Reposessions fall to two year low, mortgage arrears also decreasing

Thrugelmir

chucky wrote: »

lol - i hadn't realised that interest rates were the only tool available to the BoE to combat inflation

Please enlighten us further. As we'd be interested to know what other measures the BOE are considering.

chucky

Thrugelmir wrote: »

Please enlighten us further. As we'd be interested to know what other measures the BOE are considering.

it seems you already think that you have all of the answers :whistle:

Thrugelmir wrote: »

Whether inflation falls back or not will determine if rates rise or remain the same.

Thrugelmir

chucky wrote: »

it seems you already think that you have all of the answers :whistle:

LOL....... You can always tell whose been on a K training course.

Procrastinator333

The other option open to the BOE is to sell back the assets they purchased with the £200bn QE, therefore removing money out of the economy and reducing inflation.

However I'm sure I read somewhere this would be considered a final step after interest rate rises. Beyond those 2 options, I don't believe the BOE can do much else - except ignore it.

A bit of inflation is probably good for the country and the VAT increase in Jan means that in another 7-8 months they have the next excuse for ignoring inflation.

Is the budget really going to drive inflation anyway? Not in my opinion. I personally don't see much upward pressure on inflation going forward.

Would I like to see higher interest rates? As someone with a reasonable chunk of cash in the bank, yes. But I just don't see it.

Anyway, that is my 2 pence, will leave it to you guys to carry on!

chucky

Procrastinator333 wrote: »

Anyway, that is my 2 pence, will leave it to you guys to carry on!

please don't go

RenovationMan

Thrugelmir wrote: »

That's personal justification for your decision. Absolutely nothing wrong in that.

However investing should be made from the head not the heart.




In my first finance job, I was taught and trained to look at the wider picture, never to be constrained by narrow vision. Many factors inter link to impact on the property market. Nothing stays the same for ever. And now is one of those lifetime changing era's.

Sorry, I hate to labour the point but you still seem to be avoiding my question. Are you saying that you think my house will be worth the same or less when I sell it in 15 to 20 year's time than when I bought it?

I know you're trying to make a point that I have to service my mortgage, repair my house and pay for utilities, etc. etc. so as a side issue are you further saying that after 15 to 20 years you think I will have put more income into the house than I will realise when I sell it?

Could I also ask that we stick to the above points, notwithstanding your look-at-the-wider-picture-training.

Thrugelmir

RenovationMan wrote: »

Sorry, I hate to labour the point but you still seem to be avoiding my question. Are you saying that you think my house will be worth the same or less when I sell it in 15 to 20 year's time than when I bought it?

I doubt that your house will have fallen in value in that time frame.

nollag2006

I can't see how anyone could not be delighted at this news. A growing trend of fewer people in financial difficulty is surely a good thing for our society.

Instead, the HPC muppets scratch around looking for bad news where there is none.

RenovationMan

Thrugelmir wrote: »

I doubt that your house will have fallen in value in that time frame.

Well, that was a long and drawn out way for you to argue that I'm doing the right thing!

Anyway, getting back to my original point. I'm factoring downsizing from my large family home to a modest 2 bed cottage as being on of the pillars of my retirement strategy. The other pillars are my company pension (final salary) and private investments (personal pensions and, once my mortgage is under control, S&S ISAs). As Thrugelmir has already stated, downsizing is by no means a unique financial strategy, but I think in order to do it correctly, you have to be downsizing from something substantial for the sums to add up. People who think they will release a lot of cash by downsizing from a modest 3 bed to a modest 2 bed are being very unrealistic.

Thrugelmir

RenovationMan wrote: »

Well, that was a long and drawn out way for you to argue that I'm doing the right thing!

That wasn't the question you asked.

Though you seem convinced that your strategy is the right one. So I wish you well, and hope that it pays off handsomely. As its contarian views that make markets what they are and investing interesting.