No Base Rate rise potentially till end of 2013

RenovationMan

chucknorris wrote: »

There's absolutely NO WAY that I will surrender my trackers, I have never gone for the headline low fixed rate deals that you have to pay an arrangement fee for every 2-4 years.

I think if I had a low lifetime tracker, I'd do the same. However, even my current low rate is not available anymore and I doubt things will change when I have to remortgage in 12 months hence.

I'm personally going for a 10 year fix to save on arrangement fees and to secure my finances while I overpay the mortgage over that 10 years. I have set goals for my finances and a long term fix is a major part of it. It's not for everyone, but then everyone has different goals and priorities.

chucknorris

RenovationMan wrote: »

I think if I had a low lifetime tracker, I'd do the same. However, even my current low rate is not available anymore and I doubt things will change when I have to remortgage in 12 months hence.

I'm personally going for a 10 year fix to save on arrangement fees and to secure my finances while I overpay the mortgage over that 10 years. I have set goals for my finances and a long term fix is a major part of it. It's not for everyone, but then everyone has different goals and priorities.

Horses for courses (I do of course realise that low mragin trackers no longer exist).

crash123

chucky wrote: »

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

Can you tell me what we are going to export?
yes I get it HPI

lvader

armour wrote: »

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

The GBP has appreciated against most currencies in the last year so if you are right the policy is failing!

MacMickster

The_J wrote: »

The base rate won't see anything but token rises for the next decade.

If you believe that we will follow the Japanese path then that may be the case.

Personally I believe that the base rate will rise sharply whenever it does start to rise. Token rises will have no effect, so I can see it rising as rapidly as it fell in 2008/09.

The current situation in Europe may be cause for the base rate to begin to rise, possibly to attract wealthy Europeans who are looking to move their assets to countries outside of the Eurozone.

The_J

MacMickster wrote: »

The current situation in Europe may be cause for the base rate to begin to rise, possibly to attract wealthy Europeans who are looking to move their assets to countries outside of the Eurozone.

No, this doesn't follow. Hence your use of may and possibly. Lower tax will attract wealthy Europeans but moveable assets? I can't think of one that would benefit from a stronger pound.

Thrugelmir

RenovationMan wrote: »

. As bears like to say, the only way is up for BoE rates from here. However, not for a good while yet.

Not BOE base you need to keep your eye on.

chucky

crash123 wrote: »

Can you tell me what we are going to export?
yes I get it HPI

No idea, you said the UK was going to be like Japan.

crash123 wrote: »

Got to agree Japan here we come.

Are you talking about a different Country that is a massive exporter and manufacturerer because the last time I looked there was only one country called Japan.

RenovationMan

Thrugelmir wrote: »

Not BOE base you need to keep your eye on.

I know, it's Libor rate. Glad you're finally understanding Thrugelmir.

You do realise that the 3 month Libor rate is falling?

"The important three-month sterling LIBOR was unchanged at 1.01250% (1 May).

Recent falls came as a welcome relief following a prolonged spell of rises, but it now seems to have levelled out. It leaves the key LIBOR rate comfortably below January's peak of 1.08958% - its highest level since July 2009.


The recent falls were driven by the European Central Bank's (ECB) move to dish out colossal amounts of cheap cash to banks.

A second batch of loans, with a rate of just 1%, were doled out to nearly every European bank in February, including many in the UK, taking the total from below €500billion to more than €1trillion.

This seems to have bolstered banking confidence.


It was needed. Libor rises were relentless in 2011 amid fears over Crunch Crunch II - lenders had begun raising SVR mortgage rates in response.

The Bank of England had warned that inter-bank lending rates would push up mortgage rates if they kept rising."


http://www.thisismoney.co.uk/money/markets/article-1645325/LIBOR-Latest-inter-bank-lending-rate-charts.html

How do you like them apples, thrug?

paulmapp8306

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.

Tosh.

As a FTB, and going through my purchase now - the high deposit has never been the issue - its the house price itself thats been the issue.

You can save for a deposit - sure that takes time over a small deposit BUT it really doesnt matter how much of a deposit you need if you cant afford the repayments due to high cost.

I saved a 20% deposit - which is fine BUT I could only get on the ladder due to prices being relatively affordable. Ultimately my budget allows for £x in payments (allowing some for interest rate rises) and I would have needed a deposit to make up the rest of the purchase price. I house prices were higher, Id have needed a bigger deposit to afford the house regardless of how much of a deposit i actually needed.

Despite getting on the ladder myself - I still believe house prices are too high for most to afford even is 100% BTLs were available.