CityAM - Big mortgage borrowers rejoice, savers and renters getting hammered

Turnbull2000

It's clear that the BoE's intention is to keep rates ultra low for many years yet. This could be a huge windfall for many borrowers, whether it be owner-occupier or BTL.

http://www.cityam.com/news-and-analysis/allister-heath/why-interest-rates-won-t-be-going

Not sure I agree with his 'gift' of devaluation though. Surely this only applies if wage inflation matches RPI?

DervProf

Cue rejoicing in the streets by those with large debts.

A strong message is being broadcast "Borrow heavily, and we will look after you. Tough luck if you didn't take on large debts, or have already paid them off".

And that message comes after a financial crisis caused by people/banks running up large debts.

Really2

I would of thought the message is when in debt keep one ear on the ground and one eye in the sky when it comes to rates.

Debt should not be viewed in general as bad.

People managing debt well and repaying it quickly should be commended as they are good borrowers?

Not sure why so many have issues with people repaying their debts. I thought that is what was wanted?

The western economy need to pay down debt, it's not great for growth but the faster it is repaid the quicker we can get back to some reasonable growth.

chucky

DervProf wrote: »

A strong message is being broadcast "Borrow heavily, and we will look after you. Tough luck if you didn't take on large debts, or have already paid them off".

is this message really being broadcast or are interest rates being kept low due to the state of the economy. i haven't seen this message that you claim being broadcast on any tv channel or radio station.

Graham_Devon

chucky wrote: »

is this message really being broadcast or are interest rates being kept low due to the state of the economy. i haven't seen this message that you claim being broadcast on any tv channel or radio station.

You won't.

Like many things you won't see broadcast.

However, that message certainly does seem to be making it's way out there. You only need to read the comments sections ON the media published reports to see that.

I.e. delve just a little further than what is presented to you on a plate via the BBC or other mainstream broadcaster. Even watching Channel 4 news will show the message Derv suggested above as I remember just a few days ago when interest rates didn't change, that exact message being talked about.

chucky

Graham_Devon wrote: »

You won't.

Like many things you won't see broadcast.

However, that message certainly does seem to be making it's way out there. You only need to read the comments sections ON the media published reports to see that.

I.e. delve just a little further than what is presented to you on a plate via the BBC or other mainstream broadcaster. Even watching Channel 4 news will show the message Derv suggested above as I remember just a few days ago when interest rates didn't change, that exact message being talked about.

i thought that i wouldn't. it's obviously some subliminal message that is being broadcast that only some special chosen individuals will be able to receive and decipher.

interest rates will stay low because the economy needs it, not to specifically help any group of people out there. it's something that required and not some big broadcast conspiracy that only the usual suspects on this forum will be able to see.

Graham_Devon

chucky wrote: »

i thought that i wouldn't. it's obviously some subliminal message that is being broadcast that only some special chosen individuals will be able to receive and decipher.

It's not subliminal. Just read the comments on the BOE news articles on media sites.

It's all it takes.

If you really wish to close your eyes to what people actually think and are typing in response to articles, thats up to you.

Really2

Graham_Devon wrote: »

It's not subliminal. Just read the comments on the BOE news articles on media sites.

It's all it takes.

Odd that, because I have an urge to pay down debt not take bigger debts on.
That also seems to be the case for most with large debts (Judging by over payments).

Their message seems not to be working as my aim is to be debt free in the future.

IR are where they are to aid economic stability, many who have thought rates would not go up also do that on the back of believing the economy will be stuffed for a number of years.

FTBFun

Graham_Devon wrote: »

It's not subliminal. Just read the comments on the BOE news articles on media sites.

It's all it takes.

If you really wish to close your eyes to what people actually think and are typing in response to articles, thats up to you.

Are you actually going to take comments left on news articles seriously?

Good lord.

mbga9pgf

After a few months of minimum overpayments, looks as if its back to nailing 1.5%+ each month off the mortgage over the next 12 months.

Will have paid off 12% of my mortgage in 19 months by christmas if I keep up the overpayments!

StevieJ

Read to me like another HPC website victim with his fingers burnt