Only going one way now!

chucknorris

pbouk wrote: »

My finances are fine. Mortgage free:beer:

Yes we have 4 mortgage free properties (3 in London plus our home in Surrey) and the other London properties are quite low LTV.

ruggedtoast

pbouk wrote: »

So will I! The article was talking about mortgage rates, not base rates.

Its comforting to know that the banks are able to pre-empt their own rate rises by raising rates a year in advance.

pbouk

HAMISH_MCTAVISH wrote: »

http://www.telegraph.co.uk/news/10642046/Mark-Carney-offers-comfort-to-struggling-homeowners.html

So if, as now looks likely, rates don't rise until wages are rising in real terms, what does that do to the last great hope of the bears for a crash?

Carney? I think you need to read the original article. It was talking about mortgages not BOE base rates. Lenders can raise rates without the consent of Mr Carney.

Anyway, gotta go... Come on ENGLAND:j

HAMISH_MCTAVISH

pbouk wrote: »

It was talking about mortgages not BOE base rates.

*sigh*

Lets try this again...

The main message of today’s Inflation Report is that the Bank of England won’t be lifting interest rates anytime soon.

However, the supplementary message is that when rates do rise, it’ll happen very gradually.

And they won’t get high for a long, long time.

Indeed, while before the crisis a “normal” level for rates might have been 5%, the “new normal” is likely to be closer to 2.5%.

http://www.edmundconway.com/2014/02/what-todays-inflation-report-means-for-you-and-your-mortgage/

And don't forget, in addition to this, it's been made pretty clear by the BOE previously on a number of occasions that they expect mortgage margins above base rate to reduce when base rates finally do rise.

Or as Mervyn King put it to the Treasury Select Committee, when base rates rise "the spread between the bank rate and the rates banks charge would undoubtedly narrow".

So to recap, base rates staying low for a long time, and only rising gradually when they do rise, the new normal for rates likely to be 2.5%, and mortgage margins above base to shrink.

Remind me again why you think a prolonged period of exceedingly low mortgage rates, combined with economic growth, falling unemployment, and rising wages, will cause house prices to fall?

Graham_Devon

HAMISH_MCTAVISH wrote: »

http://www.telegraph.co.uk/news/10642046/Mark-Carney-offers-comfort-to-struggling-homeowners.html

So if, as now looks likely, rates don't rise until wages are rising in real terms, what does that do to the last great hope of the bears for a crash?

Carney can say what he likes.

After his forward guidance and unemployment faux par it means nothing.

wotsthat

I watch 5 year rates like a hawk because I've got a chunk of debt that comes out of a fix early next year. A decent fix at that point will see me through.

Nationwide costs have increased 3 times over the last year for the product I've been looking at. A couple of interest increases and a fee increase but it's tiny .2% on the rate and £99 on the fee.

There's only one way rates can go from here but I reckon young FTB's will be enjoying low rates for many years - good for them.

pbouk

HAMISH_MCTAVISH wrote: »

*sigh*

Lets try this again...

http://www.edmundconway.com/2014/02/what-todays-inflation-report-means-for-you-and-your-mortgage/

And don't forget, in addition to this, it's been made pretty clear by the BOE previously on a number of occasions that they expect mortgage margins above base rate to reduce when base rates finally do rise.

Or as Mervyn King put it to the Treasury Select Committee, when base rates rise "the spread between the bank rate and the rates banks charge would undoubtedly narrow".

So to recap, base rates staying low for a long time, and only rising gradually when they do rise, the new normal for rates likely to be 2.5%, and mortgage margins above base to shrink.

Remind me again why you think a prolonged period of exceedingly low mortgage rates, combined with economic growth, falling unemployment, and rising wages, will cause house prices to fall?

*Sigh*

Again, stop talking about Carney and the BOE! The article was talking about the average mortgage rates already rising. Are you related to Alex Salmond? He talks some rubbish too.:rotfl:

Thrugelmir

Cost of borrowing creeps up as lenders price in 2015 rate rise

So nothing to do with rates rising in the wholesale money markets. Now that Funding for Lending has stopped and lenders have no more access to cheap money?

pbouk

THE_GOUL_RETURNETH wrote: »

Bitecoins.

I think you mean bit not bite!