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

Gorgeous_George

fedupbankstaff wrote: »

I work in a bank as you can probably tell from my log in name. I moved house in March and did not take a 'subsidised' mortgage. Wasn't much different to normal rates and as I would have then paid tax on the difference as a 'taxable benefit' I would probably have been worse off!
I did however, set up a regular overpayment to proof myself from future rate rises. Payment should be £480 and I am paying £550.
I don't however have sky TV, an Xbox, Wii, i phone or any other 'essential'.
I see many people everyday complaining about every rise imaginable but are still happy to pay £61 pm for sky from their child benefit, tax credits or job seekers allowance or a £40 pm phone contract.
It's about priorities and a large percentage of the population have got them wrong!
My new house needs a new bathroom, kitchen and redecorating throughout having been owned by a 75 year old lady with a passion for green and yellow(yes every room!). This will be done 1 room at a time as I can afford it and not as seems to have been the norm, all in one go on credit.

It is so refreshing to hear people with similar values to my own.

Enjoy making your house your home.

bon chance

GG

debraose27

people with mortgages have been enjoying the almost free use of my savings for almost thee years now it it time to pay back, I have struggled with a lower income so they may enjoy the fruits on my effots and hard work over many years including mortgage interest rates above 20%, I have little sympathy with anyone who did not take the opportunity to reduce their indebtness, fair is fair time to lower your living standard and improve mine
OAP

OverlandLandy

debraose27 wrote: »

years including mortgage interest rates above 20%, I have little sympathy with anyone who did not take the opportunity to reduce their indebtness, fair is fair time to lower your living standard and improve mine
OAP

20%???? I cant ever remember it hitting those levels?

Lets not kid ourselves 5% base rate is bad news.
Increases in day to day living (Vat, Fuel, Food, Insurance premiums,Postage, NI contributions, Pension changes etc....) is costing us all more money (even the best of the MSE experts are not exempt!).

Link this with pay freezes (or unemployment) add an increase in base rates and LOTS of folk will be pushed over the edge!

Make no mistakes the ONLY option will be for the government to step in and and rescue them...who will pay for this...you and me! It makes no difference if your Gleefully looking forward to 5% rate OR dreading it.... no-one will be exempt from having to fund such an economic disaster!

Derivative

5% rate is bad news?

5% is essentially normal. If anything it's low compared to the last few decades.

I don't understand this incessant whining about "xxx" prices. Yes, inflation exists. It pretty much always has. Unless you got yourself into £100k + debts with hardly any safety margin, what's 5%?

blueberrypie

OverlandLandy wrote: »

20%???? I cant ever remember it hitting those levels?

Lets not kid ourselves 5% base rate is bad news.

The base rate was a lot closer to 20% than 0.5%`(or even 5%) for much of the 60s, 70s and 80s. And remember that mortgage borrowers pay more than base rate.

originalmiscellany

I was doing some research - not a new link but interesting:

http://www.bankofengland.co.uk/monetarypolicy/decisions.htm

then at the bottom of the page is an excel spreadsheet -
Official Bank Rate history
Data from 1694.
Download Spreadsheet

at the bottom of the page.

It shows how interest rates have been historically, and how indeed we are living in unprecedented low interest rate times.

Good for a 5 minute view

ILW

OverlandLandy wrote: »

20%???? I cant ever remember it hitting those levels?

Lets not kid ourselves 5% base rate is bad news.
Increases in day to day living (Vat, Fuel, Food, Insurance premiums,Postage, NI contributions, Pension changes etc....) is costing us all more money (even the best of the MSE experts are not exempt!).

Link this with pay freezes (or unemployment) add an increase in base rates and LOTS of folk will be pushed over the edge!

Make no mistakes the ONLY option will be for the government to step in and and rescue them...who will pay for this...you and me! It makes no difference if your Gleefully looking forward to 5% rate OR dreading it.... no-one will be exempt from having to fund such an economic disaster!

Anyone who is likely to go under due to a 5% base rate needs to be addressing the issue NOW, rather than burying their head in the sand and saying it cannot happen.

OverlandLandy

ILW wrote: »

Anyone who is likely to go under due to a 5% base rate needs to be addressing the issue NOW, rather than burying their head in the sand and saying it cannot happen.

I agree...but will they?

If not we all end up having to pay more to bale them out!

The Banks have not helped either (whats new!).

OverlandLandy

EdgEy wrote: »

5% rate is bad news?

what's 5%?

I'm looking to re-mortgage (to do a self build) and there are VERY few options around and ALL are at a MUCH higher rate than I'm on.

on £100k Mortgage my repayment (offset @ 0.35% Above BOEBR) is £371.41/month

Moving to a new £100k mortgage the BEST I can find (in Scotland) is 4.5% ABOVE BOEBR that = £591.27/ Month (with Large product fees and Tie ins)

IF the base rate hits 5% It will cost £882.99/ Month!
THAT is 2.37 X the current repayment for the same borrowing!!!
So 5% DOES make a big difference! (if you cant port your mortgage!)

Henry_P_Chester

Jonbvn wrote: »

Sorry, but that is just not true.

No need to be sorry but it is true. The bank of England base rate in 2007 was between 5.25% and 5.75%
http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp

The average tracker mortgage in 2007 reached 7.5%
http://www.houseprices.uk.net/graphs/