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Debate House Prices
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guesses and to when the interest rate will rise
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raising IRs will change the effect of the VAT rise on inflation. I just wish people would stop going on about it.
IRs will rise, once the banks have recapitalised.
You will all know when the banks have recapitalised, as the government will start selling off the banks (they own) and the shares of the other banks will rise at a fast rate of knots.
At the moment they stand around 20% of what they once were... I think you need a 100% increase from where we are now before we will see rates rise.
IMO, the government never reduced rates to save home owners but actually to keep their bank friends in business, and other corporate business colleages in business, and to give them both a way out, ie pay down the debt while its cheap, and refinance.
Banks have looked at risk and deleveraged away from it, hence avoiding financing some FTBs like the plague.
IMO these will be the indicators as to when we can expect rate rises...
The stock market always knows first, and will price it in way before it happens.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0
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