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Interest Rates on Thursday

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Comments

  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Boiling frog.
  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    AndrewSmith wrote: »
    We got it wrong Lynz :rotfl:

    Ah well there will be another one soon lol

    I love the way you can staty so positively upbeat about it andy! Do these rate increase not impact on your business - Id have thought things would get tougher for you brokers ? :confused:
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • Romani_Ite_Domum
    Romani_Ite_Domum Posts: 428 Forumite
    mystic_trev wrote: »
    Boiling frog.
    I was going to say that ...:D doh!
  • roswell
    roswell Posts: 2,447 Forumite
    lynzpower wrote: »
    I love the way you can staty so positively upbeat about it andy! Do these rate increase not impact on your business - Id have thought things would get tougher for you brokers ? :confused:

    I guess its good news either way, he will probably have less new purchases but more renewals for a low fix before then next hike.
    If it doesnt pay rent sell it.
    Mortgage - £2,000
    Updated - November 2012
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    They should have put interest rates up to about 10% ten years ago. That would have stopped house prices trebling and avoided the ridiculous situation we're in at the moment,
    Krusty & Phil Madoff, 1990 - 2007:
    "Buy now because house prices only ever go UP, UP, UP."
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    http://business.timesonline.co.uk/tol/business/economics/article1770403.ece

    "Many of those on fixed deals will not escape the pain of rising mortgage rates either. Mform.co.uk, the mortgage comparison website, reckons there are more than 2.3 million homeowners on fixed-rate deals that will be ending this year"

    Bloody hell! That many about to get a big hit!
  • kingkano
    kingkano Posts: 1,977 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ad44downey wrote: »
    They should have put interest rates up to about 10% ten years ago. That would have stopped house prices trebling and avoided the ridiculous situation we're in at the moment,

    of course then everyone would probably have remained in negative equity, as 10yrs ago is when the market recovered eh (rates were still 7.5% back then too btw).
  • jyonda
    jyonda Posts: 477 Forumite
    Why did rates ever get as low as 3.5% (Sep 03) anyway? Even 5.5% is not particularly high so why encourage people to borrow too much and save too little?
  • PJD
    PJD Posts: 582 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Didnt the BoE admit that they had to keep rates that low else we would've fallen into a recession?
  • Romani_Ite_Domum
    Romani_Ite_Domum Posts: 428 Forumite
    PJD wrote: »
    Didnt the BoE admit that they had to keep rates that low else we would've fallen into a recession?
    Eddie George blew the gaff on this a while ago.
    Basically BOE told by government to lower IRs to artificially low levels after 9/11 to stop the country going into a recession.
    Steady Eddie when he left said that the result would be a problem with HPI and that would need sorting out.

    Question is.... why did they keep it that way? The housing market should have corrected in 2005 until MPC dropped rates again!?

    Finally they can no longer tackle CPI without paying the price for low IRs over the last few years.

    Next will be credit tightening by lenders and the market will turn.

    Just after Gordon Brown is no longer chancellor I expect.:p
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