Northern Rock can't borrow from the money market so it can't offer mortgages to people so it borrows from the Bank of England at higher interest rates and so puts up its mortgage rates to compensate. The government says we shouldn't ask for more wages so that we can pay our higher interest mortgages because it will spoil their economic model.
2007-09-14 02:15:52 · 4 answers · asked by Harriet 5 in Business & Finance ➔ Personal Finance
Yes, raising wages does lead to rising inflation. They are correct.
2007-09-14 02:24:58 · answer #1 · answered by Bob 2 · 0⤊ 0⤋
UK House prices are vastly over-priced, whereas the U.S. housing market is at a more sensible level... The current problems are caused with interest rate rises in the U.S. and these are starting to effect the UK. Just wait till our lenders hit the same problem as our US cousins, SH*T is really gonna hit the fan then... Funny thing is though, higher inflation would help.
2007-09-14 02:22:55 · answer #2 · answered by sjr 3 · 0⤊ 0⤋
I am sorry if you have been caught up in the Northern Rock mis-management situation but I don't understand what your question actually is. You seem to be asking if you can buy what someone (un-named) wants you to buy and pay your mortgage. But you to not tell use what this person or persons wants you to buy, how much it costs or the value of your assets or income so there is no way we can make such a judgement
2007-09-14 02:25:37 · answer #3 · answered by Maid Angela 7 · 0⤊ 0⤋
Sounds like you need to refnance with another martage broker...
2007-09-14 02:37:44 · answer #4 · answered by Gerald 6 · 0⤊ 0⤋