Mortgage Rate Rises
- Thread starter glenimp617
- Start date
On our way? I'd say we're already there.
Again, not at all wanting to give the government any sort of out here but myself along with most people I know who had no job issues through covid saved and spent money on doing the house up... 1) you were stuck in the bloody thing constantly and 2) you had nothing else to spend it on
Same. Well. We had just bought a house and first house.
What do you need? Shed loads of tools. Paint/materials. Trades people.
Cost to cust down a small tree? 100 pounds. Cost of battery chainsaw? 80.
So yet more spending on stuff.
I mean the amount we spent during lock down was huge compared to previous years.
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Caporegime
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Your Lego collection grew exponentially
Its only stopped due to lack of space!
I caught discussion of this on C4 news last night and it chimes with something I'd been thinking for a little while..
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www.reuters.com
Essentially one of the BoE committee warning we've already done enough and risk going too far, essentially I was wondering out loud the other day that given I and most people I know are on fixes of varying lengths right now they could make the interest rate 100% and it would make no difference to us.
Obviously we're all preparing in our own ways, I'm personally planning to overpay by setting my payment to what it WILL likely be in 2025 by means of paying the debt down and removing any bill shock by getting used to it for a couple of years..
The analogy on the news was the fool in the shower, turning the heat up and up and up because nothing is happening then winding up burnt when it all happens at once.. I do honestly think there's a strong risk of that.
They also made the point that our inflation isn't down to money supply... we had 110% increases in energy costs, the EU 80% and US only 30%.. we're still 9% under pre pandemic levels of spending unlike anywhere else in the world.. it's not people going out and spanking on TVs and Audis so taking money out of pockets doesn't really work.
Bank of England's Tenreyro warns against rate rises, says cuts may be needed
The Bank of England has no need to raise interest rates further to curb inflation, and risks having to make a sharp U-turn if it tightens policy any more, BoE rate-setter Silvana Tenreyro said in her last speech as an official at the central bank.
www.reuters.com
Essentially one of the BoE committee warning we've already done enough and risk going too far, essentially I was wondering out loud the other day that given I and most people I know are on fixes of varying lengths right now they could make the interest rate 100% and it would make no difference to us.
Obviously we're all preparing in our own ways, I'm personally planning to overpay by setting my payment to what it WILL likely be in 2025 by means of paying the debt down and removing any bill shock by getting used to it for a couple of years..
The analogy on the news was the fool in the shower, turning the heat up and up and up because nothing is happening then winding up burnt when it all happens at once.. I do honestly think there's a strong risk of that.
They also made the point that our inflation isn't down to money supply... we had 110% increases in energy costs, the EU 80% and US only 30%.. we're still 9% under pre pandemic levels of spending unlike anywhere else in the world.. it's not people going out and spanking on TVs and Audis so taking money out of pockets doesn't really work.
Snipped
Same. Said similar (like many of us).
Keep lower longer.
Obviously there are other reasons but with the UK so in debt...nationally, personally, corporately.. Suddenly. Rocketing rates from 0 to 6-7 gives no one time to react.
Implying rates are going to stick at 3-4 over the long term hopefully should encourage everyone to get that debt down.
At the moment no point in me paying off the mortgage as my rate is cheap.
No point long term saving as rates are much lower than inflation.
Actually, best thing to do is buy stuff. Thus fueling that inflation.
I'm still of the opinion a VAT bump on non essentials would make saving more appealing and put off buying that stuff until vat is reduced.. Ie when inflation is tamed.
6-7+ percent rates are only going to royally shaft some businesses and individuals, while leaving others untouched. Is this good for anyone?
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Soldato
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Been saying this the whole time. Its so obvious that it gets incredibly frustrating to see the discussion twisted onto other things and making people suffer for it.
Great if you have the headroom, and you'll pay less interest overall. Many people don't have the headroom.
