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Interest Rates held at 0.5%

13

Comments

  • ess0two
    ess0two Posts: 3,606 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    PasturesNew wrote: »
    The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.

    Exactly the same as people expecting to live off savings also.
    Official MR B fan club,dont go............................
  • purch
    purch Posts: 9,865 Forumite
    It has become too predictable

    What has ?
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    RenovationMan wrote: »
    Many more people look at a missed opportunity and say if only....

    My late father said to me on many occassions don't back the horses own the book-maker instead.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 9 December 2010 at 6:34PM
    Thrugelmir wrote: »
    My late father said to me on many occassions don't back the horses own the book-maker instead.

    Hope you didn't take his advice :)

    http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?ac=&csi=14283&username=
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    PasturesNew wrote: »
    The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.

    Can you tell me where to get some of this cheap dept.
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    You need money first before they will give it you
  • Sibley
    Sibley Posts: 1,557 Forumite
    Ninth Anniversary Combo Breaker
    The trouble with low interest rates is most people have now got used to them - so feel they're entitled to it ... and have probably racked up more cheap debt, thinking it'll last forever.

    That's true in my case.
    I've taken a gamble on rates staying low for the next 2 years.

    If it works out then easy life. I'm thinking even if rates started rising it will take a long time before they reach 6% or there abouts. That was roughly what I was paying so this is all bonus time for me.
    We love Sarah O Grady
  • wymondham
    wymondham Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    A few years ago rates of 10/15% were unthinkable, now it seems rates of just 4 or 5% are 'unthinkable' to many. Those newbies to the scene will quite naturally assume this is the normal baseline that they are on now and plan accordingly. It shows how bad a state we're in if we are about to reach 2 years of unprecedented low rates .....
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    TBH, I am a "newbie to the scene", yet I wouldnt have got a mortgage unless I hadnt factored at least a 8% increase in base. It would be painful, yes, but managable.

    Over the next 18-20 months, we are due to pay off around 42K, and have around 15-20K spare for discretionary spends/savings post bills and mortgage payments etc. This is on dual salary assuming rates of <1% . After then, rates could hit an average of 4% over the next 8 years, and I will still be able to pay the mortgage off with my tax free lump sum on my 38th Birthday. This is on a property we paid 325K for, with a 30% deposit. For every 1% average increase over the 8 years costs an additional 10K, or effectively, I will have 10K outstanding.

    However, for rates to go up this significantly, we would have to have some form of wage inflation, with it a larger gratuity and final salary scheme.
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    edited 10 December 2010 at 6:56AM
    FYI,

    Swap rates are creeping up, I guess off the export growth. Rates at 2.5% ish by 2015, just under 4% by 2020.

    Think I can cope with that. I bet there are a fair few out there that cant though..

    SMI... Tick tock...

    http://www.swap-rates.com/UKSwap_extended.html
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