Interest rates to hit 1.25% by year end

Batchy

ukcarper wrote: »

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.

Im an accountant, I would find it difficult to be on a better deal than i currently have, however, i do not live to my means and could easily cope with a 25% paycut.

It could happen if I end up looking for alternative work following redundancy, however, if this happens my redundancy package would more than compensate for it for the next 5 years at a lower wage anyway.

At the end of the day, anything can happen tomorrow, but dont live for tomorrow, life for the day after etc.

I have a future that is rosey so I will live my rosey future out, I dont want to get to 50 with my mortgage paid off, and think... hmm... lifes good, but uh oh, my health isnt, time to imprison myself away and count my money.

A rainy day fund ... yes
Save everything to the point of poverty... No

Thrugelmir

Rochdale_Pioneers wrote: »

Halifax charged me less than 1% on top of base rate for a mortgage in 2006.

and they subsequently went "bust"........

And someone else is now paying for you to maintain that rate. Would you be prepared to sacrifice you rate in the interests of a more equitable society?

Vincenzo

Thrugelmir wrote: »

and they subsequently went "bust"........

And someone else is now paying for you to maintain that rate. Would you be prepared to sacrifice you rate in the interests of a more equitable society?

I don't think the rate was the cause of HBOS' demise.

I completed on an HSBC mortgage at the beginning of 2009 at 0.79%.

They are currently offering 1.79% on a lifetime tracker.

Thrugelmir

Vincenzo wrote: »

I don't think the rate was the cause of HBOS' demise.

Majority of low tracker rate mortgage business written in the boom years was at an operating "loss". As lenders fought for market share.

This business is now being subsidised by new borrowers.

So lending at these rates would have been a contributory factor in the downfall. HBOS (and RBS) ran out of money. As couldn't borrow on the wholesale markets to maintain required regulatory liquidity requirements.

Vincenzo

Not much of a loss if HSBC can still afford to issue lifetime trackers at 1.79% above base?

Vincenzo

http://www.bbc.co.uk/news/business-12478468

He seems to want to play down the speculation about a rise!

lvader

Batchy wrote: »

FACT inflation is being caused by a VAT rise TOO, on top of commodity prices.

All things being equal (which I know they never are) this years VAT increase keeps inflation level with last year. It doesn't increase inflation.

Another option to a rate rise is to unwind QE.

DervProf

HappyMJ wrote: »

I wish they'd hurry up and do it. Whilst inflation (4%) exceeds what I earn on my savings (3%) then I am losing money each month.

Serves you right, you parasite.

Saving for your future is such an irresponsible thing to do. If you want something, slap it on the plastic and buy it now. If you don't want anything now, buy something anyway.

If you want the money that you aren't going to spend now to keep up with inflation, you need to take risks with it. £1000 will buy you 1000 Lotto tickets (it could be you !). Invest in the stock market, that's bound to make more than inflation. Best of all, bricks & mortar - everyone knows that it's a one-way bet. If none of those suggestions appeals to you, a nice 40" LED TV will be a wise investment. Not only will it keep the Chinese/Korean factory workers busy, but you'll have a better TV than Graham_Devon, who refuses to part with his money. What a leech !

IveSeenTheLight

Vincenzo wrote: »

http://www.bbc.co.uk/news/business-12478468

He seems to want to play down the speculation about a rise!

Interesting statement

"Some people are running ahead of themselves and saying that we are pre-announcing or laying the ground for a rate rise," Mr King said.
"That decision has not been taken and won't be taken until we get to the next meeting or the following meeting, or it may be many quarters."

Gorgeous_George

If the base rate rises to 1.25% it will make no difference to savings rates IMHO. SVRs will barely move. Only those on trackers without collars will pay more - but still far less than many others.

I still think Merv is playing poker. He hasn't got a very good hand.

GG