Bank of England rates could rise more than thought

Thrugelmir

Huani wrote: »

We won't see "normal" rates again until we see "normal" public debt again.

Probably not in your life time on that basis.

MF2015

Thrugelmir wrote: »

Probably not in your life time on that basis.

Should see me through to the end of my mortgage hopefully.

We have just applied for a 5 year fix so we can forget about rate changes and house prices for a while.

Thrugelmir

MF2015 wrote: »

We have just applied for a 5 year fix so we can forget about rate changes and house prices for a while.

House prices could move in either direction. Irrespective of any action by the BOE on base rate.

MF2015

Thrugelmir wrote: »

House prices could move in either direction. Irrespective of any action by the BOE on base rate.

They could, but they won!!!8217;t make a difference to us now we!!!8217;re well below 60% LTV.

That will be much lower in 5 years time so a move either way doesn!!!8217;t matter. In 15 years we may move to a cheaper part of the country, I!!!8217;ll have a look on a Zoopla or what ever is around then and make a decision.

fewcloudy

MF2015 wrote: »

They could, but they won!!!8217;t make a difference to us now we!!!8217;re well below 60% LTV.

That will be much lower in 5 years time so a move either way doesn!!!8217;t matter. In 15 years we may move to a cheaper part of the country, I!!!8217;ll have a look on a Zoopla or what ever is around then and make a decision.

What is the significance of telling us your current LTV in this post?

If interest rates rise your repayments rise, if interest rates fall they fall, if you're on a fix they stay the same, all regardless of your LTV. Surely a move either way still matters?

MF2015

fewcloudy wrote: »

What is the significance of telling us your current LTV in this post?

If interest rates rise your repayments rise, if interest rates fall they fall, if you're on a fix they stay the same, all regardless of your LTV. Surely a move either way still matters?

The point was that we are at the lowest possible LTV so interest rates are minimal.

They are going to have to travel quite some way in the next 5 years to make much of a difference to us now.

michaels

It is an interesting question at the moment.

The economy is weak and may get very weak if Brexit uncertainty continues to mount.

But wages are strong and may continue to strengthen given Brexit uncertainty is sharply reducing the EU migrant pool.

I still think the most likely outcome is a 'remain in all but name' and thus an increase in rates when the economy kicks on as the Brexit risk is removed but I guess there is the possibility of a hard Brexit - lets call it 10% that sees a sharp contraction and low rates (assuming no emergency requirement to protect sterling).

A bit like a football match, it is fascinating for the neutrals but not one where you would want to be supporting either team yourself....

westernpromise

Why isn't all that fully priced now, though?

Thrugelmir

westernpromise wrote: »

Why isn't all that fully priced now, though?

What's Trump going to do next?

The-Joker

Thrugelmir wrote: »

What's Trump going to do next?

Trump is worried he will be blamed for the crash of the banks, he quite rightly said before his election that "we are in a big fat bubble"

and that was when the stock market was at 18000, now its at 25000!!!!!!!

That is a big fat bubble almost doubled.

Look at D,Bank failing all stress tests, and they have over 50 Trillion with a T, not a B, in toxic derivative time bomb.


Sell everything now and get into monetary metals before the bi crash!