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[News] The first interest rate rise in 10 years [Sponsored]



Steve in Japan

Well-known member
NSC Patreon
May 9, 2013
4,417
East of Eastbourne
Why? A fixed rate is normally much higher than a variable rate. My current variable rate is 1.45%. This will now go up to around 1.7%. I can't imagine you could get a fixed rate for anything like 1.7% (I might be totally wrong).

Because there's a high probability that fixed rates will never be as low again in our lifetime. I hope 😐
 


mejonaNO12 aka riskit

Well-known member
Dec 4, 2003
21,481
England
I fixed for 10 years last year. Sure, it's going to be higher than a variable rate but I personally like knowing exactly what my highest outgoing each month is.

When I went and sat down with the banks mortgage advisor last year I found it quite amusing the amount of times he said "you do realise, if the rate DROPS, you could be missing out on the benefit of a flexible rate?". Yeah, I think I'm alright with that risk mate.
 


jakarta

Well-known member
May 25, 2007
15,616
Sullington
I was in Leeds this morning. The city centre puts Brighton to shame. A lot has been rebuilt & not in a tacky way like the Brighton centre.

As you're aware, there's a lot more to the North than just Leeds, but that was the example I remembered.

It was a joke but the serious point is that most people gravitate to wherever there is going to be a chance for a well paid job and that is the South East of England hence it is unlikely there will be a housing crash in this part of the world.

Just to get back to the original post a 0.25% rate increase will be regarded as a joke to those who lived through the 15% plus mortgage rates of the 1970's and 80's. Even 10 years ago Mortgage rates were 7.5%!

Our rate was 0.79% now a staggering 1.04%... Thankfully just 3 years to go.
 
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Thunder Bolt

Ordinary Supporter
It was a joke but the serious point is that most people gravitate to wherever there is going to be a chance for a well paid job and that is the South East of England hence it is unlikely there will be a housing crash in this part of the world.

Just to get back to the original post a 0.25% rate increase will be regarded as a joke to those who lived through the 15% plus mortgage rates of the 1970's and 80's. Even 10 years ago Mortgage rates were 7.5%!

Our rate was 0.79% now a staggering 1.04%... Thankfully just 3 years to go.

A lot of well paid jobs are on offer in the north now as companies move out of London.
 






Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
I don't understand people celebrating something which might make life incredibly difficult for decent, hard working people.

That's because you're too blinkered to be looking at the other side of the coin.

Here's two reasons to celebrate

1. Elderly people will get a bit more interest on their savings, which might mean the difference between having the heating on or not in Winter.
2. House prices may just fall giving the new generation a chance to buy.

Perhaps you're saying that this group of people are not decent and hard working.
 


Berty23

Well-known member
Jun 26, 2012
3,167
Re fixed rate. The bank tried to get us to fix about 5 years ago. We left it where we were. For about 7 years we have been on a tracker 0.95% above base rate. Had we fixed five years ago it would have cost us thousands and thousands. I have not looked recently as I am pretty sure that over the next three or four years they will only go up to about 4%.

So current fixed would need to be about 3% to consider it but then I am still costing myself money every month until the rate reaches 2% then would be better off once they got higher.

We have taken the view that just overpay as if rates were 4% then when they get there we will stop over paying.
 


MattBackHome

Well-known member
Jul 7, 2003
11,689
As per many others on here we fixed for 5 years when remortgaging earlier this year. I wanna know exactly what I'm paying.

And US is excellent at what he does - I can also highly recommend.
 




Farehamseagull

Solly March Fan Club
Nov 22, 2007
13,769
Sarisbury Green, Southampton
That's because you're too blinkered to be looking at the other side of the coin.

Here's two reasons to celebrate

1. Elderly people will get a bit more interest on their savings, which might mean the difference between having the heating on or not in Winter.
2. House prices may just fall giving the new generation a chance to buy.

Perhaps you're saying that this group of people are not decent and hard working.

I'm not blinkered at all but thanks for the comment on my character without actually knowing me at all. No I never said they're not decent and hard working did I? I just don't take joy in anyone's misery.

Re: your points, if they've got savings in the first place then hopefully the elderly can afford to heat their properties. And as I said, prices will not go down because of modest interest rate rises (financial analysts predict they might reach 1% by 2020) while demand is so high.

Actually, I do seem to recall you rejoicing in your prediction of a house price crash when the financial crisis hit. How did that work out?
 


Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
If we all “what if-ed” losing our jobs, marriages splitting up, taking lesser paid work, wage deflation and inflation everywhere else no one would buy a house.

And then prices would fall and that would make them more affordable.
 


cjd

Well-known member
Jun 22, 2006
6,069
La Rochelle
Strange how you are so positive that there is only one thing that could cause a drop in house prices. Could I suggest a 10 fold increase in interest rates to a mere 2.5% could do it as well.


If I recall correctly, you made a complete arse of yourself the last time you were on a property price forecast thread.
 




Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
Actually, I do seem to recall you rejoicing in your prediction of a house price crash when the financial crisis hit. How did that work out?

Beautifully thanks. London is on the way and other areas will follow.
 


Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
If I recall correctly, you made a complete arse of yourself the last time you were on a property price forecast thread.

It was fun winding you lot up though.
 


cjd

Well-known member
Jun 22, 2006
6,069
La Rochelle
It was fun winding you lot up though.

I thought it was unnecessarily alarming for people and I reminded you on annual basis how stupid your predictions at the time were.

Another to put in the bin with that other dreadful poster , who managed at the time to fool people into thinking that as he worked in the city he knew what he was talking about.....as he forecast a housing crash and sky high interest rates....the one and only scumbag, Hove Born and Bred.

If history teaches us anything about house prices/interest rates etc etc, is that nobody knows.
 






Thunder Bolt

Ordinary Supporter




Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
If history teaches us anything about house prices/interest rates etc etc, is that nobody knows.

Correct. But winding people up on here is part of the sport - like shooting fish in a barrel.
 






Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patreon
Oct 8, 2003
49,337
Faversham
That last rise was in July 2007 and was from 5.50% to 5.75%. Those rates seem like something from another world.

Mmmm.... as was the 14% that nearly lost me my house back in the halcyon days of John Major and Nigel Lawson. Taking a lead from another poster, the Major years were obviously a direct consequence of the true villian, Jim Callaghan.
 



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