Suresh

[pedant]

and you would be wrong then too! As already said on this thread, a long period of no change (plateau) followed by a small upward blip of 25 basis points is not a 'steady rise'.

If you were predicting that this is the start of a steady rise then you might have been right, but that's not what you said, is it?

[/pedant]

lozgti

I'm not predicting anything.As I admitted,I have no idea how the decisions or made or what is going to happen.Nor,it appears do 43 out of 50 'top' economists.

Sept 03 3.5% March 04 3.75% now in August 2006 we are up to 4.75%.And that still seems low to me (repeat,to me).

Everything is going up.It doesn't take super city brains to see that.I just think people keep shrugging things off.

The Snug Rhino

1.25% over 3 years is not a steady anything......trickle may be a better word.

davegtt

Yup, the also go down, Im not particually ar$ed really, the fact its rose might be worth a thread about the economy and where its all going etc but then you get people just coming here to try and put a spin on the world collapsing.


I never said a crash wasnt good for people did I? Maybe Joe Bloggs would be better moving to a different area then shouldnt he if he wants to move. £100k is a bit much to take a step up the property ladder.


I agree. Never said otherwise. I dont particually care what my property is worth. Even if I hit negative equity I wouldnt care aslong as I could afford the payments comfortably, I bought my place as a home not as a short term investment.

davegtt

Does it matter though? When I first bought in 2001 when property was pretty cheap my fixed rate deal was at 7% IIRC. so even a 1% rise as far as my time in the property market is concerned the interest rates are pretty low.

unclebuck

As I was saying:

http://news.bbc.co.uk/1/hi/business/5244202.stm

Doesn't take a financial expert to see where all this is leading.

Suresh

Lower inflation?

MattN

I only need a mortgage for 2 years so I don't need it fixed for 10.

I'm happy with the risk. I got the bonds after the mortgage and can only make an overpayment at the end of the year, so, it appears I do know what I'm doing.

Wow under 2% but 10 years, tough luck, I'd hate to have a mortgage for 10 more years.

Leslie

I have recently sold my beloved M3 Evolution because it was just too expensive to run and unnecessarily large for Mrs Leslie and me. I bought a BMW Mini Cooper instead and I have to say it is a joy to drive with outstanding roadholding and even if the acceleration is not in the same class as the M3 it will still do a crosscountry drive very quickly indeed. All with 40+ to the gallon. It is a good long distance car as well.

I have even been able to get a classic bike-a Triumph Bonneville 140e as well so I am really enjoying that as well with its Featherbed frame. Amazing what you can do with a smaller car which is cheaper to run.

You are an expert UB, what do you reckon to the Bonny?

Les

unclebuck

Glad to see you bought a classic bike. You've been threatening for ages. (pics please)

The Edward Turner designed parallel twin is a genuine classic. However I've got to pull you up on one thing - it does not have a Featherbed frame, (unless it's a Triton)

http://home.egge.net/~savory/triton.htm

They were only made by Norton from the original design by the McCandless brothers in Belfast, and first used on their works racers back in the 50s.

Here's a picture of my Triton (what was left of it) just before I sold it last year. Note the distinctive featherbed double cradle frame design that made it handle so well.

davegtt

Now, Im no bike expert, but shouldnt that have a seat?

Suresh

Tough luck? What planet are you from?
I can borrow 125% of property value at less than 2% and put my own money into Govt bonds with zero risk for 4% or into the stock market with somewhat more risk and greater [potential] returns.

So you'd hate to have a guaranteed (sub-base rate) cheap funding opportunity - which you could then use to buy some more premium bonds, for example?

Petem95

People arent say this is it for the year! (well other than estate agents and mortgage lenders... cant think why tho )

A lot of economists werent expecting it, but are now changing their tune. Even Capital Economics, who were saying rates would be 4.5% until the end of the year before the rise, are now saying they think the next rise to 5% will be in November.

Rates in Europe have just risen again, and are now 3% (feel sorry for my "house prices only go up" mate in Ireland with his euro300,000 9.5xsalary mortgage!) And eurozone rates are predicted to rise to 3.5% this year by most economists, inc HSBC.

Leslie

Thanks for the info UB, yes I was considering a classic and am very lucky to have found one at a reasonable price. It does have a double cradle frame similar to the Norton, but the apparent difference is that the oil tank is incorporated in the centre down tube which is at least 4" in diameter. I was told that Triumph did this on the last Bonny's to come out of Meriden. The handling is suberb, better that last plastic rocket that I had Never a wobble when you bend it into a corner.

I must try to find out more about it all. Like the Triton, saw one of those offered after I got the Bonny.

I will post a picture when I find out how to do it

Les