Interest rates set to rise again!

dealornodeal_3

So its fact now that BOE fuelled debt, to avoid recession. Lets analise that; its Brown whom is to blame for this! After all he handed the reins of Finances to the BOE, so he must accept responsibility for the eventual crash with the Housing Market, and the FTSE crash all of which I could see coming in 2006 and predicted! I feel sorry for those in debt, and the outcome of this will make it worse for those people.

All I can say is I dont think Labour want to remain in power any longer, because they dont know how to riddle their way out of the mess. And Im not even sure the Conservatives would know how to get out of this mess, but pretty hard decisions would be made by them.

Brown as PM, no thankyou!

CB1979_2

Brown's a c*nt, end of.

oh and a scottish one at that!

lil_louus

Should I choose a discount or fixed rate mortgage??
Any advice?

Louise

sarkin1

Were are all the bulls, they normal come out with it's never going to crash. Bring on the crash and I'm going to laugh at all those idiots that now have massive mortgages crying how did this happen. The average salary in this country is £25,000, multiplie by 3.5 and this will give you the average mortgage. If your mortgage is outside of these figures you can only blame 1 person.

CB1979_2

yeah great, I suppose you were one of them stating it was gonna crash for the last 4 years running as well!

well guess what, I predict once (well IF) the house prices stabilise then prices will go up.

oh yes ain't i clever! :rolleyes:

manhattan

I can see it now..........the TV will be full of adverts like "Been miss sold a mortgage? Claim now with our no win no fee service!" LOL



I would be the first to mention a crumbling housing market at dinner parties!

JasonLVC

lil_louus wrote: »

Should I choose a discount or fixed rate mortgage??
Any advice?

Louise

It all depends upon yoor mortgage amount, personal circumstances, etc. However, the money lenders have already factored in one or two interest rate increases in their mortgage offerings already so if you fix now, you'll be fixing at the top end of the expected interest rates. If you go for 1 or two years that'll protect you a little whilst not holding you down for too long as the longer term view is that rates will peak this year then drop again next year and thereafter.

A discount may be a better longer-term bet, but again, all depends upon your own circumstances. One things' for sure, the banks don't lose out so if they're offering a fixed rate at 5.20% for example, then they're pretty confident that rates will not go too far past that (otherwise they'll be losing money!) so to lock in for 10 years at 5.20% just as rates peak and then tail off may cost you more long term.

fivemice

sarkin1 wrote: »

Were are all the bulls, they normal come out with it's never going to crash. Bring on the crash and I'm going to laugh at all those idiots that now have massive mortgages crying how did this happen. The average salary in this country is £25,000, multiplie by 3.5 and this will give you the average mortgage. If your mortgage is outside of these figures you can only blame 1 person.

Unless of course you buy with your partner.
And no, I don't think you can only blame one person.

I personally wouldn't take a mortgage at the limit of borrowing and make no allowances for interest rate rises. We primarily have a buffer of £500pcm, and then I would return to work if it became necessary. That's before we even have to start cutting down.

But no-one KNOWS what will happen, they only THINK they know, and some people have been thinking it for years.

The house we are about to buy is not an investment, it's a home - and sure I could continue to rent my house that my landlord won't commit to repairing, that I can't decorate, that I could find myself evicted from with two months notice etc.

Houses prices can go down, but as a rule, over the long term they go up anyway. I'm not a bull, but I'm not a bear either.

RabbitMad

But funnily enough the last BOE meeting voted 8-1 in favour of keeping rates level with the one disenting voice voting for a DECREASE to 5%.

Don't bet on a rise any time soon (but don't bet against it either)

I don't think Mr Brown will do anything to cause a housing crash just before he gets his grubby mits on the keys to number 10, and he decides what interest rates are. "No" I hear you cry "The BOE sets interest rates to control inflation." I say you are wrong. Mr Brown decides what goes into the basket to measure inflation. Mr Brown sets the BOE targets to what inflation should be. Therefore if he wants to reduce rates he jiggles the basket to include somethings that have recently got cheaper or he adjusts the target as it is nor prudent to allow inflation at 2.5% say. Hence he still sets interest rates.

Oh and CB1979 - I don't care that he's scottish, but he is still a c.

Generali

Big Bank that I work for is predicting no rise for 2007 or 2008. The bond and futures markets have 1 more rise of .25% 'priced in'.

If I were buying a house I'd still fix though - you know where you stand that way.