I have 4.5 years of fixed rate left, and we're getting 7% at work this year which is highest ever in the 20 years ive been there. Im thinking though of putting more into my pension contribution, because that benefits from tax incentives, rather than overpaying the mortgage where that extra will make not much difference over the five years.
I caught discussion of this on C4 news last night and it chimes with something I'd been thinking for a little while..
Bank of England's Tenreyro warns against rate rises, says cuts may be needed
The Bank of England has no need to raise interest rates further to curb inflation, and risks having to make a sharp U-turn if it tightens policy any more, BoE rate-setter Silvana Tenreyro said in her last speech as an official at the central bank.
Essentially one of the BoE committee warning we've already done enough and risk going too far, essentially I was wondering out loud the other day that given I and most people I know are on fixes of varying lengths right now they could make the interest rate 100% and it would make no difference to us.
Obviously we're all preparing in our own ways, I'm personally planning to overpay by setting my payment to what it WILL likely be in 2025 by means of paying the debt down and removing any bill shock by getting used to it for a couple of years..
The analogy on the news was the fool in the shower, turning the heat up and up and up because nothing is happening then winding up burnt when it all happens at once.. I do honestly think there's a strong risk of that.
They also made the point that our inflation isn't down to money supply... we had 110% increases in energy costs, the EU 80% and US only 30%.. we're still 9% under pre pandemic levels of spending unlike anywhere else in the world.. it's not people going out and spanking on TVs and Audis so taking money out of pockets doesn't really work.
She is right.
It isn't actually viable to raise them much further.
They would be pushing things to the absolute limit and over. A lot of people's household budgets just would not add up.
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Be interesting to see what happens at the next rate meeting on 3rd Aug then, as that's before the next Fed meeting which is in Sept I believe*, but the Fed have indicated they are still going to raise rates more this year.
Which does put the BoE in a difficult position as if we lag too much behind other country's rates our currency will likely devalue, which will cause an inflationary pressure.
Edit * : No, the Fed next meets at the end of July. So that will affect what the BoE does.
Which does put the BoE in a difficult position as if we lag too much behind other country's rates our currency will likely devalue, which will cause an inflationary pressure.
Edit * : No, the Fed next meets at the end of July. So that will affect what the BoE does.
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Not really angry about anything, use of emoji is to poke fun, I just find it a bit odd that it's generally not - to my perception - a bigger talking point vs other things. My point really is that this graph is within an article about 4.xbn being withdrawn, however what the real story to me is that huge spike.
Nice, I'm clearly a bit blinkered as I haven't witnessed that discussion ongoing.
I presume this is due to the fact that I don't really go hunting for articles either way, it's more something I've simply perceived passively.
As if the government and country cares about devaluing the pound.
This is the government that wanted brexit, and that is what the majority of people voted for.
This lead to a massive drop in the pound. Why be worried about it now? It clearly doesnt matter....
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I think the point potentially being that it might but many wouldn't even know because it hadn't hit them yet.
There's a real risk of creating a financial tsunami and right now we're watching the water go out.
All that being said I do think they have to create fear too because otherwise with inflation staying high if that's matched with decent pay rises then someone like me could just go on spending whatever because I'm not feeling the interest rate rise etc.
It's tricky, I think they have created fear now so if it's possible I think all they need to do is do what mr billionaire told the rest of us to do and hold their nerve.
This is the only reason I can even think of "for" rasing the rates.
We had 3 medium to small trees in our garden. I chopped them all with a saw manually. Took the logs to the dump yard and leaves slowly over a few weeks into garden waste. Job done and nice workout
We had 3 medium to small trees in our garden. I chopped them all with a saw manually. Took the logs to the dump yard and leaves slowly over a few weeks into garden waste. Job done and nice workout
This was a dead tree. Made the logs into a nature pile for bugs and animals!
For the oak tree pruning.. That required a professional!
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I bet. I draw the line at having to climb anything and use a chainsaw at the same timeFor the oak tree pruning.. That required a professional!
