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Topic: Re:Re:Re:Re:Warning from the Bank of England
Posted by: Joe Conneely
Date/Time: 19/07/15 16:02:00

Some personal observations given like other posters who mentioned I also lived though the mortgage rates of the '80s:

1. In those inflation driven days minimum house deposits of 10% having to be held in cash with the relevant financial institution who was going to give you a mortgage before you could even start a mortgage application was the norm. The percentages went higher especially for high values and single buyers in certain cases.

2. Most recent house purchases over 1 million have little or very low debt percentage mortgages based on articles seen in recent months in the FT especially. The potential pain on pending rate rises is at the lower levels of UK mortgage lender.

3. Interest rates despite the BoE Committee operations, are a crude tool and have always been a political football. The planned Tory strategy on releasing housing trust stock to buy by tenants as was seen with council housing under Thatcher is indicative of more meddling in a sector that needs a much more major strategic rethink.

4. Buy to let has been a rigged market I fear due to tax benefits distorting the commercial risks. Buyers have operated at thin margins of profit helped by pooled low interest offset on all property purchased and a notional wear and tear allowance of 10% of gross rents even if a penny was not spent in any year on repairs. The recent changes proposed are long overdue and probably do not go far enough given the poor rent protection in the UK versus many European countries especially Germany, where most people rent not buy.


Entire Thread
TopicDate PostedPosted By
Warning from the Bank of England15/07/15 16:42:00 Andy Pease
   Re:Warning from the Bank of England15/07/15 16:56:00 Dan Murphy
   Re:Warning from the Bank of England15/07/15 17:15:00 Loraine Pemberton
      Re:Re:Warning from the Bank of England15/07/15 17:30:00 Nick Barton
         Re:Re:Re:Warning from the Bank of England15/07/15 17:36:00 Alison Neary
         Re:Re:Re:Warning from the Bank of England15/07/15 17:48:00 Adrian Irving
            Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:03:00 Nick Barton
               Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:09:00 Claire Moran
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:24:00 Adrian Irving
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 20:46:00 Claire Moran
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 21:14:00 Carl Wynne
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 09:55:00 Adrian Irving
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 12:49:00 Claire Moran
               Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:13:00 Alison Neary
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:21:00 Nick Barton
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:26:00 Adrian Irving
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:38:00 Keith Iddon
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 19:16:00 Nick Barton
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 22:44:00 Keith Iddon
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 06:59:00 David Marles
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 07:22:00 Nick Barton
   Re:Warning from the Bank of England16/07/15 07:55:00 Gerry Tan
      Re:Re:Warning from the Bank of England16/07/15 11:02:00 Cllr Sam Hearn
         Re:Re:Re:Warning from the Bank of England16/07/15 12:04:00 Nick Barton
      Re:Re:Warning from the Bank of England16/07/15 11:39:00 Andy Pease
         Re:Re:Re:Warning from the Bank of England16/07/15 11:54:00 Adrian Irving
            Re:Re:Re:Re:Warning from the Bank of England16/07/15 12:01:00 Huw Burford-Taylor
               Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 13:34:00 Cllr Sam Hearn
         Re:Re:Re:Warning from the Bank of England18/07/15 22:53:00 Teja P Howell
            Re:Re:Re:Re:Warning from the Bank of England19/07/15 16:02:00 Joe Conneely
               Re:Re:Re:Re:Re:Warning from the Bank of England21/07/15 14:35:00 Cllr Sam Hearn
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England21/07/15 15:03:00 Adrian Irving
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England21/07/15 15:46:00 Michael Robinson
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 05:10:00 Joe Conneely
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 07:56:00 Colin Jordan
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 09:10:00 Andy Pease
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 09:23:00 Joe Conneely
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 16:13:00 T P Howell
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England26/07/15 14:58:00 Joe Conneely

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