Interest rates - April 2008

Dan_Collins_2

LOL, we all have our reasons. I am a broker and I can see that stability would help with my business.

overlander

Yes they have never been linked but they have never been so far apart. The BOE has completely failed and the market is going to correct it and there is going to be massive casualty's. The banks don't need to win votes for their master. One other point of view is that the worst casualty's are the 100%-125% mortgage brigade and to be honest they deserve all thats coming to them as they are part of the problem

neas

if they arent linked why not just raise them to give me some more interest

Dan_Collins_2

overlander wrote: »

Yes they have never been linked but they have never been so far apart. The BOE has completely failed and the market is going to correct it and there is going to be massive casualty's. The banks don't need to win votes for their master. One other point of view is that the worst casualty's are the 100%-125% mortgage brigade and to be honest they deserve all thats coming to them as they are part of the problem

The 100% brigade do not deserve this and are not part of the problem as in cause they are part of the problem as in greedy banks invented these products! The banks lend the money. They have helped push house prices along with the rest of us. We are all to blame, we either borrow to much, expect to much for our property or we paid over the odds for a property. Our culture has failed and its time we changed.

Just about every 100% mortgage I arranged has been for first time buyers who cant get on the ladder. People say they should save, but if you are starting out in life paying rent and saving is not always possibe.

I know I am going to get it for this, but I blame the lenders. They have put money on a plate and have lent to anybody on any terms. Yes we as brokers help them, but if the 100% mortgage had never been invented we could not apply for it!

I just hope you wont be on here asking for help after things have gone wrong for you!

overlander

I also blame the lenders, you are correct but it takes two to tango. If people just turned round and said no to 100% mortgages as they are financial madness along with obscene lending multiples then prices would have slowed down.

overlander

But as GG pointed out financial sense does not require luck. I stuck to sound borrowing rules 85% at 3.5 times my salary. Its not really rocket science, and yes it took me 10 years to save a deposit but i just rented, pretty easy really.

poppy10_2

The MSE posse have got the interest rate prediction right every time this year. But currently voted is divided pretty much evenly between a hold and a 0.25% cut. Interesting times.

I voted that they will drop rates - there's been another intense media barrage demanding a cut, as in February. Inflation has become a secondary concern for the BoE, recent statements from MPC members have made it clear that they are now not sticking to their primary remit and are instead trying to save the economy from heading into recession.

@Dan - if people couldn't afford to save enough for a small deposit, they shouldn't have gotten on the property ladder in the first place. If they don't have the discipline to save up for a few months, how could they be expected to cope with rising interest rates and increased monthly mortgage costs?

Gorgeous_George

The credit crunch was caused by the Americans. Not only do we follow them into a war that we cannot win that costs us £Billions, we buy their cr4p mortgages.

In the US, a mortgage defaulter can hand the keys back and that is the end of the debt. How stupid is that? (Americans are even more stupid than we Brits). That is the main reason for the credit crunch IMHO (well that and the bubble popping).

GG

Gorgeous_George

poppy10 wrote: »

I voted that they will drop rates - there's been another intense media barrage demanding a cut, as in February.

There will be even stronger demands in this week's press.

A 2% cut may be the last roll of the dice.

GG

Gorgeous_George

overlander wrote: »

But as GG pointed out financial sense does not require luck. I stuck to sound borrowing rules 85% at 3.5 times my salary. Its not really rocket science, and yes it took me 10 years to save a deposit but i just rented, pretty easy really.

I decided that rather than play the churning game trying to save about £100 a year by switching my mortgage every couple of years (with the temptation to round the borrowing up), that I was happy to pay a fair price for my mortgage.

Similarly, I do not want to fly to New York for 1p or have a three course dinner for £3.99. I like to think that my airline can afford good quality fuels and my chefs are not on minimum wage (and spitting in my soup).

I like a bargain but some things are too important.

GG