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

LabR@t · 2 Nov 2017 at 13:18

Looks like the days of cheap money are coming to an end.

100k loan just become about £12 a month more expensive.
How high will it go ??

gettothechopper · 2 Nov 2017 at 13:21

classic Labr@t overreaction thread title

congratulations

Robzere31 · 2 Nov 2017 at 13:21

As someone who remembers interest rates of nearly 20% we've got a way to go before we all need to start panicking!

I'm amazed rates stayed as low as long as they have.

VincentHanna · 2 Nov 2017 at 13:22

IMO They are giving themselves wiggle room for when the economy is in trouble. It might go up to 0.75% or 1% max in the next 6 months but after that if there's problems it'll soon drop back down.

VincentHanna · 2 Nov 2017 at 13:23

Robzere31 said:
As someone who remembers interest rates of nearly 20% we've got a way to go before we all need to start panicking!

I'm amazed rates stayed as low as long as they have.

That was before everyone lived their lives on cheap credit though...

Hagar · 2 Nov 2017 at 13:24

Robzere31 said:
As someone who remembers interest rates of nearly 20% we've got a way to go before we all need to start panicking!

I'm amazed rates stayed as low as long as they have.

Sankari · 2 Nov 2017 at 13:25

LabR@t is clearly too young to remember when interest rates were genuinely high.

Robzere31 · 2 Nov 2017 at 13:26

VincentHanna said:
That was before everyone lived their lives on cheap credit though...

Maybe, but the first rule of borrowing is don't borrow more than you can afford to pay back.
Living on credit has never been a good idea. Sure we all use credit but it's how you manage it that's most important.

glenimp617 · 2 Nov 2017 at 13:26

Funny thing is, I predicted this years ago

The reason is that when I took my mortgage out, interest rates were quite high. Nobody can predict the future, so I did the safe thing and fixed it. Only a few months later and interest rates started to fall. Then they fell, and fell, and fell, and fell. I said then that the year our fixed rate was up they would start to rise again.

YUP!

I wish all those years ago I was theoracle. Guess that afternoon with the gypsy paid off.

August 2018 is when they will really go up

dl8860 · 2 Nov 2017 at 13:27

That's dire timing for your mortgage from an interest rate POV, but equally house price rises between 1982 and 2012 (and beyond) will have been fairly magnificent, so as someone who has just bought now, my sympathy ~ 0

VincentHanna · 2 Nov 2017 at 13:27

Robzere31 said:
Maybe, but the first rule of borrowing is don't borrow more than you can afford to pay back.
Living on credit has never been a good idea. Sure we all use credit but it's how you manage it that's most important.

I wasn't including myself in the "everyone" as I don't ever live beyond my means and always pay my credit cards back in full as soon as the statements come in.

I just meant that UK Household debt is back to the record high that it was before the last financial crash.

Scam · 2 Nov 2017 at 13:29

That 0.25% is definitely going to make the difference for me saving that £100k deposit I need for a flat in London. Definitely. Call me next month guys, I'll be a millionaire :rolleyes:

glenimp617 · 2 Nov 2017 at 13:29

dl8860 said:
That's dire timing for your mortgage from an interest rate POV, but equally house price rises between 1982 and 2012 (and beyond) will have been fairly magnificent, so as someone who has just bought now, my sympathy ~ 0

at least when I take out a new mortgage it will be less interest than what were paying now. It just won't be as cheap as it could have been. Kicking myself now though. If only I'd had a tracker back then I would have saved a fortune.

really not sure a fixed rate is a good idea anymore, I just like peace of mind

Robzere31 · 2 Nov 2017 at 13:29

On the plus side saving might actually be worth something in a few months!
Our mortgage was paid off 4 years ago so I haven't really been that bothered by the interest rates of late.

LabR@t · 2 Nov 2017 at 13:29

gettothechopper said:
classic Labr@t overreaction thread title

congratulations

Has the rate doubled, yes or no?

I

Evangelion said:
LabR@t is clearly too young to remember when interest rates were genuinely high.

I wish, my first mortgage was at 9%

Tunney · 2 Nov 2017 at 13:33

BoE blaming the rise on Brexit. Uncertainty leading to an overshoot in inflation and a lack of investment.

Hades · 2 Nov 2017 at 13:33

I'm currently fixed but will be coming off in the next 1.5 years. Perfect timing lol

But I'm of the old skool used to high interest rates so I was fully expecting it.

Tunney said:
BoE blaming the rise on Brexit. Uncertainty leading to an overshoot in inflation and a lack of investment.

It may or may not be Brexit related. But they've been saying for years that rates must rise soon. So it's hard to believe them when they suddenly blame a factor that only occurred in the last year and a bit.

Kronos · 2 Nov 2017 at 13:41

It is still a ridiculously low figure particularly if you have savings and compared to the interest us oldies had to live with and survive then this rise is and overall inflation rate is so insignificant.

SpeedFreak · 2 Nov 2017 at 13:42

Scam said:
That 0.25% is definitely going to make the difference for me saving that £100k deposit I need for a flat in London. Definitely. Call me next month guys, I'll be a millionaire

Sentiment is what matters. See this as the first step towards flat or even reducing house prices.

gettothechopper · 2 Nov 2017 at 13:43

LabR@t said:
Has the rate doubled, yes or no?

yes it has doubled from "bugger all" to "almost bugger all"