Interest Rate move - Feb 08

Generali

IIRC GG you charge a lower than market rent too so scope increase if you really need to (which seems unlikely).

The rent I pay doesn't cover half the LL's mortgage. Very kind of him to subsidise me so heavily.

Gorgeous_George

Generali wrote: »

IIRC GG you charge a lower than market rent too so scope increase if you really need to (which seems unlikely).

The rent I pay doesn't cover half the LL's mortgage. Very kind of him to subsidise me so heavily.

I increased the rent last year to just 5% below market (from £80 per week to £420 per month). I have a great tenant who will be getting GCH and an offer of a 2 year AST with no further rent increase.

I don't understand why a LL would wish to subsidise a tenant's rent unless it is to offset gains elsewhere Maybe they are sadists (or is it masochists?).

GG

Generali

Gorgeous_George wrote: »

I don't understand why a LL would wish to subsidise a tenant's rent unless it is to offset gains elsewhere Maybe they are sadists (or is it masochists?).

GG

Idiots is the word I think. Anyway, I'm happy to be the recipient of their largesse.

Pretty happy with the football this evening too. And Mrs Generali has taken the kids away for the night so I've got Generali Towers to myself too!

Marvellous!

epz_2

Jennifer_Jane wrote: »

Well I'd like an interest rate cut - I would hope it would boost the stock market, and stimulate the economy. Plus if it reduces the strength of the Pound that would help with the Company I work for whom the US is 50% of their markets (so that would help with my pay increase and bonus), and I have savings in a different country - so would prefer a weaker Pound.

Yes, I think I'd be glad of lower interest rates.

Regards
Jen xx

very nice of you, wantng spend your pay increase on higher petrol and food prices since they will jump when the pound falls, look what happens when inflation gets out of control as it will with rapid cuts, it makes a hpc look like a bank holiday.

re generali's point i doubt we will see a depression as there are 3 big players with wads of cash and mostly unaffected but our hpi that would love to medal in our affairs.

unfortunaltly im not sure if i wouldnt prefer a depression to the brutal dictiatorship of china, corrupt mafia state of russia and religious lunatics of arab oil owning my country.

brit1234

Generali wrote: »

Idiots is the word I think. Anyway, I'm happy to be the recipient of their largesse.

Pretty happy with the football this evening too. And Mrs Generali has taken the kids away for the night so I've got Generali Towers to myself too!

Marvellous!

5-1 Spurs, its a great night.:T
:rotfl:

poppy10_2

Gorgeous_George wrote: »

I don't understand why a LL would wish to subsidise a tenant's rent
GG

It's not about the monthly cashflow, it's the capital gains, GG. Don't you know house prices only ever go up? :j

Gorgeous_George

poppy10 wrote: »

It's not about the monthly cashflow, it's the capital gains, GG. Don't you know house prices only ever go up? :j

Oh yes, silly me. But, I have no desire to sell.

The property has increased 480% since 2001. Sounds a lot but it is still a well affordable 3x or 4x average salary and has 4 bedrooms. I may have spent a few thousand on it - and will again - but it is the work that I put in and the silly HPI that have contributed to the growth (in equal measure).

I'd like to see the £ do better - at least against the euro.

As for HPI, that is dead. Prices will not rise even if rates fall significantly. If lenders won't lend, the market will fall. Good news for FTBers and with lower IRs, good news for mortgagees. What we need is stability - I doubt we will get that for a while.

GG

sm9ai

Well the last cut of .25% led to a raise of 1.25%

So if we follow this through currently by summer 2009 rates will be at 6,75%, if they cut again that they probably will then they could well be at 8%* by summer next year.

Still want that rate cut? Which unless you have a tracker will probably make virtually no difference to your mortgage rates.



* Okay it probably wont be that high but it will probably be higher than it is now unless the government gives in on inflation.

ixwood

I'm planning to remortgage to a 10 year fix in a couple of months, so yes please!

ixwood

I might even be able to get 8% on my mortgage overpayment money then..