Bank of England rates could rise more than thought

lisyloo

fewcloudy wrote: »

I shudder to think of the decisions some have taken over last 10 years based upon rumours of impending rate rises.

I did consider a fixed rate of 5.99 in 2008, in fact I applied for it.
I switched to BOE + 0.49% and have made a profit by stoozing a large (six fugure) repayment pot. Back in the early days I had some RPI linked certificates which were paying over 5% with a 1% motgage. So just to give you an idea 4% profit of £150,000 is £6K anunally which is a nice little stooze pot.
I switched on the basis of a friend who's qualifications I know AND my own considered view of how it was applicable in MY situation i.e. would I sleep at night, could I afford it if rates went against me.

I was able to withstand the risk of rising rates, but I think for many a fix can be a good idea even if it's more expensive.

You can only take risks if you can afford it to go against you.

I wouldn't consider some information - such a public comments by Mark Carney to be rumours. Some might say it's not much better ! but even if you don't like him he still has a vote and influence on the other votes.
I always verify the information I read and don't just rely on rumours/opinions from people I don't know.

Do you know many people who make decisions based on rumours/advice from strangers? I don't think I do.

I would completely agree that you shouldn't take what you read at face value, but as food for thought/further research.

If you think the forums have zero value then what's the point of being here?

fewcloudy

lisyloo wrote: »

I did consider a fixed rate of 5.99 in 2008, in fact I applied for it.
I switched to BOE + 0.49% and have made a profit by stoozing a large (six fugure) repayment pot. Back in the early days I had some RPI linked certificates which were paying over 5% with a 1% motgage. So just to give you an idea 4% profit of £150,000 is £6K anunally which is a nice little stooze pot.
I switched on the basis of a friend who's qualifications I know AND my own considered view of how it was application in MY situation.

I was able to withstand the risk of rising rates, but I think for many a fix can be a good idea even if it's more expensive.

You can only take risks if you can afford it to go against you.

I wouldn't consider some information - such a public comments by Mark Carney to be rumours. Some might say it's not much better ! but even if you don't like him he still has a vote and influence on the other votes.
I always verify the information I read and don't just rely on rumours/opinions from people I don't know.

Do you know many people who make decisions based on rumours/advice from strangers? I don't think I do.

I would completely agree that you shouldn't take what you read at face value, but as food for thought/further research.

If you think the forums have zero value then what's the point of being here?

I said 'some'. Search this forum over last 10 years on 'should I fix' type thing. Scary reading some of it.

lisyloo

Let's hope they do get some advice (even if it's you need more advice) by asking their question here, rather than not asking it at all.

Unfortunately I don't think the financial advice industry have done themselves any favours, so it's not suprising that some people want to DIY.
You see this all the time on the insurance board with many people doing DIY but not understanding the implications.

Personally I'm glad there are place like this to get advice, although I always take it as fodder for further research.

fewcloudy

lisyloo wrote: »

Let's hope they do get some advice (even if it's you need more advice) by asking their question here, rather than not asking it at all.

Are you mistaking me for another poster? I don't think forums have zero value, what are you on about?

lisyloo

fewcloudy wrote: »

Are you mistaking me for another poster? I don't think forums have zero value, what are you on about?

You are talking about rumours and thanked the post about this thread being fear mongering.

Not sure what point you are trying to make, but if you have real evidence of fear mongering and dangerous rumours then please pass them on to MSE.

fewcloudy

lisyloo wrote: »

You are talking about rumours and thanked the post about this thread being fear mongering.

Not sure what point you are trying to make, but if you have real evidence of fear mongering and dangerous rumours then please pass them on to MSE.

Sorry, you are mistaken. Don't jump to conclusions based on which posts I do or don't thank.
Lots of decisions will have been made over the last 10 years based on talk of rates going to rise soon. I called that rumours but try not to concentrate on exact words; I'm sure you understood what I meant. Not especially on here but over last 10 years and very recently in fact there are lots of posts stating rate rises are as good as certain. Enough.


In other news, interest rate rise didn't happen, not really very surprising is it? Maybe later in year, but who knows, will depend on economic data I guess...

Filo25

So no change to rates and no change to the vote from the last meeting (7-2).

Given the cut to growth forecast it is a more uncertain outlook for rates in the near future, on the one hand it looks like it is possible growth may be much weaker than expected, on the other Sterling has fallen back a bit in response to the more dovish monetary policy outlook and oil prices have been rising significantly.

lisyloo

Lots of decisions will have been made over the last 10 years based on talk of rates going to rise soon. I called that rumours but try not to concentrate on exact words; I'm sure you understood what I meant.

No I do not know what you mean.
Talk and information from reports from govenors of the BOE are not rumours. Much that's discussed on this board or other comes from sources like the BOE e.g. the official inflation report.
That's not what I understand as rumours.

Of course that's different to what some stranger posts up as their opinion with no source/reference.

I think the words are important as information from recognised aithorities who have real influence (vote) is not rumour.

I agree - enough. Anyone with REAL concerns please report to MSE.

Not at all suprised it didn't happen.
I pay my mortgage off on 27th November, so it's worked out great for me (for which I'm not taking credit, just saying it has).

michaels

Filo25 wrote: »

So no change to rates and no change to the vote from the last meeting (7-2).

Given the cut to growth forecast it is a more uncertain outlook for rates in the near future, on the one hand it looks like it is possible growth may be much weaker than expected, on the other Sterling has fallen back a bit in response to the more dovish monetary policy outlook and oil prices have been rising significantly.

So I wonder when we may start seeing the R-word in the press?

Thrugelmir

michaels wrote: »

So I wonder when we may start seeing the R-word in the press?

Already some concerns that Germany is heading in that direction.