Iceland Has Cut Its Interest Rates ....
22 March 2009, 06:39 PM
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Iceland Has Cut Its Interest Rates ....
To 17% !!!!!!!!!!!!!!!!!!! 
"The central bank of crisis-hit Iceland has cut its interest rate to 17%"
That's NOT the APR if you buy a Freezer, by the way! Before some smart 4rse says so ....
Think yourself lucky you live in the UK with 0.5% Interest Rates!
"The central bank of crisis-hit Iceland has cut its interest rate to 17%"
That's NOT the APR if you buy a Freezer, by the way! Before some smart 4rse says so ....
Think yourself lucky you live in the UK with 0.5% Interest Rates!
22 March 2009, 07:59 PM
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Ah, now I understand why so many people had their cash in Icelandic banks 
If the borrowing rate is sky high, then the savers rate is up there too 
If the borrowing rate is sky high, then the savers rate is up there too
23 March 2009, 12:51 PM
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Its the coming inflation which will be the real killer though!
Les
23 March 2009, 12:58 PM
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Indeed, if we think thing are bad now if we ever get to double figure interest rates the savers think they will be happy but there won't be much to save when every spare penny will be going into the mortgage.
And those that rent won't be safe either. Someone has to pay the mortgage.
And those that rent won't be safe either. Someone has to pay the mortgage.
23 March 2009, 01:48 PM
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That'll be us in 12 months or so.
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23 March 2009, 02:21 PM
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I see that the Icelandic fishing fleet are landing their catches in Grimsby, because the price (and in £££'s) makes it worthwhile.
I say block them out! Cheeky gits!
I say block them out! Cheeky gits!
23 March 2009, 02:39 PM
#9
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The UK on an interest of 17% would implode quicker than anything we've seen over the last 12 months.
Mortgages will cripple, secured lending on top of the mortgage will lead to loss of house. Loss of house usually leads to loss of job. Loss of job means no disposable income. No disposable income means people will be buying even less than they are now.
Savers rejoice at 17% interest rates but lets hope those savers don't have a mortgage of their own or rent a home with someone ultimately responsible for the mortgage.
Double figure interest rates will do even more harm to the economy than 0%
Mortgages will cripple, secured lending on top of the mortgage will lead to loss of house. Loss of house usually leads to loss of job. Loss of job means no disposable income. No disposable income means people will be buying even less than they are now.
Savers rejoice at 17% interest rates but lets hope those savers don't have a mortgage of their own or rent a home with someone ultimately responsible for the mortgage.
Double figure interest rates will do even more harm to the economy than 0%
23 March 2009, 02:51 PM
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23 March 2009, 02:53 PM
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High interest rates (like 10% PLUS) would be devastating for a lot of people in this country - I lived through when Interest Rates were 17% under the last Tory Government.
The highest EVER high came during the Thatcher government. Geoffrey Howe raised interest rates to 17%. There they stayed until July 1980, and despite the country lurching into a deep recession rates did not fall as low as 10% until summer 1983.
That's 3 years of 10%+ Interest Rates under the last Tory Government ..... and I cannot forget the pain and misery it caused, as opposed to the Labour Governments response in this recession to drop Interest Rates to the lowest level EVER to help people and avoid a long drawn out affair.
The highest EVER high came during the Thatcher government. Geoffrey Howe raised interest rates to 17%. There they stayed until July 1980, and despite the country lurching into a deep recession rates did not fall as low as 10% until summer 1983.
That's 3 years of 10%+ Interest Rates under the last Tory Government ..... and I cannot forget the pain and misery it caused, as opposed to the Labour Governments response in this recession to drop Interest Rates to the lowest level EVER to help people and avoid a long drawn out affair.
23 March 2009, 02:58 PM
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23 March 2009, 03:15 PM
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High interest rates (like 10% PLUS) would be devastating for a lot of people in this country - I lived through when Interest Rates were 17% under the last Tory Government.
The highest EVER high came during the Thatcher government. Geoffrey Howe raised interest rates to 17%. There they stayed until July 1980, and despite the country lurching into a deep recession rates did not fall as low as 10% until summer 1983.
That's 3 years of 10%+ Interest Rates under the last Tory Government ..... and I cannot forget the pain and misery it caused, as opposed to the Labour Governments response in this recession to drop Interest Rates to the lowest level EVER to help people and avoid a long drawn out affair.
The highest EVER high came during the Thatcher government. Geoffrey Howe raised interest rates to 17%. There they stayed until July 1980, and despite the country lurching into a deep recession rates did not fall as low as 10% until summer 1983.
That's 3 years of 10%+ Interest Rates under the last Tory Government ..... and I cannot forget the pain and misery it caused, as opposed to the Labour Governments response in this recession to drop Interest Rates to the lowest level EVER to help people and avoid a long drawn out affair.
23 March 2009, 03:29 PM
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Only guessing can answer the question about whether a Labour Government caused the Tories to increase Interest Rates to 17% - yes, lets remind ourselves, 17%!!! Maybe a Labour Government would have responded as now and SLASHED rates to 0.5%?
Truth is, the Labour Government gave the Bank of England the duty of setting rates .... the Tories dictated what the rates should be - and that was 17%!!
