Interest Rate

inspector_monkfish

mitchaa wrote: »

Ive already proven that the BOE BR and mortgage rates have no correlation with the 90% and 100% LTV examples i posted earlier, hence why i believe that if the BOE BR rise, the housing market will not suffer like many believe it will.

but its not going to rise though ;)

mitchaa

Really2 wrote: »

100% the setting of base rate as nothing to do with mortgages.

BOE Website



As I said, it is a reflection of inflation and the state of the economy.

Are you Graham Devon in disguise there Really?

The housing market is linked to the state of the economy, mortgages are linked to the housing market so indirectly mortgage setting, housing market and economy are all linked.

The point I was making was related to the old bear argument that the housing market would crash again once the BOE started upping their rates. I personally dont believe it will if done sensibly and in time. (I.e 1.5% end 09 and 4.5% end 10)

Anyway, home time for me so bowing out on this 1:beer:

mitchaa

inspector_monkfish wrote: »

but its not going to rise though ;)

What never?:D

inspector_monkfish

mitchaa wrote: »

What never?:D

nah, don't see why it should...;)

Really2

mitchaa wrote: »

Are you Graham Devon in disguise there Really?

Please no.:beer:

mertsman

I started this thread and am glad it started a discussion.

I just wanted peoples views as my mortgage has just gone variable from its 3 yr fixed.

if the rate stay the same i'll be saving nearly 50% on my mortgage payments each month

inspector_monkfish

mertsman wrote: »

I started this thread and am glad it started a discussion.

I just wanted peoples views as my mortgage has just gone variable from its 3 yr fixed.

if the rate stay the same i'll be saving nearly 50% on my mortgage payments each month

happy days :beer:

donglemouse

not my view and make it of what you want, but a friend works in the economics department of one of the major banks - the internal forecast they have at the bank for boe base rate is 0.5% to the end of 2010 and 2.5% by end 2011

just a forecast and what do the banks know? but it's another view to consider

Generali

The RBA, the Australian Central Bank, has said that they will raise rates soon.

inspector_monkfish

Generali wrote: »

The RBA, the Australian Central Bank, has said that they will raise rates soon.

have they?
i hadn't heard that.

i did hear that there was talk that they may hike soon, but RBA quelled that by keeping rates unchanged and stating that they were happy with low rates right now