Debate House Prices


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MSE News: 'Interest rates could rise at turn of the year'

Interest rates could begin to rise from their historic lows, the Bank of England Governor predicts...
Read the full story:

''Interest rates could rise at turn of the year''

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Comments

  • torbrex
    torbrex Posts: 71,340 Forumite
    Combo Breaker First Post Rampant Recycler Hung up my suit!
    The picture is less positive for borrowers, who could see higher repayments for mortgages or other loans.

    Well they now have 6 months warning so they should get a shift on and overpay as much as possible now to lessen the impact of the rate rise when it happens.

    New borrowers should be wary of oversretching themselves now as it can only get worse for them.

    For savers it will be 6 months after any base rate rise before we notice any differencs, (if then)
  • Generali
    Generali Posts: 36,411 Forumite
    Combo Breaker First Post
    I think this is the third thread on the board about this and it's already yesterday's news.

    http://www.bankofengland.co.uk/publications/Documents/news/2015/832.pdf

    Good speech actually:
    A burst of inflation. A crisis in the public finances. Public sector bailouts. Infighting in Europe. Not eight years ago, but eight hundred.
    That was the economic context for the striking of Magna Carta.

    To many today, Magna Carta is a document of profound, almost mythical, significance. It is seen as the cornerstone of the United Kingdom’s constitutional arrangements and as a blueprint for the constitutions of many other nations, including the United States. It is credited with establishing the foundations of parliamentary democracy, creating a framework for the rule of law, protecting individual liberty, defending the rights of the innocent, and limiting the role of the State.

    It is undoubtedly true that Magna Carta – or more correctly the idea of Magna Carta – has played a central role in British political development over the centuries, not least as a banner under which those seeking liberty from oppression have rallied.

    But many modern scholars argue that its significance, in and of itself, has been overstated. They characterise Magna Carta as a pragmatic political document that was a product of its time, including the difficult economic circumstances that then prevailed.

    As usual with historical arguments, the answer lies somewhere in between.....
  • purch
    purch Posts: 9,865 Forumite
    Generali wrote: »

    Good speech actually:

    It was just a speech at Lincoln Cathedral, celebrating the Magna Carta.

    It was not meant to be taken literally.

    If he had something very important to say about Interest Rates he would have chosen a different forum.

    He has to say something about Interest rates, but in reality said nothing about Interest rates.

    We'll have a clearer picture in 6 months time, is basically what he said, and everyone is getting their knickers in a twist (yet again :eek:)
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • lisyloo
    lisyloo Posts: 29,610 Forumite
    Name Dropper First Anniversary First Post
    Didn't Mark Carney say the decision would come into "shaper relief" in 6 months.
    The media seemed to have interpreted this as raets are rising in 6 months.
    Am I the only one to have picked this up? (cross posted - thanks purch not jsut me then).
  • michaels
    michaels Posts: 28,003 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Fear not, the BBC have advice on the impact of any rate increase:

    http://www.bbc.co.uk/news/business-33568469
    ...Most homeowners - 56% - are on a Single Variable Rate (SVR) or ....
    However, as the Bank of England cut rates, most lenders did not cut their SVRs at a similar pace, leaving many people still paying around 5% a year.Such lenders are unlikely to increase their SVRs until there has been a significant rise in base rates - certainly more than 0.25%.
    I think....
  • Nikkster
    Nikkster Posts: 6,390 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    michaels wrote: »
    Fear not, the BBC have advice on the impact of any rate increase:

    http://www.bbc.co.uk/news/business-33568469

    I was about to post the exactly the same thing :rotfl:

    They redeemed themselves by borrowing a really insightful table from another website though:
    How a 0.25% rise in base rates might affect my savings
    Category Current best buy rate Best buy after 0.25% rise
    Easy Access 1.6% 1.85%
    Notice Account 2.05% 2.3%
    Easy access ISA 1.6% 1.85%
    Notice ISA 1.6% 1.85%
    1 year fixed rate bond 2.07% 2.32%
    3 year fixed rate bond 2.65% 2.9%
    5 year fixed rate bond 3.06% 3.31%
    source:Savingschampion

    (Apologies for the formatting, the BBC table was nice and pretty)
  • Running_Horse
    Running_Horse Posts: 11,807 Forumite
    First Anniversary Combo Breaker
    Anyone who didn't think they would rise again and plan for it is a fool.

    At worst we will overpay slightly less per month, or take a slightly cheaper holiday.

    Might introduce some caution into the housing market, which is no bad thing.
    Been away for a while.
  • Generali
    Generali Posts: 36,411 Forumite
    Combo Breaker First Post
    Nikkster wrote: »
    I was about to post the exactly the same thing :rotfl:

    They redeemed themselves by borrowing a really insightful table from another website though:



    (Apologies for the formatting, the BBC table was nice and pretty)

    So mortgage rates will remain unchanged while banks will pass on the full increase to savers.

    I guess they've got the interns in.
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    Noooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo!!!!!!!!!!!!!!!!!!!!!

    :eek::eek::eek::eek::eek::eek::eek::eek:
  • lisyloo
    lisyloo Posts: 29,610 Forumite
    Name Dropper First Anniversary First Post
    Fear not, the BBC have advice on the impact of any rate increase:

    Risky strategy to rely on the banks not raising rates.
    Hopefully this allows most homeowners enough time to cut their cloth accordingly, but more importantly anyone considering whether to buy a house and how much to borrow.
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