will a nov rate rise affect you?

ManAtHome

Apart from tax reducing the saving rate increase to 0.20% (and quite likely the bsoc reducing it to 0.15%...)

F_T_Buyer

Xbigman wrote:

Now what I would like to see is no more rate rises and inflation allowed to rise, thus reducing my mortgage in real terms.

What you mean is you want wages to rise (wage inflation). If inflation rises it only depresses people spending power and quality of life.

If you want a return to a high inflation era, people will be subject to higher interest rates. You can't have it both ways. Real interest rates, i.e. interest rates minus inflation, will be kept in line with the rest of the world. If they are not, expect that currency to fall..!

bap98189

Interest rate rises - bring them on I say. Anything that will bring property prices down to something approaching an affordable level is good in my book.

TJ27

FaTB wrote:

Surely that is crazy ??

As you'll be paying more interest on your mortgage, than you are earning on your savings !

I'm with you on that. It's just that the savings are in her name and she won't do it.

To be honest it's not a huge sum of money, it's not a huge mortgage and the interest difference isn't really that big.

I don't lose sleep over it.

There are other reasons why the money might come in useful too. But that's another story.

Market_Oracle

The flood of money will ensure that this won't be the last rate rise.

It may be a little early to call, but we could be headed for something similar to the 1970's, yeh, yeh, yeh seems a little far fetched, but I say go take a look at the money supply ;

abaxas

Market_Oracle wrote:

The flood of money will ensure that this won't be the last rate rise.

It may be a little early to call, but we could be headed for something similar to the 1970's

No we cant have that.

We'd be the most expensive place on earth! Without the safety blanked of wage inflation.If this happens we are well a truly 'f***ed'.

Jobs would be exported everywhere and we'd be left with.....

Xbigman

F_T_Buyer wrote:

What you mean is you want wages to rise (wage inflation). If inflation rises it only depresses people spending power and quality of life.

If you want a return to a high inflation era, people will be subject to higher interest rates. You can't have it both ways. Real interest rates, i.e. interest rates minus inflation, will be kept in line with the rest of the world. If they are not, expect that currency to fall..!

Yes that was what I was getting at, but not high inflation. I've had useless payrises worth between 2 and 3% for a few years so the 3.5% this year is welcome, but I'd prefer the 5 to 6% range long term.

As for a return to the 70's, the financial implications don't phase me but I just couldn't go back to wearing flares... :rotfl:
Regards



X

Plasticman

I'm on a 5 year fixed rate so no problem with a rate rise. Would be happy for the increase in interest on my savings too

Plasticman

FaTB wrote:

Surely that is crazy ??

As you'll be paying more interest on your mortgage, than you are earning on your savings !

Don't assume that's always the case. The earnings on my savings has been higher than the interest on my mortgage - admittedly helped by the fact that my wife isn't a tax payer.