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Today's Daily Mail

Maz
Maz Posts: 1,405 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
in House buying, renting & selling
More gloom from the Daily Mail...................

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=547892&in_page_id=1770
'The only thing that helps me keep my slender grip on reality is the friendship I have with my collection of singing potatoes'

Sleepy J.
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Comments

  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    the column headed "Two year fixed rate" shows interest rates going up from January 5.68% to Today 6.02% - i always thought a FIXED rate stayed the same !!!!!!!!!!!!
  • RHemmings
    RHemmings Posts: 4,895 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    clutton wrote: »
    the column headed "Two year fixed rate" shows interest rates going up from January 5.68% to Today 6.02% - i always thought a FIXED rate stayed the same !!!!!!!!!!!!

    I think they're showing you how expensive it would be if you took out one of these products. I.e. someone who took one out in Jan would pay 5.68%. Another person taking one out now would pay 6.02%.
  • Pobby
    Pobby Posts: 5,438 Forumite
    Scary reading but then it is The Mail.I know folk with very large mortgages.Not sure how they are keeping it all together.
  • RHemmings
    RHemmings Posts: 4,895 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Pobby wrote: »
    Scary reading but then it is The Mail.I know folk with very large mortgages.Not sure how they are keeping it all together.

    I've heard that some people are in so much trouble they've had to resort to living within their means.
  • dannyboycey
    dannyboycey Posts: 1,060 Forumite
    RHemmings wrote: »
    I've heard that some people are in so much trouble they've had to resort to living within their means.

    Imagine that! What a zany idea! ;)
  • Gonzo
    Gonzo Posts: 115 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I can't see it ever catching on.

    For example, there are new TVs coming on the market all the time, I'm just applying for credit for my 90 inch plasma now... Brighthouse lets me buy what I can't afford at highly inflated prices and ridiculous interest rates. Woohoo!

    Now I need to go and dump my tired old 42 inch plasma in the nearest green lane...

    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

  • RHemmings
    RHemmings Posts: 4,895 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Gonzo wrote: »
    I can't see it ever catching on.

    For example, there are new TVs coming on the market all the time, I'm just applying for credit for my 90 inch plasma now... Brighthouse lets me buy what I can't afford at highly inflated prices and ridiculous interest rates. Woohoo!

    Now I need to go and dump my tired old 42 inch plasma in the nearest green lane...

    Brighthouse near me has just opened a new store across the road from the old one without (yet) closing the old one. And just a few doors up the road something that seems to be a Brighthouse clone has opened up. Business must be booming.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Interest bills for new borrowers seem to have risen by about 8 or 9%. I can't see that increasing house prices.

    What's Brighthouse?
  • RHemmings
    RHemmings Posts: 4,895 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Generali wrote: »
    Interest bills for new borrowers seem to have risen by about 8 or 9%. I can't see that increasing house prices.

    What's Brighthouse?

    They sell housing goods, TVs, Fridges, to people with bad credit. That's their official view.

    My personal view is that they sell expensive things to people who can't afford them, repossess them, and then sell them again. And the cycle repeats.

    http://www.brighthouse.co.uk/products/home-entertainment/

    £300 quid total price for a Philips DVD recorder????!?!?! http://www.brighthouse.co.uk/products/home-entertainment/dvd-and-home-cinema/display-product-large.asp?id=PHDVDR550

    Looks identical to the one Richer Sounds are selling for £79
    http://www.richersounds.com/showproduct.php?cda=showproduct&pid=PHIL-DVDR3480
    OK, not quite. The Richer Sounds one doesn't have HDMI output.

    But a bit under £100 on ebay. http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&item=200206771644
  • teabelly
    teabelly Posts: 1,229 Forumite
    Part of the Furniture
    According to the FT the BOE are poised to plonk another 14bn in the mortgage market and take all sorts of things as security in return. There are also rumours they might drop interest rates by a full 0.5% within the next 2 months. Banks can't make money without lending so they will be making sure liquidity is returned so they can make fat profits again. Right now they don't have enough to lend to meet demand so they have to narrow criteria which means increasing interest rates, being more fussy about who they lend to and lowering LTVs to reduce the amount they lend. The media are assuming the lowering of LTVs is a sign of a crash rather than thinking the banks could just be minimising their outgoings while they don't have enough liquidity to lend to all the people that want a mortgage right now. They only have 3 options - increase rates to put people off, be more fussy or lower LTVs. Increasing rates didn't work as people still wanted to buy, being fussy hasn't worked as there are still enough people with decent credit ratings so lowering LTVs is the only other way they could go. This slows things up more as it will take time for people to find the extra cash which they hope will end up in savings accounts rather than spent on shiny things because they decide they can't be bothered moving :)
This discussion has been closed.
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