When interest rates to go back to normal many more distressed sellers?

paidinchickens

Going into my bank on Monday they had the mortgage advisor walking around trying to get people to go on a fixed deal. "Security, pending interest rises" she was more like the town crier!!

Now I do not believe for one second my bank wants to do me a favour and save money or the old couple who were waiting behind me.

If they want me off a tracker surely they know that even if the interest rates go up it will be a slow journey and as the "best deal" was for a three year tie in I am assuming they believe rates will rise to 5% ish within the next three years. So getting me in a tie in now through panic will only line their pockets further.

I may be wrong but this is also true on adverts as they are trying to get people off trackers and onto "deals" they would not be doing this if they thought for one second they would lose money!!!

Poshbird

Maybe but no one knows for sure how much or fast they will go up. The only thing certain is that they will go up, interest rates that is not house prices

FTBFun

Poshbird wrote: »

Maybe but no one knows for sure how much or fast they will go up. The only thing certain is that they will go up, interest rates that is not house prices

Eventually they will, but as Charlton Heston says at the start of the documentary "Armageddon".

It happened before. IT WILL HAPPEN AGAIN. It's just a question of.......when.....

Poshbird

The longer they delay putting up interest rates the worse it is going to be when everything come to a head.

You cant keep kicking the can down the road forever. There is a limit.

abaxas

Poshbird wrote: »

The longer they delay putting up interest rates the worse it is going to be when everything come to a head.

You cant keep kicking the can down the road forever. There is a limit.

Are you expecting a full on currency crisis?

Sibley

Housing benefit is capped at 650 pounds a month.

A landlord can make money with most 2 bedroom places and keep within that.

If you had a 3 bedroom place that you wanted over 650 quid a month for you could convert it to bedsits or split it into flats. Easy solution.

Herbie_Hancock_I_wish

Sibley wrote: »

You are not wrong there. I've got about a million female friends. I'm happy with the balance.




I've got plenty of ladyboy friends as well. I like them but don't fancy them.

I worry when I see people making angry comments about gay people. I always think they have a secret. :rotfl:

Hope you didn`t Bang your !!!! to hard.

buglawton

In case anyone misses this earlier, for the long view:

Bank of England Base Rate Graph since 1970

HAMISH_MCTAVISH

buglawton wrote: »

In case anyone misses this earlier, for the long view:

That's not the long view. That's the skewed view, containing the 3 decades of the most abnormally high base rates in history.

This is the long view.....



And to put things in perspective, the last time we had a financial crisis this serious. base rates stayed at 2% for 15 years.....

HAMISH_MCTAVISH

Bohdy wrote: »

Your chart makes it look even worse long long term. Very abnormal.

Not as abnormal as those three decades of record high rates from the 1960's to 1990's.

Now that really was an aberration.

Why does it not show the 0.5% we are at now?

Because it was created in 2009.