Mortgage rates, whats the predictions?

[Greenman]

Inflation that was caused by the government.

Not if you ask Potter it wasn't!

It makes no difference who caused it, if they can afford to lower the rates to gain business then they could of set the rate lower initially and still made money.

[Saga Lout]

It makes no difference who caused it, if they can afford to lower the rates to gain business then they could of set the rate lower initially and still made money.

They are businesses. If a business sets its price too high customers will go elsewhere or stop buying. If customers go elsewhere or stop buying, the business will have to lower its prices or go out of business. You are complaining about the way the world works, which even you must realise is pretty damn stupid.

[Greenman]

It makes no difference who caused it, if they can afford to lower the rates to gain business then they could of set the rate lower initially and still made money.

They are businesses. If a business sets its price too high customers will go elsewhere or stop buying. If customers go elsewhere or stop buying, the business will have to lower its prices or go out of business. You are complaining about the way the world works, which even you must realise is pretty damn stupid.

But that is exactly what they have done.

They have set the rate so high that no-one can afford to take out a mortgage, the business then realises that they are struggling to sell the mortgages and then decide that they will lower the rate too gain business, so they could of easily of set the rate lower initially to help people out, if the world these people live in that run these corporations still thinks they can just put the rate as high as they want to make even more money, then their world soon might come crumbling down as no-one has any fucking money anymore.

They need to set fairer policies for their rates. We all have to live here, if all the banks start to get burned down and people start robbing the rich they will be the first to speak out about such crimes when they themselves are the very people creating the issue that creates the crime in the first place. But eh fucking morons are so self obsessed and blinded by greed they cannot see this!

[Count Steer]

It makes no difference who caused it, if they can afford to lower the rates to gain business then they could of set the rate lower initially and still made money.

They are businesses. If a business sets its price too high customers will go elsewhere or stop buying. If customers go elsewhere or stop buying, the business will have to lower its prices or go out of business. You are complaining about the way the world works, which even you must realise is pretty damn stupid.

But that is exactly what they have done.

They have set the rate so high that no-one can afford to take out a mortgage....etc

No. People can't afford to buy houses because they're so expensive. Some of us lived reasonably through 15% interest rates but my mortgage then was £35k iirc. That property is now over £1M (and it's a 2 bed apartment ) so the mortgage would be what? >£500k. (That's not all down to inflation either).

If homes were cheaper/more available a few % here and there wouldn't matter so much.

[Greenman]

They are businesses. If a business sets its price too high customers will go elsewhere or stop buying. If customers go elsewhere or stop buying, the business will have to lower its prices or go out of business. You are complaining about the way the world works, which even you must realise is pretty damn stupid.

But that is exactly what they have done.

They have set the rate so high that no-one can afford to take out a mortgage....etc

No. People can't afford to buy houses because they're so expensive. Some of us lived reasonably through 15% interest rates but my mortgage then was £35k iirc. That property is now over £1M (and it's a 2 bed apartment ) so the mortgage would be what? >£500k. (That's not all down to inflation either).

If homes were cheaper/more available a few % here and there wouldn't matter so much.

What makes the houses so expensive?

[JackyJoll]

But that is exactly what they have done.

They have set the rate so high that no-one can afford to take out a mortgage....etc

No. People can't afford to buy houses because they're so expensive. Some of us lived reasonably through 15% interest rates but my mortgage then was £35k iirc. That property is now over £1M (and it's a 2 bed apartment ) so the mortgage would be what? >£500k. (That's not all down to inflation either).

If homes were cheaper/more available a few % here and there wouldn't matter so much.

What makes the houses so expensive?

Demand.

[Taipan]

And banks and building societies business prowess and acumen, or greed as some call it. When i bought my first (£24k) flat, it was 1 x times the main salary and .5 of the second salary. As prices went up due to demand, the banks and building societies kept changing the lending rules to suit the price hikes. Why earn a few percent of £100k when you can earn a few percent of several hundred £k. Then they rolled out self cert mortgages where you just said you earned what you needed with no real proof required. We were building on sand and no wonder it crashed - big style!

