Happy 6th Birthday 0.5% BoE interest rate

wotsthat

http://www.bbc.co.uk/news/business-31747859

UK interest rates have been kept unchanged again by the Bank of England, meaning they have now been at their record low of 0.5% for six years.

Rates were first cut to 0.5% in March 2009 as the Bank sought to lift economic growth amid the credit crunch.

Recent growth in the economy has prompted speculation that rates will start to rise again in the near future.

However, continuing low inflation, now at 0.3%, gives policymakers little reason to raise the cost of borrowing.

wotsthat

If the fall in interest rates saved a mortgage holder about £200/month, they fed that into a sipp getting a 40% tax rebate on the way in and achieved investment returns averaging 10.1%. They'd be up over £30k and pleased as punch.

purch

..............not if they bought Tesco shares :eek:


N.B. This is an argument for arguments sake.

westernpromise

purch wrote: »

..............not if they bought Tesco shares :eek:


N.B. This is an argument for arguments sake.

The dividend performance has been very good throughout - they might still be up.

Loughton_Monkey

wotsthat wrote: »

If the fall in interest rates saved a mortgage holder about £200/month, they fed that into a sipp getting a 40% tax rebate on the way in and achieved investment returns averaging 10.1%. They'd be up over £30k and pleased as punch.

... and if a hard working early retiree has the odd £100K to save in the bank to balance the rest of his wealth in investments and pensions, then he is getting 1.6% instead of (say) 4%. That's costing £14,400 over 6 years.....

• Daylight robbery!
• Exploitation by the young on vulnerable old people
• A vicious conspiracy...
• An intergenerational attack.
• A deprivation of human rights for the aged.
• Unfair
• Malicious
• Forcing old people into a life of poverty
• Taking baked beans from the very mouths of those that need them most
• .......
• ......

whinge... grumble... moan... carp... b[tch... grouse... groan... whine... whimper... snivel... wail... bellyache... sob....

Do you know what? I'm feeling a couple of generations younger already!

purch

Loughton_Monkey wrote: »

Do you know what? I'm feeling a couple of generations younger already!

You can get arrested for that :eek:

lisyloo

If the fall in interest rates saved a mortgage holder about £200/month, they fed that into a sipp getting a 40% tax rebate on the way in and achieved investment returns averaging 10.1%. They'd be up over £30k and pleased as punch.

First direct are paying me because their ISA pays more than their mortgage costs.

Pleased as punch..............gin & tonics all round :-))

Loughton_Monkey

lisyloo wrote: »

First direct are paying me because their ISA pays more than their mortgage costs.

Pleased as punch..............gin & tonics all round :-))

Understood! Keep it up.

I was doing this for a couple of years or more. Paying them 1½% while earning between 4% and 6% in fixed rate bonds. Being an offset already fully offset, I had the foresight to take the lot back out and make a few quid on the turn.....

Sadly, it's all over. No good fixed rate bonds around any more, and when I became 65, they wanted the whole lot back anyway!

Life is so unfair!!!!

Sun having gone down over the yardarm, I'm going downstairs for a very large G&T of my own!:rotfl:

MFW_ASAP

Marvelous!!

I bet those brave souls who took out large mortgages to buy their dream homes are laughing right now.

*laughs*

dunroving

Loughton_Monkey wrote: »

... and if a hard working early retiree has the odd £100K to save in the bank to balance the rest of his wealth in investments and pensions, then he is getting 1.6% instead of (say) 4%. That's costing £14,400 over 6 years.....

• Daylight robbery!
• Exploitation by the young on vulnerable old people
• A vicious conspiracy...
• An intergenerational attack.
• A deprivation of human rights for the aged.
• Unfair
• Malicious
• Forcing old people into a life of poverty
• Taking baked beans from the very mouths of those that need them most
• .......
• ......

whinge... grumble... moan... carp... b[tch... grouse... groan... whine... whimper... snivel... wail... bellyache... sob....

Do you know what? I'm feeling a couple of generations younger already!

Reading exactly the same complaints in the news the other day .... oh hang on, the article was about how the older generation was stuffing up the future of the younger generation ... how could that be?

wotsthat

Loughton_Monkey wrote: »

... and if a hard working early retiree has the odd £100K to save in the bank to balance the rest of his wealth in investments and pensions, then he is getting 1.6% instead of (say) 4%. That's costing £14,400 over 6 years.....

• Daylight robbery!
• Exploitation by the young on vulnerable old people
• A vicious conspiracy...
• An intergenerational attack.
• A deprivation of human rights for the aged.
• Unfair
• Malicious
• Forcing old people into a life of poverty
• Taking baked beans from the very mouths of those that need them most
• .......
• ......

whinge... grumble... moan... carp... b[tch... grouse... groan... whine... whimper... snivel... wail... bellyache... sob....

Do you know what? I'm feeling a couple of generations younger already!

Why don't you join Graham in his campaign for higher interest rates so younger people can pay more for their mortgages and get the trickle going in the right direction again?