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Interest rates
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Don't read the mail, and the Mrs works for Barclays, so no need to hear what bankers need to say, as I hear enough of it...She is amazed though how many people here think they know about finance though...harveys_gardener said:
Pretty sure all the Project Fear protaganists said we'd be fucked if we leave, not when we voted to leave. Recent economic analysis suggests we are severely damaged economically now, before Brexit, despite Sterling tanking which helps exports, even if we go the Norway route. Did you not read the BoE projections? Or any other opinions apart from the Mail? If May has a better grasp on economics than Carney then sack him.Chippycafc said:
Is this the same carney who said rthat ON june 24th 2016 said the uk was fucked... Just asking...harveys_gardener said:
Carney is stockpiling amunition to fire at the Brexit shitfest. Most inflation is due to A50 issues and falling pound. A few public employees given half a percent over inflation after 10 years of no rises doesn't equal rampant wage fuelled inflation, but hey my economics A level was only a D. But this was in the days when you didn't get an A for spelling your name right on the exam paper.golfaddick said:
A £175k mortgage will mean about a £25pm increase. Anyone with a £500k mortgage (thus about a £70pm increase) can probably afford it.1905 said:
But the size of some mortgages out there now, it wont take too much to knock some people over ...............Addickted said:I used to be so jealous of my friends working in the banking sector who were only paying 2% interest on their mortgages.
Then we had 'Black Wednesday' when interest rates were hiked up temporarily to 15%.
0.75%? Pah…...
Next increase (again 0.25%) wont be for another year or so.....certainly at least 3 months after Brexit.
you never know, rates might even go back down again if Brexit is a total f**k up.
But this is the woman who triggered A50 without a Plan A, B or C nor without the support of her own party. Called an election on her vision and was defeated. Smell the coffee!!!0 -
Take a 10 year fix then, circa 2.5%, cheap as chips.SF-02 said:
But what happens when an event causes rates to increase? And people now will be paying back mortgages for far longer. Well into retirement? Who benefits - developers and banks.Rob7Lee said:
I'm sure thats all spot on, but interest now compared to then mean likely very little difference in monthly payment. London is the worst of course, other parts of the country it's probably now considerably less than back in the early/mid 90's as house prices have barely kept up with inflation yet interest rates have plummeted.hoof_it_up_to_benty said:
The ratio was 4.4 in 1995 and 12.2 by 2012 based on the median income and house price in the capital. I think the ratio is now in excess of 15.Rob7Lee said:
Salary ratio v interest rates, think there is very little difference overall compared to when I first bought in the early 90's. 80k house at 10% interest rate v's 450k house at 2% interest rate - not much in it, if anything probably cheaper today.hoof_it_up_to_benty said:The house price to salary ratio in London is completely out of control - I'm assuming foreign money has kept this afloat. I keep waiting for the property crash - maybe rising interest rates will be the trigger once debt can't be serviced.
Will governments be in a position to bail out the banks again when it all comes crashing down?
Savings rates are beginning to tick up, but doubt many accounts will see the full 0.25%
Low interest rates and lack of credit control have led to this anomaly - if interest rates were to rise it would all collapse.
Prices way too high and well out of whack with wages.0 -
Not ours alone - 27 others won't do too well out of it either.newyorkaddick said:
The financial crisis was a global phenomenon but a hard Brexit would be our problem alonecabbles said:
I’m no expert but wasn’t the whole rate drop in line with the financial crash of 2007/08 when they needed liquidity and money pumped into the markets via QE and then encouraging everyone to borrow and banks to lend again?newyorkaddick said:
If Brexit is a fcuk up then rates will go up not down to try to avert a currency crisisgolfaddick said:
A £175k mortgage will mean about a £25pm increase. Anyone with a £500k mortgage (thus about a £70pm increase) can probably afford it.1905 said:
But the size of some mortgages out there now, it wont take too much to knock some people over ...............Addickted said:I used to be so jealous of my friends working in the banking sector who were only paying 2% interest on their mortgages.
Then we had 'Black Wednesday' when interest rates were hiked up temporarily to 15%.
0.75%? Pah…...
Next increase (again 0.25%) wont be for another year or so.....certainly at least 3 months after Brexit.
you never know, rates might even go back down again if Brexit is a total f**k up.
