[Finance] What should the government do about the coming base rate mortgage hike time bomb?

[Mustafa II]

800,000 people up for renewal next year.

I personally know people who simply won't be able to afford the increase. They're ones of many I'm sure.

Tax breaks? Government subsidies? Or should they just allow the crisis to play out?

 

[RandyWanger]

What has Tory got to gain from crashing the market? I would have thought they owned a few homes between them. Maybe some dodgy PPE contracts went into paying off their mortgages ahead of this and money in the bank will be worth more with higher rates.
Next year is going to be horrible for a lot of people.

 

[Horses Arse]

And here we go again. Remember the infamous Northern Rock 125% mortgage? The banks do this secure in the knowledge that they will be bailed out by the tax payer.

And then everyone says, "well it was obviously going to crash, people should have known, it was clearly unsustainable. Did they have lights, were they wearing a helmet (ooh sorry, wrong thread).

These bloody experts are in full denial as the cash roles in, then blame the victims when it crashes. Happe Ed last time, will happen this time.

Endless cycle of greed

 

[CheeseRolls]

Apologies I don't want to derail the thread.

This would suggest such deals may be possible. I have no idea if this is practical or reliable. Either way it is of limited use to anyone struggling in the UK
http://www.frenchmortgagexpress.com/best-french-mortgage-rate/

 

[Horses Arse]

I agree, it works well. But it will not work in the UK

1) You will need to build up a very significant and large stock of social housing.

2) There needs to be a lot of joined up thinking eg the need to fund healthcare so that care in old age is addressed and covered financially. Brits often have to sell a house to go into care, in Germany this is all covered by welfare.

3) Significant paradigm shift in UK thinking towards home ownership. Even me with all my progressive and socially minded thinking (wink) backed by points 1 and 2 even I bought within a couple of years of living here as we didn’t want to fund other people/organizations.

Joined up thinking you say? Investment in social housing? Investment in welfare?

Nah, it will never catch on.

Most folk in this fine nation will think that if that were to happen the people in small boats will take it all....

 

[Seagull27]

From the Telegraph's story about how the mortgage crisis is affecting Britain's middle class :

View attachment 162456

That's an interesting classification of "middle class".

 

[Horses Arse]

What has Tory got to gain from crashing the market? I would have thought they owned a few homes between them. Maybe some dodgy PPE contracts went into paying off their mortgages ahead of this and money in the bank will be worth more with higher rates.
Next year is going to be horrible for a lot of people.

They love the crash. They can hold on to what they have and buy much much more at low prices before they rise again.

Feel dirty saying this, but that's what I've been waiting for. Waiting for the inevitable crash to buy somewhere as an investment that someone pays the mortgage on. Yes, I know - its shit. I've never voted for these c@nts and never will. However, I will do what's best for my familly in situations like this with broken safety nets. It's the lack of state support that increases the selfishness. Self perputuating unfortunately.

 

[Bakero]

That's an interesting classification of "middle class".

Just your average hardworking family living in a typical 7 million pound mansion.

 

[Nobby Cybergoat]

That's an interesting classification of "middle class".

Just another example of how middle England is being squeezed.

 

[brighton_dave]

What a bitter post. I have rented my house out for 13 years. I have had the fence replaced twice and I had the house completely redecorated inside and out in-between tenants 2 years ago. I had one tenant who lost her job, didn't tell me and missed 3 monthly payments whilst refusing to leave, and I had another tenant who did a runner 2 months into her tenancy because of a "change in circumstances" and wouldn't even answer her phone for a week to arrange to return the keys.

It's factual and true based on experience when we ourselves had to rent due to extortionate rents not allowing hard working people to save for a deposit. Three different landlords, all the same.
We have seen it with many others too.
You may be an exception along with a few others but landlord greed and lack of Tennant care is throughout the market.
Some of the living conditions experienced are disgusting putting health at risk.
Like it or not, the majority of landlords are tight fisted and getting them to do work is like getting blood from a stone. The guy that dissapears to the the toilet when its his time to buy a round.
Perhaps you've been lucky enough to never see it first hand as a Tennant.

