Mortgage rates going up

black_taxi_2

high interest turkish rates---there always a reason

risks

only first 20k covered if failure
currency exchange--inflation will all but destroy interest gains

black_taxi_2

wall st journal late 2011

ISTANBUL—Having failed to stem a precipitous slide in its currency, Turkey's central bank pulled out the big guns.
Seeking to head off a collapse in the lira and an ensuing spike in consumer prices, the Turkish central bank more than doubled the interest rates it charges banks for overnight loans, to 12.5% from 5.75%, while reserving the right to switch between the two rates at any time. The move followed a series of failed attempts in recent weeks to intervene in currency markets to stem the decline.
The dramatic move was cheered by many in the market who had been stung by the lira's sudden slump.
In less than two months, the lira has tumbled 10%, taking it down 20% for the year—among the biggest declines across emerging-market currencies.

Percy1983

The more I look at it the 5 year fix gamble I signed up for is going to be a good choice.

With that my mortgage will be £480 and I should be able to take interest rates of 10% on it before I have to think too much about it, I don't want to but I could support it.

SecondLegDownIsTheBigOne

FTBFun wrote: »

Wow you sold to rent right at the peak of the market. Yes I'm sure that's actually what happened, fantasist.

Your baiting aside, my account is exactly what happened. And, no, it wasn't the peak of the market, it was the dearth of 2008 when everything had gone off a cliff. I reduced my price to sell my house, had I sold the year before I would have sold for more. Interestingly, I sold my house with 6 weeks, None of this "my house has been on the market for 6 months and it won't sell" business with me. I priced it correctly and the house sold.

Don't get me wrong, I didn't choose to offload our property in 2008 because of the crash, I sold it because we were relocating. Had we not relocated, I wouldn't have sold the house - it was our home. Having successfully sold the house, I nearly bought a house at the destination to where we were relocating, but withdrew from the purchase due to survey issues. After that, we could see the deteriorating situation and decided that we would do well to rent for a while. That turned out to be a good move as, not long after, another job opportunity came up that would require relocating again, but we weren't at all held back, we were renting, past our fixed term and were free to move with just 1 month's notice. :T:T:T:T Since 2008 the family income has increased by 25%. :T:T:T:T

Now, FTBFun, if you find it implausible that I relocated in 2008 or that maybe even thousands of people relocated in 2008 then you are either a dumbass, deliberately instigating or both. I know which I'm going for.

Sibley

high interest turkish rates---there always a reason

risks

only first 20k covered if failure
currency exchange--inflation will all but destroy interest gains

I expect that Turkey bank thing is a bit dodgy.
He was told that about 5 years ago when he first invested. However, he has done well out of it.

That may not continue but so far so good.

Graham_Devon

Economist on the radio stated the BOE has lost credibility with interest rates. Banks are now having to move away from any alignment they had.

Secondly loans to business have gone up, not reduced. Credit card rates have gone up, not reduced. Personal loan rates have gone up not reduced.

He stated they have been consistently wrong on inflation and hold zero credibility with most economists in that arena.

He stated that the only reason the BOE rate is where it is is to help banks, and stop further problems in the economy. The low rate is helping banks such as NRAM and RBS, which in turn helps reposession figures. But now that mortgage companies are having to move away, we are facing a double edge sword of already higher interest rates with further rate increases when the bank does finally decide to move leading to unknown problems further down the line.

His biggest fear was an interest rate catch up programme, which seems liklier by the month.

nicko33

Graham_Devon wrote: »

He stated that the only reason the BOE rate is where it is is to help banks, and stop further problems in the economy.

That is a very good reason.

Thrugelmir

Graham_Devon wrote: »

The low rate is helping banks such as NRAM and RBS, which in turn helps reposession figures.

Seems uninformed as an economist. The Treasury charges NRAM 5% above base on its funding loan. Forcing NRAM to operate at a commercial level. Which reflects NRAM's SVR of 4.79%.

From what you've quoted he said. Appears to have a politic rather financial stance. As has little understanding of why true interest rates are rising.

black_taxi_2

with i had job last 3 years b.o.e

.50 ok---YEP

hav a nice day

breadlinebetty

Oh FGS! Why all the outpouring of horror? Interest rates are STILL really really LOW, I could understand people moaning if they were like they were back in the early 80s or 90s when they jumped up to 17% - but these rates are PEANUTS!:money: The trouble is people have got used to paying almost zero interest - get over it and cough up the few extra quid each week. If you're squeezed for an extra few bob a week either take up a paper-round, or give up your iPhone/SKY/extra Sat box/one night a week spending £30 in the pub.....with your Friday night kebab

Another good thing to try is meditation. Totally free and makes you feel fantastic!