DSPUK Posted September 16, 2012 Report Share Posted September 16, 2012 Anyone remember the good old day ?? http://uk.finance.yahoo.com/news/moment-power-shifted-markets-200314129.html Don't know about Gov being broke - we mortgage payers were on our knees. Dave Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted September 16, 2012 Report Share Posted September 16, 2012 It could happen again very quickly. Money markets are very fickle. Most people are predicting that sterling will drop when the euro sorts out a long term structure, plus we are printing too much of our own currency, plus oil prices are not coming down despite a drop in global demand, unrest in oil producing countries = oil price inflation = rapid interest rate hike. Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 16, 2012 Report Share Posted September 16, 2012 My first mortgage in 1990 was at 15.4%, discounted to 14.5. I shudder to think what my current mortgage repayment would be at that rate. Quote Link to comment Share on other sites More sharing options...
Brown Sauce Posted September 16, 2012 Report Share Posted September 16, 2012 Wouldn't it be nice to have parity between saving and borrowing rates, so we all feel like we're getting a good deal?? Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 16, 2012 Report Share Posted September 16, 2012 I suppose if we did banks would have to make money by wildly speculating on world markets.... .....oh, hang on... Quote Link to comment Share on other sites More sharing options...
Brown Sauce Posted September 16, 2012 Report Share Posted September 16, 2012 No no, best lend to self employed road sweepers at 20 times self cert income and worry about their bankruptcy later... Oh think they did that too. Quote Link to comment Share on other sites More sharing options...
four-wheel-drive Posted September 16, 2012 Report Share Posted September 16, 2012 (edited) To my way of looking at things when they said the other day that it was cheaper to buy a house than to rent one then there has to be something wrong would you rent a car if it was cheaper to buy one. I am not talking overall but monthly payments if you through no fault of your own cannot find the deposit you have to spend your life paying someone elses mortgage and end up with nothing while they get a free house. Edited September 16, 2012 by four-wheel-drive Quote Link to comment Share on other sites More sharing options...
Vipa Posted September 16, 2012 Report Share Posted September 16, 2012 (edited) Most industry experts (and I don't count myself in there.. I'm talking analysts, economists..) are bracing themselves for double digit base rate at some point in the mear future, no one knows when... It is very much a case of when, not if! Edited September 16, 2012 by Vipa Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 16, 2012 Report Share Posted September 16, 2012 I think any government that presided over that would render itself unelectable for a generation. Quote Link to comment Share on other sites More sharing options...
Laird Lugton Posted September 16, 2012 Report Share Posted September 16, 2012 I think any government that presided over that would render itself unelectable for a generation. Will they have an option? Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 16, 2012 Report Share Posted September 16, 2012 Will they have an option? No idea really but I wouldn't want to be in their shoes. Or mine for that matter. Quote Link to comment Share on other sites More sharing options...
Vipa Posted September 16, 2012 Report Share Posted September 16, 2012 I think any government that presided over that would render itself unelectable for a generation. The Government have no say in what the BoE deem necessary to control inflation. They relieved themselves of any influence in the 80s/90s (can't remember now) so that they could never be seen to be manipulating interest rates for political gain.. We used to have a situation whereby, a year before a general election, intrerest rates would start to fall (irrespective of economic issues) and then go through the roof just after! If inflation rises and isn't predicted to fall without intervention, the BoE will have no choice but to increase rates. Inflation is VERY damaging to an economy and the BoE aren't in a popularity contest! Quote Link to comment Share on other sites More sharing options...
walshie Posted September 16, 2012 Report Share Posted September 16, 2012 Just glad I'm getting to the end of my mortgage. I'd hate to be starting one now. Quote Link to comment Share on other sites More sharing options...
al4x Posted September 16, 2012 Report Share Posted September 16, 2012 Most industry experts (and I don't count myself in there.. I'm talking analysts, economists..) are bracing themselves for double digit base rate at some point in the mear future, no one knows when... It is very much a case of when, not if! So they aren't working for any of the lenders who will do a 10 year fix for well into single figures, scaremongering at the best there is no chance in the near future. Quote Link to comment Share on other sites More sharing options...
mark@mbb Posted September 16, 2012 Report Share Posted September 16, 2012 The young people of today have no chance of getting on the property ladder i bought a property in 1987 in Egremont where i used to hunt my daughter teaches infants at a school there so bought the house off me as they couldnt get on the property ladder prices have gone crazy in the eighties i bought a farm house in cheshire with land for less than they pay for a terraced house nowadays Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted September 16, 2012 Report Share Posted September 16, 2012 2002 I bought my current house £26,250 Jobs a good un Quote Link to comment Share on other sites More sharing options...
39TDS Posted September 16, 2012 Report Share Posted September 16, 2012 My house was very expensive. I do not have a mortgage and it is worth 10x what was paid. A rather eccentric purchase at the time but worked out well. Quote Link to comment Share on other sites More sharing options...