 

[Mellor 3 Ward 4]

I would restrict the number of AirBNB's in places like West Cornwall via some kind of licencing scheme, they destroy local communities.

The worse offenders of all are the rich who want their "country bolt hole" and use it for just a few weeks a year.

As for the mortgage market, I'd be surprised if we don't see a 6% base rate, inflation feels well sticky.

There will be a rate rise later this week - guaranteed.

 

[seagullwedgee]

Nothing. If you replace the thread title words “should the government” with “should the tax paid by hard working people be used to help other people with their mortgage payments”? the answer becomes quite obvious.

 

[Nobby Cybergoat]

There's no short term answer. The supply of housing stock needs to increase and house prices need to come down.

I would ...

Abandon the BoE's target of 2%. They can't hit it by continually putting up rates. Other levers need to be pulled
Fund councils to bring dilapidated stock back into use
Accelerate the change in building usage from failing town centres. Fewer boarded up shops and more liveable properties
Tax landlords up the ass
Tax Airbnb owners in the mouth, then up the ass, then in the mouth again

 

[keaton]

That's an interesting classification of "middle class".

It makes that dipshit on Newsnight from a few years ago maintaining his £80k pa was the national average seem fairly clued up by comparison

 

[Mellor 3 Ward 4]

They love the crash. They can hold on to what they have and buy much much more at low prices before they rise again.

Feel dirty saying this, but that's what I've been waiting for. Waiting for the inevitable crash to buy somewhere as an investment that someone pays the mortgage on. Yes, I know - its shit. I've never voted for these c@nts and never will. However, I will do what's best for my familly in situations like this with broken safety nets. It's the lack of state support that increases the selfishness. Self perputuating unfortunately.

So you want a house price crash - so those that have bought property in the last few years to fall into negative equity?

Don't worry, you're not alone - there's plenty of left leaning people on here who are landlords, who whilst professing to be socialists and Labour voters, are making substantial amounts of money from renting out second/third etc. properties.

 

[drew]

So you want a house price crash - so those that have bought property in the last few years to fall into negative equity?

Don't worry, you're not alone - there's plenty of left leaning people on here who are landlords, who whilst professing to be socialists and Labour voters, are making substantial amounts of money from renting out second/third etc. properties.

Who are they then?

 

[drew]

Nothing. If you replace the thread title words “should the government” with “should the tax paid by hard working people be used to help other people with their mortgage payments”? the answer becomes quite obvious.

Do you use the same mantra when discussing the NHS?

 

[seagullwedgee]

Not at all. Tax payers money should be spent on health, education, defence, law and order, infrastructure, sustainability etc and benefits for those in genuine difficulty. But helping people buy their own homes, with other taxpayers money? Nope.

 

[mikeyjh]

From the Telegraph's story about how the mortgage crisis is affecting Britain's middle class :

View attachment 162456

"I have worked in finance for 25 years, so I’m more financially “literate” than a layman. I had a contingency"

Good news, you should be okay then.

"I knew that we wouldn’t be struggling with payments even if the variable rates went up to 3.5 per cent or 4 per cent. The trouble is that now they’re around 7 per cent"

Erm, 'literate' you say?

 

[Westdene Seagull]

So you want a house price crash - so those that have bought property in the last few years to fall into negative equity?

I don't actually have a problem with negative equity. The only people it affects are those that want to move from a property they own ( or the bank owns ). Not being able to move is certainly a first world problem. Mortgage lenders on the other hand might have a problem with it.

 

[Bodian]

Yep, holiday homes are a scurge of communities. I like the idea of the 3x council tax they apply in Wales.

Where abouts are you?

Cumbria - just outside the Lake District (walking distance of the boundary).