Interest rates

Generali

Guy_Montag wrote: »

I'm not saying that - merely commenting that I'm surprised that rent is considered to be such a small expense & looking at some way to explain this. Whether as you say everyone who receives HB brings the average down, yet surely you should be looking at market rents, or including HB as part of that person's income - which it is, though they do not see it as such.

In America, I believe, they use the rentable value as a proxy for all owned properties. Though I suspect this is not a very accurate system.

You are, of course, there is a real problem where the majority of people own their own place (to an extent), yet this is not accounted for.

The fundamental problem is that there is no meaningful measure of inflation across an economy - measuring changes in the price level is just too complicated for many reasons.

It's why I believe that these tiny changes of 25bps here and there are just pandering to the egos of Central Bankers. It lets them feel they're in control of a process when they really aren't.

mystic_trev

nollag2006 wrote: »

Good to see that we are at the top of the interest rate cycle though.
:money:

Like in the US you mean 0.75% cut in the last two months, but no reduction in Mortgage rates - except sub-prime have gone higher :rolleyes: I'm begining to wonder how much longer 'Trackers' are going to be available.

ashcarrot

My tracker reserve fee has gone from £600 to £1500 and no change in interest rate during it.

dannyboycey

nollag2006 wrote: »

We can only hope for a cut to give house prices a bit of a push up, but I don't think we'll see anything before Christmas.

Good to see that we are at the top of the interest rate cycle though.

:money:

Well done. You win first prize in the 'most pathetic post of the month' award!

:T

Pobby

``Give house prices a bit of a push up``.Oh that is so funny!!!!Also top of the interest rate cycle.Do please explain.

I think they will certainly hold.I think they would like to give a .25% drop to stimulate the retail sector but will not risk it.Anyway,some folks are still paying off Christmas from 3 years ago when house prices only went up!

nollag2006

Oooh !! How I love to rile the House Price Crash muppets !!!

Keep praying for the crash chaps. There was one 15 years ago, bound to be another in at least the next 15 years ..

JohnInDebt

What is this "Crash" that people keep referring to? House prices only go up!!!

I would write more but I need to go and invest some money into Northern Rock.

Generali

nollag2006 wrote: »

Oooh !! How I love to rile the House Price Crash muppets !!!

Keep praying for the crash chaps. There was one 15 years ago, bound to be another in at least the next 15 years ..

Hubris....

dannyboycey

nollag2006 wrote: »

Keep praying for the crash chaps. There was one 15 years ago, bound to be another in at least the next 15 years ..

I think the Windows 95 operating system that powers your brain has crashed.

Pobby

nollag2006 wrote: »

Oooh !! How I love to rile the House Price Crash muppets !!!

Keep praying for the crash chaps. There was one 15 years ago, bound to be another in at least the next 15 years ..

If that was aimed at me I don`t care wether they go up or fall as I don`t have a mortgage or rent.Bought mine cash years ago when there were bargains to be had.Anyway,rather than trying to rile people I am genuinely interested in how you draw your conclusion that we are at the at the end of the cycle of raising interest rates or maybe your real name is Merv!