Fair enough, I agree on that. But the same thing happens in reverse - with recent buyers who are mortgaged up to the hilt demonised by existing owners (who if forced to buy now likely wouldn't be able to afford to buy the house they live in) for stretching themselves too far (as one poster put it, wanting that extra conservatory). Thing is, its not like people have got a whole load of choice is it. There is nothing cheap out there, and there is so much poor condition property that is also still expensive. It is an absolute nightmare. You think people don't know they are taking on a lot of financial risk? They do believe me, there is just no other option.
This point doesn't get raised enough.
On one hand you've got people saying 'you have to get on The property ladder, house prices always go up over large time scales
On flip side you've got (often the same people saying): it's this generations fault for taking on so much debt. These low rates were always going to end.
Few things are critical in my opinion.
How expensive is energy going to get?
How long is energy going to stay at those heights?
How high are rates going to go?
How long are rates going to stay high?
Personally I think the energy is driving the inflation and thus driving the Base Rate.
The base rate is directly controllable.. Within reason.
I genuinely dread what will happen if rates spike to breaking point?
I guess, we know its going to be bad.. But how bad is it going to get?
New mortgage Debts are so high that if you did slip into negative equity your interest rate on SVR could easily bankrupt you. This is a real possibility for many.
Even now isn't SVR usually 4-5pc?
It's surely going to catch a lot out I'd expect?
,some historical interest rates
.. based on solid facts.
www.statista.com
