Looks like Interest rates could go up again this week

Guy_Montag

JCR wrote: »

I suppose the world today is everyman for himself unfortunately, it is dog eat dog. If you don't have a property and feel hard done by you wish that the interest rate would sky rocket to bring the housing market crashing down and leaving some people struggling (not necessarily investors) to pay the mortgage. There will be people on here clapping their hands with glee if the interest rate goes up again thinking "serves them right". They don't think that these people work hard, pay taxes (very high taxes) pay for national health (and often not getting much back, no available dentists). The people who are taking out of the system are often the whingers the one who want to see the hard workers and risk takers fall on their face and fail due to higher interest rates. You are not rewarded in this country for working hard, you have more disposable income if you say I can't get a job so can't afford a house, so all you tax payers, you pay for me. I know this is a bit of a rant and will be very unpopular from the pc brigade, but I just get so mad at the small mindedness sometimes.

Mheh, I pay my (very high) taxes, I can't get a NHS dentist, I even work hard (sometimes). If we're talking about not being rewarded for hard work, then perhaps it is people like myself who should feel hard done by. Those of us priced out have had to endure years of newspaper headlines to the effect of "Average house price value has risen more than the annual average salary". Great so while I'm working my !!!!!!!! off to save for a deposit, I find that even if I'd put all my salary away over the course of the last year, I'm further away from buying a place than I was at the beginning. In the mean time, BTL muppets who add nothing to the economy walk away with capital gains exceeding my annual salary. Bitter - too f'king right I am.

Edited to add: I also agree with Generalli, I think the pound is currently overvalued. For some reason countries have been quite keen to buy the £ for the last year or two, possibly part of them divesting themselves of $, but not wanting to put everything into €. I can see the £ dropping & IRs having to go up to support it.

mystic_trev

Massive wrote: »

A balanced, stable economy is most beneficial to all, and modest pre-emptive action is the best way to achieve this.

Unfortunately this "gently gently" approach dosen't seem to be working. CPI is heading back up towards 3% and RPI towards 5%. Inflation is like toothpaste, once it's out of the tube it's difficult to put back!

I see the price of Oil is heading towards $70 a barrel, and to add fuel to the fire MEW is getting out of control.

http://uk.biz.yahoo.com/02042007/325/mortgage-equity-withdrawal-soars.html

Generali

Guy_Montag wrote: »

Edited to add: I also agree with Generalli, I think the pound is currently overvalued. For some reason countries have been quite keen to buy the £ for the last year or two, possibly part of them divesting themselves of $, but not wanting to put everything into €. I can see the £ dropping & IRs having to go up to support it.

I understand that it's the 'carry trade' that has caused the pound to be high: that is you borrow yen at 0.5% and invest it in the UK at 5%. I saw it described (by The Economist?) as being like collecting nickels in front of a steamroller.

You make small amounts of money but if people start to fret that it's not going to be profitable any more and all try to get out of the trade at the same time the yen will rise quickly and the pound, New Zealand dollar and South African Rand will all fall quickly.

mystic_trev wrote: »

add fuel to the fire MEW is getting out of control.

http://uk.biz.yahoo.com/02042007/325/mortgage-equity-withdrawal-soars.html

"Withdrawals totalled 6.7 percent of post-tax income in the fourth quarter..." 6.7%! I hope that's going in to BTL and not being spent.

Sisyphus

Only 6 of 60 economists polled by Bloomberg expect a hike this month.
However most would say it's on the cards in May or June. The market for interest rates futures has priced in +0.25% by June.

mystic_trev

Generali wrote: »

I
"Withdrawals totalled 6.7 percent of post-tax income in the fourth quarter..." 6.7%! I hope that's going in to BTL and not being spent.

This from "have your say" in the original Telegraph article.

"Britain has turned into a spend today, pay tomorrow society in which people borrow money to fund lavish lifestyles. Just last week I heard a member of my staff say that she was borrowing 75% of her annual salary to spend on a car. 75% on a depreciating status symbol!"

another Plasma screen TV anyone?

BTman

Mozette wrote: »

Thanks! I so look forward to having my home repossessed...

Hit thank's instead of quote, so have one on me

If you never factored in high interest rates when buying your home then I'm afraid you would deserve to lose it.. Sorry, just my humble opinion.:p

Sisyphus

BTman wrote: »

Hit thank's instead of quote, so have one on me

If you never factored in high interest rates when buying your home then I'm afraid you would deserve to lose it.. Sorry, just my humble opinion.:p

a bit harsh perhaps.

I know we should all make up our own minds but I'm sure Mozette had loads experts and friends? to tell him/her that rates wouldn't go up but house prices would for ever.

BTman

Sisyphus wrote: »

a bit harsh perhaps.

I know we should all make up our own minds but I'm sure Mozette had loads experts and friends? to tell him/her that rates wouldn't go up but house prices would for ever.

Maybe a bit harsh, but not as harsh as being priced out... (if I do my sum's and not the bank's, as I'm sure they would lend me the money)

The moral of the story is.. Don't believe the hype.

Generali

It is hard to avoid getting suckered in when there's a bubble. If you stay out of the market you are subject to ridicule. Remember Tony Dye anyone? Fat lot of good it did him not getting suckered in the short term at least.

If this is a bubble (and we'll only know that if it bursts) a lot of bright people will be made to look like fools.

thesaint

All those who say that all home owners should factor in 'high' interest rates, what is 'high'?