BOE MPC raises interest rates by 0.25% to 0.50%

Herzlos

economic wrote: »

yeh i will need to take a look and do some research. i only started learning a few months ago all by myself. so i have no experience. i will need to work quite hard to break into it.

If you're just learning yourself, without any background, then you've got an uphill battle getting your foot in the door. Why hire you over the hundred people that left a coding boot camp that week?

All I can think of to do that is volunteer / open source stuff.

economic

Herzlos wrote: »

If you're just learning yourself, without any background, then you've got an uphill battle getting your foot in the door. Why hire you over the hundred people that left a coding boot camp that week?

All I can think of to do that is volunteer / open source stuff.

im not sure a coding bootcamp is neccessarily much better. from what i have seen and what some have said on this thread is that its all about experience. this means i will need to get an entry level job (as would someone who did a boot camp course with no prior experience).

Thrugelmir

chucknorris wrote: »

Even so, if you are talking about savings accounts, they are far from currently desirable, for example can you name one savings account that pays a net amount above the rate of inflation (ignoring the tax free allowance on savings)?

Other investments are fine if you can afford to risk the loss of capital. For many it's not an option. The lack of volatility in the markets has made many people complacent, as if it's a one way street of positve returns. Not unsimilar to the era when endowments became all the rage as a vehicle to repay mortgages. As with life. Everything is cyclical. Lessons learnt get forgotten. Until yet a new era dawns.

chucknorris

Thrugelmir wrote: »

Other investments are fine if you can afford to risk the loss of capital. For many it's not an option. The lack of volatility in the markets has made many people complacent, as if it's a one way street of positve returns. Not unsimilar to the era when endowments became all the rage as a vehicle to repay mortgages. As with life. Everything is cyclical. Lessons learnt get forgotten. Until yet a new era dawns.

Yeah I'm fully aware of what you are saying, and it is quite relevant to me, because I am getting close to an age where if there was a prolonged correction, I would have to liquidise assets at their lower price. So right now I am going through an acceptance stage that things have changed for me, and I need to find less volatile assets. I've given myself 6 years (to my SP age), to get my retirement portfolio in place, feel free to criticise it:

40% equities (much lower than originally targeted)
23% fixed pension (DB/SP)
22% investment property (hold 1.5 properties for a decade longer)
5% bonds (try and find a bond(s) paying near net inflation, so accept a small loss, hold to maturity)
5% P2P (newly added to my target portfolio)
5% cash (regular savers, NSI cert, savings accounts)

As I get older the investment property and equities will decrease, and the bonds will increase.

I could reduce my equity holdings further if I:

- Conjure up some more 'relevant income' and buy more additional pension in the teachers pension scheme.

- If my experience works out well with P2P I could increase my holding up from 5% (although I am a little wary of what happens with the number of defaults during a correction. So I'm still pondering this, as they might turn out riskier than equities, i.e. deworsification)

Thrugelmir

ilovehouses wrote: »

Yes they need to get to 50% before they can initiate a voluntary termination.

With respect I glossed over nothing. Simply invoked the power of google because I (and you obviously) didn't know what the procedure was for PCP users in distress. We've both learnt something.

Perhaps I know more than I let on.

Windofchange

Plenty of tales of woe over on the debt free wanna be board regarding PCP. I think by and large you can get out of a PCP at any point, but the cost for doing so is prohibitive. A story on there of a guy who got a Ducati motorbike on PCP and 3 months later decided the bike wasn't for him.

https://forums.moneysavingexpert.com/discussion/5719078

I'm guessing he would get hit for the depreciation as stated, then the interest on the monthly payments for the next 2.5 years, plus any early termination fees. May well have been a very expensive mistake, especially seeing as the bike was likely north of 10 grand.

MobileSaver

ilovehouses wrote: »

Yes they need to get to 50% before they can initiate a voluntary termination.

That's not quite correct. Consumers can initiate voluntary termination at any time and their liability will be limited to 50% of the total amount due.

Herzlos

economic wrote: »

im not sure a coding bootcamp is neccessarily much better. from what i have seen and what some have said on this thread is that its all about experience. this means i will need to get an entry level job (as would someone who did a boot camp course with no prior experience).

I'm not sure why anyone does a coding boot camp, unless it's just to learn a new language. My point being that there are a lot of people looking for entry level python jobs with no experience so you need to get experience and stand out.

enthusiasticsaver

There have been noises about interest rate increases for months if not years so I am not surprised that they are pulling this lever now as inflation is creeping up. We no longer have a mortgage although our daughters have but I think having taken them out recently the checks seem a little more stringent. The problems will come with people who have other debt as well as a mortgage as high consumer debt still seems prevalent unfortunately. It seems to have sent the FTSE up higher too which is surprising.

chucknorris

enthusiasticsaver wrote: »

It seems to have sent the FTSE up higher too which is surprising.

The FTSE went up because of what Carney said about rates not going up quickly over the next few years (hitting the pound, also the oil price is making a bit of a recovery too). This 0.25% rise was mostly priced in anyway (it was 1/3 on betfair), so on the day of the rise, what he said was more influential than the rise itself.

EDIT: Although this FT article seems to be suggesting that message may have been misinterpreted by the markets:

BoE communications under fire as markets miss rate rise message

https://www.ft.com/content/0cb37266-c072-11e7-b8a3-38a6e068f464?conceptId=272b9f12-aa9a-314c-9040-98d3216734c8&desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8

Sorry looks like a subscription might be needed to read that link