Mortgage Rates

[nicebloke1]

It only took Dizzy Lizzy Truss 48 days in power to destroy the mortgage market, and put thousands of people in debt, some losing their homes. 

KS looks like to have sorted that mess out in only just over a 100 days. Look forward to the rates coming down me old China.

[Clone]

https://www.thisismoney.co.uk/money/mortgageshome/article-13958097/Santander-TSB-increase-mortgage-rates-lenders-follow.html

[newmodarmy]

Good news, although they are already lower than they were most of the time than in the Labour years under Blair and Brown and much lower than in the Labour and Tory Callaghan, Thatcher and Major years.  Most of us can remember mortgage rates of 10-15%. The 2010-2020 period  had unusually low mortgae rates.

https://www.mortgageable.co.uk/mortgages/history-of-mortgage-interest-rates/

[newmodarmy]

It's probably bad news on the whole for AB mmebers though as most probably prefer higher interest rates as we are net savers.

And low interest rates don't necessarily help borrowers as it makes mortgages more affordable and puts up house prices even more.

Every silver lining has a cloud

[Old_Geezer]

Borrowers have had a free ride for decades, paid for by saver abuse. There's no sorted mess seen here, quite the reverse.

[New Judge]

Ms Truss didn't actually do anything. She wan't given the chance. The money markets didn't like what she planned to do and threw a wobbly.

Once it was apparent that her plans were not going to happen conditions should have returned to normal. But they didn't. This was mainly because there were - and still are - other factors in play which have not been addressed by either the previous government or this one.

Near the top of the list of these principle factors are excessive government spending leading to excessive  taxation and excessive government borrowing. 

Underlying inflation is still high. Last month's figures are likley to prove a temporary blip. The problems which lead to high interest rates have not been addressed and some of the new government's actions and proposals will simply exacerbate them.

The mortgage market was not destroyed. It was simply reset to a level more realistic than the ridiculous near zero rates which had prevailed for over 15 years and which had contributed greatly towards house price inflation.

So no, it does not look like the new PM has sorted out the mortgage problem. In fact I'm not so sure such a problem exists at all. Mortgages are readily available at realistic rates which give people who lend their money to banks a decent return. If you are suggesting he has returned mortgage rates to unrealistically low levels (which were made possible by printing worthless money), he hasn't and, on current form he is unlikely to.

[douglas9401]

Cleared my mortgage off a few years ago and now it's all gravy as someone once said.

Don't have nightmares. x 😁

[davebro3]

thanks NJ - notnicebloke comprehensively shot down again 😂

[gulliver1]

I Agree with  Mr Nicebloke, well done Sir Keir and the Labour Party ....Good News....me old China.

[davebro3]

there's a surprise - gully ❤ nicebloke.

get a room...

[theshedman]

Waiting for gulliver to get best answer.  As both of them seem to be retired so why do they want Labour in power when they seem to hate pensioners, any pensioners.

[nicebloke1]

Clone 21.15 I did say in my OP look forward to yhe rates coming down. Your link shows slight increases ( with a few lenders) who reacted ( before and on the same day 14/10 that inflation dropped to 1.7% those lenders will now have to rethink their rushed increases. Gully for BA. <:•)))

[nicebloke1]

9.11 davbro3 This is the news, not your playground. Please stick to the OP. Many thanks.

[nicebloke1]

NJ Your right again Dizzy Liz did nothing at all.

[nicebloke1]

Sorry made a mistake She did secure over a £100k a year for her self that the tax payer will have to find every year. 

[Ryzen]

nicebloke....I dont think its down to the fag packet politics of Tool and the Gang.

[ToraToraTora]

It always makes me laugh when intellectual pygmies make assertions about the country's finances with less comprehension than a goldfish. Thankfully we have the judge with the patience of saint to explain things, again and again but sadly judge you may as well talk to a boiled  potato.

[newmodarmy]

Liz Truss's plans were never implemented, so, all things being equal, any market reaction should have quickly reversed once it became clear the plans (and Liz Truss) had been ditched. The fact that they only fell slightly must have been due to other factors such as increases in inflation (seen in all major countries) due to things like worldwide energy prices.

The reasons interest rates are continuing to fall now here and across Europe and USA have almost nothing to do with what this government has or hasn't done- it's far more complicated than that. What happens in Europe and USA, and with worldwide energy, oil and commodity prices, is the main driver.

 

[gulliver1]

Davebro 09.11 What Nicebloke says at 09.20... Spot on.

[ToraToraTora]

Gulliver = Nicebloke = Gullibloke? Niciver?

[newmodarmy]

Please don't let yourself get dragged down to that level, TTT.