Finance rate

[Johnnyboxer]

So is that you pay 4.5% of 50k each year for 4 years as in itl cost you 9k in interest

At present rates

Thats near enough 20% on the total sum

as said 18%
bank od would not be much cheaper at a base of over 5% plus whatever margin/rate over base you’d be charged (say 2/3/4 margin)
Days of cheap borrowed money from 2009>2020 are seemingly over

 

[warksfarmer]

At present rates

as said 18%
bank od would not be much cheaper at a base of over 5% plus whatever margin/rate over base you’d be charged (say 2/3/4 margin)
Days of cheap borrowed money from 2009>2020 are seemingly over

I saw a bank OD figure online yesterday somewhere and it was 7.99%. Think it was satander.

 

[Martin Holden]

"Money isn't cheap anymore" To put that in perspective, money was so cheap for much of the last decade that we all got used to it. Now we are back to higher rates and I don't see them ever getting back to a bank base rate of 0.5% ever again

 

[SilliamWhale]

"Money isn't cheap anymore" To put that in perspective, money was so cheap for much of the last decade that we all got used to it. Now we are back to higher rates and I don't see them ever getting back to a bank base rate of 0.5% ever again

It inflates assets too much. Painful as it is it shouldn't go down

 

[Martin Holden]

It inflates assets too much. Painful as it is it shouldn't go down

Indeed. Inflation has in part been down to the meteoric rise in land and property over the last 40 years

 

[Phil P]

Was less than 50k but 0% 4 + 20 on a new machine.

 

[som farmer]

"Money isn't cheap anymore" To put that in perspective, money was so cheap for much of the last decade that we all got used to it. Now we are back to higher rates and I don't see them ever getting back to a bank base rate of 0.5% ever again

back in the 70's, om needed some cash quickly, to pay out a sibling, through the bank, 21%, solid business, solid security.
paid back in the year, not allowed to spend any money, ended up with a big tax bill !

but interest rates were high, mortgage rate was similar, those were the times, still made more profit then, in real times, than today.

those rates today, would kill off a lot of business, and decimate the housing market.

 

[Werzle]

Going off topic but farmers historically lived on the OD and i have lost count of those that seemed to increase it every year, i cannot see with current rates how any farmer would want to even dip into it let alone live on it. I am certain banks must be leaning on those that have lived on it .

 

[Martin Holden]

back in the 70's, om needed some cash quickly, to pay out a sibling, through the bank, 21%, solid business, solid security.
paid back in the year, not allowed to spend any money, ended up with a big tax bill !

but interest rates were high, mortgage rate was similar, those were the times, still made more profit then, in real times, than today.

those rates today, would kill off a lot of business, and decimate the housing market.

It would be catastrophic indeed

 

[essex man]

Nothing too painful about high interest rates if you have high inflation that decreases the value of the sum borrowed.

 

[Clive]

i wouldn’t fix rates now - pretty clear now BOE are done with increases and i think we could see some rapid drops over next few meetings

 

[Clive]

Nothing too painful about high interest rates if you have high inflation that decreases the value of the sum borrowed.

unless you’re a farmer whose product doesn’t keep up with inflation

but at least if you own land you are getting assets rich ………. despite being cash poor

 

[Pottersfarm]

£50,000 bank loan is 2.45% over base set fee for 3, 4 and 5 years. Setup fee £700. I had this come through today.

 

[Timbo]

i wouldn’t fix rates now - pretty clear now BOE are done with increases and i think we could see some rapid drops over next few meetings

Can we have your guarantee on this ?!

 

[essex man]

unless you’re a farmer whose product doesn’t keep up with inflation

but at least if you own land you are getting assets rich ………. despite being cash poor

The value of principal and its servicing will still be eroded relative to other costs

 

[Werzle]

i wouldn’t fix rates now - pretty clear now BOE are done with increases and i think we could see some rapid drops over next few meetings

I dont think we will see rapid drops for years if at all, 1% drop this year at very very best imo. Drops look less likely than a few months ago and some banks have upped rates these last few days because of it. Thought i read somewhere lately that at the last meeting 6 votes for remaining at current levels , 2 for putting it up and only 1 for lowering. I cannot see a return to the very low rates ever tbh, i would be amazed if they dropped 2.5% in the next five years.

 

[Phil P]

Can we have your guarantee on this ?!

Went to a meeting with the top bods at my bank a couple of weeks back and they seem fairly confident we’ll see at least 1/2 % drop before the end of the year possibly a little more. However they did stress nothing is set in stone and a change in government could alter a lot of things!

 

[Johnnyboxer]

I dont think we will see rapid drops for years if at all, 1% drop this year at very very best imo. Drops look less likely than a few months ago and some banks have upped rates these last few days because of it.

Correct
Some finance companies have raised fixed rates at beginning of March

 

[Nitrams]

Went to a meeting with the top bods at my bank a couple of weeks back and they seem fairly confident we’ll see at least 1/2 % drop before the end of the year possibly a little more. However they did stress nothing is set in stone and a change in government could alter a lot of things!

Professional way of saying basically we have no idea then

 

[Werzle]

£50,000 bank loan is 2.45% over base set fee for 3, 4 and 5 years. Setup fee £700. I had this come through today.

So 50k over 5 yrs at 2.45% ontop of boe base rate of 5.25 plus your £700 is going to see you paying back pretty much 70k. Feels like buying work and money.