Something fishy

Crashy_Time

AdrianC wrote: »

What do you think an appropriate base rate would be?

One dictated by market forces, not central bank intervention. A better question would be, what is an appropriate debt load for the average individual/household given that interest rates are at their lowest sustained point in history?

AdrianC

Well, there's a cop-out.

Crashy_Time

AdrianC wrote: »

Well, there's a cop-out.

Like not posting charts for the periods we were discussing you mean?

AdrianC

Crashy_Time wrote: »

Like not posting charts for the periods we were discussing you mean?

Ah, you should have said you didn't actually bother to look at the scales along the X axes. They are clearly labelled.

Which bit are you unsure about? I assumed you knew that the base rate had flatlined at 0.25% since the end of the base rate graph, until 0.5% very recently. My apologies. You can manage to fit the two to each other, at least, I hope?

Crashy_Time

Mickygg wrote: »

If everyone stopped answering and quoting the fool crashy he would just sit in his rented property and lick his wounds.
Stop feeding the troll people.

Yes, use that ignore function like it was supposed to be used! And make sure you tell everyone that you are "ignoring" the troll, before still responding to all their posts.....:rotfl:

Crashy_Time

AdrianC wrote: »

Ah, you should have said you didn't actually bother to look at the scales along the X axes. They are clearly labelled.

Which bit are you unsure about? I assumed you knew that the base rate had flatlined at 0.25% since the end of the base rate graph, until 0.5% very recently. My apologies. You can manage to fit the two to each other, at least, I hope?

So after going a long way round you can finally agree that there has been no meaningful uptick in interest rates for a long time, just as I said? :T

Crashy_Time

AdrianC wrote: »

What do you think an appropriate base rate would be?

4% maybe 5%.

buggy_boy

Crashy_Time wrote: »

4% maybe 5%.

I remember when rates were 4-5%, the thing is then mortgages were sometimes base rate -1%.

Current mortgage rates are around 2.5% depending on the LTV, if rates went up 4% likely mortgage rates would be around 5%, even a london average mortgage of £215,000 (This is money 2016 average london mortgage) it would mean based on having 13yrs left on a repayment mortgage (taken as standard of 25yrs, half that amount so 13yrs)

Current repayments = £1616 pcm at 2.5%
new repayments = £1877 pcm at 5%

Not exactly a huge amount more and unlikely to create the sort of crash you so desperately want...

When are we to expect the crashy prediction of 4-5% interest rates? Come on you keep saying you are so good at predictions.

Crashy_Time

buggy_boy wrote: »

I remember when rates were 4-5%, the thing is then mortgages were sometimes base rate -1%.

Current mortgage rates are around 2.5% depending on the LTV, if rates went up 4% likely mortgage rates would be around 5%, even a london average mortgage of £215,000 (This is money 2016 average london mortgage) it would mean based on having 13yrs left on a repayment mortgage (taken as standard of 25yrs, half that amount so 13yrs)

Current repayments = £1616 pcm at 2.5%
new repayments = £1877 pcm at 5%

Not exactly a huge amount more and unlikely to create the sort of crash you so desperately want...

When are we to expect the crashy prediction of 4-5% interest rates? Come on you keep saying you are so good at predictions.

Wow! Still so cheap! Makes one wonder why we have been on emergency interest rates for so long? :rotfl:

AdrianC

You do know that the BoE base rate isn't set purely with mortgage repayments in mind, right?