BOE Base = 2%

mitchaa

smartn wrote: »

Can't see why you'd do all that work on a rental place myself unless you intended being in there a long time. Also, you cant assume all houses are new and most need a fair few quid spent each year on them averaged out over the years. Wish I could maintain my house for no cost!

Sky and phone line installation, self explanatory. Garden shed required, i needed somewhere to put my lawnmower. Painting....Wasn't happy with bright white, a few walls were painted. To get the living room how i wanted, the cream carpet had to go and i put hardwood flooring down.

I do not believe for 1 minute people live in rented accomodation the way the landlord wants them too.We all have different tastes, and my tastes were far different to that of my old landlords To make the place feel like home i didn't mind spending.

Maintain house at no cost??...No i never said that, but you still have to maintain a rental home also. If the homes are new, they need very little maintenance

neverdespairgirl

Cannon_Fodder wrote: »

Wonder what crisis occured in 1844 for 2.5% to be reached?

Not sure. The only things I can think of is that it was the year debtors were no longer imprisoned, and the Factory Act limited children's hours of work to 6 per day aged 6 to 12.

WTF?_2

ad9898 wrote: »

Haven't read the whole thread yet, so apologise if it's already been mentioned. There was a banking analyst on Radio Five a couple of hours ago, he said the lower rates go towards zero the worse it is for banks as far as lending money goes, as their profits are really being squeezed.

He was saying that to make the same profit huge amounts of new lending would be required, which they can't do even if they wanted to as there is no more money to lend, so they will be tightening lending criteria for new borrowers even more.

So basically it's good news for people on trackers or perhaps who already have mortgages, but bad for everyone else, including FTB's, less FTB's, less sales, more downward pressure on prices, which in the end is good news for FTB's, if you get my drift.

Banks make their money on the difference in rates between what it costs them to obtain the money that they subsequently lend out.

Low rates should help them as it encourages more borrowing - hence more profits. Also, the lower the base rate goes, the more they can increase their margin and still seem to be an attractive deal to the borrower (so long as they all raise margins).

Against this, low rates discourage saving. Which means the banks look for money from sources other than their depositors to meet demand for borrowing - which is one of the things that got us into this trouble. (New financial instruments creating a wholesale credit market).

IveSeenTheLight

Cannon_Fodder wrote: »

P
Having to spend all the STR-pot interest at the moment, means that on buying a house the STR-pot will shrink and may no longer earn enough interest to live off...?


(Hope you don't mind the third-party discussion PN.)

She has said the interest does not cover her monthly expendeture now.
So As DD is saying, whe would be eating into the paot to get by renting.

I don't know if it is right for her or not, but if the pot is getting smaller, then she needs to do the calculations to see if she would be better off buying or not.

Kenny4315

Mr Clown & Hs Darling don't have a Ffing clue what there doing and the MR King is a first rate F King idiot as well. Have these lot got no other ideas ? Wasn't it using interest rates as the only fiscal control the reason why why are in this !!!!!! in the first place. :mad:

Looks like there is going to be a new mean to Interest Free credit before long ..... Hello sir ..... would you like to buy this COUNTRY we have interest free credit available ...... ' :mad:

It does however mean that I am going to be coining in a substantial amount more loot from my BTL as my tracker will go down yet again :money: NICE ONE GORDON, DARLING and MERV. :money:

Dithering_Dad

smartn wrote: »

But if you take into account the investment return of that 100K if you put it into a bank even at 2 percent you would be much better off waiting. Not to mention costs of maintaining a house etc which you wouldn't get when renting.

But then if you take into account that the mortgage free person could put the £850 pm they're not paying in rent away into a deposit account....

As to house maintenance, as others have said unless your boiler explodes or roof blows off, there really isn't that much maintenance to be done, certainly no more than would occur in a rented place.

Ask yourself how often your landlord has maintained your rental accomodation this year? I've been in my rented place for 9 months so far and haven't seen hide nor hair of him.

neverdespairgirl

Dithering_Dad wrote: »

Exactly my point. If they buy now they have a chance to get a really low fixed rate.
.

What do you think is a really low fixed rate?

Having a quick look, it seems to me that most fixed rates for, say, 10 years are just under 6%

neverdespairgirl

Dithering_Dad wrote: »

Ask yourself how often your landlord has maintained your rental accomodation this year? I've been in my rented place for 9 months so far and haven't seen hide nor hair of him.

In the last year here, we've had a gas and electricty safety inspection, a widget replaced in the boiler (cost £300), and a new shower door (cost £290), and at the moment, taps about to be replaced on 4 radiators, and various other fiddling (cost £700). So a total of £1,290, plus a £2,100 service charge.

Kenny4315

Fairly 'well planned' fixed rate ended couple of months ago, 5.35%, paid one payment of 6.15%, then 4.65%, now 3.65% ..... think that deserves a gold star and a teachers pet award for good planning :beer:

Bit miffed at the 6.15% month though ..... going to write a letter to GDM about why they did not act earlier with interest rate cuts when in was obvious a calamity was about to happen, and ask for some compensation ... as it has hurt my feelings and caused me great mental anguish. :T

Dithering_Dad

neverdespairgirl wrote: »

What do you think is a really low fixed rate?

Having a quick look, it seems to me that most fixed rates for, say, 10 years are just under 6%

Didn't some bloke on here have a 5 year BTL fix at something like 3%?

I'm certainly not an expert, but I'd imagine that fixed rate mortgages have lower rates during periods where the BoE rate is low than those arranged when the BoE rate is high?

If !!!!!! and the other tinfoil hat brigade are to be believed, this period of low interest rates are going to be followed by hyper inflation and huge interest rate rises - anthing up to the 15% that were prevalent in the 80's. In this case, having a fix at just under 6% would be paradise.