The 3 year anniversary of the 0.5% BOE interest rate.

Sibley

It's been good for me.
I'd be gutted if it stops.

Really 5 or 6% is normal. This has been a massive bonus. It's paid off a new car for me. Long may it continue.

Svenena

I've got low interest rates while I'm saving, and no doubt once I have a mortgage they'll leap up. Talk about bad timing.

pbouk

are there any people with a 0.5% mortgage?

Sibley

This story is all over Sky now.

It says rates will not be rising for years.
That's good enough for me.

http://news.sky.com/home/business/article/16184729

#contentContainer { WIDTH: 640px; FLOAT: none}#flash-vid { VISIBILITY: hidden}Interest Rate Held At 0.5% For 36th Straight Month


1:55pm UK, Thursday March 08, 2012

The Bank of England (BoE) has held the base rate of interest at 0.5%, marking the third year since it was slashed to the historic low.

The BoE's Monetary Policy Committee (MPC) first set the interest rate at 0.5% in March 2009 and they have kept it there for 36 months in a row.
There was also no change to the central bank's quantitative easing (QE) or 'money printing' programme.
Low interest rates have been good news for some mortgage holders but they have hit savers and pensioners hard.
Typical savings rates have halved in recent years, while pensioners have also faced falling annuity rates.
Thursday's decision to hold interest rates was widely expected, with all members of the Sky News Money Panel predicting this would be the case.
The five members - WPP chief executive Sir Martin Sorrell, Metro Bank chairman Anthony Thomson, RBS economist Ross Walker, Which? Money editor James Daley and People Popple's Popcorn founder Louise George - do not expect a rise in the base rate this year.
"Continued weakness in the economy means that there's still no prospect of a rate rise anytime soon," said Mr Daley

wotsthat

More than 50% off my mortgage payments for three years and either overpaid or saved every penny.

Happy 3rd Birthday 0.5% BoE rate.:beer:

DervProf

Sibley wrote: »

"Continued weakness in the economy means that there's still no prospect of a rate rise anytime soon," said Mr Daley

Sibley, what a doom-monger.

DervProf

Conrad wrote: »

If people are getting a low return on cash based investments (and that includes those ELECTING a safe steady lower yielding annuity), it has nothing to do with anyone but them.

If you want better returns, make different investment choices, stop being so damned lazy.

My Mum moans about this and I suggest she instead use her cash to buy a property and get about an 8% yield, but she doesn't want the hassle. Thats like me demanding my car is clean without wanting the hassle of washing it!

Just because lifes choice range does'nt suit your temperament, is no reason 'someone' shuld fix this for ya.

Roll up, roll up, buy your property here.

Anyone not wanting to buy a property that someone else would like to buy (but probably can't afford, or borrow the money to do so) is "lazy".

Thrugelmir

pbouk wrote: »

are there any people with a 0.5% mortgage?

A .85% lifetime.

sabretoothtigger

3 years of QE also not coincidentally. 3 years since I started holding gold and its done well unsurprisingly. Prospects going forward again favour gold over cash again.
I would fix mortgage rates if on any normal deal now but I understand people dont want the gravy train to stop, it will derail sometime

wotsthat wrote: »

More than 50% off my mortgage payments for three years and either overpaid or saved every penny.

Happy 3rd Birthday 0.5% BoE rate.:beer:

Sounds good, dont let this olive branch fall from your hands

Generali

HAMISH_MCTAVISH wrote: »

From the article:

"Remember that when interest rates hit their previous record low of 2% in 1932, they stayed there for pretty much two decades."

That covers 7 years of depression, a 6 year war marked by serial genocides ending in the near-total destruction of 3 Japanese cities (Tokyo was the third) with massive loss of civilian life and culminating with 7 years of austerity and rationing.

Personally I hope interest rates go up to 5% pretty soon because it means the economy is back to 'normal'. It would certainly be better than the above!