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Debate House Prices


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Raising Rates to 1% what will it do?

124

Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Lower GDP
    ILW wrote: »
    But surely the government spend it on something, so putting it back into the economy.

    Servicing/ paying off debt, so not in this case unfortunately.
  • ILW
    ILW Posts: 18,333 Forumite
    RenovationMan wrote: »
    If rates go up I will have to sell my £450k house to a bear on here for £1.50. ;)

    I give you £2.00 now CASH.

    There you go, Hamish will say that prices offered have risen by 33%.
  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    Er... to answer the original question, can anyone here borrow new money anywhere near the bank rate? No? In that case, I think it is more a symbolic gesture than economy impacting move.

    But it will affect bank shares a bit.
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    Lower GDP
    ILW wrote: »
    I give you £2.00 now CASH.

    There you go, Hamish will say that prices offered have risen by 33%.

    Well ladies and gentlemen, we have a fresh bid on the table. Do I hear £2.50?
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    Where's the option for:
    mushroom-cloud.jpg
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    Oh, & btw that could be in the economy, or just on here...;)
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • Milla_2
    Milla_2 Posts: 39 Forumite
    Increase Defaults
    If my mortgage goes up I can not afford it. A rate rise of 1% would increase defaults in my area because there are many like me.
  • ILW
    ILW Posts: 18,333 Forumite
    Milla wrote: »
    If my mortgage goes up I can not afford it. A rate rise of 1% would increase defaults in my area because there are many like me.

    In that case you have overcommitted yourself, whos fault is that?
  • LilacPixie
    LilacPixie Posts: 8,052 Forumite
    Defaults stay the same.
    ILW wrote: »
    In that case you have overcommitted yourself, whos fault is that?

    Harsh..... but unfortunatly true.
    MF aim 10th December 2020 :j:eek:
    MFW 2012 no86 OP 0/2000 :D
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 19 January 2011 at 11:36AM
    Lower GDP
    Milla wrote: »
    If my mortgage goes up I can not afford it. A rate rise of 1% would increase defaults in my area because there are many like me.

    How did you get a mortgage and what was the rate? What is the rate now?

    Silly me you are a silver sockpuppet.
    Milla wrote: »
    How would we go about selling our house and buying silver?

    My husband said we should sell now and rent because he thinks interest rates are going up and we would be better off renting.

    Would we be able to get housing benefit if our savings are in silver bullion?

    If we sell our house now while house prices are still high we could have some money left after paying off the mortgage. If we buy silver bullion with this so we do not have any savings and bury it for a few years or even longer until the kids grow up. Waiting for house prices to fall back down.

    If we rent a similar house and claim housing benefit, are we doing anything wrong? I will not tell any lies on the form they just ask have you got any money or savings anywhere, I can honestly answer no cant I?
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