Steadily it rises..up to 4.75%
#1
Steadily it rises..up to 4.75%
http://news.bbc.co.uk/1/hi/business/5241974.stm
Still a rise.I'm no economist but it seems all the 'experts' were wrong.
There might be a long gap in that graph but it is still going up and has done for a while now
Still a rise.I'm no economist but it seems all the 'experts' were wrong.
There might be a long gap in that graph but it is still going up and has done for a while now
#3
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Originally Posted by lozgti
http://news.bbc.co.uk/1/hi/business/5241974.stm
Still a rise.I'm no economist but it seems all the 'experts' were wrong.
There might be a long gap in that graph but it is still going up and has done for a while now
Still a rise.I'm no economist but it seems all the 'experts' were wrong.
There might be a long gap in that graph but it is still going up and has done for a while now
still, might be better this way than 2 rises later in the year..people saying this is it for the year though
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No big deal really... Just means we probably wont see any rises later on. Like Ted says, we'll have a year worth of no rises I should imagine.
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Just tell someone who's just bought a new house on a variable mortgage that you've heard interest rate could go up to 5.5 percent by this time next year, and watch them sweat !!!
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Which idiots bought a new house on a variable mortgage? And even if it did go up to 5.5 you'll see a whole £50 a month more on an £100k mortgage. Not sweating material is it?
Last edited by davegtt; 03 August 2006 at 03:43 PM.
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#8
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Originally Posted by davegtt
Which idiots bought a new house on a variable mortgage? And even if it did go up to 5.5 you'll see a whole £50 a month more on an £100k mortgage. Not sweating material is it?
Yes I agree that only an idiot would get a mortgage these days at a variable rate, but as fixed one's charge extra, some people are tempted to just go variable as they will pay less if interest rates stay as they are or lower.
Someone posted on here not so long ago about being in financial mess. It only take's a few little rises here and there for it all to add up, then eventually becoming too much.
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Yes but like people pointed out, hes probably driving a 20k car that does 20mpg at best. If £50 is too much of a raise you flog it, buy something reliable for £1500 and save a fortune in fuel.... That should be enough to see you 2-3% interest rate rises....
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I have the displeasure of driving a rotter (diesel Zafira which is oozing brake fluid, is like an ashtray, doesn't start well and has unbranded tyres that are not good) whilst my car is being fixed. I thought I could do it, but I'd rather sell everything I own first if it came to it
Reserving a 10 year fixed rate for October at 5.19% with complete flexibility for overpayments for my next mortgage is one of my better decisions I think, and makes up for a recent bad time
Reserving a 10 year fixed rate for October at 5.19% with complete flexibility for overpayments for my next mortgage is one of my better decisions I think, and makes up for a recent bad time
#12
Originally Posted by john banks
I have the displeasure of driving a rotter (diesel Zafira which is oozing brake fluid, is like an ashtray, doesn't start well and has unbranded tyres that are not good) whilst my car is being fixed. I thought I could do it, but I'd rather sell everything I own first if it came to it
It's like Sky - you think you can't do without it, but once it's gone, you don't miss it at all
Anyway, running cars on a budget is far more interesting and fun than shelling out £££'s/month for a performance car. In fact, it's almost the inverse situation. You get more fun the less you have to spend
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Can't get the cars out my system yet, kids permanently on hold
Maybe the turbo nutter Zafira would be OK
Never had Sky, although I get to see all the latest AV gear on inappropriate home visits to feral children inhabiting social housing
Maybe the turbo nutter Zafira would be OK
Never had Sky, although I get to see all the latest AV gear on inappropriate home visits to feral children inhabiting social housing
#14
So many ways for ppl to economise anyway if you REALLY need to save £££'s.
1. Ditch your £30/month mobile contract and use PAYG. You don't REALLY need to text/phone all these people.
2. Ditch Sky. Save £40+/month. Freeview has more than enough on it.
3. Subscribe to Freecycle (www.freecycle.org). If something in your house breaks down, you'll get a replacement from there soon enough for free. Tumble dryer breaks? No need to spend £300 on a new one - get one from Freecycle and spend £0.00. Who wants to spend £300 on tumble dryers anyway!
4. Get a bike from Freecycle and cycle a bit more. Saves £££'s in petrol or public transport costs. Hey, gets you fit too
1. Ditch your £30/month mobile contract and use PAYG. You don't REALLY need to text/phone all these people.
2. Ditch Sky. Save £40+/month. Freeview has more than enough on it.
3. Subscribe to Freecycle (www.freecycle.org). If something in your house breaks down, you'll get a replacement from there soon enough for free. Tumble dryer breaks? No need to spend £300 on a new one - get one from Freecycle and spend £0.00. Who wants to spend £300 on tumble dryers anyway!
4. Get a bike from Freecycle and cycle a bit more. Saves £££'s in petrol or public transport costs. Hey, gets you fit too
#19
Originally Posted by stilover
Yeah, but quite a few people will have loaded themselves up to the max, and on top of fuel rises, and extra £50/month would be enough to push people over the edge.
Yes I agree that only an idiot would get a mortgage these days at a variable rate, but as fixed one's charge extra, some people are tempted to just go variable as they will pay less if interest rates stay as they are or lower.
Someone posted on here not so long ago about being in financial mess. It only take's a few little rises here and there for it all to add up, then eventually becoming too much.
