Interest rates

Barleycorn

Member
BASE UK Member
Location
Hampshire
I made a rare visit to the local town yesterday and there was a shop selling refurbished televisions for £26 a week, looked at the very small print and the APR was 69.9. Sad that a lot of people have no credit rating and are forced into money grubbing schemes like this.
 

oil barron

Member
Location
Aberdeenshire
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.

In the US pretty much every mortgage is fixed for either 15 or 30 years backed up by Freddie mack or Fannie mae. So if interest rates are rising it only affects new mortgages so is a sign that wages are rising
 

Pasty

Member
Location
Devon
I made a rare visit to the local town yesterday and there was a shop selling refurbished televisions for £26 a week, looked at the very small print and the APR was 69.9. Sad that a lot of people have no credit rating and are forced into money grubbing schemes like this.
Who's forcing anyone to buy a telly though? You can pick up a used LCD on ebay for under £50 or you can get an old CRT 32" for pretty much free if you look around.
 

Robw54

Member
Location
derbyshire
Don't think we will see 5% again for a very long time and no change upwards until 2020.

Don't quote me mind, i took a fixed in 2013 which has proved a big mistake. As someone pointed out, interest rates rises are more of a problem at the start of a loan, 10 yrs in you can take a big hike once the principle is down significantly.

I've started to question what is the point in paying loans down further once they reach very manageable levels. You are just committing huge amounts of capital for an ever diminishing return. Ie you have 500k house and 50k outstanding, whats the point in saving a few hundred a month. Take the 50k and enjoy life.
 
One problem that's going to emerge and start to cause problems is that the vast majority of European banks and also some in UK are massively
underfunded.
Elections in France and Germany in 2017 are really going to highlite the precarious state of the EU.
In it's present state even doomed, maybe go back to a trading block and let it go at that..??
 

Barleycorn

Member
BASE UK Member
Location
Hampshire
Who's forcing anyone to buy a telly though? You can pick up a used LCD on ebay for under £50 or you can get an old CRT 32" for pretty much free if you look around.
I agree. But there is a section of society who feel judged by their car and possesions etc. I suppose that we farmers can drive battered cars and dress like scarecrows as we have nothing to prove.
 
I made a rare visit to the local town yesterday and there was a shop selling refurbished televisions for £26 a week, looked at the very small print and the APR was 69.9. Sad that a lot of people have no credit rating and are forced into money grubbing schemes like this.

I think the credit scheme is dodgy and unethical but you can pick up a telly for free from the tip if you wanted. I abhor expensive apr schemes because the poorest suffer
 

Wombat

Member
BASIS
Location
East yorks
Don't think we will see 5% again for a very long time and no change upwards until 2020.

Don't quote me mind, i took a fixed in 2013 which has proved a big mistake. As someone pointed out, interest rates rises are more of a problem at the start of a loan, 10 yrs in you can take a big hike once the principle is down significantly.

I've started to question what is the point in paying loans down further once they reach very manageable levels. You are just committing huge amounts of capital for an ever diminishing return. Ie you have 500k house and 50k outstanding, whats the point in saving a few hundred a month. Take the 50k and enjoy life.

I am staring to think similar, I am using the capital to do other things vs rushing to pay off my house mortgage ( which has quite a bit left than your example)

In the end we have all been told to save for a rainy day but the people who have benefited over the last few years have been those who borrowed to the hilt in property etc and then interest rates dropped those who saved for a rainy day have lost money after inflation
 

fudge

Member
Arable Farmer
Location
Lincolnshire.
Time for a rate rise? BOE in a slight funk about consumer borrowing and house prices inflation kicking back in. Opinion seems a bit mixed to say the least.
 

willy

Member
Mixed Farmer
Location
Rutland
But they will never do it............because where else will they get a better return.......?.........Euro/Yen.........name it
The next 5 years are going to be great yrs for the Dollar.

This leaves aside any damage to their exports.


A strong dollar wont help your exporters 'to make america great again'
 

willy

Member
Mixed Farmer
Location
Rutland
Time for a rate rise? BOE in a slight funk about consumer borrowing and house prices inflation kicking back in. Opinion seems a bit mixed to say the least.


I think they are just talking but wont act, as people are feeling pay stagnation against raising inflation. Just my view and hopes:facepalm:
 

einstein

Member
Location
Rutland
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.
90% 0f the public have a mortgage.!!!that cant be right!!
 

bobk

Member
Location
stafford
Agree a dollar that is priced too high is no good, BMW has confidence though saying adding another 1000 jobs at the South Carolina plant..........do they export those SUV's back to EU..?

Best selling BMW is the Mini , lots of people switched to Jaguar Land rover . esp the RR models
 

Robw54

Member
Location
derbyshire
I think they are just talking but wont act, as people are feeling pay stagnation against raising inflation. Just my view and hopes:facepalm:

It's currency related rather than capacity related. They have been talking about rate rises for years but never happens, but it has a similar effect. I priced a mortgage other day and it down half percent than similar product in Dec 16.

Plenty houses round us not making asking or reduced.

Still maintain no rise till after Brexit.
 

SFI - What % were you taking out of production?

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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