Wednesday, Jun 06, 2007
Smelling the coffee
BBC "News" / Evanomics: Fixed-rate pickle
All good things must come to an end. And concern is brewing for people who took out fixed rate mortgages two years ago, and who are now coming off them to find rates far higher than they have been used to.
That Evan Davies is awfully good y'know.
Posted by paul @ 03:07 PM (143 views) Add Comment
6 Comments
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1. confused76 said...
Also see
The Bank's worst decision
http://www.bbc.co.uk/blogs/thereporters/evandavis/2007/06/the_banks_worst_decision.html
2. Whiteknight said...
This "timebomb" in the future is rubbish and yet another excuse to "wait and see" what effect rates are having.
Judging from the way people have been mewing like cats. they have probably remortgaged, extracted the cash and spent it many times over since then, so who knows how many people are really coming to this digital shift.
Meanwhile the insidious beast that is inflation continues to grow.
By the way - how long is it do you think before the average schmuck realises that a 20% corporate profit increase, a 20% yearly house price increase or a 20% rise in the stock market is just the zero base? ie. if you made 20% more profit then in absolute terms you were flat becuase thats what the real inflation rate is. My market is 8 months at 10 months.
3. enuii said...
Having been around 3 years into a mortgage on an endowment with interest rates nudging 15% with two small children and another on the way I cannot see much to whinge about when rates are only 5.75 going on 6 percent. I had to sell my car and commute on a bicycle to work until things improved financially. Unfortunately a lot of people seem to want everything in this country and low interest rates have let them indulge in a lifestyle that they cannot economically support. Trouble is when the cheap finance options run out the Vultures come home to roost.
4. paul said...
The dip is not uncharacteristic, but the trend is unmistakeably upward. Things will get really interesting when the RPI starts to look embarrassingly high relative to the CPI.
5. Pr said...
Paul, it already does, its a total embaracement, that's why the OECD keeps having a go at the UK economy. To be honest, I'm embarraced.
6. confused76 said...
Does not matter what the trend is, the CPI has to be at 2% and the RPI at about 3%... hope these m@r@ns crank up the IRs fast!