Ernst & Young: Rates won't rise until 2014

Thrugelmir

HAMISH_MCTAVISH wrote: »

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

Top Money Saving.....:D

The thread title "Ernst & Young: Rates won't rise until 2014"

What E&Y said "Interest rates will stay low until 2014, predicts E&Y

Interest rates will remain at their current record low until 2014 as the economy staggers back to sustainable growth, a leading economic forecaster has predicted."

A subtle but signficant difference. As even 1.5% will add another £1,500 to the average mortgage holders annual outgoings.

Unfortunately slow growth will dampen returns on investments and restrict a return to growth in disposable incomes. No wage inflation to aid those with large mortgages as previous generations enjoyed.

So lucky few with tracker mortgages are set to be the beneficaries, the remainder will pick up the tab.

I would personally prefer more normal base rates and wage inflation to go with it. Rather than the deflationary phase we appear to be heading for once Government support is withdrawn from the markets.

HAMISH_MCTAVISH

Chaos_A.D. wrote: »

Is that the same ivory tower that you as a mortgaged 'homeowner' sit in when your sniggering at people on here who can't afford to buy because of high prices ?

We don't snigger at people who can't afford to buy because of high prices.

We snigger at crashaholics who failed to buy when they should have bought, then desperately wanted the value of other peoples assets to decline in compensation, gambled on it happening, and lost.

Yes indeedy.... We sure do snigger at them. :rotfl:

HAMISH_MCTAVISH

Thrugelmir wrote: »

No wage inflation to aid those with large mortgages as previous generations enjoyed.

So lucky few with tracker mortgages are set to be the beneficaries, the remainder will pick up the tab.
.

We both got above inflation pay rises this year, last year, and the year before.

And we have a low variable rate mortgage.

Best recession ever for many people.

:beer:

bigheadxx

Given the amount of money that the government is going to take out of the economy it is unlikely that rates will rise by very much over the next few years. The main beneficiaries, those with BOE tracker mortgages will become fewer as people remortgage to different deals.

The control of inflation is likely to be pretty lax, there is simply too much debt, both government and private, for there to be any other feasible option of reducing it in real terms. Whilst house prices by 2020 may be higher in cash terms they will be significantly lower in real terms.

chucky

Thrugelmir wrote: »

A subtle but signficant difference. As even 1.5% will add another £1,500 to the average mortgage holders annual outgoings.

Thrugelmir wrote: »

So lucky few with tracker mortgages are set to be the beneficaries, the remainder will pick up the tab.

so only a lucky few will be beneficiaries but the average mortgage holder will be penalised... that's not a consistent statement is it...

twadge_face

chucky wrote: »

so only a lucky few will be beneficiaries but the average mortgage holder will be penalised... that's not consistent is it...

Haha. What consistency is there with any of this? At the moment all first time buyers and all renters are penalised due to high prices and crummy legislation respectively.

Sounds like you want to apply to consistency when it suits your argument.

chucky

!!!!!!_face wrote: »

Haha. What consistency is there with any of this? At the moment all first time buyers and all renters are penalised due to high prices and crummy legislation respectively.

Sounds like you want to apply to consistency when it suits your argument.

i've never come to you with my issues so please don't come to me with your issues.

i'm not your therapist.

life's not consistent, maybe i should have said it's not a consistent statement.

ess0two

Chaos_A.D. wrote: »

Is that the same ivory tower that you as a mortgaged 'homeowner' sit in when your sniggering at people on here who can't afford to buy because of high prices ?

snigger,plenty of property at affordable prices near to me,you seem to have issue with people who have a mortgage.

http://www.rightmove.co.uk/property-for-sale/property-24479995.html

Graham_Devon

ess0two wrote: »

snigger,plenty of property at affordable prices near to me,you seem to have issue with people who have a mortgage.

http://www.rightmove.co.uk/property-for-sale/property-24479995.html

That should be up for £145k at least with a kitchen like that.

DaddyBear

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

Top money savings indeed, or if you re-arrange it......

Stop saving money.