Worried about higher interest rates?

shortchanged_2

wotsthat wrote: »

Yes there's such a large number of people in this situation Reuters need to trawl password protected forums to find them.

The people on the TV show weren't typical - they were outliers.

Let's get the 6th birthday party of the 0.5% BoE rate out of the way in March and see what happens when rates rise. As you'll find - what people say will happen is usually different to what actually happens. Surprised you still haven't worked this out.

There's also a lot of denial on this forum too.

officeuk

Denial and delusion.

Voyager2002

daveyjp wrote: »

For a start who is on true base rate, interest only tracker mortagage?

Me!!!

And I can't believe my luck. I just wish I had a much larger mortgage.

jamesperrett

daveyjp wrote: »

For a start who is on true base rate, interest only tracker mortagage?

Me too - they were pretty popular before the crash when the margin above base rate was very small. Since the rates came down we've started a family but any wage rises have been swallowed up by increases in pension contributions and. I'm also doing less overtime so things are much tighter now than they were 5 years ago.

There's also no way that I could get such a good deal on my mortgage nowadays so I'm just sitting tight and hoping rates don't rise too quickly.

shortchanged_2

jamesperrett wrote: »

Me too - they were pretty popular before the crash when the margin above base rate was very small. Since the rates came down we've started a family but any wage rises have been swallowed up by increases in pension contributions and. I'm also doing less overtime so things are much tighter now than they were 5 years ago.

There's also no way that I could get such a good deal on my mortgage nowadays so I'm just sitting tight and hoping rates don't rise too quickly.

Surely not. People like you don't exist according to some on this forum. Everything will be hunkydory when rates rise.

mayonnaise

shortchanged wrote: »

Surely not. People like you don't exist according to some on this forum. Everything will be hunkydory when rates rise.

If James Perrett took out a tracker before the crash, can't we assume he was paying base rate + margin before the crash? Let's say 6-ish percent at least?
The banks aren't dishing out those BR trackers since BR is at 0.5%, shorty, I'm sure you noticed.
Although I see James is doing less overtime, and this is very very worrying indeed... James should have a word with that bloke from Reuters.

macca1974

personally I don't really see any reason why the BOE will increase base rates. The economy is hardly over heating at the moment, inflation is low and under control (i'd have thought deflation more of a potential issue), the other ECB has now got negative rates (our major trading partners). Why would they want to put the breaks on things at this stage?

daveyjp

Voyager2002 wrote: »

Me!!!

And I can't believe my luck. I just wish I had a much larger mortgage.

A true base rate tracker with no margin i.e your rate is currently 0.5%?

Thrugelmir

macca1974 wrote: »

personally I don't really see any reason why the BOE will increase base rates.

Carney has clearly spelt out the MPC's concerns. However since then the global economy has turned downwards which could cause a revision of plans. If assets prices cool off on their own accord. House prices could then be addressed by another lever rather than the interest rate rise hammer.

Running_Horse

Lower interest rates have helped us pay down loans, take a couple of holidays, and put a deposit on a new car. But we have always known they would rise again one day, and when they do we will adjust our outgoings accordingly. Can't see anyone losing their home if they have planned carefully to a budget.