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Interest rate rises likely to start from Spring 2015

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    As you would guess my observation was sarcastic.

    Investors never learn.......
  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    Doesn't leave many weapons in the arsenal if we have another debt crisis though does it.

    Any suggestions if we have any further problems?

    Printy printy
  • PaulF81 wrote: »
    Printy printy

    Beat me to it.

    Not so good for the cost of living though, that seems to becoming something of an issue.

    A friend of mines dad always used to have powerful cars as he was adamant it was safer to accelerate out of trouble.
    "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 Muruganantham
  • prowla
    prowla Posts: 14,182 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    wotsthat wrote: »
    Interest rates fell in 2009. In real terms houses have fallen every year since apart from 2013.
    What does "In real terms" really mean?

    Over the past decade, house prices have risen significantly, and this was as a result of lower interest rates.
    wotsthat wrote: »
    What's a likely scenario therefore for rates rising significantly?
    Maybe the fact that the institutions are saying that rates will rise, and once they start going up, who knows where they'll go.

    Of course, in today's situation with today's mortgages, "significant" may be just a couple of percent; if they went up to the double figures of the 90s, then that would be catastrophic to huge numbers of people.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Printy printy

    Liquidity, doesn't solve the problem though. The music has to stop and someone is left holding the parcel.
  • Thrugelmir wrote: »
    Liquidity, doesn't solve the problem though. The music has to stop and someone is left holding the parcel.

    The music hasn't stopped for decades, the tune just changes. If we were dancing it would be moire slow, slow, quick, quick, slow. The price to get in has gone up along the way.
    "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 Muruganantham
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    prowla wrote: »
    What does "In real terms" really mean?

    It means that despite saying lower interest rates have caused higher prices the opposite happened.

    Prices have risen because supply and demand aren't balanced. The price of the funds used to buy a house are only a single factor.

    prowla wrote: »
    Maybe the fact that the institutions are saying that rates will rise, and once they start going up, who knows where they'll go.

    Of course, in today's situation with today's mortgages, "significant" may be just a couple of percent; if they went up to the double figures of the 90s, then that would be catastrophic to huge numbers of people.

    Yes we know rates will increase but that wasn't the question.

    On the one hand you say no-one knows where rates may end up (true) but on the other if they went up to double figures it would be catastrophic. That should guide you to conclude that it would take a truly unique set of circumstances for there to be a requirement to raise rates to double figures.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    The music hasn't stopped for decades, the tune just changes. If we were dancing it would be moire slow, slow, quick, quick, slow. The price to get in has gone up along the way.

    Two choices - sit it out or get your dancing shoes out.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    wotsthat wrote: »
    Two choices - sit it out or get your dancing shoes out.

    Hung mine up a while ago much more interesting (if depressing) watching everyone else getting faster and trying to hang on.
    "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 Muruganantham
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The music hasn't stopped for decades, the tune just changes. If we were dancing it would be moire slow, slow, quick, quick, slow. The price to get in has gone up along the way.

    As long as someone keeps the jukebox playing then the status quo will be maintained. If the power goes out again then there's almost certainly another crisis to contend with.
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