No Base Rate rise potentially till end of 2013

armour

Does anyone NOT think that the government/BOE are following a policy designed to "inflate debt away".

Graham_Devon

Linton wrote: »

No - getting better would imply more availability of mortgages. Sure at a higher rate but with a much lower deposit. The high deposits are constraining potential buyers at the moment, when they drop the buyers will come flooding in and up go house prices.

Getting better, in terms of the thread, would be seeing an interest rate increase.

I highly doubt an increase in interest rates is going to see a higher availiability of mortgages. More people would be struggling with the mortgages already out there, and banks would have to cope with that.

Though I'd be interested as to why you think differently?

We could see higher availability of mortgages BEFORE an interest rate increase. I am feeling more confident every month that passes that we will simply end up following Japan. Been criticised many times before now for saying this, but the critism seems to be dropping back as the months pass.

RenovationMan

runninglea wrote: »

Where's renovation man when you need him?

Sorry, I'm bored of having the same conversation with the same people. If anything changes to BoE rates, then someone please nudge me awake. In the meantime I'll just quietly renovate my house and pay down my mortgage.

Graham_Devon

RenovationMan wrote: »

Sorry, I'm bored of having the same conversation with the same people. If anything changes to BoE rates, then someone please nudge me awake. In the meantime I'll just quietly renovate my house and pay down my mortgage.

Where your sig go?

wotsthat

RenovationMan wrote: »

Sorry, I'm bored of having the same conversation with the same people. If anything changes to BoE rates, then someone please nudge me awake. In the meantime I'll just quietly renovate my house and pay down my mortgage.

I can guarantee that when BoE rates rise there will be much mirth and merriment on this board and your internet buddies will all be asking after you to make sure you're ok.

PaulF81

The reason we are in stagnation is due to rebalancing and re-establishing a buffer in the banking sector. Once that is complete, businesses will have the confidence to re-invest and bank lending will pick up. We are simply paying down what we spent in the good years. Any inflation will help business a little, it wont help the average joe in the street mind.

Anyone thinking large businesses arent in significant profit need to look at their last annual reports. Lots of businesses are saving considerable "rainy day" funds that well be invested at some stage in the future.

chucky

It will be interesting if and when BOE interests rise and there is HPI.

It will be yet another one of the HPC urban myths discredited.

crash123

Graham_Devon wrote: »

Getting better, in terms of the thread, would be seeing an interest rate increase.

I highly doubt an increase in interest rates is going to see a higher availiability of mortgages. More people would be struggling with the mortgages already out there, and banks would have to cope with that.

Though I'd be interested as to why you think differently?

We could see higher availability of mortgages BEFORE an interest rate increase. I am feeling more confident every month that passes that we will simply end up following Japan. Been criticised many times before now for saying this, but the critism seems to be dropping back as the months pass.

Got to agree Japan here we come.

chucky

crash123 wrote: »

Got to agree Japan here we come.

We'll become one of the world's biggest exporters which will be great news for job prospects and the manufacturing sector.

ILW

Is life really that bad in Japan, considering what they have been through outside the purely economic stuff?