Wednesday, Jul 18, 2007
Get ready for the next increase, in August + October ?
Times Online: Core inflation rise sparks interest rate fears
Interest rate rises are now filtering through, or will do by the end of the holiday season. Get ready for the 10% SVR. >>> "Prices rose by 2.4 per cent on the consumer price index, down only a fraction from 2.5 per cent the month before and still well above the Bank’s 2 per cent target. On the broader retail price index, inflation rose to 4.4 per cent from 4.3 per cent." >>> "Expectations that the Bank’s Monetary Policy Committee could move to raise rates to 6 per cent, potentially as soon as next month" >>> BEWARE Sub Prime, BEWARE Sub Prime, BEWARE
Posted by fahrenheit451 @ 03:18 PM (182 views) Add Comment
4 Comments
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1. sovietuk said...
10% SVR well maybe not quite mainstream yet - but sure 8% already. £16k interest per annum on a £200k mortgage. And just think it gets worse if the rate increases. Anybody care to calculate how much you get shafted over 25 years if you don't pay off the capital as well. Oh yes such a good investment.
2. fahrenheit451 said...
Yeh, ok, sovietuk, fair comment. But if base rates go up to 7.5% (which is possible) the SVR could easily go up to 10% on the sub-prime lenders. And I remember when base rates were 14.5%, ouch !!! That's a lot of interest to pay !!! Then they were changing at .5% intervals, which as a fraction of the whole was reasonable, but it makes it look as if all these .25% changes are just tickling the system.
Other factor from the USA is that thier lowest interst rate was only 1%, and a jump to 5.25% is a huge change in payments.
Sub Prime - Sub Prime - Sub Prime - Here we go again ....
3. Scott said...
They will not rise in August! Not right after a rise in July, which was disputed. A "wait and see" followed by a shit storm in autumn is how it will play out.
4. deepak said...
To pay £16000 you need to earn £19000 or so. In addition to regular house maintenance + insurance etc etc.
With all these figures we must remember you earn NET and pay GROSS.