Presumably it’s been too low for too long now?0 -
Well I have an Economics A level and have been an accountant for 40 years having started in banking. So I know a little about finance, but not as much as Carney.Chippycafc said:
Don't read the mail, and the Mrs works for Barclays, so no need to hear what bankers need to say, as I hear enough of it...She is amazed though how many people here think they know about finance though...harveys_gardener said:
Pretty sure all the Project Fear protaganists said we'd be fucked if we leave, not when we voted to leave. Recent economic analysis suggests we are severely damaged economically now, before Brexit, despite Sterling tanking which helps exports, even if we go the Norway route. Did you not read the BoE projections? Or any other opinions apart from the Mail? If May has a better grasp on economics than Carney then sack him.Chippycafc said:
Is this the same carney who said rthat ON june 24th 2016 said the uk was fucked... Just asking...harveys_gardener said:
Carney is stockpiling amunition to fire at the Brexit shitfest. Most inflation is due to A50 issues and falling pound. A few public employees given half a percent over inflation after 10 years of no rises doesn't equal rampant wage fuelled inflation, but hey my economics A level was only a D. But this was in the days when you didn't get an A for spelling your name right on the exam paper.golfaddick said:
A £175k mortgage will mean about a £25pm increase. Anyone with a £500k mortgage (thus about a £70pm increase) can probably afford it.1905 said:
But the size of some mortgages out there now, it wont take too much to knock some people over ...............Addickted said:I used to be so jealous of my friends working in the banking sector who were only paying 2% interest on their mortgages.
Then we had 'Black Wednesday' when interest rates were hiked up temporarily to 15%.
0.75%? Pah…...
Next increase (again 0.25%) wont be for another year or so.....certainly at least 3 months after Brexit.
you never know, rates might even go back down again if Brexit is a total f**k up.
But this is the woman who triggered A50 without a Plan A, B or C nor without the support of her own party. Called an election on her vision and was defeated. Smell the coffee!!!0 -
Chartered ?harveys_gardener said:
Well I have an Economics A level and have been an accountant for 40 years having started in banking. So I know a little about finance, but not as much as Carney.Chippycafc said:
Don't read the mail, and the Mrs works for Barclays, so no need to hear what bankers need to say, as I hear enough of it...She is amazed though how many people here think they know about finance though...harveys_gardener said:
Pretty sure all the Project Fear protaganists said we'd be fucked if we leave, not when we voted to leave. Recent economic analysis suggests we are severely damaged economically now, before Brexit, despite Sterling tanking which helps exports, even if we go the Norway route. Did you not read the BoE projections? Or any other opinions apart from the Mail? If May has a better grasp on economics than Carney then sack him.Chippycafc said:
Is this the same carney who said rthat ON june 24th 2016 said the uk was fucked... Just asking...harveys_gardener said:
Carney is stockpiling amunition to fire at the Brexit shitfest. Most inflation is due to A50 issues and falling pound. A few public employees given half a percent over inflation after 10 years of no rises doesn't equal rampant wage fuelled inflation, but hey my economics A level was only a D. But this was in the days when you didn't get an A for spelling your name right on the exam paper.golfaddick said:
A £175k mortgage will mean about a £25pm increase. Anyone with a £500k mortgage (thus about a £70pm increase) can probably afford it.1905 said:
But the size of some mortgages out there now, it wont take too much to knock some people over ...............Addickted said:I used to be so jealous of my friends working in the banking sector who were only paying 2% interest on their mortgages.
Then we had 'Black Wednesday' when interest rates were hiked up temporarily to 15%.
0.75%? Pah…...
Next increase (again 0.25%) wont be for another year or so.....certainly at least 3 months after Brexit.
you never know, rates might even go back down again if Brexit is a total f**k up.
But this is the woman who triggered A50 without a Plan A, B or C nor without the support of her own party. Called an election on her vision and was defeated. Smell the coffee!!!0 -
Good for you, well done.harveys_gardener said:
Well I have an Economics A level and have been an accountant for 40 years having started in banking. So I know a little about finance, but not as much as Carney.Chippycafc said:
Don't read the mail, and the Mrs works for Barclays, so no need to hear what bankers need to say, as I hear enough of it...She is amazed though how many people here think they know about finance though...harveys_gardener said:
Pretty sure all the Project Fear protaganists said we'd be fucked if we leave, not when we voted to leave. Recent economic analysis suggests we are severely damaged economically now, before Brexit, despite Sterling tanking which helps exports, even if we go the Norway route. Did you not read the BoE projections? Or any other opinions apart from the Mail? If May has a better grasp on economics than Carney then sack him.Chippycafc said:
Is this the same carney who said rthat ON june 24th 2016 said the uk was fucked... Just asking...harveys_gardener said:
Carney is stockpiling amunition to fire at the Brexit shitfest. Most inflation is due to A50 issues and falling pound. A few public employees given half a percent over inflation after 10 years of no rises doesn't equal rampant wage fuelled inflation, but hey my economics A level was only a D. But this was in the days when you didn't get an A for spelling your name right on the exam paper.golfaddick said:
A £175k mortgage will mean about a £25pm increase. Anyone with a £500k mortgage (thus about a £70pm increase) can probably afford it.1905 said:
But the size of some mortgages out there now, it wont take too much to knock some people over ...............Addickted said:I used to be so jealous of my friends working in the banking sector who were only paying 2% interest on their mortgages.
