Interest rates to hit 1.25% by year end

ukcarper

Percy1983 wrote: »

Exactly!

So those who have lost jobs or/and have overstretched themselves are unlucky and that is life, if things return to normal and they can no longer afford there home, thats life. Unlucky, get on with it.

Likewise if that causes fall and helps me on my way, thats life. Lucky bonus get on with it.

My point is the older generations have had some luck, so its the younger generations turn to have some... thats life.

Sooner or later things will return to normal and people will lose their homes and as you say that is life. But wishing it on someone as some kind of punishment seems a little uncaring.

Vincenzo

ILW wrote: »

Anyone that is going to struggle due to a .5% rise in rates is an idiot for putting themselves in that position in the first place.

In many cases people will be struggling with redundancy and pay cuts and the drop in rates will have helped to keep their heads above water. It is a little unfair to say all those that will struggle with rate rises brought it on themselves.

Also many will be stuck on std variable rates as a result of a tightening in lenders criteria which no mortgage borrower could have foreseen. Many of these are far higher than the base rate with the average at 4.69% and some as high at 6.45%, it remains to be seen what will happen to them when the base rate increases.

Lokolo

Bring on a housing crash so I can buy a house woo.

Percy1983

ukcarper wrote: »

Sooner or later things will return to normal and people will lose their homes and as you say that is life. But wishing it on someone as some kind of punishment seems a little uncaring.

Maybe it is a little uncaring, but how many of the HPI cheerleading 'I'm alright Jack' give a **** about the future generations?

To many I don't wish it on them as they are just unlucky, but many have overstretch themselves (yes they have done it to themselves) to which they have no sympathy.

I remember a news item a while back about a poor women who was being evicted from her home, but the more she spoke the more I realised that there was no bad luck involved and she never could have afforded it in the first place.

Remember a rise in interest rates will only push some over the edge, as with any species survival of the fitest always shows, they weak fall to make way for the strong and likewise now the financially weak will fall to make way for the financially strong.

Right or wrong... thats life.

ukcarper

Percy1983 wrote: »

Maybe it is a little uncaring, but how many of the HPI cheerleading 'I'm alright Jack' give a **** about the future generations?

To many I don't wish it on them as they are just unlucky, but many have overstretch themselves (yes they have done it to themselves) to which they have no sympathy.

I remember a news item a while back about a poor women who was being evicted from her home, but the more she spoke the more I realised that there was no bad luck involved and she never could have afforded it in the first place.

Remember a rise in interest rates will only push some over the edge, as with any species survival of the fitest always shows, they weak fall to make way for the strong and likewise now the financially weak will fall to make way for the financially strong.

Right or wrong... thats life.

The fact that some bulls seem uncaring is no excuse for you being uncaring. I agree some people may deserve what they get but many don’t.

B_Blank

ukcarper wrote: »

The fact that some bulls seem uncaring is no excuse for you being uncaring. I agree some people may deserve what they get but many don’t.

Are you crazy? Nobody wants things to happen that are bad to other people as punishment. But it has to happen, and so I hope it does happen. I have no sympathy for them because its largely their own stupid fault - but that is along way for just being mean.

Young people will have no sympathy for those who suffer in a long overdue house price fall (if it ever happens - gvn and BoE seem determined to preserve it!), that doesnt mean we want people to suffer for some calious reason. There is a difference which you dont seem able to grasp

Batchy

Seriously guys, no one person will be taken into account when hard decisions are made.

Its my opinion that the Bank of England DO KNOW what they are doing, and now have the remit to control inflation.

Raising interest rates cannot Control the inflation we have today. Raising interest rates to strengthen the pound will only work if no other country raises rates, however, they all too have high inflation so too will probably raise rates if we do. However, they all have the same problem, liquidity, banks problems and credit crunch recovery.

FACT... we have inflation
FACT things will cost more next year
FACT inflation is being caused by a VAT rise TOO, on top of commodity prices.
FACT if rates rise and house prices fall, banks will FAIL, if this happens, then the whole mess we are in with regards to austerity cuts due to our debts to save the banks will be in vain.

Its just not going to happen as you all see.

Merv has been saying the right things, however, what he says and what he does are often two different things.

If he said...

by the end of the year, we will be raising rates .25% each month from June, then i'd buy in, but otherwise, I think he knows looking at CPI'Y' that he has it under control. They are trying to avoid deflation guys, if rates raise and CPIY goes negative after tax... I think you will find we are in trouble and in 12months when the VAT rise drops out... we wont have inflation, but a flat, deflationary environment.

its about finding the balance, but really we all know its about saving the banks and making them independant again... the governmemnt wants them off their books!

ukcarper

B_Blank wrote: »

Are you crazy? Nobody wants things to happen that are bad to other people as punishment. But it has to happen, and so I hope it does happen. I have no sympathy for them because its largely their own stupid fault - but that is along way for just being mean.

Young people will have no sympathy for those who suffer in a long overdue house price fall (if it ever happens - gvn and BoE seem determined to preserve it!), that doesnt mean we want people to suffer for some calious reason. There is a difference which you dont seem able to grasp

What do you call young I would consider some of the people who bought in 2007 and just before young? Now I am old and to be honest a drop in house prices by 20% would not affect me very much the drop in equity being made up by a better return on my savings.

Go back and read some of Percy's posts.

Explain why we need a crash in nominal terms as opposed to a slight nominal falls and with bigger real falls over time.

Percy1983

Sorry if I do come accross in such a way, as with everything some innocent get caught up with the guilty and I would rather that than the guilty get away with it.

If there was a solution which benefitted everybody and hurt nobody that would be my plan.

But I do still believe that you make your own luck, as in those who have lost jobs, would they have lost them if they worked harder?, would they have problems if they saved a little?, are they being snobbish saying 'I won't do that' to work which is available? Not saying that covers all but even some of the innocent are partially to blame for there own problems.

As it is I have learned a lot from what is going around me and will be saving part of our income for rainy days, by all means at first it will go into furnishing a house, but pas that we will build a nest egg to either pay the mortgage early or deal with unexpected problems. In short we will be putting ourselves in a strong position instead of spending living on the edge and having problems the second something goes wrong. I have learnt not to cash in on the house, my parents outstanding mortgage is now for more than it started 25 years ago and my dad has to work to 65 to have a chance of paying it.

In short I am going to take responsibility for my own actions and be prepared for when times get hard, not live the dream then complain when it all comes crashing down.

ukcarper

Percy1983 wrote: »

But I do still believe that you make your own luck, as in those who have lost jobs, would they have lost them if they worked harder?, would they have problems if they saved a little?, are they being snobbish saying 'I won't do that' to work which is available? Not saying that covers all but even some of the innocent are partially to blame for there own problems.

I believe you are very naive if you believe that. I believe you are in accounting someone I know does the same thing and has worked hard to get qualifications and in the job she had. But she was made redundant and it took her a long time to find another job in fact they were just about to put their house on the market before she found another job which pays a lot less that she was earning. Luckily for them they had been in the house for some time and could afford the drop in salary but if the same thing happened to someone who bought in 2007 would they have been able to do the same.