Base Rate Remains Unchanged

Graham_Devon

Turnbull2000 wrote: »

Won't be allowed to happen. Cheap mortgages for existing borrowers are an overriding priority for the Tories.

Banks won't be allowed to increase their mortgage rates!?

That's a new one.

And they are.

RenovationMan

Cleaver wrote: »

What does this mean?

What I'm saying is that the base rate allows us to save a couple of hundred pounds a month on our mortgage. What is also means is generally across the country millions are unemployed, millions more feel insecure about their jobs and even more don't get the payrises they are used to. My wife is self-employed and relies on her customers to keep afloat - a healthy economy is necessary for this.

So to say again, a couple of hundred quid is small fry in the general scheme of things. When we took a mortgage we made sure we could afford it at 5% and 10%, so it doesn't need to be this low. A healthy economy is more important than me saving a few quid on my mortgage.

Cleaver, you're talking as though we on here have some sort of control on the BoE base rates and that by making the best of a bad situation that we are somehow making things worse.

I follow the motto "When life gives you lemons, make lemonade". If we had a functioning economy then some people would be celebrating rises in their house prices, others (myself) would be celebrating their pensions staggering back to life, etc. etc.

DervProf

heathcote123 wrote: »

:rotfl:


I think it's more like celebrating your neighbours car to be on fire, because you fancy toasting some marshmallows. Your car is fine.

Exactly. It's the "Bu66er you Jack, I'm alright" attitude.

Cleaver

RenovationMan wrote: »

Cleaver, you're talking as though we on here have some sort of control on the BoE base rates and that by making the best of a bad situation that we are somehow making things worse.

I follow the motto "When life gives you lemons, make lemonade". If we had a functioning economy then some people would be celebrating rises in their house prices, others (myself) would be celebrating their pensions staggering back to life, etc. etc.

Can you point out where I've suggested that we can control BOE base rates? I didn't, and you're putting words in my mouth as my posts were simply about people celebrating low interest rates. And there's a big difference between making the best of a bad situation and celebrating a bad situation. I've made the 'best' of low interest rates by fixing our mortgage at under 3.9% for five years with the option to overpay, which we'll do. But why would I celebrate this? A low mortgage payment is a small benefit in a much worse wider situation.

"When life gives you lemons, make lemonade" is a great phrase and I'd agree with it. But there's a good reason that the phrase isn't "when life gives you lemons, make lemonade, then brag about how brilliant your lemonade is to everyone, especially those who weren't able to make lemonade for some reason".

Graham_Devon

Cleaver wrote: »

Can you point out where I've suggested that we can control BOE base rates? I didn't, and you're putting words in my mouth as my posts were simply about people celebrating low interest rates. And there's a big difference between making the best of a bad situation and celebrating a bad situation. I've made the 'best' of low interest rates by fixing our mortgage at under 3.9% for five years with the option to overpay, which we'll do. But why would I celebrate this? A low mortgage payment is a small benefit in a much worse wider situation.

"When life gives you lemons, make lemonade" is a great phrase and I'd agree with it. But there's a good reason that the phrase isn't "when life gives you lemons, make lemonade, then brag about how brilliant your lemonade is to everyone, especially those who weren't able to make lemonade for some reason".

Generally because they haven't been given the lemons.

DervProf

Graham_Devon wrote: »

Generally because they haven't been given the lemons.

I expect there'll be a reply such as "well, you just have to go and get some lemons then".

While this "go for it" advice seems all when and good, there is a problem with it. Life has a habit of throwing the odd spanner in the works, and sometimes you don't always get dealt a good hand. Another issue is that not everyone can be financially well off, well not under the current system anyway. I`ve every respect for those who do well for themselves, as long as they do it legally and honestly. Those who do this, then choose to keep telling everyone "what a clever boy am I" are simply showing off, and are rather unpleasant individuals in my opinion.

Even worse, are those that have "made it", who mock or disrespect those who they think have not.

RenovationMan

Cleaver wrote: »

Can you point out where I've suggested that we can control BOE base rates? I didn't, and you're putting words in my mouth as my posts were simply about people celebrating low interest rates. And there's a big difference between making the best of a bad situation and celebrating a bad situation. I've made the 'best' of low interest rates by fixing our mortgage at under 3.9% for five years with the option to overpay, which we'll do. But why would I celebrate this? A low mortgage payment is a small benefit in a much worse wider situation.

"When life gives you lemons, make lemonade" is a great phrase and I'd agree with it. But there's a good reason that the phrase isn't "when life gives you lemons, make lemonade, then brag about how brilliant your lemonade is to everyone, especially those who weren't able to make lemonade for some reason".

Can you point out where I have pointed out that you suggested we control BoE rates? I didn't, you're putting words into my mouth. I actually said you're talking as though you believe we can. Naturally you know we can't and so you know that people being happy that at least one of their household bills is not rising has zero effect on the economy, so your whole 'celebrating a ruined economy' argument seems moot, though you have now changed it to one where you are against 'bragging'.

I hope I will also see you remonstrating with the Bulls when they are happy that house prices have risen, with the bears when they are happy that house prices have fallen, with the Gold bugs when prices have risen, with McTavish when Gold prices have fallen, with savers when interest rates rise and all the other VI groups who post on here and are happy (AKA bragging) about a set of economic figures that match their goals.

Phew you're going to be a busy chap, Cleave.

andybenw

For months the HPC'ers have been anticipating a rate rise and for months they have been disappointed. These low interest rates will be here to stay for a long while yet.

Cleaver

RenovationMan wrote: »

Can you point out where I have pointed out that you suggested we control BoE rates?

Sure, it was here, a few posts ago:

RenovationMan wrote: »

Cleaver, you're talking as though we on here have some sort of control on the BoE base rates

RenovationMan wrote: »

I hope I will also see you remonstrating with the Bulls when they are happy that house prices have risen, with the bears when they are happy that house prices have fallen, with the Gold bugs when prices have risen, with McTavish when Gold prices have fallen, with savers when interest rates rise and all the other VI groups who post on here and are happy (AKA bragging) about a set of economic figures that match their goals.

I would remonstrate with absolutely anyone who takes delight at making money through something that causes many more people hardship. And I'm not really sure you can compare the BOE base rate with any of the above examples. All I was saying was that people such as Turnbull saying "equity rich owners are in for a fabulous few more years" is short-sighted in the extreme. I guess we're equity-rich owners, so low base rates make our mortgage very cheap. But at what cost? As I've already said it's at a cost to the overall economy. Job security, payrises and difficult for people like my wife who are self-employed.

It's not rocket science to point out that celebrating our economy being f*cked isn't exactly the done thing, is it?

Masomnia

It's a bit like the paradox of thrift, you think you're better off because you're saving money, but really because the macro-economic situation is deteriorating you're losing out along with everyone else.