for those who want the base rate to rise

StevieJ

purch wrote: »

I can't believe people still accept this propaganda.

So enlighten us Purch

StevieJ

Generali wrote: »

You edited my post for me which is very kind of you to do.

Northern Rock is still a nationalised bank I believe. ING is a UK subsidiary of a Dutch Bank.

HSBC will give you 1.75% on their cash ISA (link), 1.25% over base. Santander will give you 2.9% dropping to 2.4% (link), 1.9-2.4% over base.

This is very generous stuff. Normally you have to work hard just to get the base rate.

Maybe base rates and savings rates aren't strongly correlated.

I will settle for a premium over RPI, thankyou as it was when Icesave were strutting their stuff.

botchjob

I'd personally like to thank Leveller90210 and Tara747 for propping up the country. It's very generous of you and I think I can speak for everyone when I say that none of this would have been possible without YOU personally and your piggybanks. Keep up the good work.

doire_2

Sibley wrote: »

The difference is I'm laughing because I'm saving/paying off a lot of money. It feels great. I'm not laughing or wishing families and friends suffer hard times when banks increase interest rates.

You are not propping up anyone. A few homeowners stretched themselves not all. Most are enjoying the greatest ever time to have a mortgage. We are paying the debt down and had some money left over.

This period has given most people a chance to get ahead.
Not a single person in my group of friends wants rates to rise. We like a spend up.

I expect you will laugh longest. Rates will rise one day and everyone will be miserable.

Whatever floats your boat.

Trust me though. That ain't going to be for a good while yet.
If you really believe you are propping us all up and are twisted up then that's up to you.

Come on ohh knowledgeable one....tell me why you are 100% rates wont rise soon?

wherediditallgothen

doire wrote: »

Come on ohh knowledgeable one....tell me why you are 100% rates wont rise soon?

It's probably wishful thinking as opposed to a well thought out opinion. Maybe it's just that if rates did rise Sibley would be Donald Ducked.

tara747

RenovationMan wrote: »

I'm not about to argue why we have 0.5% BoE rates, or whether they are justifiable. What I will say is that none of us can do anything about it, so you either sit and moan about it on forums and see next to no return on your savings, or you change your investment strategy and take advantage.

I did the former and now I'm doing the latter. I now see this as an opportunity that will only come along once in a generation, perhaps even once in several generations. I'm going to take advantage as much as I can and I suggest others do the same.

Just saw the size of your mortgage in your sig, yikes!!!! :eek:

botchjob wrote: »

I'd personally like to thank Leveller90210 and Tara747 for propping up the country. It's very generous of you and I think I can speak for everyone when I say that none of this would have been possible without YOU personally and your piggybanks. Keep up the good work.

Why thank you. But it's not our choice unfortunately!

Thrugelmir

whatyadoinsucka wrote: »

just out of curiosity what profession.

are you an accountant, a tax expert, mortgage advisor, financial planner, a labour supporter, an unemployed bum, a pink newspaper reader, a stockbroker, a saver.

and why are you adamant we need a rate rise:money:

Profession makes no odds. Either you on a low rate tracker or SVR, or not. There's where the self interest lies.

In the real world interest rates are rising for money borrowed. As once base rate falls below 1.5%. This has no direct influence on markets rates. As an indicator bank 5 year swap rates are up 47% in the past 6 months.

Once the inflation figures fall, as VAT rises etc drop out. Then there'll be a clearer indication of the asset inflation in the system caused by the relaxed monetary policy.

gagahouse

Thrugelmir wrote: »

Profession makes no odds. Either you on a low rate tracker or SVR, or not. There's where the self interest lies.

In the real world interest rates are rising for money borrowed. As once base rate falls below 1.5%. This has no direct influence on markets rates. As an indicator bank 5 year swap rates are up 47% in the past 6 months.

Once the inflation figures fall, as VAT rises etc drop out. Then there'll be a clearer indication of the asset inflation in the system caused by the relaxed monetary policy.

True, they've been rising last 6 months, down a bit today but not as much as the underlying Gilts as the spreads have slightly widened today.



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Thrugelmir

gagahouse wrote: »

True, they've been rising last 6 months, down a bit today but not as much as the underlying Gilts as the spreads have slightly widened today.



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What we are witnessing is 2006 swaps maturing and being refinanced at current market rates. As the demand for credit increases so will the price. Market forces at work.

chucky

Thrugelmir wrote: »

What we are witnessing is 2006 swaps maturing and being refinanced at current market rates. As the demand for credit increases so will the price. Market forces at work.

so there only 5 year swaps being traded?

i'm sure Libor's are traded on different tenors...