Vipa Posted September 16, 2012 Report Share Posted September 16, 2012 (edited) So they aren't working for any of the lenders who will do a 10 year fix for well into single figures, scaremongering at the best there is no chance in the near future. Sorry Alex but you do not fully appreciate how mortgage funding works if you think just because lenders (and not many) are offering 10 year fixed rates at 5%, rates can't go higher. The rate and product offered by lenders is all based on what they can buy a tranche of wholesale money at. Once bought, they are taking no risk should rates rise. The latest fall in 5 year fixed rates and the sudden appearance of 10 year fixed rates ( until very recently, there weren't any) is down to the QE injection of £80bn recently made by the government specifically to be moved into the mortgage market in an attempt to stimulate a stagnant property market (hasn't worked) not because the industry doesn't anticipate any rate rises. There is a school of thought that governments worldwide are trying to engineer a period of high (if not hyper) inflation in order to erode record debts, even the likes of Warren Buffett have suggested this as a truism but that aside, there are factors just around the the coner that may have a profound effect on inflation and subsequently interest rates. In my industry alone, Solvency 2, the RDR and gender neutral pricing are expected to push the average cost of insurance (all insurance) up by 30-40% post December, 'little' things like that could push inflation up quite easily.. History has shown us that inflation and interest rates can and quite often do move unexpectedly and quite significantly! Edited September 16, 2012 by Vipa Quote Link to comment Share on other sites More sharing options...
al4x Posted September 16, 2012 Report Share Posted September 16, 2012 The money comes from somewhere the idea if 10 percent plus was on the cards would it still be available the answer has to be no. It's pure scaremongering with no foundation to it. Obviously only time will tell but if so the country will make Greece look solvent, Quote Link to comment Share on other sites More sharing options...
Vipa Posted September 16, 2012 Report Share Posted September 16, 2012 (edited) The money comes from somewhere the idea if 10 percent plus was on the cards would it still be available the answer has to be no. It's pure scaremongering with no foundation to it. Obviously only time will tell but if so the country will make Greece look solvent, Scaremongering for what? Scaremongering would suggest coersion, there is none here, just a statement of industry opinion. The money does/has come from somewhere... The BoE, who have printed the money to facilitate it, they are not interested in the future, only now. You view is just too simplistic. If you read the document in the OP... In 1992 do you think anyone expected interest rates to rise 5% in 6 hours? I still remember rates tsing from 15% to 22% and then back again overnight! Complacency is a killer.... Everyone is getting far too complacement and many are in for a very, VERY nasty shock! Edited September 16, 2012 by Vipa Quote Link to comment Share on other sites More sharing options...
ack-ack Posted September 16, 2012 Report Share Posted September 16, 2012 2002 I bought my current house £26,250 Jobs a good un Chuffing hell Shaun, was it teetering on the edge of a cliff or something??? Quote Link to comment Share on other sites More sharing options...
kernel gadaffi Posted September 16, 2012 Report Share Posted September 16, 2012 My house was 48K in June 1997, I've re-mortgaged a few times to get a better deal and I paid a big chunk off 2 years ago, I now have less than 3 years left at £152 per month, the strange thing is, my house is 3 bedroom and valued at 120K, a house 4 doors up the street from me is 140K, is only 2 bedroom and needs work doing to it Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted September 16, 2012 Report Share Posted September 16, 2012 (edited) Chuffing hell Shaun, was it teetering on the edge of a cliff or something? ?? Friend of mine bought identical to me 10 years earlier for £24k Ex collery housing, so in the 10 years they had gone up £2.6k 4 years later they sold it for £65k (at their peak) They have now settled back to between £40k (needing work) to £60k ish (refurbished) These are 2 bedroomed terraced houses nothing flash, downstairs bathrooms needing work...http://www.vebra.com/property/9170/22944245 refurbished...http://www.vebra.com/property/9170/19854980 This one is a cracking little house that needs a tidy up, about 2 miles away...http://www.vebra.com/property/9170/23664956 you will need to copy and paste these links I think oooh its grim oop north Edited September 16, 2012 by shaun4860 Quote Link to comment Share on other sites More sharing options...
955i Posted September 16, 2012 Report Share Posted September 16, 2012 What a load of ********, I am nearly going bankrupt because of my mortgage. Never had it so good if you aren't struggling already. Quote Link to comment Share on other sites More sharing options...
AVB Posted September 17, 2012 Report Share Posted September 17, 2012 What a load of ********, I am nearly going bankrupt because of my mortgage. Never had it so good if you aren't struggling already. Well if you can't afford it with interest rates as low as they are then you are ******. They will rise. Perhaps not double digit but they will rise. Were things so bad when you took out your mortgage or have your circumstances changed? Quote Link to comment Share on other sites More sharing options...
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