[mangocrazy]

But that is exactly what they have done.

They have set the rate so high that no-one can afford to take out a mortgage....etc

No. People can't afford to buy houses because they're so expensive. Some of us lived reasonably through 15% interest rates but my mortgage then was £35k iirc. That property is now over £1M (and it's a 2 bed apartment ) so the mortgage would be what? >£500k. (That's not all down to inflation either).

If homes were cheaper/more available a few % here and there wouldn't matter so much.

What makes the houses so expensive?

A variety of factors - housebuilding not keeping pace with demand, but predominantly housing is viewed as an asset class and it's in investor's interests for house prices to keep rising. The fact that people need somewhere affordable to live appears to have been forgotten. So yes - demand, but also greed.

[Mr. Dazzle]

How's it work in UAE?

AIUI usury is highly frowned upon in the Islamic world and the practice of making a profit of someone's mortgage is not encouraged. Even in the UK you can get 'at cost' mortgages from Muslim lenders, can you not, but there are certain errr...entrance requirements

[Mussels]

How's it work in UAE?

AIUI usury is highly frowned upon in the Islamic world and the practice of making a profit of someone's mortgage is not encouraged. Even in the UK you can get 'at cost' mortgages from Muslim lenders, can you not, but there are certain errr...entrance requirements

I think Shariah mortgages effectively cost the same as standard ones, they just change the wording to make it compliant.

[Mussels]

As for nationalising rentals, that's failed badly already.
Council houses were a nice idea but ruined because they were managed by councils who only cared about the very near future.

[mangocrazy]

As for nationalising rentals, that's failed badly already.
Council houses were a nice idea but ruined because they were sold off by Thatcher, who only cared about the very near future.

FTFY

[Mr. Dazzle]

All elected politicians only care about the very near future?

[Mussels]

As for nationalising rentals, that's failed badly already.
Council houses were a nice idea but ruined because they were sold off by Thatcher, who only cared about the very near future.

FTFY

They failed long before Thatcher came to power.

[Taipan]

Just heard on the news that the average deposit for a property in London is £100k!

[mangocrazy]

IIRC Thatcher built more than the Labour government before or after her.

So not only did she run the government, but she was handy with a trowel and mortar as well? So that's why she only had 4 hours sleep a night. Governments don't build houses, construction companies do.

[Mr. Dazzle]

Missed opportunity for politicians though, get out and there and build one house yourself and you can claim you've built more than any other PM

[Count Steer]

'Local authorities have had the ability to sell council houses to their tenants since the Housing Act 1936, but until the early 1970s such sales were limited: between 1957 and 1964, some 16,000 council houses were sold in England. The Labour Party initially proposed the idea of the right of tenants to own the house they live in, in their manifesto for the 1959 general election, which they lost. In 1968, a circular was issued limiting sales in cities but was withdrawn by an incoming Conservative government in 1970'.

In the meantime, council house sales to tenants began to increase. Some 7,000 were sold to their tenants during 1970; this soared to more than 45,000 in 1972.

The portion of the ££s councils got couldn't be used to build more, they were forced to use it to pay down debts. IIRC they're restricted on borrowing to build too.

Now, read on....

https://en.wikipedia.org/wiki/Right_to_Buy

[Saga Lout]

I'm surprised at the number of people who support the idea of local and national government running business enterprises. They don't have a particularly stellar record in their business dealings, do they?

[Saga Lout]

IIRC Thatcher built more than the Labour government before or after her.

So not only did she run the government, but she was handy with a trowel and mortar as well? So that's why she only had 4 hours sleep a night. Governments don't build houses, construction companies do.

She didn't sail down to the Falklands with an SLR and a load of 7.62, but she got that sorted as well.
Commanders command, doers do.

You've been educated, don't make it into a big thing, just move on.

Yeah but. We* beat Newcastle the other day.

* Me and Weeksy that is.