Interest Rates

[kipster]

Not directly affected as fortunately paid off the mortgage a few years back and I don't have any loans. Most of my savings are in stocks and shares ISAs, although my wife has some savings accounts.

I do worry for the kids but we can help out if needed.

I recall my first mortgage fixed at 15% but clearly on much smaller amounts of borrowing.

 

[Milkfloat]

Rising interest rates should curb inflation, but also could tip us into recession, something we are probably already in although it has not been officially declared yet. Rising interest rates are not always that great for savers because of this, be careful what you wish for.

 

[Cycleops]

I'm looking forward to 10% interest rates. That'll do nicely.

Nice idea but all your outgoings and goods will be that much more so gains will be minimal unfortunately.

 

[PaulSB]

I'm looking forward to 10% interest rates. That'll do nicely.

I can't really see how this is something to look forward to. I would need a net return on cash savings of £1300 to cover the increase in my energy costs. I guess this would mean £150,000 in a savings account of some sort. My youngest has just bought a house and thank the Lord got a five year fix a couple of months ago. My eldest is trying to buy and a combination of factors outside of his control simply snatch the chance from his hands every time he gets close.

Inflation is rampant. The pound is crashing. The government are busy mortgaging the country and our kids' futures at an alarming rate. The rich are getting richer and the poor poorer.

What is there to celebrate in 10% interest rates? You won't see any tangible benefit.

 

[PaulSB]

Nice idea but all your outgoings and goods will be that much more so gains will be minimal unfortunately.

Spot on.

 

[Chislenko]

I'm in the same position as some others, not had a mortgage for decades but have an amount of cash in savings etc.

Obviously over recent years the interest has been a pittance so have not been worried about locking in until the end of the investment.

What I would like now that interest rates are going up is a pay away monthly bond to use the monthly interest for living on but most companies only offer fixed full term interest at the end bonds.

As was stated up thread if you can put 150k into a 3% it would give a nice monthly income to top up your other income. It's just finding one!!

 

[Bonefish Blues]

I cant see a thread in this, but with the rates increased again by another 0.50% i though it was time we had one.

How will it effect you guys....im still fixed until 1st Feb 2023

Do the math on surrendering and remortgaging because interest rates are only going North 'twixt now and when you unfix

 

[jowwy]

Do the math on surrendering and remortgaging because interest rates are only going North 'twixt now and when you unfix

i wish i could do a simple remortgage, but not that easy with multiple properties

 

[icowden]

I'm just going into the last year of my current 5 year fixed. I'm talking to mortgage lenders now as I'm planning to forfeit the £2400 early repayment charge to get a new 5 year fixed now and release some additional cash to pay for school fees, home improvement etc.

I'll probably have to go back up to a 20 year term instead of the remaining 15 though.

I want to get locked into a new deal ASAP as I have 0% faith in Trussonomics.

 

[gbb]

I can't really see how this is something to look forward to. I would need a net return on cash savings of £1300 to cover the increase in my energy costs. I guess this would mean £150,000 in a savings account of some sort. My youngest has just bought a house and thank the Lord got a five year fix a couple of months ago. My eldest is trying to buy and a combination of factors outside of his control simply snatch the chance from his hands every time he gets close.

Inflation is rampant. The pound is crashing. The government are busy mortgaging the country and our kids' futures at an alarming rate. The rich are getting richer and the poor poorer.

What is there to celebrate in 10% interest rates? You won't see any tangible benefit.

In essense you're right but...
If you have reasonable saving, you WILL see something back instead of lose lose lose.
At just 2% i'd be expecting circa £1k if i worked at getting my money into the right accounts, its not peanuts.
Of course everything else will diminish the actual value of it but you'll still be £1k ahead of where you were

 

[Bonefish Blues]

I'm just going into the last year of my current 5 year fixed. I'm talking to mortgage lenders now as I'm planning to forfeit the £2400 early repayment charge to get a new 5 year fixed now and release some additional cash to pay for school fees, home improvement etc.

I'll probably have to go back up to a 20 year term instead of the remaining 15 though.

I want to get locked into a new deal ASAP as I have 0% faith in Trussonomics.

You're almost a True Believer at zero

 

[jowwy]

rumours of an emergency bank of england meeting, to raise rates again this week after fridays mini bidget

 

[SpokeyDokey]

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.

 

[SpokeyDokey]

rumours of an emergency bank of england meeting, to raise rates again this week after fridays mini bidget

View attachment 662445

If it doesn't happen now then it will almost certainly happen at the next BoE meeting which I think is 3 Nov off the top of my head.

 

[jowwy]

If it doesn't happen now then it will almost certainly happen at the next BoE meeting which I think is 3 Nov off the top of my head.

3 nov is better for me, cause i will have new deal by then