HMG now realise they made a MAJOR error!!!

[Cyberman]

As I have said for the past year, the reduction of the Northern Rock mortgage book was reducing liquidity by lowering the total mortgage capacity in the market place and thus exacerbating the housing crisis. After ONE YEAR of this stupid policy, HMG are now starting to backtrack!!!!!

http://business.timesonline.co.uk/to...cle5162498.ece

[AtW]

They are doing this because they know the only remaining customers that are left are those who won't be accepted elsewhere, so they use this as an excuse to stop winding down of NR.

[BrilloPad]

So we have a housing crisis caused by reckless lending and the solution is even more reckless lending?

Anyway - why are you worried - the value of your house has not gone down......

[Cyberman]

So we have a housing crisis caused by reckless lending and the solution is even more reckless lending?

Anyway - why are you worried - the value of your house has not gone down......

The main thing is that they can continue lending, but at reasonable rates to their current customers. They simply were not doing that as they were trying to force customers to go elsewhere, and that was HMG imposed policy which was forcing people out of their homes. That was a scandal.

[BrilloPad]

The main thing is that they can continue lending, but at reasonable rates to their current customers. They simply were not doing that as they were trying to force customers to go elsewhere, and that was HMG imposed policy which was forcing people out of their homes. That was a scandal.

What is reasonable? Whatever level will cause enough of a boom for liebour to win the election?

There has been one hell of a party - we are due 3 recessions in 1 now.....

[Cyberman]

What is reasonable? Whatever level will cause enough of a boom for liebour to win the election?

There has been one hell of a party - we are due 3 recessions in 1 now.....

Reasonable is at about 4% rather than 7% !!! A mate of mine with 2 kids is currently paying 1200 pounds a month on his mortgage. No wonder the country is in a mess and people are losing their homes. Interest rates on mortgages should be much lower, because we are in recession!! Keeping those rates artificially high for current borrowers is a scandal, and totally unnecessary.

[expat]

Anyway Northern Rock were speculators making money out of shady BTL and 125% loans, so obviously we would feel no sympathy for any shareholders who thought they had a good racket and instead got their little knuckles rapped

[bobhope]

Reasonable is at about 4% rather than 7% !!! A mate of mine with 2 kids is currently paying 1200 pounds a month on his mortgage. No wonder the country is in a mess and people are losing their homes. Interest rates on mortgages should be much lower, because we are in recession!! Keeping those rates artificially high for current borrowers is a scandal, and totally unnecessary.

Why is 4% reasonable? Why don't they just drop rates to 1% straight away, or better yet, 0%, then everything would be rosy.

Try to think it through now, you can do it.

[TimberWolf]

Is there anywhere that gives a list of interest rates the banks/building societies are charging borrowers at the moment? On normal variable interest rate accounts.

HSBC at 4% looks to be the lowest on this list, with some edging towards 7%
http://www.moneysupermarket.com/mortgages/

I've no idea what my bank (Barclays) are charging at the moment, or whether they plan to drop them.

[Cyberman]

Why is 4% reasonable? Why don't they just drop rates to 1% straight away, or better yet, 0%, then everything would be rosy.

Try to think it through now, you can do it.