Interest rate doubled (increased by the least it realistically could have)

TheOracle said:
They have to be careful. Rate rises will stuff a lot of people who have mortgages. Repossessions? If peoples mortgages go up, the money they have to spend on cars, holidays, clothes will drop meaning those areas will suffer. It's a balancing act.
House prices are silly high, but drop them and you have negative equity to deal with. What a mess.

Those companies who have increased their prices by 20% and blamed it on brexit and the weak pound won't be as quick to drop them.
Click to expand...

the point of raising the rate is exactly this, take money out of economy, get people to save and invest

I owe about £70k, effect is minimal right now, i had a mortgage in 91 when we had 15%+, if ever it returns to that, or even goes north of 5% base in the next few years EVERYTHING will crash, how many people who have taken out mortgages since 2010 can genuinely afford to pay proper interest rates

Negative equity is only a thing for those wanting to cash in, homes should be homes, not investments
 
Moses said:
Couldn’t there have been a short term effect after the vote which required one action and effects further down the line which required a different one? Brexit wasn’t a single event with a single set of effects, it’s an extremely complicated process with different issues on the way.
Click to expand...
The first cut seems to have been a panic decision based on an assumption of impending recession. Instead it’s possibly led to what can only be described as a booming economy with the lowest levels of unemployment for 40 years. The latest wage growth figures are showing wages picking up pretty quickly and outstripping inflation now, even at 3%. Between that and an apparent credit bubble forming they are presumably hoping they can take the heat out of the economy without cooling it too much.
 
Hang on, if interest rates are going up does that mean everything's better now?
Yay for lolbrexit.
 
Annoyingly this is going up just as the fixed rates on my mortgages are due to expire at the start of next year. It won't make too much difference in the grand scheme of things and hopefully my savings should return a bit more to balance it out.
 
Do think many people spend to much-loved or have gotten themselves into a financial bind in a fair few cases. Too much stuff, finance for stuff or kids being biggies.

There is this entitlement to everything attit at the moment when other countries have it much much worse with wages.

1pc would be a fair short term rate maybe in a year or two.
 
A very slow ramp over the next 4 years would suit me nicely, then sell house with no mortgage, ramp it up to 15 and then I can build my property empire
 
IMO the UK has suffered permanent damage after the 2007/2008 crash and interest rate levels can never again get to the giddy:p heights of 5 to 6 percent.

Too much debt (not just personal debt) and the economy would probably collapse under high rates.

As a self employed ex pat its hard as hell to change mortgage deals for me at the moment, so I am stuck tracking until I can show another year of accounts to show that I can afford my properties in the UK (despite me already affording them). It will probably add around 55 to 60 to my mortgages in total. I am not gonna cry about it.
 
You must log in or register to reply here.
Back
Top Bottom