rate cut and the housing market ...

dolce_vita

Just re-arranging the deckchairs on the titanic.

epz_2

joy my petrol bill is about to jump again, glad its going to a good cause like helping out people on 125% interest only mortgages.

oh well ill just get a bigger myself pay rise

Running_Horse

dannyboycey wrote: »

I'm afraid you are very much in the minority.

The financial editor of the Financial Times was interviewed on TV today, and said it was the right decision. I have already mentioned the Times leader, and the Chamber of Commerce elsewhere.

I would rather be in that minority, than a bunch of HPC hopefuls on an Internet message board. Just keep telling yourself you are right and everyone agrees with you.

Let the good times roll.

granville_2

Running_Horse wrote: »

More insults? Oh dear. I'm just waiting for your miserable brother in arms, Squatnow, to turn up and tell us we're all doomed. Like it or not interest rates are now on the way down.

And about time too.:T :j :beer: :rotfl:

Lower rates = a lower pound.

Let's face it, we are a net importer of goods (look at our trade deficit). A lower pound = more expensive to import said goods = increase in inflation.

Don't forget to add on the increased costs for energy, raw materials, food etc. The NICE period (non-inflationary constant expansion) is well and truly over. Does anyone truly believe the CPI figures?

Let's just hope our wage-inflation keeps up by the same amount.

And remember kids... 'house prices are a matter of opinion, debt is real'.

Let's be careful out there.

btw, this makes good reading...
http://www.moneyweek.com/file/39071/the-bank-of-england-cant-save-the-%20housing-market.html

devils_advocate

I was just about to post the same, granville.

Rates cut, sterling tanks, oil and food go up in price, inflation rises ..... seen the results before.

Gorgeous_George

Running Horse is not alone but empty vessels make the most noise.

Back to the thread. A rate cut is good for all housebuyers, current and future because lower interest rates = lower mortgage payments. House prices will still fall because sub-prime borrowers will not be able to secure a mortgage at any rate. For the first time in history lower rates will not mean higher prices.

Boom-time for BTL?

GG

Zammo

[FONT=Verdana, arial, helvetica, sans-serif]UK consumers and businesses are about to find out - just as their Japanese counterparts did in the nineties - that it doesn’t matter how low your central bank cuts interest rates if your banking system doesn’t have any money left to lend.[/FONT]

danm

granville wrote: »

Lower rates = a lower pound.

Let's face it, we are a net importer of goods (look at our trade deficit). A lower pound = more expensive to import said goods = increase in inflation.

Don't forget to add on the increased costs for energy, raw materials, food etc. The NICE period (non-inflationary constant expansion) is well and truly over. Does anyone truly believe the CPI figures?

Let's just hope our wage-inflation keeps up by the same amount.

lower interest rates may lead to a lower pound which may lead to inflation which may decrease your purchasing power

If rates do not decrease this may lead to a recession which may lead to unempoyment which may decrease your purchasing power (and maybe to zero).

i know which id rather take my chance with

ashm1

They are cutting rates faster than they forecasted. Not a good sign.

mr.broderick

Running_Horse wrote: »

The financial editor of the Financial Times was interviewed on TV today, and said it was the right decision. I have already mentioned the Times leader, and the Chamber of Commerce elsewhere.

I would rather be in that minority, than a bunch of HPC hopefuls on an Internet message board. Just keep telling yourself you are right and everyone agrees with you.

Let the good times roll.

Good times Roll? You are either totally mortgaged up to the eyeballs on the periphery of affordability or on acid, which is it?

HPC hopefuls?

It kills me to say it guys but even I think we are on a helter skelter ride to oblivion now.

Anyone seen nelly tonight?