Trevor Mcdonald: Monday 8.00pm

ZTD

Bogof_Babe wrote:

I'm afraid that is meaningless unless qualified by stating the amount borrowed.

Too true.

Bogof_Babe wrote:

Interest rate rises are good for savers though, and these people will be well placed to keep the economy afloat by spending more.

But surely if they're savers, then by definition, they're not spenders...

vishpatel

themaccas wrote:

How can they predict the interest rise is going to go up? There is no change at present.

Because they're making a 'prediction' ?

Fairly safe one too. Seems nailed on. Betfair odds testify to that.

vishpatel

bonnie wrote:

But surely a quarter of a percent rise isn't going to push people in to repossesion, how much money does this equate to in real terms.
Would they be stupid enough to do this a month before christmas spending hit's the shops and cause economic misery as well.

with every rate rise there will be people at the margin, who just can't keep up anymore.

It's not just mortgages that are increasing - the price of most things is rising. Thats why rates are rising - to try and control the inflation.

vishpatel

rog2 wrote:

Also - yes they would be stupid enough to increase interest rates just before Christmas, or worse still, just after Christmas, when everybody is spent out.
I think that the only time you will see interest rates fall significantly will be in the six months before the next general election - making a complete mockery of the independence of the Bank of England.

I think whats stupid is not raising them earlier when they had a chance. They don't have a choice now - the inflation data is undisputable.


Maybe just before christmas is the perfect time to raise them. To send a little warning to the consumer that they shouldn't overspend.

Pobby

rog2 wrote:

Quite frightening - should be compulsory reading material for anyone contemplating a mortgage.

Frightening stuff

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shows how many are overstreched.

Pobby

Yes they should have raised irs some time ago.This was a disaster waiting to happen.I think Nu Labour has been deliberate in allowing this state of affairs.I am no economist but this was a dangerous ploy to encourage people to carry on spending when perhaps we may have slipped into recession early part of this centuary.

ZTD

Well if I'm going to stick my oar in, I might as well stick it in good and proper...

There's this. And this of course. These women wrote a book called "The Two-income Trap: Why Middle-class Mothers and Fathers Are Going Broke" which I've got, but here's a review... :rolleyes:

roswell

The problem isnt the .25% increase, the problem is over borrowing. With feul price increase`s, high personnel debt, increased borrowing costs for banks, increased bad debtors, something is goign to have to give, looking around industry redundancies are creaping up,

per 100 000 its increasing mortgage costs £250 a year this isnt a small amount if your already servicing large debts and increase food / gas / electric / council tax.

Zippy2006

Too many people have effectivley wiped out their equity on their properties by:

Converting unsecured debt into secured debt to try and balance the books (pay off existing loans / credit cards) or To pay for cars, kitchens and other 'must have' goods.

These types of debt should always remain unsecured.

Once these debts become secured debts they effectivley increase the chances of having their house repossesed when payments are missed.

The last .25% rise combined with another .25 rise combined with higher fuel, gas and electric etc can easily prevent someone from meeting payments on secured debt / mortgages. Then the vicous circle begins.

Pobby

However if the government really faced up to the true inflation figure and adjusted interest rates accordingly many of us would be in a world of sh-te!