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Hi Well, because its primary goal is to keep to a target for inflation And it does that by controlling the economy. If inflation heads towards 3%, then policy will tighten regardless of the consequences for house prices Indeed, but then when house prices start to fall, it has in impact on the economy (People stop spending), and so the economy slows and inflation tumbles, so rates fall. The trick is to raise them enough to slow the economy,...

I feel you DynamoHill, It takes balls to invest right now. Still fortune favours the brave so best of luck to you BertEEE and KoN. I think you're right about earnings and the margins the banks are taking...especially Bank of Scotland which appears comfortable charging me a SVR of 4.32% above base on a couple of my mortgages. (That's gonna hurt if base rates hit 5%!) All told pre credit crunch and all fees included I could get base...

http://www.mortgagestrategy.co.uk/lenders-are-losing-their-g... Some lenders have taken their eye off the ball when it comes to detecting mortgage fraud, a top detective has warned. Chief inspector Paul Barnard at the City of London Police says it is currently investigating 15 serious mortgage fraud cases compared with just four last year. One case involves a lender being relieved of ?100m by fraudsters overvaluing buy-to-let properties. But...

It's why I expect next year to be the most difficult of all as unemployment peaks and typical SVR interest rates rise to c. 8% for good risks. If next year is "the most difficult of all" why would base rates or SVR increase to 8% for good risks?It seems now that even cameron can see that growth is the best way to cut deficits so policy should remain stimulative and modest spending cuts in 2010,along with tax cuts for...

Author: zulu105 | Date: 25/11/2009 05:46:18 | Number: 273869 'If next year is "the most difficult of all" why would base rates or SVR increase to 8% for good risks?It seems now that even cameron can see that growth is the best way to cut deficits so policy should remain stimulative and modest spending cuts in 2010,along with tax cuts for business (i Particularly like the 20% tax for small business and the scrapping of...

If inflation heads towards 3%, then policy will tighten regardless of the consequences for house prices. Depends though, if the inflation in temporary like the coming VAT increase they won't do anything. In order to get proper inflation you're going to need to have very strong economic growth first to take away all of the spare capacity in the economy. If you have very strong growth then the effects of rates on the housing market...

Cliff 3) House prices in Dubai fell by 47% in 12 months to end-September alone, see: Ah, so you had the right strategy, wrong country. Manks

How long before he gets wheeled out again? They'd have to dig him up first. Not likely until other options have been exhausted.

Well I've been eyeing a long legged, blue eyed, big busted blonde - for some time. I ain't getting very far with it though, but I reckon I'll succeed long before Paragon does!...

personally I think most of the builders have weathered the housing slump quite well. I at least expected one of the big builders (possibly TW) to go under. But they seem to have tapped their shareholders for cash quite effetively. They immediately stoppped building, sacked lots of staff and started paying down debt. They went straight into hibernation mode, and will possibly weather the storm.