With respect, streettalk, the suggestion that the pressure will be restricted to the mortgage belt is flawed. As I mentioned in another post, when the fixed-raters get moved onto casual, it will push many monthly payments up by as much as 50%. That will hit all mortage holders, including (as recently covered in the Sydney press) those in the upmarket areas like the Eastern Suburbs. Worse than that, the ability of potential buyers to finance top-end housing under the current credit conditions are now vastly reduced (without a big deposit). Read today's Fin Review, where the UK market is analysed. Biggest drops? Central London. The entire marketplace has turned. CJ
