Shock Interest Rate Announcement

sheffield_lad

ringo_24601 wrote: »

I'm in this position.. putting a bit of a gamble recently by going for a tracker on the hope that the rate stays put for a couple of years still - the economy has flat lined and it's not going up for a while... heck, i can imagine things getting worse still.

Nice move, margins are large but as the rates go up margins will go down as the only time mortgage rates will go up is when we are all back on track which could be years.

chewmylegoff

RenovationMan wrote: »

Good news for my interest rate gamble.

did you ever actually make an "interest rate gamble" or did you just buy a house to live in and decide later that it was an interest rate gamble because it might annoy people?

Thrugelmir

howee wrote: »

as the only time mortgage rates will go up is when we are all back on track which could be years.

Take off those RTG's. In the real world there's sizable change afoot.

shortchanged_2

RenovationMan wrote: »

Deary me, have you now given up all semblance of debate since your embarrasing escape* from the discussion on salary multiples and instead embarked on simple trolling instead?

Just so as I know, before we start down that road.

* For those who don't know, shortchanged was defeated badly in a discussion and had to resort to trolling, something that he seems to continuing across threads.

:rotfl::rotfl: Quality RenoMan.

robmatic

Percy1983 wrote: »

Does make me wonder how much this continues so kick the ladder away form youth.

Boomer = buy house cheap then get many years of very little interest on said cheap house.

Young person = buy expensive house then get many years of worrying rates might go up as you already have to pay a huge margin over the base rate.

Just glad a got a 5 year fix, will it pay off or not? who knows but at least I won't need to worry about it for 5 years.

That's not quite right. Boomers should have paid off their mortgage by now and will have experienced much higher interest rates than we can expect now. They will now be seeing their wealth eroded by inflation as their savings won't be earning any real interest.

These low interest rates benefit the young and indebted generations below the boomers.

Thrugelmir

robmatic wrote: »

These low interest rates benefit the young and indebted generations below the boomers.

I would prefer to invest my money and earn 5%, than pay interest at 3.5%.

The mortgage free generation are merely getting wealthier.

House prices are levelling off. 10 year track is now down to 66% increase.

Pobby

robmatic wrote: »

That's not quite right. Boomers should have paid off their mortgage by now and will have experienced much higher interest rates than we can expect now. They will now be seeing their wealth eroded by inflation as their savings won't be earning any real interest.

These low interest rates benefit the young and indebted generations below the boomers.

About an average of 8% interest rates, going to far higher figures than that. Then again we had house prices at a realistic price. All the loose lending and easy credit has caused house prices to reach stupid values.

We also had wage inflation as prices soared. As someone who is on the cusp of retiring there is only erosion on my savings, poor stock market returns and collapsed annuity rates.

Generali

Rinoa wrote: »

Another £50Bn of QE was the interesting bit.

http://www.bbc.co.uk/news/business-16963116

Told you they'd do QE. M4 was down the best part of £30,000,000,000 last reporting.

wymondham

pinkteapot wrote: »

On hold at 0.5%.

Does anyone care anymore?

it's 3 years now isnt it? newbies to the financial scene can be forgiven now for thinking this rate is normal, as it has become so. Problem is many people now base their lives on this rate being the 'norm' as it has been all their short working life, and it makes any rises in the future very disruptive to many people, especially those with large mortgages who are not fixed.

RenovationMan

shortchanged wrote: »

:rotfl::rotfl: Quality RenoMan.

OK, just so we know. :rotfl: