chem1st Posted March 3, 2012 Share Posted March 3, 2012 Following the suggested Halifax rise – which it is thought would take effect in May – a customer with a £100,000 mortgage would see monthly repayments rise from £714.88 to £739.19. The Consumer Credit Counselling Service said: ‘Households are being hit by a double whammy. ‘High interest rates and the squeeze on household budgets across the board are combining to make it even harder for people to repay their debts, and many are at risk of falling even further behind.’ Marc Gander, of campaigners the Consumer Action Group, said: ‘If consumers think that banks are suffering alongside them in this economic crisis, they really do not understand what is going on.’ Read more: http://www.dailymail.co.uk/news/article-2109335/Mortgage-rate-rise-hit-millions-Banks-lining-heap-misery-squeezed-families.html#ixzz1o3GxBIsu High interest rates are affecting prudent borrowers whom have borrowed vast multiples of their income to get a mortgage on a house. Even though we have record low interest rates, the rate of interest is too high. If only we could lower interest rates further, then people could take on more debt to buy a house and houseprices would start rising again. If only we had £1million sheds, then the youth would be queuing up to work for £2.60 an hour! Link to comment Share on other sites More sharing options...
altus Posted March 3, 2012 Share Posted March 3, 2012 High interest rates are affecting prudent borrowers whom have borrowed vast multiples of their income to get a mortgage on a house. Even though we have record low interest rates, the rate of interest is too high. People who borrowed "vast multiples of their income" cannot reasonably be described as prudent. Link to comment Share on other sites More sharing options...
Stuhouselet Posted March 4, 2012 Share Posted March 4, 2012 I'ts impossible to put a positive slant on this. The base rate can only go one way, which will have a far bigger effect on mortgage repayments. Link to comment Share on other sites More sharing options...
Lucifer Posted March 4, 2012 Share Posted March 4, 2012 People should live within their means, unfortunately, nowadays people want everything atvoncecv and so they get themselves into problems. People don't save for things they want, they just borrow money to get what they want then when things go ape thing they have problems they brought on themselves and then whinge. Link to comment Share on other sites More sharing options...
Jim Graham Posted March 4, 2012 Share Posted March 4, 2012 I'ts impossible to put a positive slant on this. The base rate can only go one way, which will have a far bigger effect on mortgage repayments. There are signs the house market is getting going again and I think this is more of a balance sheet repairing excercise by those banks most in trouble. Once the banks are liquid again and the market gets back to normal competition should keep the rates low. One problem at the moment is the interbank lending rate is rising because banks are reluctant to lend to each other. The Bank of England could step in to support banks again if things start to get tough for homeowners. The Tories won't sit back and let homeowners suffer as it's their core vote. I don't think we need to worry too much yet. Link to comment Share on other sites More sharing options...
medusa Posted March 4, 2012 Share Posted March 4, 2012 Were people really stupid enough to believe that interest rates were going to stay at their historic low forever? If they did then they were genuinely foolhardy and didn't take any decent financial advice when they were budgeting for buying a property. When I bought my house the BoE base rate was just on its way down from 15%, meaning that the payment that is now £31 a month was over £350. Interest rates vary and anybody who doesn't take account of that in their budgeting really shouldn't have committed themselves to a mortgage. Link to comment Share on other sites More sharing options...
chem1st Posted March 4, 2012 Author Share Posted March 4, 2012 Were people really stupid enough to believe that interest rates were going to stay at their historic low forever? If they did then they were genuinely foolhardy and didn't take any decent financial advice when they were budgeting for buying a property. When I bought my house the BoE base rate was just on its way down from 15%, meaning that the payment that is now £31 a month was over £350. Interest rates vary and anybody who doesn't take account of that in their budgeting really shouldn't have committed themselves to a mortgage. Millions of people lied about their income to get self cert mortgages. These mortgages aren't yet illegal. You don't even need proof of income to get 100 000 + loan from the bank to buy property. The bank then bundles the mortgages together and calls them an asset in order for them to be legally allowed to lend more. This is how the banking crisis happened. Property is vastly overvalued and the banks cannot let property fall in nominal value lest they fall themselves. Already houses have lost 33% of their value vs inflation. They still have another 50% to fall. A few more years of (relatively high vs base rate) inflation, should sort this out. For the time being living standards continue to fall and the housing standards of the next generation are being destroyed. Riots occurred last year and will occur this year. The weather is beginning to heat up and the people are angry. The coming generations whom are expected to face a fall in living standards whilst being twice as productive and earning less than the generation that preceded them, whilst being taxed more and having to work longer, pay more into a pension and even for their own education. They are angry and rightfully so. It isn't hard to imagine seeing things play out on our own streets like they have in Greece. That is to say, banks and police stations burning, petrol bombs being thrown in pitched street battles and people being publicly lynched. Anybody who thinks I'm being a bit OTT is naive. Likewise anybody who thinks a youth on £6/hour will be paying £100k for a houses that consists of only a few hundred hours labour. If you do, it's probably a good idea to start clapping your hands like a seal and hoping somebody throws you their friday fish. Link to comment Share on other sites More sharing options...
andyofborg Posted March 4, 2012 Share Posted March 4, 2012 Riots occurred last year and will occur this year. last year's riots were more about the greed of the rioters rather than anything else. you need to change your dealer, he's selling you bad stuff Link to comment Share on other sites More sharing options...
Jim Graham Posted March 4, 2012 Share Posted March 4, 2012 Likewise anybody who thinks a youth on £6/hour will be paying £100k for a houses that consists of only a few hundred hours labour. If you do, it's probably a good idea to start clapping your hands like a seal and hoping somebody throws you their friday fish. That's the basis of Socialism isn't it? Link to comment Share on other sites More sharing options...
Lucifer Posted March 4, 2012 Share Posted March 4, 2012 When I bought my first house in the 60s, the interest rate was 7 1/2 % it went up to 12 1/2 % but still managed to keep the payments going. You did have the option to increase mortgage period thiugh. Link to comment Share on other sites More sharing options...
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