Mortgage rates are likely to soar

[Support Monkey]

Yes and No, there not gonna soar away to 15% like we had in the eighties because if you think were in the sh*t now we realy would be in trouble if it got to that point however i do think there will be a rise but only by 3 or 4 %

statistically uk % rate as always hovered around the 8% mark so thats probably where its going.

[AtW]

So the housing market will finally crash right after seller of property I wanted change their mind?

[norrahe]

I hope not, I've got a lifetime tracker mortgage at a pittance over the base rate.

[DimPrawn]

All these arguments here are exactly the ones that have been raging on House Price Crash forums since 2004.

THERE WILL BE NO HOUSE PRICE CRASH.

Houses are priced in paper money. Paper money is being printed to oblivion. Measured in paper money, house prices are rising and will continue to rise.


Here is the average UK house priced in ounces of Gold.



If you haven't been holding Gold or a non debased currency like AUD, CHF, NOK, you've missed the crash.

HTH BIDI

[CheeseSlice]

there not gonna soar away to 15% like we had in the eighties

<scribbles down quote for future reference>

[BrilloPad]

I've just started reading The Alpha Strategy which though it was published in 1980 details some startling similarities to what we're seeing today.

- inflation due to money printing

- how inflation in prices in some areas (e.g. energy, food) causes other stuff to become cheaper (e.g. imported tat not currently under flood water) due to the money supply being limited (even printing money limits the supply due to devaluation) so people stop spending on other stuff causing recession

- how the move from gold or physical items as money to paper/electronic money allows fractional reserve banking (a bank only needs to keep a fraction of the money it receives in reserve and can loan out the rest while charging interest) to result in the massive bank debts and bailouts we see today due to them always effectively being insolvent (they couldn't afford to pay out all the money given to them for safekeeping if there was a bank run as they've lent most of it back out)

It's available for free on the internet (first result in google points to a free PDF version) and should be required reading for anyone wondering how the current financial mess happened, and what powers are behind it.

Interesting. Does it give a solution to the current mess?

[DimPrawn]

Interesting. Does it give a solution to the current mess?

Yes, take yourselves and your children and go live in a country that doesn't have crushing debts, has plenty of natural resources, a non debased currency and a bright future.

Emigrating to Australia
Welcome to Citizenship and Immigration Canada
Immigration New Zealand


Alternatively, stay here and be ****ed over to pay for it all.

[PAH]

Interesting. Does it give a solution to the current mess?

Dunno, only about half way through so far. A bit of light reading in the evening while waiting for Newsnight to start.

However, I'm expecting there to be no real help for normal folk and it ending with the usual "for more information on how to become rich and beat the system buy our next book and come to our seminar".

[PAH]

I hope not, I've got a lifetime tracker mortgage at a pittance over the base rate.

Then you should be using the low payments as an opportunity to repay the mortgage before the rates go up or you're forced to change to a different (and much less favourable) mortgage one way or the other.

[BoredBloke]

Mine is tied to the BoE base rate. In the last credit crunch this didn't move as higher BoE interest rates would have caused more harm than good. So what is the opinion of you lot regarding predictions for the BoE base rate?