Interest rates - April 2008

overlander

Hi GG,
They can cut all they want it will make no difference. Unfortunately the only way out of this is the hard way and we are just going to take our medicine. One big plus that will come out of this is the incompetence of our last chancellor will come to light. Instead of saving for a rainy day the idiot sold all our reserves and went on a borrowing spree unfortunately we will all pay the price. One other worrying aspect is we also have no manufacturing industries to dig us out of the hole.

Dan_Collins_2

poppy10 wrote: »

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?

Poppy I dont know what part of the country you live but a few months saving would not buy you a garage in my neck of the woods. I understand your point, but it is not the clients fault that NR managed its funding badly and then the press, who we seem to follow like sheep these days, cause a run on the bank. How can you blame a client for that!

I used a 100% mortgage for my first property, I admit it was a while ago and I picked the right property as it needed work. I worked my but off, after work going to the house to get it ready to move in to. I made 45k in 3 years and actually if it was not for the stamp duty limits at the time I would have made more.

In life we all make mistakes, but it is frustrating when you pay for other peoples. The Banks will walk away from this car crash with stacks of profit! Some lower down staff may get laid off and some ppl will lose houses. I do think that some people have borrowed to much, but LTV makes no difference in this.

Regarding the yanks, most of the world will be affected by this, its just other countries are not so obsessed about owning houses as us brits!

Dan_Collins_2

Remember we are paying for a war! These are not cheap!

overlander

I also think it is unfair to blame the states for all the credit crunch we have our fair share of sub prime that was packaged and sold on.

overlander

Dan, i guess its always been that way the banks have raked it in and we will pay the price.

Dan_Collins_2

overlander, your not wrong. They own our country in a big way.

Also about the US, your right we have can only blame ourselves!

poppy10_2

overlander wrote: »

Dan, i guess its always been that way the banks have raked it in and we will pay the price.

overlander

Please do not think for one moment that i got involved in this thread to preach to other people look at me i done it the right way. Jeez that would be so far from the truth. I learnt the hard way about financial sense. I ran a lot of credit cards up and i defaulted on one for one month as i forgot about it as i was on holiday. So what did they do they increased my APR from 8 percent to 34.0%. Thats when i realised that banks were no friend of mine they were out to suck every penny they could off you. That is why i have now learnt how to beat them, and forums like this are very powerful. So yes i can see how people can get in a mess and the banks will just keep feeding the credit junky. But never ever forget you only have yourself to blame i never went looking for people to blame it was my fault.

bainy

I think they'll drop it by 0.25%, however it wont make much difference as some mortgages are being discontinued and others are being hiked upwards.
Looks like we'll all have to be prudent with our money for the foreseeable future.

Gorgeous_George

overlander wrote: »

I also think it is unfair to blame the states for all the credit crunch we have our fair share of sub prime that was packaged and sold on.

That's true but, in the USA, you can hand the keys back and the debt disappears.

GG