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 😁