Anyone else worried about the interest rate rise?

Uniscots97

Anyone else worried about the interest rate rise? I was just reading all the analysis on one of the internet news sites as well as some of the comments that had been posted there. Some were genuinely worried people and they were getting heckled from other posters. So just wanted to see what everyone on here thinks of it........Are you worried?

Myself, I don't like it but took the chance a few years ago when changing my mortgage to go for a low fixed rate for 2 years then 1 year variable before I could change it again (just started into variable rate period). I'll probably end up paying an extra £15 a month on my mortgage. Hopefully the rates won't go up again. Maybe time to give up my Sky in favour of Freeview. Have had free Sky for 5 months as they overcharged me for two months but have started paying my subscription again myself this month. That would at least give me the extra I need.

How is everyone else feeling about this?

lynzpower

scared to death- which is why Im selling my flat - there is no way that we could afford it, and not only that, makes my mortgage extremely poor value for money. Its about 200 quid less to rent a month. So thats what we are gonna do :money:

Uniscots97

I live in area where its really expensive to rent. I'd end up paying more in rent than my mortgage. Will be turning the heating back another notch and rack my brains on how to stretch my budget a bit further just in case there's another rise in January like they're predicting.

ZTD

When a recession hits, they will be the first things to be cut. Of course unemployment becomes a problem then.

See also http://news.bbc.co.uk/1/hi/business/6065490.stm

Pobby

lynzpower wrote:

scared to death- which is why Im selling my flat - there is no way that we could afford it, and not only that, makes my mortgage extremely poor value for money. Its about 200 quid less to rent a month. So thats what we are gonna do :money:

Lynz,I think that is a smart move.How long have you had your flat?

Uniscots97

Thanks ZTD hadn't seen that article. I read the article I mentiond on the beeb too. Some of the hecklers on their comments board are horrible. The company where I work has paid off 70% of its workforce in five years. Worried about that too but less so as they'll have to pay me redundancy. Its a vicious circle. Someone I work with pays £3000 a month for his mortgage. Wouldn't even like to think how much the increase would be on that!

Uniscots97

Thanks ZTD hadn't seen that article. I read the article I mentiond on the beeb too. Some of the hecklers on their comments board are horrible. The company where I work has paid off 70% of its workforce in five years. Worried about that too but less so as they'll have to pay me redundancy. Its a vicious circle. Someone I work with pays £3000 a month for his mortgage. Wouldn't even like to think how much the increase would be on that!

pudding06

I remeber interest rates of upwards of 13%

no i'm not panicking - lifes too short to worry about what might happen if and when.

If it happens you'll deal with it hun

pudds

Uniscots97

13%?!!!!? crikey. I remember Mum saying it was really high when her and my Dad bought their first place (early 1980's after sharing with family for years) but hadn't realised the interest rates were that high.

KatrinaC_2

Personally I'm feeling OK about the rise as all of my debts are on a fixed interest rate and so this will not affect my expenditure.

Also (and I KNOW that this is very selfish so please don't all shout at once!)I'm secretly hoping that if the interest rate rise depresses the housing market enough, it might mean that I will be able to afford to buy a house. {Hangs head in shame}.

Nationally though, how can the interest rate rise be viewed as a good thing when we are already getting reports of record numbers of bankruptcies and IVAs?

Kat

Grumpy_Old_Duffer

pudding06 wrote:

I remeber interest rates of upwards of 13%

Yeah!!! Happy memories eh!!! I think I can remember 14%.:eek:

Anyway, at those heights it was really scary!!! Also seem to remember that wages were automatically increased by the Ted Heath Government of the time, by 50p for every % rise in interest rates ..... mind you that period of my life was just a blur (drink/sex/rock 'n roll) ... happy days!!!;)