Are we expecting BOE to remain at 4.75% on 8th February 2025?

BarelySentientAI

ReadySteadyPop said:

RelievedSheff said:

ReadySteadyPop said:

Hoenir said:

sevenhills said:

Hoenir said:

sevenhills said:

RelievedSheff said:

Where is this evidence that people have been "caught out by the rate rises?"

It certainly doesn't seem to be indicated in any of the statistics publications.

All those people that didn't get long-term fixed mortgages?

Very few UK mortgages have ever been fixed "long term". That would be a period in excess of 15 years. 

I got a 10-year fix, so I have missed all these increases.

You are I out of how million mortgage holders though. Better to view the world through the macro rather than micro lens. As it's the macro that determines the future direction of travel. 

So lots of people caught out by the rate hikes then?

Not really. 

People having to remortgage onto a higher rate product isn't being "caught out by rate hikes" .

It was inevitable given how low mortgage  rates were. There was only ever one way they were headed. 

Current rates are not high. They are average at best. People really need to get their heads around that. If rates do start to drop, they will not be heading back to the ultra low rates we have had.

lots of people had no idea that rates rising was "inevitable", and many people are still waiting for them to go back down!

Lots of people thought that a massive drop in house prices was "inevitable" (some might even say a 'crash' ), and some of those are still waiting for it.

RelievedSheff

BarelySentientAI said:

ReadySteadyPop said:

RelievedSheff said:

ReadySteadyPop said:

Hoenir said:

sevenhills said:

Hoenir said:

sevenhills said:

RelievedSheff said:

Where is this evidence that people have been "caught out by the rate rises?"

It certainly doesn't seem to be indicated in any of the statistics publications.

All those people that didn't get long-term fixed mortgages?

Very few UK mortgages have ever been fixed "long term". That would be a period in excess of 15 years. 

I got a 10-year fix, so I have missed all these increases.

You are I out of how million mortgage holders though. Better to view the world through the macro rather than micro lens. As it's the macro that determines the future direction of travel. 

So lots of people caught out by the rate hikes then?

Not really. 

People having to remortgage onto a higher rate product isn't being "caught out by rate hikes" .

It was inevitable given how low mortgage  rates were. There was only ever one way they were headed. 

Current rates are not high. They are average at best. People really need to get their heads around that. If rates do start to drop, they will not be heading back to the ultra low rates we have had.

lots of people had no idea that rates rising was "inevitable", and many people are still waiting for them to go back down!

Lots of people thought that a massive drop in house prices was "inevitable" (some might even say a 'crash' ), and some of those are still waiting for it.

And have been for decades.

sevenhills

RelievedSheff said:

It was inevitable given how low mortgage  rates were. There was only ever one way they were headed. 

 Hoenir

"You are I out of a million mortgage holders though."

Why was I one of a million, when Relieved has said they were only going one way? Maybe 10% got a 10-year fix?

I recall that they had negative interest rates in China, so they could have gone lower?

Did I gamble, or was it a dead cert?

smipsy

Economy again showings (small) signs of growth. The only way BoE will now cut is if it's due to political pressure. Otherwise, another hold

Hoenir

sevenhills said:

RelievedSheff said:

It was inevitable given how low mortgage  rates were. There was only ever one way they were headed. 

 Hoenir

"You are I out of a million mortgage holders though."

Why was I one of a million, when Relieved has said they were only going one way? Maybe 10% got a 10-year fix?

I recall that they had negative interest rates in China, so they could have gone lower?

Did I gamble, or was it a dead cert?

Opting for any  product is a gamble. In July 2007 I opted for a base rate tracker of +0.35%. BOE base rate at the time was 5.50%.  Little did I know that by March 2009 base rate would fall to 0.50%.  Result was was we fully repaid our mortgage 9 years early. 

BikingBud

RelievedSheff said:

ReadySteadyPop said:

Hoenir said:

sevenhills said:

Hoenir said:

sevenhills said:

RelievedSheff said:

Where is this evidence that people have been "caught out by the rate rises?"

It certainly doesn't seem to be indicated in any of the statistics publications.

All those people that didn't get long-term fixed mortgages?

Very few UK mortgages have ever been fixed "long term". That would be a period in excess of 15 years. 

I got a 10-year fix, so I have missed all these increases.

You are I out of how million mortgage holders though. Better to view the world through the macro rather than micro lens. As it's the macro that determines the future direction of travel. 

So lots of people caught out by the rate hikes then?

Not really. 

People having to remortgage onto a higher rate product isn't being "caught out by rate hikes" .

It was inevitable given how low mortgage  rates were. There was only ever one way they were headed. 

Current rates are not high. They are average at best. People really need to get their heads around that. If rates do start to drop, they will not be heading back to the ultra low rates we have had.

It is not the fact that the rates are high but that the expected lifestyle predicated on paying a small sum based on unrealistic and suppressed rates for an overly expensive property cannot now be sustained. Why else are so many mortgages now being sold that will require people to pay off in their "retirement" 

For many something in the household budget will have to give but political expediency will no doubt apply, a solution will be found that keeps the boomers onside and the youth will continue to suffer for many years of supporting the generation that continues to proclaim my houses are my pension.

I'm only a simple man but what benefit did we, the big we society, actually get from low interest rates for all those years?

lojo1000

BikingBud said:

RelievedSheff said:

ReadySteadyPop said:

Hoenir said:

sevenhills said:

Hoenir said:

sevenhills said:

RelievedSheff said:

Where is this evidence that people have been "caught out by the rate rises?"

It certainly doesn't seem to be indicated in any of the statistics publications.

All those people that didn't get long-term fixed mortgages?

Very few UK mortgages have ever been fixed "long term". That would be a period in excess of 15 years. 

I got a 10-year fix, so I have missed all these increases.

You are I out of how million mortgage holders though. Better to view the world through the macro rather than micro lens. As it's the macro that determines the future direction of travel. 

So lots of people caught out by the rate hikes then?

Not really. 

People having to remortgage onto a higher rate product isn't being "caught out by rate hikes" .

It was inevitable given how low mortgage  rates were. There was only ever one way they were headed. 

Current rates are not high. They are average at best. People really need to get their heads around that. If rates do start to drop, they will not be heading back to the ultra low rates we have had.

I'm only a simple man but what benefit did we, the big we society, actually get from low interest rates for all those years?

We benefited at the expense of our collective children.

lojo1000

Today's UK employment data shows the employment market still strong but weakening but wages still well above CPI, not falling and above expectations.

There will be no rate cut for June. 

MobileSaver

BikingBud said:

I'm only a simple man but what benefit did we, the big we society, actually get from low interest rates for all those years?

The general consensus is that low interest rates benefit all of us because they encourage spending which grows the economy.

lojo1000 said:

We benefited at the expense of our collective children.

Or if you are a glass half-full type of person, our children benefitted from more jobs because more people were spending more money which required more products and services.

BarelySentientAI

BikingBud said:

I'm only a simple man but what benefit did we, the big we society, actually get from low interest rates for all those years?

Only way to know for sure is to go back in time and then see how the last 15 years play out with higher rates.  Everything else is just theorising.

The theorisers almost all agree that we would be worse off now if that had happened though.