Yes I agree that only an idiot would get a mortgage these days at a variable rate, but as fixed one's charge extra, some people are tempted to just go variable as they will pay less if interest rates stay as they are or lower.
Someone posted on here not so long ago about being in financial mess. It only take's a few little rises here and there for it all to add up, then eventually becoming too much.
This increase will cost me £10.01 per month. A fixed rate mortgage is more than a variable and you are tied in to it for a certain period. My mortgage means if I get in to trouble I'm not tied down, I can change mortgage (have a 15 year term), sell up and buy something cheaper etc.
You need to consider circumstances before making an such a remark. If we all had fixed rate mortgages people would be stuck in their homes for longer. For me a variable rate at 4.64% was a good deal and gives me flexibility. seeing as I just won £50 on the premium bonds means I'm OK to cover the increase for the next 5 months!
I'm not an idiot and I have a variable rate.
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^ indeed. My worry was if the rates tripled that it could be a squeeze spending out half the net household income on the mortgage, and the house might be difficult to shift in a high interest rate climate. Double whammy to which I didn't want to be exposed. Depends on your attitude to risk.
Last edited by john banks; 03 August 2006 at 07:35 PM.
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just saw the announcement on the ch4 news.
as already mentioned, they were saying this morning that the % rate wouldn't be going up.
funny the rise has happened when the house market is at it's quietest
as already mentioned, they were saying this morning that the % rate wouldn't be going up.
funny the rise has happened when the house market is at it's quietest
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I'd be surprised if rates didnt hit 5% by the end of the year as inflation is clearly significant - even if the official figures only show 2.5% (), but then anyone sensible should have nothing to worry about. If youre maxed out on borrowing for that X5, and bought a house in the last couple of years for at insane prices, then you probably stand to get a dose of reality.
People who borrowed amounts that they were able to repay comfortably will simply have less disposible income, and will simply have to adjust their spending habits or save less.
People who borrowed amounts that they were able to repay comfortably will simply have less disposible income, and will simply have to adjust their spending habits or save less.
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21 quid more a month on the repayments for every 100K of your mortgage.
It's going to push quite a few over-borrowers to the limit, and beyond.
It's going to push quite a few over-borrowers to the limit, and beyond.
#25
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Even if the 0.25% rise does not hugely increase mortgage payments it sends a message to potential buyers ("normal" and amateur investors) that interest rates might rise as well as fall. This should hopefully make people reflect a bit more about the insane prices they are paying for property.
Hopefully this rise is the first of many.
Hopefully this rise is the first of many.
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Originally Posted by unclebuck
21 quid more a month on the repayments for every 100K of your mortgage.
It's going to push quite a few over-borrowers to the limit, and beyond.
It's going to push quite a few over-borrowers to the limit, and beyond.
Sorry, can you tell Ive had a beer tonight
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Originally Posted by davegtt
sarcasm at its best. Who are the jokers hoping for interest rates to rise because they dont have a home of their own already, put your hands up
On top of that, a crash is great for many people. It makes trading up to a bigger/nicer place much cheaper. e.g. It currently cost Joe Bloggs £100k to go from his 3 bed semi to a 4 bed detached. Prices tumble and then it only costs £50k to trade up.
All the esscalating prices are only good for speculators/investors who sell (although highly taxed which many forget) or those that like to talk about "how much they've made" (in theory, on paper etc.) Reminds you of the lead up to the dot com crash where we had loads of people banging on about how much their shares 'might' be worth etc. It's only worth something if you sell.
#29
Originally Posted by MattN
I have a variable rate on my new house.
This increase will cost me £10.01 per month. A fixed rate mortgage is more than a variable and you are tied in to it for a certain period. My mortgage means if I get in to trouble I'm not tied down, I can change mortgage (have a 15 year term), sell up and buy something cheaper etc.
You need to consider circumstances before making an such a remark. If we all had fixed rate mortgages people would be stuck in their homes for longer. For me a variable rate at 4.64% was a good deal and gives me flexibility. seeing as I just won £50 on the premium bonds means I'm OK to cover the increase for the next 5 months!
I'm not an idiot and I have a variable rate.
This increase will cost me £10.01 per month. A fixed rate mortgage is more than a variable and you are tied in to it for a certain period. My mortgage means if I get in to trouble I'm not tied down, I can change mortgage (have a 15 year term), sell up and buy something cheaper etc.
You need to consider circumstances before making an such a remark. If we all had fixed rate mortgages people would be stuck in their homes for longer. For me a variable rate at 4.64% was a good deal and gives me flexibility. seeing as I just won £50 on the premium bonds means I'm OK to cover the increase for the next 5 months!
I'm not an idiot and I have a variable rate.
As imlach says, the trend can only be upwards at the current levels. You are therefore exposed to something that is quite likely to happen. Provided you understand and accept that risk, then you're okay. The fact that you've hedged your interest rate delta exposure with a premium bond assets tells me you don't really understand it though!
and as to the thread title : "steadily it rises" I expect the thread starter might find a little difficulty getting work as a financial analyst...
P.S. I'm fixed for 10 years at a net rate of under 2% in Euros, so what do I care
#30
Originally Posted by Suresh
and as to the thread title : "steadily it rises" I expect the thread starter might find a little difficulty getting work as a financial analyst...