MSE Ness: Home owners told to prepare for 5% base rate

Oblivion

It can't happen soon enough for me. I'm sick and tired of being penalised because I've been prudent and saved all my life for my retirement. They can wack it up to 10% tomorrow if they like.

Bloomberg

Oblivion wrote: »

It can't happen soon enough for me. I'm sick and tired of being penalised because I've been prudent and saved all my life for my retirement. They can wack it up to 10% tomorrow if they like.

Rest assured my friend, a ten percent base rate is on the cards at some point. I have been prudent and always spent within my means and think that mortgage payers have had it too good for too long.

A friend of mine who is also in banking/investing thinks that a five percent base rate will have the same effect as the fifteen percent did back in the day - mass repossessions followed by dirt cheap houses. Those who do not learn from history repeat it. All the best.

standinman2009

people need to accept that rates have to return to normal levels resulting in a stronger pound and inflation in check!!!

histricksuk

Will I get a pay rise to compensate for all these price increases? VAT up, fares up, food up, mortgage up. Just how do these people. expect us to pay for these rises?? Get this - I CAN NOT AFFORD TO PAY FOR ALL THESE INCREASES.

grey_lady

The only winners will be the banks.

brit1234

JodyBPM wrote: »

Again, like others, I am finding the idea of people being gleeful because others' are likely to not be able to pay their mortgage very distasteful.

Although only in our 30s, DH and I have pretty much paid down our mortgage to next to nothing, and are likely to be completely mortgage free within the year.

Sorry I am gleefull at the idea of an interest rate rises. I'm a portential first time buyer loosing £1000s in interest from my deposit to bail out those who borrowed recklessly or buy to let investors.

The sooner rates go up the faster house prices will fall to normal levels. I'm glad you are mortgage free but I am also in my 30s and still waiting to get on the housing ladder.

Interest rises are good for a healthy economy and even 5% is to low. After all the previous 5% rates helped to create the biggest housing bubble of all time.

PasturesNew

Great, if I can start getting interest on my savings again, I can afford to rent a small flat. Savings interest used to be able to pay for basic rent + basic bills, now it hardly covers a chip supper.

getmore4less

Needhelpsaving wrote: »

Why am I suddenly glad that I fixed???

What rate?
Whats the lowest long term tracker rate you could have got?

Do a side by side with the same payment and see which works out best.

if high LTV probably not that much better but for the majority of borrowers it will be different

ILW

histricksuk wrote: »

Will I get a pay rise to compensate for all these price increases? VAT up, fares up, food up, mortgage up. Just how do these people. expect us to pay for these rises?? Get this - I CAN NOT AFFORD TO PAY FOR ALL THESE INCREASES.

Whose fault is it that you have over committed yourself?

Did you expect rates to drop below 0.5%?

gailey_2

I dont understand why rates have stayed so low so long.

Not every morgage is linked to base rate remember when they dropped soem banks in no rush to drop it.

Recently tracker morgaes not availiable as banks realised wouldent make them as much money.

consumer debt ie overdrafts, loans and cards often no link to base rate in fact mine and hubbys cards gone up to 29.9percent.

Do feel sorry for savers once we clear debts would love to save up a deposit to buy first home feel trapped in rental and paying landlords morgage for him.
But as fisrt tiem buyer we ideally need 20-25percent deposit which seems long way off and house prices here still high in relation to average salaries especially of ratios reduced.

But my biggest worry by far is inflation cpr and rpr as that effects pretty much everyone.

petrols extortionate
vat on rise
energy bills going up.
foods going up, we buy lot of value products and noticing 15-30p rises on each product.

Since credit crunch everythings become more expensive.
hubbys lost his bonus and had 1percent payrise so efefctivly worse off.
His travel does not cover wear and tear to car and cost of petrol.

I maybe wrong in saying this but dont think low base rates have benefitted all homeowners as its dependant in type of morgage you have and during the boom so many types availible know so many people on intrest only and no savings assuming equity could of course rise. Now they in neg equity and cannot sell.

If they sacrafice interest rates over out of control inflation a lot will be angry.
The bank of england is divided on what to do next.
Think they need to increase gradually and with warning at least.

Hope they take action b4 inflations too out of control as got fuel duty plus vat on petrol which will definatly push rpr up.Soem cuts kick in jan most not until april.
Just hoping council tax not huge hike like last year and landlord does not up our rent too much.