Bonefish Blues
Banging donk
- Location
- 52 Festive Road
BofE raising rates in quick succession and rampant inflation. If that doesn't squeeze the b*ll*cks out of the economy, then nowt will.
Last edited:
Interest Rates
- Thread starter jowwy
- Start date
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Jameshow
Veteran
They must have been swearing at the chancellor on Friday undoing all theire steady as she goes helming whilst kwag gives it full power on the starboard engine!
Why he thinks that cutting taxes for the rich in the light of the fuel crisis and waiting lists in the NHS baffles me! Let's see what this lever does economics!!
gbb
Legendary Member
- Location
- Peterborough
About time they went up (we are savers not borrowers) and the crash of 2008 hammered our long-term investment return projections.
Artificially low rates coupled with, and fueled by, quantative easing have over-stimulated housing prices as well as affecting savings/investment returns.
5-6% base rate always seemed to work fine ime.
And yes, I've lived through the 15% mortgage rate nonsense in the early 90's.
Some people used to the artificially low rates have some real shocks coming.
Its the same with many things, housing market bubbles/ crashes, same with finance, interest rates, almost anything and everything, if you've been around a while and actually learned anything as you went, todays economic woes are no surprise. The mistake lots of people make is not to even be aware that cycles like this are almost inevitable
Regular.Cyclist
Über Member
- Location
- East central Scotland 🏴
figbat
Slippery scientist
- Location
- South Oxfordshire, UK
You don't think the lenders are watching the news? As we've seen, some are already pulling out ahead of any new rate rises.
In a feat of unimaginable foresight (or good luck) we locked into a 7-year deal in November last year at 1.19%. I can't tell you how relieved I am about it. At the time we took it the rate was on the high side but we did consider that rates were only going in one direction, although we never quite saw this coming.
i tied in 5yrs ago and its coming to an end in feb....my rate was 2.69% back then, so it may not go up that much and my mortgage is prob quite small compared to some and i have an LTV of around 40%
- Location
- Somewhere wet & hilly in NW England.
This journey back in time illustrates the ridiculously out of kilter rates that have been in effect since the financial crash.
No wonder house prices have gone through the roof.
Sadly, my guess is that many mortgagees have not realised that artificially low rates must eventually go up and/or have buried their head in the sand to fund Disney trips and fancy new cars whilst chewing up any equity they have.
I can't see this situation ie very low interest rates happening again - the 'experiment' has failed.
Even mortgagees with long-term fixes are going to come face to face with a cliff edge when their term ends imo.
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
No wonder house prices have gone through the roof.
Sadly, my guess is that many mortgagees have not realised that artificially low rates must eventually go up and/or have buried their head in the sand to fund Disney trips and fancy new cars whilst chewing up any equity they have.
I can't see this situation ie very low interest rates happening again - the 'experiment' has failed.
Even mortgagees with long-term fixes are going to come face to face with a cliff edge when their term ends imo.
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
presta
Guru
Exactly. People complain about not being able to get on the housing ladder, but that's because of a housing shortage, make it easier to buy in a seller's market, and you fuel rampant inflation. Raising ineterest rates reduces inflation by creating an incentive to save and a disincentive to borrow.
Bonefish Blues
Banging donk
- Location
- 52 Festive Road
We missed the absolute bottom so are just over 2, but I had the foresight to go with an offset product against which I have been sticking our cash savings and saving interest, so the balance has been fair ripping down (well, a bit
). As soon as I can get a rate better than the offset I'll pull my cash and chase a better rate outside the offset.
- Location
- Somewhere wet & hilly in NW England.
GBP vs Dollar recovering:
https://uk.investing.com/currencies/gbp-usd-historical-data
Gilts almost back to 4%:
https://uk.investing.com/rates-bonds/uk-30-year-bond-yield-historical-data
Bith virtually the same as last Friday.
https://uk.investing.com/currencies/gbp-usd-historical-data
Gilts almost back to 4%:
https://uk.investing.com/rates-bonds/uk-30-year-bond-yield-historical-data
Bith virtually the same as last Friday.
Chislenko
Veteran
My shares have lost 10p a share though, which may not seem much but I do have a lot of them and I always calculate my current wealth on the last trading day of the month.... tomorrow!!
- Location
- Somewhere wet & hilly in NW England.
Re wealth: ditto here as part of our monthly reconciliation process.
Mrs SD runs the numbers and we either cheer or boo. 😁
- Location
- Somewhere wet & hilly in NW England.
Germany; inflation rate for September - expecting to be 10%+.
EU-wide rate expected to be 10.2%.
😒
EU-wide rate expected to be 10.2%.
😒
Deleted User
Guest
- Location
- Wolverhampton
Only lose if you sell them, still getting your divvy?
I've got shares I paid £5 for 6 yrs ago and during Covid they went down to 90p and haven't gone above £2 since, I also bought them at 90p so hopefully they'll even out at some point.
