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Debate House Prices
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"Any sane person should worry about what will happen when IR's rise"
Comments
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Have to say, none of the local political leaflets for the local elections, mention the need to build more houses.
Well, they wouldn't, would they?
Everybody thinks more houses should be built, at a national level. But nobody who already has a house wants more houses built at a local level.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Graham_Devon wrote: »New research pubished today, backing up what Vince has stated, estimates that by 2018, 2.3m households will face potentially unaffordable mortgage payments.
Scary stuff
http://www.citywire.co.uk/money/is-your-mortgage-set-to-become-a-prison/a752270
are we sure this is a crisis
Resolution Foundation said borrowers risked becoming ‘mortgage prisoners’, where they did not have sufficient equity or income to switch their mortgage to a better deal, alongside the risk of becoming ‘highly geared’, where rising rates mean monthly mortgage repayments will eat into at least one-third of disposable income by 2018, when interest rates are expected to climb to 3%.
1/3 of disposal income on the mortgage is a crisis?
people will copeEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
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Graham_Devon wrote: »What they are saying is the EXTRA outgoings caused by interest rates will eat up a 3rd of disposable income.
how is that a crisis?EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
how is that a crisis?
No one has stated it's a crisis, bar you. So I'd suggest you are best place to answer your own question as you are the only one who has defined it as such.
Though if you feel 33% of disposable income going on increased mortgage payments isn't a very problematic issue, then I feel you haven't really examined the effect this will have on many families up and down the country.....let alone the wider economy itself.
Disposable income pays the electric bill, the gas bill, the water bill, childcare...it pays for the fuel you put into your car to get to work and pretty much everything else. Loads of people will struggle if you remove up to 33% of what they have to spend on these things.
It's not left over income after you have paid everything else.0 -
Graham_Devon wrote: »No one has stated it's a crisis, bar you. So I'd suggest you are best place to answer your own question as you are the only one who has defined it as such.
Though if you feel 33% of disposable income going on increased mortgage payments isn't a very problematic issue, then I feel you haven't really examined the effect this will have on many families up and down the country.....let alone the wider economy itself.
Disposable income pays the electric bill, the gas bill, the water bill, childcare...it pays for the fuel you put into your car to get to work and pretty much everything else. Loads of people will struggle if you remove up to 33% of what they have to spend on these things.
It's not left over income after you have paid everything else.
the vast majority of people will cope because their home is more important than the other things.
amasingly people survived for thousands of years without lots of modern gadgets
the context is also an improving economy and rising wages which will help a lot.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
the vast majority of people will cope because their home is more important than the other things.
amasingly people survived for thousands of years without lots of modern gadgets
the context is also an improving economy and rising wages which will help a lot.
What modern gadgets do you propose people get rid of that even comes close to replacing some of 33% of extra monthly income going on the mortgage?0 -
Graham_Devon wrote: »What modern gadgets do you propose people get rid of that even comes close to replacing some of 33% of extra monthly income going on the mortgage?
read the debt free wannabe board to see the types of saving that can be made where necessary
without real life examples it's impossible to generalise; my own family didn't starve, freeze to death or die of embarrassment when my mortgage rate peaked about 15%
history shows a fairly low level of repossession over a wide rate of interest rates
wage inflation is a mortgagees friend
as is overtime, second income, parentsEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
read the debt free wannabe board to see the types of saving that can be made where necessary
without real life examples it's impossible to generalise; my own family didn't starve, freeze to death or die of embarrassment when my mortgage rate peaked about 15%
history shows a fairly low level of repossession over a wide rate of interest rates
wage inflation is a mortgagees friend
as is overtime, second income, parents
So are there no examples of gadgets you can provide? Only it was your solution, so thought you'd have something in mind?
As for talk of rates when they were 15%, you fail to mention wage inflation at the time.0 -
Vince Cable is a member of the government
the main reason for high debt is because his government hasn't created an environment that leads to more house building rather than higher prices.
Libdem seem to have no viable policies for higher house building.
Have to say, none of the local political leaflets for the local elections, mention the need to build more houses.
OMG Clapton.... I seriously thought I was reading one of my own posts! There must be something wrong for us to agree?!Peace.0
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