Low Interest rates

Gangstabird

Am I alone in knowing many people, some with BTL's (interest only) and lots with tracker mortgages who are saying 'Recession, what recession', I am only paying xxx now when last year I was paying YYYY'.

It all seems to good to be true. When the interest rate goes back up and I am sure it must as the banks are losing out and will not be happy with this for long.

I am no financial expert, but will this cause the biggest bit of the recession or not?

inspector_monkfish

Gangstabird wrote: »

Am I alone in knowing many people, some with BTL's (interest only) and lots with tracker mortgages who are saying 'Recession, what recession', I am only paying xxx now when last year I was paying YYYY'.

It all seems to good to be true. When the interest rate goes back up and I am sure it must as the banks are losing out and will not be happy with this for long.

I am no financial expert, but will this cause the biggest bit of the recession or not?

it'll be like a holocaust

Dan:_4

We will be out of recession when rates go back up to where they were.

ad9898_3

Gangstabird wrote: »

Am I alone in knowing many people, some with BTL's (interest only) and lots with tracker mortgages who are saying 'Recession, what recession', I am only paying xxx now when last year I was paying YYYY'.

It all seems to good to be true. When the interest rate goes back up and I am sure it must as the banks are losing out and will not be happy with this for long.

I am no financial expert, but will this cause the biggest bit of the recession or not?

IR's will be the third leg down in the market in my opinion. We have had the first (financial meltdown), the 2nd will be the general economy, unemployment etc...(starting winter 2009), IR's will hit much later, 2011 onwards.

ess0two

If they were paying 4 - 6 % last year,when they return to this,cant see it bothering many.

Dan:_4

ad9898 wrote: »

IR's will be the third leg down in the market in my opinion. We have had the first (financial meltdown), the 2nd will be the general economy, unemployment etc...(starting winter 2009), IR's will hit much later, 2011 onwards.

Hopefully by 2011 people would have used any mortgage savings to reduce personal debt.

StevieJ

ad9898 wrote: »

IR's will be the third leg down in the market in my opinion. We have had the first (financial meltdown), the 2nd will be the general economy, unemployment etc...(starting winter 2009), IR's will hit much later, 2011 onwards.

So no normalisation of credit then

ad9898_3

Dan: wrote: »

Hopefully by 2011 people would have used any mortgage savings to reduce personal debt.

You maybe doing this Dan and of course it's the right thing to do, however when I goto to my nearest shopping centre, others seem to be blowing it, I guess we will see when rates do eventually go up.

Dan:_4

ad9898 wrote: »

You maybe doing this Dan and of course it's the right thing to do, however when I goto to my nearest shopping centre, others seem to be blowing it, I guess we will see when rates do eventually go up.

Oh well, it's good for the economny and It's what Gordon wants us to do - keep spending and keep money ticking over, which keeps businesses going, which keeps people in jobs etc etc etc.....

Really2

I think the main thing here is look how much they are making on fixed rates new mortgages etc.
not how much older trackers are hurting them
i think it is fairly clear they are making more than they are hurting:)


Not many people have mortgage IR below 1%;)

chucky

ad9898 wrote: »

however when I goto to my nearest shopping centre, others seem to be blowing it, I guess we will see when rates do eventually go up.

how can you tell they're all on mortgage trackers or SVR's?