BOE in rate shocker

IveSeenTheLight

shortchanged wrote: »

Fair enough and good luck to you, but you can't deny that your current purchase was a decision based on ultra low interest rates and you openly admit yourself it was a gamble.

where?

He said he looked at the situation and reasoned he would be better off investing in his property.

He's so far been proven correct.

Where's the gamble?

Interest rates have been low for circa 27 months.
When do you expect them to rise?

Sure they will rise at some point and most reasonable people realise that there needs to be a fundamental change in our economy before rates dramatically go anywhere.

Why not capitalise on a loan should you need one whilst the rates are so low instead of waiting till a time when they will be higher?

shortchanged_2

IveSeenTheLight wrote: »

where?

He said he looked at the situation and reasoned he would be better off investing in his property.

He's so far been proven correct.

Where's the gamble?

Interest rates have been low for circa 27 months.
When do you expect them to rise?

Sure they will rise at some point and most reasonable people realise that there needs to be a fundamental change in our economy before rates dramatically go anywhere.

Why not capitalise on a loan should you need one whilst the rates are so low instead of waiting till a time when they will be higher?

As I've said numerous times before that the gamble is paying off due to luck not judgement.
Nobody predicted that interest rates were going to stay this low for so long and the fact they have shows the horrendous state our economy continues to be in with no real sign of improvement as the coalitions economic policies continue to stifle growth.

In answer to your question Iveseenthelight no I don't see interest rates going anywhere soon because our economy is shafted.

And by the way I benefit more from interest rates being low as I am now on a low rate tracker, however I would prefer to see the economy as a whole in a better state.

IveSeenTheLight

shortchanged wrote: »

As I've said numerous times before that the gamble is paying off due to luck not judgement.
Nobody predicted that interest rates were going to stay this low for so long and the fact they have shows the horrendous state our economy continues to be in with no real sign of improvement as the coalitions economic policies continue to stifle growth.

In answer to your question Iveseenthelight no I don't see interest rates going anywhere soon because our economy is shafted.

And by the way I benefit more from interest rates being low as I am now on a low rate tracker, however I would prefer to see the economy as a whole in a better state.

So you can't see interest rates going anywhere soon, Rennovation man advised he "reasoned" that they were going to stay long term, yet his reasoning is luck and not judgement.

Originally Posted by RenovationMan

I bought after rates hit 0.5% and I reasoned they were going to stay like that long-term. I therefore decided to buy a dream home and use up my savings. I currently have 43% equity, where is the gamble in that?

shortchanged_2

IveSeenTheLight wrote: »

So you can't see interest rates going anywhere soon, Rennovation man advised he "reasoned" that they were going to stay long term, yet his reasoning is luck and not judgement.

So you honestly believe that Renoman thought that interest rates would remain as low as they have for as long as they have?

Well unless he is Mervyn King I seriously doubt it.

RenovationMan

shortchanged wrote: »

So you honestly believe that Renoman thought that interest rates would remain as low as they have for as long as they have?

Well unless he is Mervyn King I seriously doubt it.

Well, as ISTL has pointed out, you said "I don't see interest rates going anywhere soon because our economy is shafted". You are obviously making a prediction about interest rates, probably based on all of the data you see in the financial press, statements from the BoE and a bit of your own gut feeling. Why therefore is it too hard to imagine someone else doing that?

I didn't predict that rates would fall so far, so fast. I didn't predict that rates would still be at 0.5% past May. What I did predict, based on the same data as you but a year* ago was that rates would stay low# for a few years and so I should capitalise on that.

As for the 'gamble' part, why should that bother you so much? It's not your money I am 'gambling' with and if something goes wrong it won't impact you in the least. However, as I have said to you before, but perhaps you missed it, my gamble isn't that rates will stay low so that I can afford my mortgage, the gamble is that rates stay low so that I can afford to fast track my renovations (hence my username RenovationMan) and still overpay on my mortgage. If rates rise back to 'normal' levels (circa 6%) then my renovations stop but my overpayments will still continue (from savings I already have in place).

When I talk about 'rebuilding' my finances, I mean to save up again for my next set of renovations (A nicer looking fireplace and delft tiles in the kitchen).

We now seem to have established that I didn't buy pre-credit crunch and so I had no hand in the rampant HPI. We have established that my 'gamble' is not on affording my house, it's on affording the renovations AND the overpayments at the same time. We have also established that I made the same judgement call as you on rates staying low, but I made mine a year earlier, when (IIRC) rates had been at 0.5% for a year already and all the pundits were saying that they would remain low until at least April 2010.

It seems that all the reasons you have voiced so far for 'caring' about what I do have been addressed. Is there now anything left for you to be angry with me about?

*Do you think the economy was better back then to make me feel any different?
#Low, but not necessarily still 0.5%

JonnyBravo

It's the jealousy man, the jealousy.
It is with all these bleaters.
They try to dress it up into worry about this and that, but really, deep down, they wish they'd got what you've got.

As one regular would say, simples.

IveSeenTheLight

shortchanged wrote: »

So you honestly believe that Renoman thought that interest rates would remain as low as they have for as long as they have?

Well unless he is Mervyn King I seriously doubt it.

What's so different from your position

shortchanged wrote: »

In answer to your question Iveseenthelight no I don't see interest rates going anywhere soon because our economy is shafted.

You don't see rates going anywhere soon and neither did renovation man

shortchanged_2

IveSeenTheLight wrote: »

What's so different from your position

I wouldn't bet my house on it.

RenovationMan

shortchanged wrote: »

I wouldn't bet my house on it.

I haven't bet your house on it either, so why the animosity towards me? What you have said so far just doesn't explain it, especially after I have addressed each and every point you have made.

DervProf

RenovationMan wrote: »

I haven't bet your house on it either, so why the animosity towards me? What you have said so far just doesn't explain it, especially after I have addressed each and every point you have made.

TBF, almost everyone who takes on any kind of mortgage, does risk losing their house if they don't keep up the repayments on their mortgage.

However, I wouldn't say that you have actually "bet your house on interest rates staying low". It's harsh to say that you have "bet your house". You seem to have taken on a significant sized mortgage of a particular type, hoping that it will turn out to be the right decision. It's an informed choice. If you had borrowed to the hilt, relying on interest rates staying were they are, then I'd say that you have "bet your house" on interest rates not increasing, as any increase would almost certainly mean that you probably lose you house.

My 2p.