Base rate rise!

I'm about to exchange any day on my flat (FTB). SO glad I've got 5 year fixed rate because the base rate is now higher than my mortgage rate :eek:
 
Can I ask everyone to stop spending so that the interest rates can go down by August. Once I've got a new mortgage you are free to go nuts.

Thank you :D
 
damn. just found a place I like. struggling to find a mortgage as I have been self employed for about 1 month :(

oh well. looks like I am staying with the parents. 24 and living at home.
boo.
 
lozza23_uk said:
damn. just found a place I like. struggling to find a mortgage as I have been self employed for about 1 month :(

oh well. looks like I am staying with the parents. 24 and living at home.
boo.
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Stay there and save like mad. Seriously, that is the best thing for you to do at your age given the current situation. Then pick up something cheap when the recession bites hardest. :(
 
Mat said:
And I want to buy a house too :(
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This is good news, kinda, the BoE is trying to stop the over inflation rises in house prices. By making it harder for people to afford houses in this way it should see the speed of increase in prices slow down. They're trying very hard to avoid bursting the bubble, but also stop the housing market getting so overpriced that anyone new to the market doesn't stand a chance
 
The main reason is because inflation was starting to get a little out of control, house prices have certainly contributed to that.
 
AJUK said:
The main reason is because inflation was starting to get a little out of control, house prices have certainly contributed to that.
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Not directly, IMO - its more down to people looking at the money they've accumulated in their home and feeling more secure in unsecured borroing to fund spending....

'10 grand on a credit card? No problem - my house has gone up by 50k.'
 
Mat said:
I figured it would make mortgage repayments that much higher.
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It will make repayments higher if you're on variable rate mortgages. What it should do is drop the house prices or reduce the rate of climb; people will only be able to get a lower level mortgage for the same payments as they're making now, thus will only be able to afford slightly cheaper houses.
 
Visage said:
Not directly, IMO - its more down to people looking at the money they've accumulated in their home and feeling more secure in unsecured borroing to fund spending....

'10 grand on a credit card? No problem - my house has gone up by 50k.'
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I agree, that's sort of what I mean.
 
Garp said:
This is good news, kinda, the BoE is trying to stop the over inflation rises in house prices. By making it harder for people to afford houses in this way it should see the speed of increase in prices slow down. They're trying very hard to avoid bursting the bubble, but also stop the housing market getting so overpriced that anyone new to the market doesn't stand a chance
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house price inflation is not part of the BoE's remit
 
AJUK said:
The main reason is because inflation was starting to get a little out of control, house prices have certainly contributed to that.
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afaik house prices are not included in inflation figures

the main cause are fuel/energy prices, these will soon stop affecting the rate as firstly the prices have fallen recently and secondly the effects of rises get to a point where they are more than a year ago
 
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