Getting uglier in the UK

From CNBC:

Mortgage catastrophe brews in Britain as millions are pushed toward insolvency

There is intensifying pressure on Britain’s government to do more to help struggling households, with the country’s shadow finance minister warning of a “mortgage catastrophe” as millions are pushed to the brink of insolvency.

The Bank of England last week hiked interest rates by 50 basis points to 5%, a bigger increase than many had expected. The BOE’s 13th consecutive rate rise takes the base rate to the highest level since 2008.

The surprise move — which is designed to lower inflation — will affect millions of homeowners as the interest rates on many mortgages in the U.K. are directly linked to the central bank’s base rate. Renters, too, are likely to see their payments increase as buy-to-let landlords pass on higher mortgage repayments.

Research by the National Institute of Economic and Social Research, a leading independent think tank, estimated that the BOE’s latest interest rate hike would see 1.2 million U.K. households (4% of households nationwide) run out of savings by the end of the year because of higher mortgage repayments.

That would take the proportion of insolvent households to nearly 30% (roughly 7.8 million), NIESR said last week, with the largest impact set to be incurred in Wales and the northeast of England.

“The rise in interest rates to 5% will push millions of households with mortgages towards the brink of insolvency,” said Max Mosley, an economist at NIESR. “No lender would expect a household to withstand a shock of this magnitude, so the government shouldn’t either.”

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36 Responses to Getting uglier in the UK

  1. Very Stable Genius says:


  2. Fast Eddie says:

    The surprise move — which is designed to lower inflation — will affect millions of homeowners as the interest rates on many mortgages in the U.K. are directly linked to the central bank’s base rate.

    Not here. List your house, grab some popcorn and watch the bidding war.

  3. Bystander says:

    Might be a similar fight on streets like Pro-patriots vs Feds, except it will exec boards vs. WFH soccer moms. My IB doing same thing. I wonder what pulling back pay will lead to. Popcorn indeed..

    Attendance records are increasingly following Americans into adulthood. Citi is just the latest company to warn workers that in-office attendance — as verified by badge swipes — may be used in performance and compensation reviews. The admonition from the bank, which has a hybrid policy requiring staff to be in an office three days per week, echoes a recent announcement by Google. The return-to-office efforts are no doubt welcomed by local leaders in cities such as San Francisco, New York City and Atlanta, who worry that low occupancy makes commercial buildings “debt time bombs” that landlords could abandon.

  4. BRT says:

    Wild day yesterday. Kids got a chance to participate on the field in a baseball practice at Citizen’s bank park. Stayed for the game vs. the Mets. Phils staged a 3 run comeback in the 8th. It started raining like crazy about 15 seconds after the last out. Perfect timing.

    On the way home, on 295, some guy tried to commit suicide by literally walking out in front of our car as we are going 75 down the highway. Me and 3 other’s swerved around him. He then stepped in front of the Bus that was trailing us at about 100 ft and somehow the bus managed to full stop right before him. Phone the police immediately. Hopefully they got out there in time.

  5. No One says:

    That guy just couldn’t shake off the pain of the recent Braves series?

    At least you and I can agree that the insider-trading-funded Mets are an expensive failure of a team this year, and deserve their misery.

  6. Fast Eddie says:

    RFK Jr. is ripped! Did you see this dude? 69 years old, in better shape than most half his age. The democrat oligarchs are shitting their panties. This dude is a lock to win the nomination.

  7. Phoenix says:

    Fear does some crazy shite

    A Kentucky woman who was charged with shooting an Uber driver in El Paso, Texas, after believing she was being kidnapped, has been charged with murder after the driver died from his injuries.

    On June 16, Phoebe Copas, 48, of Tompkinsville, Kentucky, was in an Uber driven by 52-year-old Daniel Piedra Garcia.

    The El Paso Police Department said a preliminary investigation found Copas was heading to El Paso’s Mission Valley, and at some point, she thought she was being taken into Mexico.

    According to an arrest affidavit, Copas began seeing signs to “Juarez, Mexico,” which is located across the US-Mexico border from El Paso.

    Fearing she was being kidnapped and taken to Mexico, the affidavit notes, Copas allegedly grabbed a handgun from her purse and shot Piedra in the head.

    In a news release, police said the investigation does not support that a kidnapping happened or that Piedra went off track from Copas’ destination.

    Copas allegedly took a picture of Piedra after the shooting and texted it to her boyfriend, police said.

    Copas was visiting her boyfriend in El Paso at the time of the shooting.

    Piedra was taken to an area hospital and kept on life support for several days.

  8. VeryImportantRE says:

    Real Estate and only Real Estate News. No politics, psycho Karens, billionaire subs, or formely blonde now bald or orange hair men with enlarge pr*stat3 issues.

  9. VeryInportantRE says:

    The commission set up is also an automatic housing price inflation mechanism. Is geared to always push up.

    Take away the present commission structure and buyer pays commission would lead to lower commissions and lower prices as agent is incentivize to do deal asap as buyer get lowest price.

    This might be the biggest housing price deflator in the future.

  10. Phoenix says:

    Those who don’t live in NJ don’t get to dictate the terms.

  11. Bystander says:

    Wow..and wait until his cousin returns from the dead to run with Trump. What amazing things are in store for 2024.

  12. Phoenix says:

    Fast Eddie says:
    June 26, 2023 at 9:53 am
    RFK Jr. is ripped! Did you see this dude? 69 years old, in better shape than most half his age. The democrat oligarchs are shitting their panties. This dude is a lock to win the nomination.