Then we had 'Black Wednesday' when interest rates were hiked up temporarily to 15%.
0.75%? Pah…...
Next increase (again 0.25%) wont be for another year or so.....certainly at least 3 months after Brexit.
you never know, rates might even go back down again if Brexit is a total f**k up.
But this is the woman who triggered A50 without a Plan A, B or C nor without the support of her own party. Called an election on her vision and was defeated. Smell the coffee!!!0 -
Raised to 0.25% today.0
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Still ridiculously low historically, will be interesting to see what they’ll be in a years time, surely no more than 2%?Addickted said:Raised to 0.25% today.0 -
Inflation is pretty nuts at the moment - the news the other night mentioned RPI, for those that still use that is at 7%
Whatever happened to those letters the Governor of the BoE had to pen when it went above a certain threshold. I never read of them anymore1 -
Whereas inflation is running at over 5% and rising fast.0
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Credit card standard rates now up to 21%...0
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Bitcoin is the answer :-)4
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Or the new one - Britcoin. Exchange value £1 million to $1.cabbles said:Bitcoin is the answer :-)2 -
Depends what happens to the £. I imagine the BOE's primary aim is to protect the housing market (and the banks) at any cost but I'm not sure you can do that without trashing the currency.Mendonca In Asdas said:
Still ridiculously low historically, will be interesting to see what they’ll be in a years time, surely no more than 2%?Addickted said:Raised to 0.25% today.0 -
They are still sent. The latest one was today. https://www.gov.uk/government/publications/open-letters-between-hm-treasury-and-bank-of-england-december-2021/letter-from-the-governor-of-the-bank-of-england-to-the-chancellor-of-the-exchequer-16122021cabbles said:Inflation is pretty nuts at the moment - the news the other night mentioned RPI, for those that still use that is at 7%
Whatever happened to those letters the Governor of the BoE had to pen when it went above a certain threshold. I never read of them anymore
The trouble is that no one in the main stream media can be bothered to read them, publish them or construct commentary on them.
It is perhaps interesting that the Chancellor has time to read them, understand them, reply on the same day and get both letters up on to the govt. web site. Or so it seems. https://www.gov.uk/government/publications/open-letters-between-hm-treasury-and-bank-of-england-december-2021/letter-from-the-chancellor-of-the-exchequer-to-the-governor-of-the-bank-of-england-16122021
For what it's worth, which is precisely nothing, I think the BoE should have moved on interest rates months ago.0 -
Last I saw the consensus from a host of investment managers & banks was around 2.5%-3% by 2030 !Mendonca In Asdas said:
Still ridiculously low historically, will be interesting to see what they’ll be in a years time, surely no more than 2%?Addickted said:Raised to 0.25% today.0 -
No one should be paying interest on a credit card, a fools game.hoof_it_up_to_benty said:Credit card standard rates now up to 21%...
After not having a mortgage in reality for about 10 years, I take one out this month and rates go up
fortunately I sensibly fixed at sub 1% for 5 years (Thanks @golfaddick).
I think we'll see the trajectory now being on an upward line rather than flat/falling. but 0.25% or even 2% Is still ridiculously low. The pensioners will be hoping to see savings rates follow otherwise their savings (and non pensioners) will see a big hit.
I'm on the fence a bit, but I can see in 3-5 years being in the 2-3% range (Base rate) but the bank will need to be careful as you could see repossessions increase dramatically as people fall of their low rate fixes.0 -
Some people end up in debt through illness, loss of job etc - credit card companies often hammer the vulnerable.Rob7Lee said:
No one should be paying interest on a credit card, a fools game.hoof_it_up_to_benty said:Credit card standard rates now up to 21%...
After not having a mortgage in reality for about 10 years, I take one out this month and rates go up fortunately I sensibly fixed at sub 1% for 5 years (Thanks @golfaddick).
I think we'll see the trajectory now being on an upward line rather than flat/falling. but 0.25% or even 2% Is still ridiculously low. The pensioners will be hoping to see savings rates follow otherwise their savings (and non pensioners) will see a big hit.
I'm on the fence a bit, but I can see in 3-5 years being in the 2-3% range (Base rate) but the bank will need to be careful as you could see repossessions increase dramatically as people fall of their low rate fixes.0 -
Credit cards are not designed to be long term borrowing. They are meant to be used more like an overdraft for short term scenarios.hoof_it_up_to_benty said:
Some people end up in debt through illness, loss of job etc - credit card companies often hammer the vulnerable.Rob7Lee said:
No one should be paying interest on a credit card, a fools game.hoof_it_up_to_benty said:Credit card standard rates now up to 21%...
