Interest rate held at 0.5%

Graham_Devon

chucky wrote: »

weren't rates under 2.5% for about 10 years in the 1950s?

Probably.

And your point?

chucky

Graham_Devon wrote: »

Probably.

And your point?

it was a question.

you obviously were unable to answer it - please don't make this into another Graham_Devon thread.

chucky wrote: »

weren't rates under 2.5% for about 10 years in the 1950s?

Thrugelmir

RenovationMan wrote: »

Playing the 'straw man*' game again, Thrugelmir? tut tut.

Please find any post of mine where I have described my challenge as anything other than a gamble.

No not an attack. You seem to take jovial observations very seriously.:beer:

On the face of it you appear to have a project which will yield a profitable return irrespective of wider market issues. So your risk is calculated and negated to an extent. Far from taking a gamble which is little more than a punt.

RenovationMan

Thrugelmir wrote: »

No not an attack. You seem to take jovial observations very seriously.:beer:

On the face of it you appear to have a project which will yield a profitable return irrespective of wider market issues. So your risk is calculated and negated to an extent. Far from taking a gamble which is little more than a punt.

Sorry Thrugelmir. I do see you as one of the 'good guys' on this particular board (along with generali and GD), but after being the subject of a few attacks when I first joined (I was basically called a liar due to my overpayments) and having received several digs since, I am perhaps a little tetchier than I would be on any other forum board. Please accept my apologies, if I misunderstood your intentions.

The only real return I'm seeking is to take this old pile of stone from it's current state as a cold mausoleum soaking up gas and electricity and turning it into an energy efficient, comfortable home and to do this without crucifying myself financially.

Some good news that I have received on that front is that my builder tells me that all of the major renovations (new roof, etc) are VAT free because we will have listed building consent. This is a major saving.

bigblackdog

good long may the low interest rates continue , getting a good run out of this

hillcats

These low rates are very nice indeed and they are helping me to overpay my mortgage every month. I am not reliant on these low rates as I am still paying my mortgage at a much higher rate than i need to, which it has now just reverted to a slightly higher rate as the end of our discounted period has been reached, but it is still being paid at a rate just short of 6.5%.
When rates do increase it will only affect my overpayments as these will become less with every increase, i am aware of the pro's and con's to this but decided to pump the money into clearing capital owed.
It does however concern me when thinking about the bigger picture.

neverdespairgirl

Graham_Devon wrote: »

Longest period of time in history that interest rates have stayed at the same level.

that is completely wrong.

Just for one example, the rate stayed unchanged at 2% from June 1932 to August 1939.

Really2

neverdespairgirl wrote: »

that is completely wrong.

Just for one example, the rate stayed unchanged at 2% from June 1932 to August 1939.

add 1940 - 1950.

Here is the link for everyone http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

treliac

vivatifosi wrote: »

We're in the process of signing up for a really cheap 5 year fixed. We'll only have a few years of payments after that and can extend the period if the rates go up. Thank you BoE!

vivatifosi wrote: »

That's the idea Thrugelmir and why we went for 5 years fixed rather than the lower rate tracker over which there is more uncertainty. The rates being lower than either previous fixed allowed us to shorten the term by four years and only put the payments up by about £100, but over and above that we're still allowed up to 20% overpayments. I have no doubt whatsoever that the remaining term will not be as cheap to finance.

You're in the same situation as us viva. This is exactly what we've done. I'll even hazard a guess that you've gone with HSBC too.

The hope, of course, after the initial 5 years, is to be able to pay the balance off even quicker, but depends on the state of things by then of course.
.....

HAMISH_MCTAVISH

neverdespairgirl wrote: »

Just for one example, the rate stayed unchanged at 2% from June 1932 to August 1939.

Interestingly, right after the last global financial crisis.

So whilst the current interest rate is indeed at a record low, rates staying at extraordinarily low levels for a very long time is far from unprecedented.