Chart of the day

[AtW]

[BlasterBates]

Crash crash crash.....

[snaw]

Strange that - interest rates go up and so do repossesions. Who would have thunk it?

[AtW]

Strange that - interest rates go up and so do repossesions.

Have a look at the rates chart snaw:



Do you notice that rates stopped raising some time ago and remained stable or even cut recently, yet this year repos skyrocketed.

[snaw]

Have a look at the rates chart snaw:



Do you notice that rates stopped raising some time ago and remained stable or even cut recently, yet this year repos skyrocketed.

And you don't think there is a time delay between rates going up and people not being able to afford their home? Or do you imagine that they just go 'Oh bugger' the day after and wait to be repossesed (How long does that take anyway?)

[AtW]

And you don't think there is a time delay between rates going up and people not being able to afford their home?

snaw you are missing one important point -- look at the interest rates chart -- it went up by 1.75%, not 17.50%, but less than 2%, yet this was enough to make repos SKYROCKET - this is a major issue because it totally derails arguement of those who say that it would take increase to rates seen in early 90s in order to cause major property crash.

This shows that people were already overextended when rates were 3.5% (or 3.75%?), and now things go ape-sh1t with rates up to just 4.5%.

[snaw]

snaw you are missing one important point -- look at the interest rates chart -- it went up by 1.75%, not 17.50%, but less than 2%, yet this was enough to make repos SKYROCKET - this is a major issue because it totally derails arguement of those who say that it would take increase to rates seen in early 90s in order to cause major property crash.

This shows that people were already overextended when rates were 3.5% (or 3.75%?), and now things go ape-sh1t with rates up to just 4.5%.

1.75 is pretty hefty rise for anyone AtW. I'm not overextended but if rates went up by another 1.75 my life style woud be somewhat compromised, if they went down by 1.75 then I'll be taking a few more exotic holidays.

Answer this, do you think repos would still go up if rates went down by 1.75?

[sasguru]

Atw, you twat, the average repossession rate in this country is about 30000 a year. We are still way below that. The fact is repossessions have risen from a record low.
Anyway if it makes you feel better, enjoy your bedsit tonight. I will be in my luxury pad which I bought for a pittance a few years ago

[Lucifer Box]

According to the Bank of England, interest rate changes take about 12 months to exert their full effect on house buying/selling/repo'ing and about 24 months to have their full effect on inflation. So, yes, if the rate were cut tomorrow, repo rates would not adjust immediately. They are moving upwards from historic lows though, so be careful of statistics.

[AtW]

1.75 is pretty hefty rise for anyone AtW.

Only for overextended people - and the first charts shows there are plenty of those as they bought at the peak of the market overextending themselves at the lowest possible rates (with extra discounts for a few years).



See in this chart that in the last crash rates went up from 8 to 15%, effectively doubling, where as in current case rates went up by just 30% (from low base). This shows that NOW people are far more overextended than before and thus eliminates stupid arguement that rates would need to raise to 14% before crash happens.

Current high energy prices will make things even worse -- there will be even less money left in pockets of people.

Answer this, do you think repos would still go up if rates went down by 1.75?

Repos happen when people can't pay morgage and morgage rates correlate very very closely with interest rates, thus if rates were lower then those people who can't afford now will have a much better chance to afford it and therefore there will be less repos.