After not having a mortgage in reality for about 10 years, I take one out this month and rates go up fortunately I sensibly fixed at sub 1% for 5 years (Thanks @golfaddick).
I think we'll see the trajectory now being on an upward line rather than flat/falling. but 0.25% or even 2% Is still ridiculously low. The pensioners will be hoping to see savings rates follow otherwise their savings (and non pensioners) will see a big hit.
I'm on the fence a bit, but I can see in 3-5 years being in the 2-3% range (Base rate) but the bank will need to be careful as you could see repossessions increase dramatically as people fall of their low rate fixes.A traditional loan is a better solution.0 -
Obviously. Sometimes people have no choice as they can't access loans etc.valleynick66 said:
Credit cards are not designed to be long term borrowing. They are meant to be used more like an overdraft for short term scenarios.hoof_it_up_to_benty said:
Some people end up in debt through illness, loss of job etc - credit card companies often hammer the vulnerable.Rob7Lee said:
No one should be paying interest on a credit card, a fools game.hoof_it_up_to_benty said:Credit card standard rates now up to 21%...
After not having a mortgage in reality for about 10 years, I take one out this month and rates go up fortunately I sensibly fixed at sub 1% for 5 years (Thanks @golfaddick).
I think we'll see the trajectory now being on an upward line rather than flat/falling. but 0.25% or even 2% Is still ridiculously low. The pensioners will be hoping to see savings rates follow otherwise their savings (and non pensioners) will see a big hit.
I'm on the fence a bit, but I can see in 3-5 years being in the 2-3% range (Base rate) but the bank will need to be careful as you could see repossessions increase dramatically as people fall of their low rate fixes.A traditional loan is a better solution.0 -
Sponsored links:
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Owning a leasehold flat at the moment is a real problem, largely due to the cladding scandal going on nationally.
Basically without the right forms in place to prove the building is safe (which very few have), then it’s a real struggle to get a mortgage on a flat or to re-mortgage.
It’s meant that I actually can’t sell the bloody thing and move on with life, but now it will likely mean the monthly mortgage costs will increase because lenders won’t allow fixed rates to continue.1 -
Are you not able to do a "rate switch". When your fixed rate comes to an end the lender is obliged to offer you another deal. No income or rental details needed. No details re cladding issues. Stay with lender & simply switch to a new deal.cafctom said:Owning a leasehold flat at the moment is a real problem, largely due to the cladding scandal going on nationally.
Basically without the right forms in place to prove the building is safe (which very few have), then it’s a real struggle to get a mortgage on a flat or to re-mortgage.
It’s meant that I actually can’t sell the bloody thing and move on with life, but now it will likely mean the monthly mortgage costs will increase because lenders won’t allow fixed rates to continue.0 -
Up to 56 days interest free credit, Section 75 protection, and Avios points!valleynick66 said:
Credit cards are not designed to be long term borrowing. They are meant to be used more like an overdraft for short term scenarios.hoof_it_up_to_benty said:
Some people end up in debt through illness, loss of job etc - credit card companies often hammer the vulnerable.Rob7Lee said:
No one should be paying interest on a credit card, a fools game.hoof_it_up_to_benty said:Credit card standard rates now up to 21%...
After not having a mortgage in reality for about 10 years, I take one out this month and rates go up fortunately I sensibly fixed at sub 1% for 5 years (Thanks @golfaddick).
I think we'll see the trajectory now being on an upward line rather than flat/falling. but 0.25% or even 2% Is still ridiculously low. The pensioners will be hoping to see savings rates follow otherwise their savings (and non pensioners) will see a big hit.
I'm on the fence a bit, but I can see in 3-5 years being in the 2-3% range (Base rate) but the bank will need to be careful as you could see repossessions increase dramatically as people fall of their low rate fixes.A traditional loan is a better solution.
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That is what I’m hoping for, and it’s what I did 2 years ago.golfaddick said:
Are you not able to do a "rate switch". When your fixed rate comes to an end the lender is obliged to offer you another deal. No income or rental details needed. No details re cladding issues. Stay with lender & simply switch to a new deal.cafctom said:Owning a leasehold flat at the moment is a real problem, largely due to the cladding scandal going on nationally.
Basically without the right forms in place to prove the building is safe (which very few have), then it’s a real struggle to get a mortgage on a flat or to re-mortgage.
It’s meant that I actually can’t sell the bloody thing and move on with life, but now it will likely mean the monthly mortgage costs will increase because lenders won’t allow fixed rates to continue.
However, it has been within the last two years that the policies around lending have been largely affected because of the cladding problems. The banks now request these forms that state the external wall is safe before agreeing to anything it seems. It’s off the back of an advice note from the government that messed everything up in about January 2020.
I might be lucky on the basis that I’ve never missed a payment or anything, but I am a bit concerned.0
