ANYONE who bought a house they could not afford on the basis that interest rates would be 0.1 per cent forever is in deep shit, banks have confirmed.
Rising mortgage rates are set to throw hundreds of thousands who stretched themselves to the limit for their perfect home into a crisis which might be unexpected to them but is not to everyone else.
Jo Kramer of Shoreditch said: “Kirstie Allsopp always said to take on the largest mortgage you can afford, and we took that advice because we wanted a massive house.
“Unfortunately, borrowing four-and-a-half times our income during a global downturn has turned out, much to our surprise, to be more than we can afford. Significantly more. As in my credit card got turned down at Lidl yesterday.
“It can’t be treated as if it’s our own fault, like we’d bought an expensive car or something. Houses don’t follow normal economic rules. They’re always worth more than when you bought them and you’re not allowed to be taxed on them, I read it in the Telegraph.
“We’re not greedy. We just wanted a five-bedroom home with an orchard, conservatory and library annexe that we couldn’t pay for. Is that so wrong?”
She added: “We’d planned to flip it in eight years for a hundred grand. Now that dream might never be realised.”
