Why is UK Facing a New Mortgage Crisis?

A look at why mortgage rates are rising, going back to financial crisis of 2009. Why that sowed seeds for a period of ultra low interest rates, which are now changing rapidly.

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[dilara]

It is gone, we lived through the zenith of our time.
These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies

[PeterWhite]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

[cluckingbells]

Zero interest rates for 13 years at the expense of savers allowed house prices to rise unchecked and encouraged desperate people to over extend their borrowings. Since 2007 BoE, Government's of all hues and borrowers are responsible.

[niknakz]

Great video, love how you concisely explain everything

[piccalillipit]

*14 YEARS LIVING IN THE EU* not one single person has started a conversation about house prices with me

Its all people talk about in the UK

[thehairygolfer]

My Dad in 1957 - you can borrow 2 x salary with a 10% deposit.
Me in 2005 just trying to find a new mortgage deal, not even move house - you can borrow 6 x salary, buy a large house, a new car, have a fancy holiday or two. Please have as much money as you can take away in a wheelbarrow.
Add to that the BoE printing money and de-basing our currency has led us to being in what's known as - deep shite.

[francoisleyrat]

The UK mortgage crisis is hardly understandable seen from France. Here most mortgages are fixed rate. Besides the borrowing capacity of individuals is determined by monthly income, not by the supposed value of your property. Hence house prices do not have the obsessional dimension they have in the UK.

[winstonwinters]

House prices are ridiculous and have to crash anything less is kicking the can down the road for yet another decade.

[philipvjones]

2 words: Andrew Bailey. When you appoint a career incompenent, you will get incompetent policy. The entire MPC aren't fit for purpose. I fail to see how the BoE can retain its independence after this fiasco. The place is infested with groupthink and needs a complete overhaul.

[cobbler]

There seems to be a mismatch between the base rate and the rate savers receive. The banks have made £4.5 billion from this so far.

[jasoncrittenden]

Your channel is very good and useful I've been learning economics and found it very interesting because economics it really what makes the world work

[cobbler]

I think many people are economically ignorant and don’t understand what is coming down the track. To imagine people have hundreds of pounds of spare cash to pay an ever increasing mortgage bill is ludicrous.

[keorbats]

Great video, as always!😊

One thing - it’s quantitative, not “quantitave”

[cobbler]

Really appreciate your informative analysis

[pierremchughes]

Don't worry Blackstone is ready to snap up the repossessions while at the same time not paying their loans .😂

[cobbler]

This is catastrophic. People cannot find additional payments of up to £1000. People will have to reassess their lives as to whether they can afford a mortgage. Thanks for pointing out the role of QE which basically kept asset prices up.

[mikeroyce]

I studied economics as part of my degree at uni. I have always had a view about what the Tories should be doing (within the constraints of their view of the world) and what Blair/Brown should have done (within the constraints of their view of the world).

But now I am stuck for policies to recommend.

I really cant think what the Tories should be doing to make the economy better, nor what Labour should do to make the economy better.

The economy needs to grow, but any increased spending by Tories or Labour in my opinion will just add to our debt and make matters worse.

Similarly the public sector has been cut so much I don't think it can be safely cut any more.

All we can do is wait for inflation to fall, which might not happen for several months or might not even happen enough in the next two years.


I think the UK has hit its credit card limit and can no longer afford to pay the minimum payments just as its income is falling (in real terms) whilst the bank is putting up the interest rate.

In short the UK can no longer afford to pay ofr the standard of living we have come to expect - and no one wants to hear that and no politician will say so.



Economics Help, do you have any suggestions for policies to get the UK out of this mess? I'd love to see a video on your suggestions / the options open to government to pull us out of this nose dive that we are in.



Remember that government receipts are actually artificially high because of all the buy to let owners who have been selling houses and paying vast amounts of capital gain tax - and surely these receipts cant keep coming in for more than a few years.

[TOPSK]

Great video, but why the raise of interest rate doesn't lead to house prices correction as most organisation predicted?

[cp]

Mortgages should be limited to 3.5 times someone’s salary and 90% LTV, and add 5% to buy to let mortgage interest rates. Remove those barriers and the housing market runs away. There are still the same number of houses so the prices stabilise at sensible prices. The only people to lose out are the banks…. I wonder why the checks and balances aren’t there! We learnt nothing from the 2008 crash ☹️🤑🤑🤑

[ShaunRussell]

As someone that also recently took out a tracker mortgage (in NL) I got a laugh from your hopeful comment