Ernst & Young: Rates won't rise until 2014

promoter

Sorry to piddle on the parade but it's worth pointing out that the Ernst & Young quote refers to the BoE rate only. The European Central Bank rate has stayed the same for the past 14 months but in that time, our banks here in Ireland have raised variable rates 2-3 times at about 0.5 each time. I appreciate that the two markets are very different but it's worth bearing in mind that the base rate is not the only factor that determines variable rates.

Really2

promoter wrote: »

Sorry to piddle on the parade but it's worth pointing out that the Ernst & Young quote refers to the BoE rate only. The European Central Bank rate has stayed the same for the past 14 months but in that time, our banks here in Ireland have raised variable rates 2-3 times at about 0.5 each time. I appreciate that the two markets are very different but it's worth bearing in mind that the base rate is not the only factor that determines variable rates.

Correct, but does not stop a good emotive point by some.

phil_b_2

Chaos_A.D. wrote: »

Bitter cus you got debt, tell me would you rather you have what you owe on your mortgage in savings instead ? Don't answer, it's obvious.

That's kinda stupid.

Really2

Chaos_A.D. wrote: »

Bitter cus you got debt, tell me would you rather you have what you owe on your mortgage in savings instead ? Don't answer, it's obvious.

I would be happily mortgage free, but the fair question is would you rather have your house and no mortgage or the value of your house in savings.

Being a person who took out a mortgage to in the end one day become mortgage free, that option seemed a lot more sensible than trying to save for a house and paying cash for it when I had enough.

chucky

i don't understand why the more negative posters on this board are so bitter and angry because it looks like mortgage rates won't go to double digits.

Graham_Devon

I don't understand who's bitter and angry.

chucky

Graham_Devon wrote: »

I don't understand

yes we know but i'm surprised that you admit it... well done

marklv

If rates don't rise soon we will have massive inflation and static incomes, meaning we'll be much worse off. Maybe that's what the government really wants - reduce us to a sweatshop economy while promoting Chinese levels of growth. Not sure if this approach will work - are people in this country seriously prepared to live like this?

doire_2

HAMISH_MCTAVISH wrote: »

Wow....

What an incredible bonus that will be for anyone with a cheap variable rate mortgage.

And if they don't even start rising til 2014, it may still be years after that until they reach the new neutrality point of 3% or so.

The best part of a decade with ulta low rates.....

Top Money Saving.....:D

You forgot this part

The Office for Budget Responsibility (OBR) has said that it expects rates to start to rise next year

Generali

2014 is a very long way off in such volatile times.....