BOE Base = 2%

brranger

The Cake is a Lie!

A joke for people in the know:rolleyes:

PasturesNew

StevieJ wrote: »

Ahh PN you look at the problems not the solutions Only kidding

I am a project manager, it's a key attribute to be able to identify the risks.

StevieJ

Cannon_Fodder wrote: »

Totally agree.

So what would be so wrong about waiting for the previous 0.5% and 1.5% reductions to have some time to take effect?

They would rather do it in stages, it would not surprise me if they have already agreed the end game with regard to IR reductions, off the record of course.

StevieJ

PasturesNew wrote: »

I am a project manager, it's a key attribute to be able to identify the risks.

And not the solutions

Cannon_Fodder

http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

1694 was 6%...

We fought the Napoleonic Wars at 5% it appears.

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


Someone else can turn the figures into a graph.

PasturesNew

StevieJ wrote: »

And not the solutions

Solutions are provided by the technical expertise present within the team. Not a PM's job to provide them, just to spot the risks/problems with the solutions and any contingencies/work arounds proposed. In fact, taking it back a step, a PM doesn't even do any of that. They just act as a stop alert and communications channel, ferrying information back/forth among the people doing the real work

Cannon_Fodder

StevieJ wrote: »

They would rather do it in stages, it would not surprise me if they have already agreed the end game with regard to IR reductions, off the record of course.

Do the BoE think the markets, traders, speculators etc can't count, to add up 3 reductions to equal a panic?

tomstickland

PasturesNew wrote: »

I was cooking beans on toast when it was announced.
I scraped the beans back into the can .... can't be having such extravagences now!

LOL

Since the rate drop I've decided to move money from savings into mortgage overpayment.

I was talking to someone at work who is on a BOE + 0.75% mortgage, so they're now paying 2.75%!

Sadly, I lumbered myself with a 3 year fix at 6.4% 6 months ago.

Cannon_Fodder

A bit longer ago than the BBC graph;

"Anatomy of a house price bubble" ?



http://www.thisismoney.co.uk/interest-rates

Dithering_Dad

Kez100 wrote: »

OK, trying look at it glass half full. Your new home (one day) might cost £100,000. It was £200,000k at peak so was worth £170,000 at start of November and £165,750 at the end. Your savings have dropped in the month from whatever, say £150,000 to £149,000 because your interest didn't cover all your expenses.

Still a win situation and more preferable (financially) to the alternative which was living in your depreciating last home, surely?

These sums really only work out if you sell your house at peak. If someone STR'd in 2002 (as some HPC members did), then they're still going to be waiting at least another 18 months before prices even drop back that far. I saw on the BBC that prices were down to 2006 figures currently.

Imagine having to wait for 7.5 years for an investment to just get back to where you where you started from.

Meanwhile, the STRer would have to store their money somewhere. If they invested in the stock market, then they would have lost more money than if they had kept their house, if they put it in savings then they would now be losing out due to inflation being greater than their savings interest.

PN is missing out even more because she is living off her interest and so her STR pot is being eroded completely by inflation. She is also losing out on state benefits because she has such a large STR pot, compounding her losses.

PN needs to do some calculations to see whether she is better off continuing to have her STR pot eroded, or whether she should take advantage of the already large house price falls and buy herself a nice 2 bedder. I suspect with her STR pot she would be close to being able to buy a house outright and then would qualify for state assistance and perhaps be much better off than she is now living off beans and toast in her rented accomodation.

Actually, some of the other HPC people really need to start doing these calculations too. If you have a large deposit, coupled with low mortgages perhaps you'll save money by paying less mortgage than you currently are in rent. You can then start overpaying your mortgages instead of putting your monthly savings in a crappy bank account paying a pittance.