BoE increase base rates by 0.25% to 4.5%

Aberdeenangarse

As expected.

[Deleted User]

Not surprised but for how long will this continue.

I had paid early repayment charge except 1 which is due to end 02/2024.

The rent been charged would not cover the new rate. rent is £1750, mortgage over £2000 from £1110 showing on variable at present.

hildosaver

Good chance we hit 5% by the end of this year. Very very painful.

dunstonh

The rent been charged would not cover the new rate. rent is £1750, mortgage over £2000 from £1110 showing on variable at present.

That could be better.  Have you considered selling up or repaying some of the debt (when free to do so)
Especially as rates are still below the long term average (which is closer to 7%).   

The rates are highly unlikely to return to post credit crunch lows as that was a 300 year low point.

[Deleted User]

dunstonh said:

The rent been charged would not cover the new rate. rent is £1750, mortgage over £2000 from £1110 showing on variable at present.

That could be better.  Have you considered selling up or repaying some of the debt (when free to do so)
Especially as rates are still below the long term average (which is closer to 7%).   

The rates are highly unlikely to return to post credit crunch lows as that was a 300 year low point.

Good point.

I have no intentions of selling at present.

I do have some savings so will have to decide the best strategy forward.

I did pay some ERC £1-2k mid last year but this required £4k+ so the only one which isn't 5 years.

Looks like from 02/2024 will be variable and hope later in the year rates go to around 2-3%

RelievedSheff

Zoe02 said:

dunstonh said:

The rent been charged would not cover the new rate. rent is £1750, mortgage over £2000 from £1110 showing on variable at present.

That could be better.  Have you considered selling up or repaying some of the debt (when free to do so)
Especially as rates are still below the long term average (which is closer to 7%).   

The rates are highly unlikely to return to post credit crunch lows as that was a 300 year low point.

Good point.

I have no intentions of selling at present.

I do have some savings so will have to decide the best strategy forward.

I did pay some ERC £1-2k mid last year but this required £4k+ so the only one which isn't 5 years.

Looks like from 02/2024 will be variable and hope later in the year rates go to around 2-3%

I genuinely doubt rates will fall to 2-3%.

The current BOE rate is still lower than the long term average rate. Until inflation is brought under control there will be little appetite for the BOE to lower rates.

[Deleted User]

RelievedSheff said:

Zoe02 said:

dunstonh said:

The rent been charged would not cover the new rate. rent is £1750, mortgage over £2000 from £1110 showing on variable at present.

That could be better.  Have you considered selling up or repaying some of the debt (when free to do so)
Especially as rates are still below the long term average (which is closer to 7%).   

The rates are highly unlikely to return to post credit crunch lows as that was a 300 year low point.

Good point.

I have no intentions of selling at present.

I do have some savings so will have to decide the best strategy forward.

I did pay some ERC £1-2k mid last year but this required £4k+ so the only one which isn't 5 years.

Looks like from 02/2024 will be variable and hope later in the year rates go to around 2-3%

I genuinely doubt rates will fall to 2-3%.

The current BOE rate is still lower than the long term average rate. Until inflation is brought under control there will be little appetite for the BOE to lower rates.

will ride it out.

4 of 5 are 5 years fixed.

[Deleted User]

The amount we can borrow is falling faster than we can save up more deposit.

Aberdeenangarse

The current BOE rate is still lower than the long term average rate. Until inflation is brought under control there will be little appetite for the BOE to lower rates.

I’ve been banging on for the last year trying to explain to people that Inflation will not drop as fast as those imbeciles at the BoE have been saying. Even towards the end of last year they were still predicting inflation would reach their target of 2% at the end of this year! Now they’re saying it will be 5.1% by the end of the year but won’t come down to 2% until 2025. So much for the experts!

Sarah1Mitty2

dunstonh said:

The rent been charged would not cover the new rate. rent is £1750, mortgage over £2000 from £1110 showing on variable at present.

That could be better.  Have you considered selling up or repaying some of the debt (when free to do so)
Especially as rates are still below the long term average (which is closer to 7%).   

The rates are highly unlikely to return to post credit crunch lows as that was a 300 year low point.

I think 7-8% is possible on base rate at this stage, it depends on future "inflation shocks" really, the wage rise thing is starting to become embedded now.

Aberdeenangarse

hildosaver said:

Good chance we hit 5% by the end of this year. Very very painful.

It looks like it could be 5.5% - 6%

"The inflation figures were bad," says Willem Buiter, a founding MPC member. He believes the Bank has been playing catch-up for a while. "To address the inflation problem, policy rates in the UK will have to increase materially and speedily."

Buiter believes policymakers should raise rates by half a percent at their next meeting in June. "I see Bank Rate peaking at no less than 6pc."