We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Interest Rates held at 0.5%
RenovationMan
Posts: 4,227 Forumite
I'm surprised this hasnt been reported already (apologies if it has!)
http://www.bbc.co.uk/news/business-11959664
"The Bank of England's Monetary Policy Committee (MPC) has kept UK interest rates on hold at 0.5%, and unveiled no new quantitative easing (QE) measures.
Both decisions were expected, but it will not be clear whether they were unanimous until the minutes of the meeting are released.
At the MPC's November and October meetings, there was a three-way split among its nine members."
I think all of us will agree that this is great news for me.
http://www.bbc.co.uk/news/business-11959664
"The Bank of England's Monetary Policy Committee (MPC) has kept UK interest rates on hold at 0.5%, and unveiled no new quantitative easing (QE) measures.
Both decisions were expected, but it will not be clear whether they were unanimous until the minutes of the meeting are released.
At the MPC's November and October meetings, there was a three-way split among its nine members."
I think all of us will agree that this is great news for me.
0
Comments
-
It has become too predictable.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
-
No surprise, the housing market couldn't stand the smallest of rises and because the rest of the economy has been built on the back of this fictitious wealth, neither can that. I'd really like to see a graph plotting what would happen to repossessions and prices if rates were 15%, like they were in the 90's bust, this despite many more dual income families enslaved by mortgage debt.
I'd estimate at least half of all mortgaged household would be repossessed. Says it all really.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.0
-
PasturesNew wrote: »The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.
True. I know that I have. My mortgage went from being around the £60k mark to £270k. I've never felt richer.
0 -
No surprise, the housing market couldn't stand the smallest of rises and because the rest of the economy has been built on the back of this fictitious wealth, neither can that. I'd really like to see a graph plotting what would happen to repossessions and prices if rates were 15%, like they were in the 90's bust, this despite many more dual income families enslaved by mortgage debt.
I'd estimate at least half of all mortgaged household would be repossessed. Says it all really.
Why stop at a paltry 15%, imagine if they were 50%!! I'd estimate that almost all mortgaged households would be reposessed. I know that mine would be.
Incidently, rates were 14% in 1990, at their highest point in that decade.
http://moneyworld.com/bank-base-rates.htm0 -
PasturesNew wrote: »The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.
Indeed, we can't seem to do anything but keep digging, sooner or later we will hit the 'bed rock'. Those people upto their eyeballs in debt will then wished they had stopped borrowing stupid money for houses and Chinese tat.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
PasturesNew wrote: »The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.
The longer is goes on the longer it becomes the new normal. A commentator said about 6 months ago people have long forgotten the large mortgage payments they used to make, and it's only natural to align your budget to your new requirements. This was after about 15 months of these rates I think.
Said something about playing with fire, as the longer it goes on, the more families who get used to it, the more damage it does.
The snow is a perfect analogy. Used to happen every year, so everyone was prepared and got on with it. Now when it happens, as we've forgotten those days, the country comes to a standstill and no ones prepared.
You can tell it's old news....no ones even bothered in even reporting it anymore. Apathy, anyone?0 -
I must admit to becoming a little blase about these rates now.I used to wait for the announcement with anticipation as I have a tracker mortgage.
I didn't even know they were being set today.
Still I've got a line left to say - yippeeSpace available for rent0 -
I'll be interested in how they phase normal interest rates back in (the slower the better for yours truly)Emergency savings: 4600
0% Credit card: 1965.000 -
21 months now and £21.5K in the offset.:beer:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards