cattleman123
Member
- Location
- devon
So how will borrowing rates be affected by negative interest rates
Cash, what to do with it come negative interest rates?
- Thread starter Jerry
- Start date
- Location
- Lincolnshire
You get paid to borrow, IE the loan amount goes down even when you pay back nothing... the interesting thing is wheat at £100/t at harvest is worth a lot less than £99 the following june.
- Location
- Lincolnshire
They won't. Margins increasing. New borrowers won't notice.
Buy bit coins....I see one bit coin is worth £15000 this morning
No. Wrong and right at the same time although you ignore traction. What do you think your pound in your pocket is? They can mint a few trillion of them. Bitcoin is hard money. Fiat currencies are not. I never fully qualified as an IFA so make your own decisions. In my humble opinion, to label BTC as a scam will make you look very silly in 2 year's time.
Unless you are pegged to base rate and not LIBOR as I am. Bring it on.
How so? It's not a pyramid scheme of an sort.It's looks like a pyramid scheme to me. Two Peeps I know are raving about it. They would though, if new people stop joining the club, then........
- Location
- Lincolnshire
Yes. As I said, *new* borrowers won't benefit. Infact, some old borrowers won't. My student loan from 2000 explicitly prevents me from getting a negative rate. My wife's from 1999 would get one. New borrowers won't benefit. Existing borrowers on small margins could.....but how many of us are on interest only at 0.5 over base? Not many. I've enquired about new £££ or refinancing and all have been at higher margins than I got 4 years ago.
- Location
- Lincolnshire
I'm tied to base rate plus a margin btw.
Me too. plus 1.5 I think.
Bank margins are 3-3.5% range now for long term loans whereas they were around 2-2.5% pre-pandemic.
Would that be a loan pre-credit crunch 2008? That's a good margin rate if not.
Can you find us all some!Find 5 acres of pony paddocks up against a village
£1,000 rent per year and cross your fingers for residential permission in 15-20 years time.
farmerm
Member
- Location
- Shropshire
I would not go so far as to say bitcoin is a scam but it has made its creator one of the wealthiest people on the planet and yet nobody knows who they are..... If bitcoin was the only cyrptocurrency I might share your confidence in it as a hard currency but it is only one form of cryptocurrency and ultimately an infinite number of cryptocurrencies can be created that all share the same properties such as being a secure means to store and distribute wealth. Bitcoin on its own may be a hard currency but given there is no limit to the creation of new cryptocurrencies, as an asset class, hard currency it is not. My biggest issue with cyrpto is that it great facilitator of criminality, aside from speculators the bulk of bitcoin transactions is to transfer wealth to or between criminal and terrorist organisations.. Cryto currencies are becoming an increasingly toxic asset class and investment in them is both morally and ethically dubious at best.
Find 5 acres of pony paddocks up against a village
£1,000 rent per year and cross your fingers for residential permission in 15-20 years time.
The trouble is: folk who are chasing wealth are often not as happy and contented as those who are reasonably satisfied with their lot.
We all have different objectives and aspirations, so I suppose we can't all follow the same path.
Pieces_of_Eight
Member
and the line between ambition and greed is often thin and blurry.
- Location
- Darlington
Bank has just tried to put an interest only loan up (don't ask, long story) up 1/2 a % to 3% above base. After a bit of moaning we got it down to 2.75%
Hopefully we won't have it for too long.
cattleman123
Member
- Location
- devon
After this next lockdown...its a certainty to happen in my eyes...but what that means to overdraft rates is anyones guess
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So long as debt is on variable rate then it should track the base rate.
Interestingly I believe the Bank of England is looking to adopt an ECB style two tiered interest rate whereby borrowing rates will go negative but savings in personal accounts will stay positive albeit very low.
Interestingly I believe the Bank of England is looking to adopt an ECB style two tiered interest rate whereby borrowing rates will go negative but savings in personal accounts will stay positive albeit very low.