Mortgage Rate Rises

Sythe79 said:
The base rate might at a push hit low 3%, if you're optimistic, but even then I doubt general mortgage rates will. It's not normal for mortgage rates to be so low compared to base rate as they are now.
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It is so difficult to try and time, hence mt question last week re fix vs tracker.
 
looks like we fixed at the start of the year in a mini dip, at least, by as much luck as judgement... and the luxury of it not really mattering that much.


The real problem at the moment is just how unstable the market seems to be, at least if everyone was aware of exactly how screwed they were, they could plan accordingly :)
 
Thing is interest rates have been historically low for a long time but that's not really 'normal' but people expect them to go so low again.

I think what we have now will be pretty stagnant for a good 4 or 5 years.
I'm sure there will be plus 0.25 percent here and minus 0.25 percent there...
 
mattyfez said:
Thing is interest rates have been historically low for a long time but that's not really 'normal' but people expect them to go so low again.

I think what we have now will be pretty stagnant for a good 4 or 5 years.
I'm sure there will be plus 0.25 percent here and minus 0.25 percent there...
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Agreed... the all time low percentages isn't the norm and shouldn't be the norm. I watched a video today where the person who used to work for citibank as an investor was in a meeting discussing the banking crisis at the time.

They was showed the stats that the middle class was getting poorer/into debt and the government was getting more debt. The only way for the country to survive was to lower the interest rates to allow the government to borrow more money at cheaper interest. I've never thought about it in that way before. He made his investments based on the calculation that it will be all time low rates for an extended period and made billions for the bank and pockected millions in bonuses.

I'll be well chuff if I can renew my mortage in 4 years time for around 3.5%, this is what most of the sites are predicting it will be. anything more that 4.5% and I'll be trying to pay off the rest of my mortage off asap but I should only have around 50k left by then.
 
I'm not smart enough to understand what the impact of these 5pc rates would be long term.

More and more toxic loans I guess.
Business and personal.

Obviously house prices will stagnate at best.
But many businesses require these low rates to survive. I guess you could argue these as bad businesses.

So much is loaned now all over the place.
Many people's cars, mortgages, credit cards and the cost of everything else.

I suppose businesses too indebted will fail, others will stagnate and people will cut spending even more.

Still plenty of people on very cheap (relatively) mortgages.
 
Yup mortgage lender I work for has been putting up rates over the last week or so, and a lot of competitors are as well.

We've actually been really bloody busy for about 3-4 weeks so hopefully it slows down a bit.
 
All of this crap is a chain reaction caused by one idiot and very brief PM and then one idiot in Russia, so annoying.

But if you think it's bad here you should see the rates in Russia. It's about 17% and rising.
 
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413x said:
I'm not smart enough to understand what the impact of these 5pc rates would be long term.

More and more toxic loans I guess.
Business and personal.

Obviously house prices will stagnate at best.
But many businesses require these low rates to survive. I guess you could argue these as bad businesses.

So much is loaned now all over the place.
Many people's cars, mortgages, credit cards and the cost of everything else.

I suppose businesses too indebted will fail, others will stagnate and people will cut spending even more.

Still plenty of people on very cheap (relatively) mortgages.
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It will all collapse again. Line goes down. The banks will get bailed out. Then line will go up again until it all collapses again. Repeat.

Boom and bust. Rich people win. Poor people lose.

That's how the system has been designed to work.

So glad I'm mortgage free now.
 
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