What will happen when interest rates rise?

ukcarper

midnight_child wrote: »

I suspect there are a lot of people in a much more precarious position than you suggest, such as those on 100% LTV or IO mortgages from mid 2000s, but I take your point.


Looking at it another way this £18.41 is money that can no longer be money saved, or money spent in the local pub, corner shop, restaurant, take away, brothel, or whatever. Multiply this round all the households in the county and that's an awful lot of spending taken out of the consumer economy.
How badly would this hurt small businesses?

If that happens what do you think will happen to interest rates.

CLAPTON

midnight_child wrote: »

I suspect there are a lot of people in a much more precarious position than you suggest, such as those on 100% LTV or IO mortgages from mid 2000s, but I take your point.


Looking at it another way this £18.41 is money that can no longer be money saved, or money spent in the local pub, corner shop, restaurant, take away, brothel, or whatever. Multiply this round all the households in the county and that's an awful lot of spending taken out of the consumer economy.
How badly would this hurt small businesses?

interest rates are only likely to rise because wages are increasing, disposable income is rising and growth is rising

BobQ

midnight_child wrote: »

I suspect there are a lot of people in a much more precarious position than you suggest, such as those on 100% LTV or IO mortgages from mid 2000s, but I take your point.


Looking at it another way this £18.41 is money that can no longer be money saved, or money spent in the local pub, corner shop, restaurant, take away, brothel, or whatever. Multiply this round all the households in the county and that's an awful lot of spending taken out of the consumer economy.
How badly would this hurt small businesses?

Will it not be balanced by the additional interest given to savers? Remember the more sensible of those enjoying cheap mortgages will have less debt too

Mummyisbeauty

I started in 2007 on this mortgage and my payment was substantially larger than now.
Personally if interest rates go up my overpayment per month will just be lower and although it will take longer to pay the mortgage off if I keep my payments the same I won't feel the pain too much as I remember the payments in 2007 when I had other debts as well.
0.25% to 0.5% will mean very little to average variable rate mortgage unless you are already struggling.

chewmylegoff

When interst rates reach 2% the price of a six bed house in Chelsea will fall to 12 shillings and sixpence and then Jesus Christ our saviour will return and chase Ferguson Wilson into the channel tunnel on a donkey.

midnight_child

Ok, so lets assume that increase in growth occurs evenly across all sectors and that disposable income goes up throughout the whole country, and there's no impact on mortgages.


What about foreign investment - Makes us more or less attractive than Eurozone?

chucknorris

A change from 0.5% to 0.75% (which is all it will be) should have !!!!!! all affect, apart from the silly over reaction of the ftse, but a bit later they will realise 'hey, this isn't the end of the universe, it means the economy is doing ok' and then things will go back to normal, until the next storm in a tea cup.

CLAPTON

midnight_child wrote: »

Ok, so lets assume that increase in growth occurs evenly across all sectors and that disposable income goes up throughout the whole country, and there's no impact on mortgages.


What about foreign investment - Makes us more or less attractive than Eurozone?

your assumptions are obviously wrong and impossible.

Dansmam

Only in the south east. Bubble. :A

CLAPTON wrote: »

interest rates are only likely to rise because wages are increasing, disposable income is rising and growth is rising

CLAPTON

Dansmam wrote: »

Only in the south east. Bubble. :A

as usual, you are wrong