    Didn’t know this would get you so excited. I thought you were the one who said LGBTQ stood for Lets Get Biden To Quit. 🤣🤣🤣

  13. Fast Eddie says:

    Lol. I think I’m a bit more stunned than excited. All aside, the guy sounds like a democrat of yore as opposed to the litter currently parading as democrats.

  14. Phoenix says:

    Guess she doesn’t think he will win, so time to brachiate.

    Republican NJ Gov. Candidate Jack Ciattarelli Announces Split From Wife
    Jack Ciattrelli and his wife Melinda are headed to splittsvile.

    Ciattrelli, who unsuccessfully ran for governor on the Republican ticket in 2021 and said he is running again in 2025, announced in a public statement that the couple separated earlier this year. They have been married since 1995.

    News comes amid speculation running wild on social media, especially after Melinda was spotted at an event for Bill Spadea, a possible candidate for governor on the Republican ticket.

  15. Fast Eddie says:

    TO BE SOLD AS-IS; property will NOT be delivered in broom-swept condition. Sellers are in process of selling all of their furniture and belongings. Whatever can’t be sold will be donated or left at the townhouse. Please note that it is our intention to leave the property as empty as possible. If buyer does an inspection, it will be for informational purposes only. Unless there is a MAJOR, MAJOR issue with the property, a credit and/or price decrease will not be given.

    HOA and taxes will run you $1,500 per month alone:–2006569048

  16. No One says:

    Is that what they call a “fixer upper special”?
    They’re warning you – you may or may not get to keep the crutches in the garage. Only if nobody takes or buys them.

  17. No One says:

    I don’t trust 69 year old politicians who look like they lift weights five hours a day.
    Makes me think he’s trying to cheat on his wife Cheryl Hines. She’s only 57, maybe it’s already one of those “Hollywood marriages”?
    And I’m not sure I can deal with hearing his voice, regardless of what he’s saying.

  18. grim says:

    Better living through chemistry.

    Guys half his age would have issues balancing that level of body fat and muscle mass.

  19. NJCoast says:

    I don’t know why people feel the need to use realtors. In the last 17 years I’ve sold 2 and bought 1 property without a realtor. I’ve bought 2 properties with a realtor only because the sellers listed with them. With both sales I negotiated to stay 90 days in my home after the closing. Both sales set the price record for the block. The first sale I got 20% more than my realtor friend said I should list it for. My non realtor purchase sale was a family friend that was selling the deceased parents home. Offered them cash and fast closing. Done. Got it for 13% less than they were going to list with a realtor. With the two purchases I made with a sellers realtor they ended up giving up part of their commission to get the deal done. I have a closing attorney that charges $500.
    I guess people just are afraid to negotiate. Its much easier to talk with people first hand instead of having a third party involved. I find it fun.

  20. Fast Eddie says:

    And I’m not sure I can deal with hearing his voice, regardless of what he’s saying.

    If Katharine Hepburn and a Kennedy had a kid together. That’s what Jr. sounds like to me. :)

  21. No One says:

    RFK Jr “I feel sorry for people who have to listen to me”

  22. Fast Eddie says:

    He doesn’t sound as bad as he thinks he does. He seems genuine. I don’t know a lot about him but he seems sincere at this point. Cheryl Hines as the First Lady? Amusing. Lol. She’s pretty funny in certain roles. She reminds me of a NASCAR driver’s wife… sort of like Mrs. Ricky Bobby. Lol!

  23. ExEx says:

    Yeah you know how to pick ’em Gary. Those “manly” men.

  24. Fabius Maximus says:

    ChatGPT is a game changer in this Job Search. Provide it with the job description and it can identify the top responsibilities. Add in your resume for a tailored rewrite that aligns with the requirements of the job. It can then generate a cover letter to match the two. It generates the output with more elegance and precision than I could achieve on my own.

  25. PutinPlaysGOT says:

    So this is why Wagner stopped and did a 180.

    Putin said he was going to kill all family members.

  26. 3b says:

    According to Market watch, HELOC s ate making a come back.

  27. Fast Eddie says:


    Glad to hear the AI assist. You’ll be back in the game in no time.

  28. joyce says:

    Las Animas County Sheriff deputy named in excessive force lawsuit previously convicted of crimes

    I wonder what it’s going to take for a State government or the Federal government to take action.

  29. ExEx says:

    2:44 wow! That’s pretty cool.

  30. Hughesrep says:

    His Dad hung out with Frank and Marilyn.

    Jr hangs out with Rob Schneider.

  31. Fast Eddie says:

    His Dad hung out with Frank and Marilyn.

    Yup. Don’t know who Jr. hangs with.

  32. Fabius Maximus says:

    Gary thanks for the thoughts. AI is really a game changer. It is worth doing a Deep Dive into it to see how you can support it in future.

  33. Fabius Maximus says:

    That said, RFK Jr, I haven’t seen the right pull so hard for someone since Tulsi.

    You are the company you keep!

  34. Phoenix says:

    Boomer gives himself another break.

    Here you go Gen Z and everyone else, a big F you to all of you who are working and paying taxes so boomer can lay his/her azz on the beach at the Jersey shore and drinking prune juice.

  35. Phoenix says:

    Ozempic PILLS could be rolled out within six MONTHS.

    The dollars to this company are going to flood them like a ruptured dam.

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