Interest rates

Well done, no idea what to do but slag someone else's point of view, nice. The can is being kicked down the road for too long already, low interest rates encourage unsustainable spending and reduced savings, the present policy of low interest rates has to be reversed at some time, not all at once but in small stages to get to grips with the present chaos. The Sh!t will hit the fan big time soon and your suggestion is what? Bury your head in the sand and hope things will get better when you know damn well it won't, once again well done (y).

Slagged down someone's point of view? Hardly. I have disagreed. In a nicely executed way.

If you think the sh!t is hitting the fan now, then pray tell us how magic life will be in 2018 when your 8% interest rates have put families on the street because their houses have been repossessed?

This sh!t is real. You might think a few percent are neither here nor there, but for the average Joe who has a big mortgage (IE 90% of the public) a few percent will increase their monthly repayments drastically, and I don't mean £10 a month.

Joe public cannot go to the AMC and fix his mortgage at 2% for 20 years. He uses a high street bank, who are absolutely fing merciless, I assure you.

A friend of mine used to work for Nationwide, his role was repossessing people's houses. They are utterly without humour or mercy. Like the terminator, they feel neither pity nor remorse. They will have your assets if you do not keep up the repayments. He has personally ripped the guts out of hundreds of people's lives from first time buyers with 2 kids to millionaires who just lost their holiday homes.

I am not keen to see socialism by proxy in the UK or see millions of people on the street because someone thinks low interest rates are a bad idea. They are not ideal in the present situation but they are FAR better than the alrternative.
 
Just turned 35 married two kids of 3 and 1 running around excited about santa. Wife teaches 4 days a week and I'm milking cows 7 days a week. For our age group borrowing money is going to be a necessity re house prices mortgages childcare pensions wages ..... I may be wrong of course but to keep economies moving this is where am at. Borrowing wise I'd spread it even 3 ways. Should add I was brought up staunchly of the belief don't buy it unless you've got the money.

Exactly. You have a mortgage or you rent, and end up paying someone else's mortgage basically....
 

Pasty

Member
Location
Devon
We'll have low rates for 2-3 years but will start to follow the US soon enough. There is going to be pain. Lots of it. If you can fix at an actual rate ie. no base+ and you think you can afford it in the long term then do so. That is all that matters.
 

Sussex Martin

Member
Location
Burham Kent
Slagged down someone's point of view? Hardly. I have disagreed. In a nicely executed way.

If you think the sh!t is hitting the fan now, then pray tell us how magic life will be in 2018 when your 8% interest rates have put families on the street because their houses have been repossessed?

This sh!t is real. You might think a few percent are neither here nor there, but for the average Joe who has a big mortgage (IE 90% of the public) a few percent will increase their monthly repayments drastically, and I don't mean £10 a month.

Joe public cannot go to the AMC and fix his mortgage at 2% for 20 years. He uses a high street bank, who are absolutely fing merciless, I assure you.

A friend of mine used to work for Nationwide, his role was repossessing people's houses. They are utterly without humour or mercy. Like the terminator, they feel neither pity nor remorse. They will have your assets if you do not keep up the repayments. He has personally ripped the guts out of hundreds of people's lives from first time buyers with 2 kids to millionaires who just lost their holiday homes.

I am not keen to see socialism by proxy in the UK or see millions of people on the street because someone thinks low interest rates are a bad idea. They are not ideal in the present situation but they are FAR better than the alrternative.
Sorry, but I didn't mention 8%, you did. I did state small increments and you have to come up with an essay trying to insinuate I have no feelings for people with a mortgage. I have lived through times of high teen interest rates and had a mortgage at the time so don't try to make out I know feck all.
At some point interest rates will have to rise and anyone with any sense will ensure they are not over committed when that time comes. There is a lot of pain to come at some point and a gradual increase starting soon has to be better than a huge jump that could happen if currency traders decide they need to make a quick buck.
 
Sorry, but I didn't mention 8%, you did. I did state small increments and you have to come up with an essay trying to insinuate I have no feelings for people with a mortgage. I have lived through times of high teen interest rates and had a mortgage at the time so don't try to make out I know feck all.
At some point interest rates will have to rise and anyone with any sense will ensure they are not over committed when that time comes. There is a lot of pain to come at some point and a gradual increase starting soon has to be better than a huge jump that could happen if currency traders decide they need to make a quick buck.

They will indeed rise in time. If I have offended you I apologise but I certainly did not mean to slag anyone or their view off.

It will rise at some point but I don't think the economy is strong enough and won't be for a few years at least.

Even 5% interest rates would finish off a lot of borrowers I suspect.
 

bert

Member
Mixed Farmer
Location
n.yorks
Rates rising here are on anticipation of the economy coming back strong.
What happens to those families that can't afford the interest rate hike on their house? Has house prices fallen (putting them further in the shite) or wages gone up. Looking into a mortgage myself an i can only fix it for 5 years.
 

Sussex Martin

Member
Location
Burham Kent
They will indeed rise in time. If I have offended you I apologise but I certainly did not mean to slag anyone or their view off.

It will rise at some point but I don't think the economy is strong enough and won't be for a few years at least.

Even 5% interest rates would finish off a lot of borrowers I suspect.
Don't worry, I won't be knocking on your door anytime soon ;).
Interest rates do not have to rise by a % point at a time they can be done in a lot smaller increments. Yes 5% would be a bit of a shock at the moment but a few years ago 5% was a bloody good BOE rate and 7-7.5% mortgage rate was quite normal.
 
They will indeed rise in time. If I have offended you I apologise but I certainly did not mean to slag anyone or their view off.

It will rise at some point but I don't think the economy is strong enough and won't be for a few years at least.

Even 5% interest rates would finish off a lot of borrowers I suspect.

There may more than you think at 5% already
 

spiders

Member
Location
pembrokeshire
What are peoples opinions on interest rates going forward, as you can get a fix rate at a cost of about 1.5% over variable for 20yrs at the moment.


Are you talking about 1.5% fixed above base so if base moves so does your repayments or fixed ar 2%for 20 years. If the later i needs some of that.

I suspect it's the later as we consolidated last year but bank manager kept confusing us saying it's fixed at 1.5 variable, in the end I fixed at 5.2 for 20 years.
 

onthehoof

Member
Mixed Farmer
Location
Cambs
Trouble is most people live for today not tomorrow. We will soon have had 10 years of low interest rates leading to record levels of personal debt. People get used to an idea ( borrowing cheap) and for some cheap money is all they've ever known, they often borrow to the limit of what they can pay back. But things have a habit of changing very quickly and it only takes a very small snowball to make a very large avalanche.
See below
IMG_3407.jpg
 
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