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Negative interest rates on the way?
Comments
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Definitely hypothetically mad but happily solvent.:)"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Treadstone2.0 wrote: »What about all those poor folks who are getting benefit and the government is paying the interest on their mortgages to prevent the flood of repos's?
They will be feeling very hard done by if the government stops paying their interest because there is no interest to pay.
the actual number of people that you're referring to (i.e. on benefits, getting smi, with a tracker mortgage that will turn negative with a corresponding drop in boe rates) is miniscule in comparison to the number of people with mortgages.
and my guess is that seeing as it won't have any impact on them whatsoever, they won't care.'Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.'
GALATIANS 6: 7 (KJV)0 -
but if you actually got paid for being in debt (which is whats being discussed), you'd be mad not to
Maybe multi-year interest free purchases on cars are looking a good idea?Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0 -
MacMickster wrote: »I would imagine that banks would quickly have teams of lawyers looking for all ways to get out of these deals, if they were actually faced with having to pay significant numbers of people interest on their borrowings.
Easy to do, sell their mortgage books on.
New lender changes the terms.0 -
HAMISH_MCTAVISH wrote: »
If we can't borrow the money at 6%, but instead must pay 10% or 12%, then the deal no longer makes sense .
But wouldn't that only be true if you had borrowed at a guaranteed 6% for the whole duration of the project?
Supposing you embarked on the investment with rates at 6%, and then a year or two later rates rose to 10%? Surely you have to budget in all worst-case possibilities at the outset, otherwise you are just gambling, not investing?
Don't you do a "What if?" analysis?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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