"Mortgage ‘catastrophe’ will lose us the election, warn Tory MPs"

[JustKeepSwimming]

Well BoE can only change interest rates, so they are doing that, but apparently to some this is proof that:

"the Bank of England and Britain’s politicians have failed repeatedly to get a handle on inflation."

One solution would be to build more bloody houses / flats / whatever. Apart from London there's absolutely no investment in property in this country, nothing new is being built.

That's really not true. Every town around me has new builds. I don't mean sneaking a couple of houses on some little plot. Full estates on the edge of the towns.

Is it enough? Probably not, but it's certainly happening around my neck of the woods.

Uncontrolled migrations + cheap money is what had as much if not more impact than house building numbers.

[dsc]

That's really not true. Every town around me has new builds. I don't mean sneaking a couple of houses on some little plot. Full estates on the edge of the towns.

Is it enough? Probably not, but it's certainly happening around my neck of the woods.

Uncontrolled migrations + cheap money is what had as much if not more impact than house building numbers.

How many houses per full estate would that be then? and are they close to a big motorway / train track or some other tulip thing which makes them less then ideal to live in?

High quality blocks of flats (we are talking modern not the tulipe you see in the UK) would solve the issue better as you get more dwellings per sqm, but 1) there's very little of those 2) and for some odd reason the quality of everything I've seen in the UK is light years behind the rest of Europe.

And how exactly is cheap money negatively impacting building? it should work the other way, if it's cheap to borrow you can build more as investment is easy.

[Fraidycat]

Yeah lots of new builds have gone up. But not enough to cover the 10 million increase in population since 2000.

[Fraidycat]

Listening to the radio, seem lots of people have got interest only mortgages.

People with 150K mortgages seeing payments increase from 250 to 800.
People with 450K mortgages seeing payments increase from 750 to 2400. (+£20,000 per year )
People with 750K mortgages seeing payments increase from 1250 to 4000 (+£33,000 per year )

[SueEllen]

I wonder what this https://www.bbc.co.uk/news/uk-politics-65952298 is trying to bury?

[AtW]

Banks got yuge margin between saver rates and what they charge

[Smoggy]

The difference isn't that huge. You can get a 2 year fixed savings rate of about 5.5% Vs 6% for a mortgage. That difference (plus one off fees) needs to cover admin costs, the expected cost of mortgage default and the bank's profits.

https://www.moneysavingexpert.com/sa.../#twoyearfixed

[d000hg]

Yeah, *that's* what will lose them the election... if it wasn't for mortgage rates they would coast through
Might as well accept they're going down and just implement anything unpopular but worthwhile while they still can.