Mortgage

Yep, the banking world is going to go tits up at some point. I'm paying money each month to buy a house that I probably won't own in a few years.
 
It did develop.
A question about mortgages, has identified mortgages as part of a conspiracy.
Is there a rule on post #2?
Why don't you develop the topic yourself then?
 
You do know the word Mortgage means death pledge? Mort =dead, gage =promise. When you apply for a lone or mortgage the bank takes your application as a signed promissory note ( just like the bank notes in your wallet ) and trades it up to 10 times , so a £100,000 loan makes them £1000,000 and then us mugs pay them our money back with interest. In the great crash of 2008 banks had traded peoples notes up to 47 times. That is why it is a repayment loan because your paying your own money back.:mad:
 
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I see the mortgage market getting messy.

The cost of borrowing is going to get more expensive.

No-one under the age of 40 has lived through a proper inflationary cycle before.

Current interest rates are negative in real terms and when the inflation genie gets out of the bottle it takes cold turkey to reign it back in.

If the average person gets stagflation that’s a massive vote loser.

Therefore in my view interest rates will have to rise more than people expect leading to a significant drop in house prices and negative equity which will lead to a strangled loan market and round and round.

We have a generation who just think house prices rise because they’ve never seen anything else but wages won’t keep up with the cost of living therefore eroding purchasing power.

However blowing bubbles based on zero interest rate policy is a western world rather than domestic issue and the real barometer is US treasuries. The Fed are rampaging up the rhetoric on getting a grip of inflation.

The 10 year Treasury rate is the gold standard and everything is an opportunity cost from there. And it’s rising. And so UK interest rates will have to follow suit.
 
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Billsballbag said:
I see the mortgage market getting messy.

The cost of borrowing is going to get more expensive.

No-one under the age of 40 has lived through a proper inflationary cycle before.

Current interest rates are negative in real terms and when the inflation genie gets out of the bottle it takes cold turkey to reign it back in.

If the average person gets stagflation that’s a massive vote loser.

Therefore in my view interest rates will have to rise more than people expect leading to a significant drop in house prices and negative equity which will lead to a strangled loan market and round and round.

We have a generation who just think house prices rise because they’ve never seen anything else but wages won’t keep up with the cost of living therefore eroding purchasing power.

However blowing bubbles based on zero interest rate policy is a western world rather than domestic issue and the real barometer is US treasuries. The Fed are rampaging up the rhetoric on getting a grip of inflation.

The 10 year Treasury rate is the gold standard and everything is an opportunity cost from there. And it’s rising. And so UK interest rates will have to follow suit.
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l agree with most of that, but since 1950, house prices have risen 11% on average. So we have a big dip, which as you say is guaranteed, but it will bounce back unless they totally grab all of the worlds wealth, which is the plan. l believe this plan is doomed to fail though.
Buy Silver !
 
bnet said:
l agree with most of that, but since 1950, house prices have risen 11% on average. So we have a big dip, which as you say is guaranteed, but it will bounce back unless they totally grab all of the worlds wealth, which is the plan. l believe this plan is doomed to fail though.
Buy Silver !
Click to expand...
Peaks and troughs

Interest rates will bring in a recessionary dip and then you buy.

Then as inflation drags back down the real time wage inflation kicks in post stagflation washing the debt away.

All in the timing.
 
Compared to 2008 the big difference is that the BoE is in a cul de sac. Every bad turn has led to a drop in interest rates as the medicine.

But that easy get out policy is now fucked.
 
So in short, interest will go up, people will not be able to afford their mortgages, houses up for sale, big corporations will buy up the houses and rent them to you. You'll own nothing and be happy. But what about the people that have no mortgage, or their mortgage is at a level that they could clear it. Will they be the landed gentry?
 
Will it be like old times where families will give their offspring a bit of their land to live on. If you own no land, you're fucked.
 
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