No interest rate rise in 2011

Orpheo

Brallaqueen wrote: »

fingers crossed the interest rates stay low well into 2014.

Emergency Savings: £104
Savings Acct: £85
Mortgage: £66,837

Fingers crossed. Or are you praying for divine intervention?

GCH888

Orpheo wrote: »

Fingers crossed. Or are you praying for divine intervention?

I predict a future "customer" of Wonga.com

Jonbvn

chucknorris wrote: »

There's nothing sensible about paying off a mortgage with a rate of only just over 1% when my savings are earning around 4.5 - 5%

Many of the one-eyed posters on the MFW forum would likely disagree with you.;)

Bogtrotter

chucknorris wrote: »

There's nothing sensible about paying off a mortage with a rate of only just over 1% when my savings are earning around 4.5 - 5%

This is only true if you are saving the excess in anticipation of using it to pay off a lump sum of the mortage when the rates rise.

If you can't trust yourself not to dip into the savings to buy the ocassional 60 inch 3D enabled TV thats on special offer just to replace the 50 inch one you bought last year. Maybe it would be best to pay extra off the mortage now when we have it so that we will be less stretched when the rates go up.

wymondham

I would have thought it's always in your best interest to pay off your biggest debt (mortgage) as soon as you can??

Cleaver

wymondham wrote: »

I would have thought it's always in your best interest to pay off your biggest debt (mortgage) as soon as you can??

Not if your savings account is paying more than your interest rate on your mortgage.

Generali

wymondham wrote: »

I would have thought it's always in your best interest to pay off your biggest debt (mortgage) as soon as you can??

Not if you can do something better with the money elsewhere.

Ultimately that's how most businesses work. The borrow from the bank or wherever and then make enough profit to cover costs and the interest bill, hopefully with a little (or better big) something for themselves too.

Jimmy_31

Oh we can all breathe easy can we, so you are happy with your cheap interest rate, well i for one wish the interest rate would go back to 5% overnight. I get sick of people saying to me you cant want a house price crash or interest rate rise what about the people who will lose their homes. The fact is those who didnt pay stupid prices for homes wont lose them but those who paid 250k for a 2 bed terrace and have absolutely no money for emergencys will lose them and only have themselves to blame. Are you happy that thousands of pensioners who have worked hard everyday of their lives to get savings in place are now getting a joke of a return on their money?, We all know the reason rates are so low and its because the banks tried a long con and thousands fell for it. But hey your car is being paid for by money you have saved on interest rates, the same low interest rates that are ruining the economy for you yes you and everyone else.

globalds

Generali wrote: »

Not if you can do something better with the money elsewhere.

Ultimately that's how most businesses work. The borrow from the bank or wherever and then make enough profit to cover costs and the interest bill, hopefully with a little (or better big) something for themselves too.

Does that work the same way with government policy ?

Should they pay down the debt if they can't make profit with what they are borrowing.

Generali

globalds wrote: »

Does that work the same way with government policy ?

Should they pay down the debt if they can't make profit with what they are borrowing.

I think Governments should only have net debt for cash flow reasons (tax tends to be paid at particular times rather than evenly across the year) in all but the most extreme circumstances. I don't think that it is reasonable for a Government to expect as a matter of policy to expect future taxpayers to pay for current spending.

I can see a case for it in extreme times (eg fighting big wars) but not just to finance ordinary spending.