-creeps-up-as-lenders-price-in-2015-rate-rise
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Comments
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Excellent news.
Rates can and should rise when the economic recovery is locked in.
And of course, rising interest rates as a result of rising wages, falling unemployment, increased consumer confidence and growth in the economy will have no negative effect on house prices....;)“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: »Excellent news.
Rates can and should rise when the economic recovery is locked in.
And of course, rising interest rates as a result of rising wages, falling unemployment, increased consumer confidence and growth in the economy will have no negative effect on house prices....;)
We all love a dreamer...;)0 -
We all love a dreamer...;)
Will you be back to eat a slice or two of humble pie when I'm proven right (again)....;)“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: »Will you be back to eat a slice or two of humble pie when I'm proven right (again)....;)
What is the date when you will be proven right? If we are talking about this year then I would agree with you, but after 2015;)0 -
What is the date when you will be proven right? If we are talking about this year then I would agree with you, but after 2015;)
Even though rates will probably rise in 2015 they will still be low, actually they were not high in 2007! When I first bought, my mortgage rate was about 12%. I can't see the base rate going over 5% for quite a number of years.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »Even though rates will probably rise in 2015 they will still be low, actually they were not high in 2007! When I first bought, my mortgage rate was about 12%. I can't see the base rate going over 5% for quite a number of years.
True, but the point is that we are at 0.5% and the lenders are slowly starting to lift them. BOE base rate is not that important.0 -
What is the date when you will be proven right?
Every day from now until the peak of the next cycle in base rates.
Which will be around 3.5%, and is still at least a decade away.“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 -
True, but the point is that we are at 0.5% and the lenders are slowly starting to lift them. BOE base rate is not that important.
Average mortgage rates will go back to around 5%, but won't go much north of that as base rates climb, because bank margin above base will shrink.
It's simply not enough to cause falling prices, given the shortage of houses, economic recovery, rising wages, falling unemployment, etc.....
None of which are conditions known for being associated with falling house prices.“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 -
True, but the point is that we are at 0.5% and the lenders are slowly starting to lift them. BOE base rate is not that important.
It is when you have 5 low margin lifetime tracker mortgages like I have. My average mortgage rate is just over 1% and has been for 5 years.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »It is when you have 5 low margin lifetime tracker mortgages like I have. My average mortgage rate is just over 1% and has been for 5 years.
You are of the few, not of the many though.0
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