Britons warned of rise over massive mortgage payments

[super jumbe]

The Governor of the Bank of England is warning people that are climbing or about to get on the housing ladder to make sure they could afford a jump in their mortgage costs of up to 3%.

Labour MP Wes Streeting raised the issue of how the economy would cope with a rise in interest rates at the Treasury Select Committee with the Bank of England's Financial Policy Committee (FPC) on Tuesday.

Streeting highlighted that interest rates have been at a record low of 0.5% since 2009 and many new homeowners may never have seen a rate rise in their lifetime.

The fear is that people who signed on for a 0.5%-linked mortgage thinking they could afford it would struggle with payments if rates begin to climb higher.

The lower the interest rate, the cheaper it is to borrow to money. However, since interest rates charged on mortgages fluctuate with interest rates, this means that when rates rise, the monthly cost of repaying your mortgage go up to.

Addressing this issue, Carney called for would-be home buyers to plan for as much as a 3 percentage point rise in their monthly mortgage repayment rate.

https://uk.finance.yahoo.com/news/mark-carney-warned-britons-whether-121406888.html

[Meat-Head]

Any excuse to put prices up

[GastonJ]

Generally interest rates are used to control inflation and the trade gap; low rates people generally spend money on retail, fueling imports and inflation. High rates and people have less money in their pocket and so spend less, leading to less inflation and less imports etc. The target for inflation for the BOE is, from memory, 2% - right now it's not close, but if it goes above 2% expect to see interest rates rise to control inflation and the trade gap. Been 7 years since the interst rate hit rock bottom, and it will be interesting to see what happens to those that took the max mortgage when rates do rise.

[ifred]

Which of us can remember mortgage interest rates of 13%? Cheap money is why Europe is a Basket case and the rest of developed countries are close behind.. There will be grief before bedtime I'm afraid children A simple rule if you borrow you must pay it back or you lose it and more Mortgage ( is Mort death by gage strangulation)!

[super jumbe]

Any excuse to put prices up

Only option start new donation system asian children in need!!!

[GastonJ]

Which of us can remember mortgage interest rates of 13%? Cheap money is why Europe is a Basket case and the rest of developed countries are close behind.. There will be grief before bedtime I'm afraid children A simple rule if you borrow you must pay it back or you lose it and more Mortgage ( is Mort death by gage strangulation)!

It's why I've never borrowed enough to pay out more than 50% of my salary - they no longer have half pence pieces so I'm stuffed on that now anyway

I do remember the interest rates leaping around all over, again caused by a conservative government making a *very* duff decision. Wasn't their first, and certainly won't be their last duff decision either. What seems to be forgotten is that their decisions impact everyone else, more so those on the brink of staying afloat - the majority. If the rate rises by a couple of percent the housing market will nosedive due to repo's with people not being able to afford their mortgages.

[nara]

I remember paying 14% back in the day.

I imagine that M&S would quickly sell out of underwear if those days were to return.

[GastonJ]

I remember paying 14% back in the day.

I imagine that M&S would quickly sell out of underwear if those days were to return.

Only if they could import them without paying import duty, otherwise the price might be too much to pay for M&S underwear. Is it made in the UK, EU or outside the EU?

[ifred]

What about poor Cam moron he only took out a new mortgage I think for ?800 000 days before he got booted out
should we have whip around for the poor unemployed boy

[gmb45]

they said on news he serving notice to the tenents in his london gaff, also said he stopping in politics so we arnt rid of the shoite hoose

[gmb45]

i wish the next election was just roond the corner, be interesting to see how the rich boys only club would do.

[maca]

Ahh ~~~~ em burn em stab em shoot em hang em every ~~~~ing one of them they all line each others pockets dirty horrible bastards peados rapits murderers back stabbing ~~~~s the house of commons is the biggest law breaking estableshment going it has to be the best ~~~~ing open prison on earth...

[gmb45]

epic rant maca tru aw dat n aw

[super jumbe]

No comments...

[GastonJ]

they said on news he serving notice to the tenents in his london gaff, also said he stopping in politics so we arnt rid of the shoite hoose

You should know by now that when a politician opens their mouth it's not to tell the whole truth. Sure they resign, but not from being an MP; gravy train never ends and hands out free tickets to MP's an their friends. As to whether it's going to be any better, that's very unlikely. Boris Johnson as foreign secretary eh, at least him and his mates will get free holidays, all expenses paid and all inclusive.