Interest rates direction

purch

mayonnaise wrote: »

Most of the world's major economies have an 'ultra low' rate currently. Are they all weak economies?

Yes.

Do try to keep up.

andrewmp

I took a 25 year fix in 2008, I just know rates will start rising in 2018, just before my ERP ends!

stu007

Jack_Johnson_the_acorn wrote: »

House prices are significant to those getting on the ladder but for content home owners interest rates are where it's at.:T

Wow. Selfish much?

Screw future generations so long as your alright Jack.

Jack_Johnson_the_acorn

stu007 wrote: »

Wow. Selfish much?

Screw future generations so long as your alright Jack.

Nah, not really, how does low interest rates screw the younger generation...... Do the younger generation want to pay 12% interest on their mortgage?

I think you've got a screw loose

stu007

Jack_Johnson_the_acorn wrote: »

Nah, not really, how does low interest rates screw the younger generation...... Do the younger generation want to pay 12% interest on their mortgage?

I think you've got a screw loose

Low interest rates encourage higher house prices, as people look at the CURRENT low interest rates and corresponding lower monthly repayments and bid higher for the house.

The higher house prices in turn make it harder for people to afford a house. It's difficult for people to 1. Raise the deposit required. 2. Borrow enough based on their income to pay the higher prices.

Do you need me to join the dots for you anymore?

Jack_Johnson_the_acorn

stu007 wrote: »

Low interest rates encourage higher house prices, as people look at the CURRENT low interest rates and corresponding lower monthly repayments and bid higher for the house.

The higher house prices in turn make it harder for people to afford a house. It's difficult for people to 1. Raise the deposit required. 2. Borrow enough based on their income to pay the higher prices.

Do you need me to join the dots for you anymore?

I was 25 when I bought 3 yrs ago, I found raising a deposit easily achievable, 10% saved in just under a year, mortgage payments are so comfortable because of the interest rates, if the rates where higher I would of needed a bigger deposit...... Do you need me to join the dots any further? I presume you do...... you can't have it both ways, a big drop in prices in turn mean higher interest rates, people in negative equity and a volatile market means tightening of the lending criteria again, so good luck getting accepted for a mortgage.....

As for being selfish, did you see me cheering high house prices? Or did you see me accept the reality of the current housing market situation, there's no need to get your knickers all bunched up next time :money:

Jack_Johnson_the_acorn

My bank have improved their fixed rate offers for new and existing customers, just went online to check my Natwest mortgage, they seem to have dropped the fixed rates by about .25%, went onto a comparison site and have noticed a couple of the other big banks doing the same.... Good news for Everyone :beer:

MFW_ASAP

Low rates are great for those who had the balls to borrow big in 2010 and buy their dream house....

Jonbvn

Jack_Johnson_the_acorn wrote: »

My bank have improved their fixed rate offers for new and existing customers, just went online to check my Natwest mortgage, they seem to have dropped the fixed rates by about .25%, went onto a comparison site and have noticed a couple of the other big banks doing the same.... Good news for Everyone :beer:

The above is borne out what is being reported by the Torygraph.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11393905/Mortgage-costs-fall-1700-in-just-four-weeks.html

Jonbvn

MFW_ASAP wrote: »

Low rates are great for those who had the balls to borrow big in 2010 and buy their dream house....

SO do you know anyone like that perhaps?;)