Interest rate rises likely to start from Spring 2015

MrRee_2

We must all remember that the UK Government is a big borrower - it can currently manage just because IR's are low.

They are not artificial, they are not amazing in any way whatsoever.

That's why - like I say - no-one here will see IR's above 2% in their lifetimes ........... forget 5%, 4%, 3% .... it simply ain't happening, ever!

Get used to it ............... it's hard for me to accept too, as a big saver I would dearly love 10% rates - I would be a happy bunny. Sad to say, 2% is all we will ever see.

MFW_ASAP

Bantex wrote: »

Artificially low rates are getting more and more people addicted to more and more debt. Just wait for the next crisis that is in the making.

Hi shortchanged. :beer:

Is this really true or just some more of your rhetoric? Can you provide figures that more people are getting addicted to more and more debt?

Bantex_2

MFW_ASAP wrote: »

Hi shortchanged. :beer:

Is this really true or just some more of your rhetoric? Can you provide figures that more people are getting addicted to more and more debt?

People are paying more for houses.

MFW_ASAP

Bantex wrote: »

People are paying more for houses.

:rotfl::rotfl::rotfl::rotfl:

This is almost as good as your argument that repayment mortgages are safer than interest only mortgages because repayment mortgage can turn into interest only mortgages, whereas interest only mortgages are already interest only mortgages and are therefore not as flexible. LOL

Thrugelmir

Cold turkey requires a process of weaning off. Not cutting off the supply immediately.

There's been a whole raft of measures which very very slowly will change the situation. Days of pre 2008 are well gone.

princeofpounds

What would be a non-artificial interest rate?

An interest rate where the money supply is not set by a government body but through a market process.

I don't think we've seen one of those since we used shiny shells for currency.

Bantex_2

MFW_ASAP wrote: »

:rotfl::rotfl::rotfl::rotfl:

This is almost as good as your argument that repayment mortgages are safer than interest only mortgages because repayment mortgage can turn into interest only mortgages, whereas interest only mortgages are already interest only mortgages and are therefore not as flexible. LOL

Don't remember saying that, but it does sound basically sound though.

wymondham

Lots of people in the media seem to be talking about rates now .... it's almost like people are getting nervous they may return to normal?

coastline

Take your pick...three links showing the average oustanding mortgage is around £100,000 and far from the huge debts the media suggest..

http://www.moneywise.co.uk/news/2013-05-16/average-outstanding-uk-mortgage-100000

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2214211/average-household-carries-gbp111-793-of-mortgage-debt

http://www.bbc.co.uk/news/business-25456928

nearly half of homeowners will be mortgage free by 2015..

http://www.dailymail.co.uk/news/article-2206964/Majority-homeowners-UK-mortgage-free-THREE-years.html

Thrugelmir

People seem to believe that interest rates at these levels are normal!