Raising Rates to 1% what will it do?

maveli

No Idea. But my mortgage will go up £50.00

LilacPixie

Defaults stay the same.

Really2 wrote: »

Personaly I think rates on the way up will go up every other month or 1/4 at 0.25%. Just so they can see the impact.

I personally think the same. .25% every 3-4 months. A 1% mega hike will cause quite a few squeeky bums I would imagine. Not so much because of the 1% itself but the acknowledgment that the BoE is prepared to increase IR just as quick as they were reduced.

The thought that my mortgage could increase 3% over 3 months would be enough to give me sleepless nights but thats one of the reasons I personally decided on a fixed rate when we moved last month not a tracker.

It's actually a bit like fuel and food costs.. You don't really notice the small increases month on month. For example if i paid 3% on mu mortgage a .25% increase would be about £14 a month so 50p a day. As a family TBH I doubt we would notice.

A jump to 6% would add another £200 ish to it. It wouldn't send us anywhere near defaulting but it would be noticable especially in the absence of wage increases.

Euphoria1z

my mortgage will go up by £120 per month...EEEK!

1984ReturnsForReal_2

Where is the "BU**ER ALL" option?

purch

Lower GDP

Personaly I think rates on the way up will go up every other month or 1/4 at 0.25%

Now you are moving the goalposts.

The OP appears to suggest a 3/4% hike in one go.

I may have to reassess.

Really2

Lower GDP

LilacPixie wrote: »

I personally think the same.....

Saw your Sig, all the best for next month.

Really2

Lower GDP

purch wrote: »

Now you are moving the goalposts.

The OP appears to suggest a 3/4% hike in one go.

I may have to reassess.

Sorry purch, it is worse than that I meant up too 1% so up 0.5% from where we are now. Can be one hit, but much in line with what could happen this year.

See, clear as mud.

AD9898_2

There seems quite alot of discussion (some would say worry) regarding any IR rise. Why worry, surely any sensible borrower would have factored in maybe an SVR of 8% perhaps on single wage at some point during their mortgage term, no ?

Yet folk seem to be a little fretful over a very small base rate rise upto say 1.5-2%, WHY ???, isn't it really because house prices are/were way too high and even a base rate of 1-2% would cripple their disposable income ?

Remember when base rate shot up into double figures, sure it was bad but we got through it with approx 70,000 repossessions per year at it's worst, house prices have got so out of control that I'd hazard a guess if the same happened now at least 50% of all mortgage holders (over 5 million) would be in serious arrears with the threat of repossession looming large.

And yet to some on here believe houses are affordable, don't make me laugh.

Really2

Lower GDP

AD9898 wrote: »

There seems quite alot of discussion (some would say worry) regarding any IR rise. Why worry, surely any sensible borrower would have factored in maybe an SVR of 8% perhaps on single wage at some point during their mortgage term, no ?

Yet folk seem to be a little fretful over a very small base rate rise upto say 1.5-2%, WHY ???, isn't it really because house prices are/were way too high and even a base rate of 1-2% would cripple their disposable income ?

I think you are only looking it from housing. My worry would be making a mistake and us falling back in to a recession and inflation being worse.

Graham_Devon

I don't care, understand or cant be @rsed

Really2 wrote: »

GD, I am slightly Disapointed that as a supporter of rates going up you have chosen not to bother. But respect your wish not to respond.

I was hoping to get a reasonable insight in to what we all thought compared to the media etc.

You'd only jump in to tell me I'm wrong.

This is highlighted by the fact you have jumped in on my choosing the option i can't be bothered.