Interest rates to be slashed again.

Loughton_Monkey

Blacklight wrote: »

How is it that a 0.25% drop makes no difference but a 0.25% rise means that 75% of homeowners will be pushed over the edge?

Isn't this obvious?

The 0.25% drop making no difference was quoted by Bendix. Although he sometimes lacks a tiny bit of 'tact', this is made up for by generally talking 'common sense'.

The 75% 'pushed over the edge' comes, in fact, from a sensationalist Daily Mail story - in the context of a full 1% rise. It was then quoted [in the usual ignorant, and biased way] by a poster called 'geneer' who regularly spins these stories to make you believe that a 0.25% rise would have 75% of the population being repossessed.

In other words, geneer talks no sense whatsoever [common or not]. Do what the rest of us do, and take them purely as humourous rantings of somone who clearly has a huge chip on his shoulder about not being able to buy a house.

Pimperne1

quantic wrote: »

Lowering/low base rates worries me, i fear that people in this country are stupid enough to buy a house when they can only afford to do so when the rate is this low, soon as it rises they will get the shock of their life.

Don't be so wet.

tod123

quantic wrote: »

Lowering/low base rates worries me, i fear that people in this country are stupid enough to buy a house when they can only afford to do so when the rate is this low, soon as it rises they will get the shock of their life.

How long have they been low like this in Japan for? its like 10 years or something

robmatic

quantic wrote: »

Lowering/low base rates worries me, i fear that people in this country are stupid enough to buy a house when they can only afford to do so when the rate is this low, soon as it rises they will get the shock of their life.

If you buy a house now you have somehow managed to accumulate a hefty deposit first. If you can do that, you can probably withstand the shock of a base rate rise.

Really2

robmatic wrote: »

If you buy a house now you have somehow managed to accumulate a hefty deposit first. If you can do that, you can probably withstand the shock of a base rate rise.

Also you can most probably afford it if the base rate goes up as mortgage lending is a hell of a lot more constrained than pre 2007.
Affordability will take in to a count a higher IR rate, not 0.5% as many on here think.

quantic

If you all say so, just speaking from personal experience of people I know who are very stretched as it is, on trackers and still struggling to balance the books.

Really2

quantic wrote: »

If you all say so, just speaking from personal experience of people I know who are very stretched as it is, on trackers and still struggling to balance the books.

I presume that is to do with Jobs rather than the amount they borrowed?

Sibley

Originally Posted by bendix
Are you really that broke in Rangsit that even a 600 quid saving on your mortgage makes a difference to your life, even if it did happen. Which it won't.

It's not just the 600 quid saving.

If rates drop again that means it will take even longer to rise to say 5%.
I'm all behind these low rates. It's made my life great and I don't mind admitting it.

I don't mind being broke in Rangsit either. Any man with money in the bank in Thailand must be a failure with all the girls available here.

chewmylegoff

Sibley wrote: »

I don't mind being broke in Rangsit either. Any man with money in the bank in Thailand must be a failure with all the girls available here.

eh? surely you can attract birds without having to just give them all of your money.

oh, actually, now i think about it, your post makes a lot of sense.

geneer

HAMISH_MCTAVISH wrote: »

The article.



http://www.express.co.uk/posts/view/265063

I doubt we'll see a cut, although more QE is possible.

The more interesting bit is that market expectations of the likely trajectory of base rates over the next few years are finally starting to be fed through to the general public.

When people realise it's virtually impossible for rates to "shoot up" to 5% again, and that it will be many years before we even see 2% again, there could well be some positive impacts to consumer confidence and spending in the wider economy.

.

Nice.
Thanks for that Hamish.
Excellent news for bears who chose to dive in after the crash.