Interest Rate

Really2

Graham_Devon wrote: »

And you don't half like taking something completely out of context.

Go on, moan that I'm now abusing you. I got you a special pack of tissues ready.

The basis of what I was saying is they will not ONLY look at CPI as an indicator fo rthe whole of the economy and run everything based on one measurement. It would be absolutely insane to suggest that.

You were wrong.

Why do you keep bringing up abuse yet moaned about shakerbaby getting some earlier.

Leave it hey. I am fed up of proving you wrong.

pop me on ignore if you cant joust without moaning..:rolleyes:

As for your edit

Graham_Devon wrote: »

To suggest they do not look at both measures to show a trend is absolutely insane. Yes, it's based on the CPI in principle, but they will be looking across the board at stuff. No point in having rampaging inflation and saying "nah uh, it don't show on the CPI figures, we shall do nerrrrrr-thing".

What have I taken out of context? you said the above. Which is just plain wrong, that is what I pointed out.

mitchaa

I think now would be a good time to start increasing them.

1.5% by the end of the year for me, there is no need in them as low as they are just now.

Really2

mitchaa wrote: »

1.5% by the end of the year for me, there is no need in them as low as they are just now.

what about the economy? growth will have to be sustained and spending will be constricted.

I take it you are on a fixed rate

inspector_monkfish

mitchaa wrote: »

I think now would be a good time to start increasing them.

1.5% by the end of the year for me, there is no need in them as low as they are just now.

no chance of that happening!

chopperharris

will stay the same until heading for an election if they are labourites , but if they are tories will draw it out for the tory vote as an excuse of labours incompetence.

mitchaa

Really2 wrote: »

what about the economy? growth will have to be sustained and spending will be constricted.

I take it you are on a fixed rate

Yep on a fixed rate and I am so for the next 3yrs so have never benefitted from these historical low rates and i cant see any relationship between BOE BR's and available mortgages at the moment?

The bear argument revolves around the point that when interest rates start to rise, the housing market will enter its 2nd wave of a crash and plunge us into a deeper recession. I do not believe that for a minute, and would like them to start rising now in order to sustain house prices where they are now. If we are at 1.5% by the end of the year, and then 3% by mid 2010 with 4.5% by the end of 2010, with the reintroduction of competitive 95% mortgages this whole thing will blow over with no more misery to anyone.

60%+ of mortgage holders are on fixed rates, i dont have facts and figures for those on SVR's or tracker types but they are obviously in the minority.

I made a point about fixed rates and base rates.

In Sept 2007 I could have got a 100% FR mortgage for 6% with a BOE BR at 5%
In Sept 2009 I could now get a 90 % mortgage for 7% with a BOE BR at 0.5%

The 2 facts above are as clear as day to me. The banks can raise them back to 5% and make them more competitive with no impact whatsoever to the mortgage holder.

I want to see them rise, i want to see them rise now, that way we will soon get back to competitive rates for larger 90-100% LTV borrowings. At the moment, its a shambles,

C&G 90% LTV 7.89% with a BOE BR at 0.5% is daylight robbery, ridiculous and not far from pictating 'theft' to me.

http://www.cheltglos.co.uk/mortgages/no-product-fee.html

As mad as it is, i think if they start rising, these rates will start to come down which in turn will make the economy stronger as more people will start to borrow again. I know quite a few people who are wanting to buy now, have a 10% deposit but are refusing to lock into 7% rates due to the fact they believe the banks are taking the complete mick.

mitchaa

inspector_monkfish wrote: »

no chance of that happening!

No chance of house prices rising in 2009 either when i asked at the tail end of 2008. Apparently they were going to be a further 15-20% down;)

inspector_monkfish

mitchaa wrote: »

No chance of house price rising in 2009 either when i asked at the tail end of 2008. Apparently they were going to be a further 15-20% down;)

ain't gonna happen
more chance of rates being lower than higher !

mitchaa

inspector_monkfish wrote: »

ain't gonna happen
more chance of rates being lower than higher !

You really think they'll go to 0 or 0.25% before they go to 0.75%?

1.5% by the end of this year and 4.5% by the end of next. There's no reason to keep them down this low apart from satisfying a minority of tracker mortgage holders. If they do not start rising soon and then start rising dramatically after election then that will cause a 2nd wave of crash. Do it gradually now and it wont.

We will see;)

Really2

mitchaa wrote: »

1.5% by the end of this year and 4.5% by the end of next. There's no reason to keep them down this low apart from satisfying a minority of tracker mortgage holders. If they do not start rising soon and then start rising dramatically after election then that will cause a 2nd wave of crash. Do it gradually now and it wont.

We will see;)

Base rate is nothing to do with mortgages, It is a reflection of inflation and the state of the economy.