Why i think Interest Rates won't go up

granville_2

It's getting messy in America.

Have a read of this and ask yourself why it won't happen here - I'd be interested to hear...

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akV2sasSGUY8

We've been gorging on cheap credit for far too long. :eek:

Dithering_Dad

granville wrote: »

It's getting messy in America.

Have a read of this and ask yourself why it won't happen here - I'd be interested to hear...

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akV2sasSGUY8

We've been gorging on cheap credit for far too long. :eek:

Don't forget, Americans get tax relief on their mortgage interest whereas we no longer do. Where they catch a cold, we'll catch the flu!

Everyone should run over to the MFW board and join my Mortgage Free in Three (yrs) challenge so that when interest rates hit 6.5 we can sit back and smile at our savings!!

Dead_Eye_Jones

Dithering_Dad wrote: »

Everyone should run over to the MFW board and join my Mortgage Free in Three (yrs) challenge so that when interest rates hit 6.5 we can sit back and smile at our savings!!

Mmmm yeah gotta love that idea. Not sure I will make 3. More like 10. I love seeing how much interest is knocked off my final bill with each overpayment. You see some people holding off buying because timing it right might save them 10k, 20k, 50k? But us overpayers are already knocking those sums off our interest bill. Higher interest rates dont bother me too much, at worse it will just add a couple of years to my end date. Of course Ill be worried when we hit 15%! Well actually I wont cos I locked in a 4% deal for years .

inmypocketnottheirs

Does anybody here seriously believe that the whole of the US housing market is going to crash?

Come on, lets get real. With a population of 300,000,000 and the country the size of a continent, you mean everyone is going to lose their home and end up with negative equity.

Unless of course that is what you want to believe.

Guy_Montag

inmypocketnottheirs wrote: »

Does anybody here seriously believe that the whole of the US housing market is going to crash?

Come on, lets get real. With a population of 300,000,000 and the country the size of a continent, you mean everyone is going to lose their home and end up with negative equity.

Unless of course that is what you want to believe.

During past housing crashes not everyone loses their house, only a few people do. A lot more end up in negative equity, so can't move or are limited in their movements. The vast majority don't lose their homes, they manage to get by, things are tight & they worry about their jobs, but they survive.

epz_2

Dead_Eye_Jones wrote: »

Mmmm yeah gotta love that idea. Not sure I will make 3. More like 10. I love seeing how much interest is knocked off my final bill with each overpayment. You see some people holding off buying because timing it right might save them 10k, 20k, 50k? But us overpayers are already knocking those sums off our interest bill. Higher interest rates dont bother me too much, at worse it will just add a couple of years to my end date. Of course Ill be worried when we hit 15%! Well actually I wont cos I locked in a 4% deal for years .

if you are locked in to a 4% deall you really should put the money into a high interest rate account 6%+ and make 2% on the money till the fix ends and pay it off then.

HenryWeston

Messsiah wrote: »

I've been reading for a while now, that most people think that interest rates are likely to increase for at least the next 2 budgets, if not more.

This has led to some ppl suggesting that the BTL market is going to suffer, and now is possibly the wrong time to be buying a house.

I disagree..... ( ok you can all point and laugh at me )

However, the reason being, is the recent changes at the Leadership of the Labour party.

With Gordon Brown now taking over, surely he is going to be desperate to ensure that he actually WINS the next election. He is no fool ( especially in monetary terms ), and knows better than most, that lots of voters have gone for BTL, or indeed, other property ventures.

It would be political suicide to anger, upset, or even worse..bankrupt these people.

To have any chance of winning the elections he needs to keep home owners on board, or else he will lose.

The only way he can ensure this, is to keep interest rates as low as possible, for at least the next 3 years or so.

Anyone claiming the the BoE is no longer influenced by politics and that interest rates are now decided by the BoE, is living in a fools paradise.

Interest Rates only go up, to maintain the stregnth of sterling on the international market, however, with talk of Tony Blair possibly taking over as top dog at the World Bank...will that really be an issue anymore ?

I was reading an article in The Independant earlier this month, which claimed that 85% of politicians have more than 1 property, that they own.

Think about it...

~M~

:rotfl: :rotfl: :rotfl: do you want some more sand ?

wolvoman

epz wrote: »

if you are locked in to a 4% deall you really should put the money into a high interest rate account 6%+ and make 2% on the money till the fix ends and pay it off then.

Except you pay tax on the 6% in savings (which if you're a higher rate taxpayer means you'll only get 3.6%) and you pay no tax on the mortgage overpayments.

nelly_2

If im correct a criminal defense lawyer has, by law, got to put up a defence for someone even if they know they are guilty yeah?

So basically you are paid to lie and talk bollox!

You'll forgive me for not taking your advice then eh

KingKenny

Three Words are very important, and should be noted!

M4 MONEY SUPPLY

This is and has been running at around 14% per annum, so in reality the base rates should be ahead of this 14% curve, so to counter act the inflationary effect caused by this increase in money supply.

Basically the BOE are causing inflation by printing all this extra money entering the economy, and being gobbled up as cheap credit, but Joe the Sun reader ain't got a clue?

This cannot go on for ever, so if you think old Merv is fighting inflation think again, he is busy there pumping up the power on the printing presses, and old Gordy boy is whipping him saying " Go faster, faster"!!!!!!