Have you any idea how that destroyed this country? Imagine a 17% Rate now! Suicidal ....... and don't think, for one moment, that they have changed their spots!
23 March 2009, 04:10 PM
#15
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You would be in the minority and your sole job would be to save the rest of us drowning under un-managable mortgage payments because only you will have any money to keep the economy going.
Cheers
Seriously though, I would be very surprised if they got to double figures. 5-7 quite possible but 10+ I can't see it. The country would collapse financially. And no quantitativeive ************ will get us out of that sticky situation
Cheers
Seriously though, I would be very surprised if they got to double figures. 5-7 quite possible but 10+ I can't see it. The country would collapse financially. And no quantitativeive ************ will get us out of that sticky situation
23 March 2009, 04:39 PM
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The UK on an interest of 17% would implode quicker than anything we've seen over the last 12 months.
Mortgages will cripple, secured lending on top of the mortgage will lead to loss of house. Loss of house usually leads to loss of job. Loss of job means no disposable income. No disposable income means people will be buying even less than they are now.
Savers rejoice at 17% interest rates but lets hope those savers don't have a mortgage of their own or rent a home with someone ultimately responsible for the mortgage.
Double figure interest rates will do even more harm to the economy than 0%
Mortgages will cripple, secured lending on top of the mortgage will lead to loss of house. Loss of house usually leads to loss of job. Loss of job means no disposable income. No disposable income means people will be buying even less than they are now.
Savers rejoice at 17% interest rates but lets hope those savers don't have a mortgage of their own or rent a home with someone ultimately responsible for the mortgage.
Double figure interest rates will do even more harm to the economy than 0%
Bring on inflation i say, lots of it. Those on trackers are benefitting at the moment, but it's only a matter of time before those on fixed rates are benefitting to a far greater extent.
The debt burden is what needs to be fixed and rising inflation and stricter lending will do just that.
23 March 2009, 05:07 PM
#18
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The lower the rate the more the cost of setting up the mortgage is going to be (usually) it suggests that people want the house no matter what and if it costs the earth to get they will (this is still happening btw hence why lenders are still able to charge £2,000 arrangement fees)
No one wants a fixed rate mortgage right now (except the smart ones or ones that aren't borrowing beyond their means - yes its still going on) because of base rate. its quite hard to convince someone to pay 4.5% when base is 0.5%.
Theres also the other issue that those that are going for fixed rates are in that period for 2 to 3 years (not many want 5 just in case) very comfy paying 4.5% for 24 months and then wham 12% please! And if base is 12% lenders are certainly not going to be generous to us mere mortals and allow single figure fixed rates.
Inflation is the only way we will get out of this mess - the only problem is that wages will not increase accordingly. Goods and services will go up far quicker than wages so although our debt burden is reduced our ability to actually buy anything is reduced accordingly.
No one wants a fixed rate mortgage right now (except the smart ones or ones that aren't borrowing beyond their means - yes its still going on) because of base rate. its quite hard to convince someone to pay 4.5% when base is 0.5%.
Theres also the other issue that those that are going for fixed rates are in that period for 2 to 3 years (not many want 5 just in case) very comfy paying 4.5% for 24 months and then wham 12% please! And if base is 12% lenders are certainly not going to be generous to us mere mortals and allow single figure fixed rates.
Inflation is the only way we will get out of this mess - the only problem is that wages will not increase accordingly. Goods and services will go up far quicker than wages so although our debt burden is reduced our ability to actually buy anything is reduced accordingly.
23 March 2009, 06:54 PM
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I have been informed that most borrowers are not going for the 2 year fixed as they know the rate will be higher come 2 years time.
No, they are opting for 5, 10 or even 15 year fixes .... I think Abbey has the best 10 year fixed product at the moment.
And, although I hate them, arrangement fees of £1000 over 10 years will more than be worth it when interest rates are 12%! And you are still paying 5%.
No, they are opting for 5, 10 or even 15 year fixes .... I think Abbey has the best 10 year fixed product at the moment.
And, although I hate them, arrangement fees of £1000 over 10 years will more than be worth it when interest rates are 12%! And you are still paying 5%.
24 March 2009, 12:42 PM
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High interest rates (like 10% PLUS) would be devastating for a lot of people in this country - I lived through when Interest Rates were 17% under the last Tory Government.
The highest EVER high came during the Thatcher government. Geoffrey Howe raised interest rates to 17%. There they stayed until July 1980, and despite the country lurching into a deep recession rates did not fall as low as 10% until summer 1983.
That's 3 years of 10%+ Interest Rates under the last Tory Government ..... and I cannot forget the pain and misery it caused, as opposed to the Labour Governments response in this recession to drop Interest Rates to the lowest level EVER to help people and avoid a long drawn out affair.
The highest EVER high came during the Thatcher government. Geoffrey Howe raised interest rates to 17%. There they stayed until July 1980, and despite the country lurching into a deep recession rates did not fall as low as 10% until summer 1983.
That's 3 years of 10%+ Interest Rates under the last Tory Government ..... and I cannot forget the pain and misery it caused, as opposed to the Labour Governments response in this recession to drop Interest Rates to the lowest level EVER to help people and avoid a long drawn out affair.
As usual the Conservatives had to clear up the mess!
Les
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