Tuesday, Sep 08, 2009
Today's Front Page
Daily Express: LOW INTEREST RATES TO STAY
MILLIONS of home buyers and owners can look forward to record low interest rates until at least the end of next year, experts predicted yesterday.
The news that maintaining interest rates at current levels is “almost inevitable” will be a boost to consumers struggling through the recession.
However, savers are likely to be dismayed by the forecast, particularly those who rely on the interest from their savings to supplement their income.
Nicholas Leeming, director of website propertyfinder.com, said: “Sustained low base rates will provide a supreme boost to the property market and aid the speed of recovery.
Posted by luckyjim @ 03:47 PM (1513 views) Add Comment
20 Comments
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1. Smiling said...
seems sensible to keep interest rates low, home-owners can therefore boost the economy by spending some of the savings from ultra low repayments
2. japanese uncle said...
MILLIONS of home buyers and owners should have looked forward to far cheaper houses first of all, rather than 'to record low interest rates until at least the end of next year'
3. Crazy Larry said...
This is madness. Low interest rates merely bottle up the problem for a later date. House prices must be left to fall until they are affordable again, to make them affordable by artificially keeping interest rates low will cause a second crash, bigger than the first. It's short termism at it's very worst.
4. jack c said...
Every range of fixed rate mortgage rates have seen an average increase over the last six months while base rate has been at its all-time low.According to eMoneyfacts, since the Bank of England decided to reduce rates to 0.5 per cent, the average rates on fixed rate mortgages have continued to increase by as much as 0.63 per cent. It also found that short-term tracker rates have also increased since March, up by as much as 0.36 per cent. Longer-term trackers have reduced by as much as 0.4 per cent. The website also found that, since the Monetary Policy Committee’s decision, the average mortgage fee has reduced by £19, but the average loan to value of 73 per cent remains unchanged. The number of mortgage products on the market have slightly increased over the six months, with 43 more 60 per cent LTV products and 17 more 90 per cent LTV products.
An eMoneyfacts spokeswoman says: “Base rate has been at an all time low for six months now, but it appears that only providers are feeling any real benefit.
SOURCE Moneymarketing - Fixed rates up after six months of 0.5% BBR
Lee Jones - 08-Sep-2009
“Borrowers looking for a new mortgage deal have been hardest hit, as lenders continue to look to repair their balance sheets through increased margins.”
5. mystie010 said...
The Daily Express is doing itself no favours! I reckon that if you look back far enough over the last three years there will have been some headline saying: "Interest rates to rise and to stay high for a long time". The longer I have been out of property ownership the more convinced I am that we are been played, and simoultaneously taken for mugs. I dare put money on rates rising early next year if not by the end of this year as I have convinced myself that we are all being lied to so that the last of the suckers gets sucked in! It's just my theory but hey we will soon see what happens.
6. mystie010 said...
I should have added - The government taxes a lot of savers so rubbish savings rates means rubbish tax returns on those savings. Is this NU Liebor really going to allow this to go on for too long. No Way they will eventually want their slice of cake from the banks (via tax on interest earned by individuals) in the same way that the savers do. That's my feeling but I could be wrong.
7. mark said...
i have never been better off since selling the properties, i now play the stock market weekly, making money on it at the moment is fairly easy it is so volatile , barclays you can make 2% a day with ease, tescos another easy 2% a day, just by buying and selling..
8. mrflibble said...
3. mystie010
"The longer I have been out of property ownership the more convinced I am that we are been played, and simultaneously taken for mugs."
You could well be right - the STR (at peak, like-like house) figures are not looking so hot anymore. Fortunately these figures are still showing a profit, but only by around 10% now thanks to the resent uptick.
9. techieman said...
Right time to get my teeth into this one..... oh its the express ... can't be ar5ed!
Lucky Jim - i do hope it was wrapping up yr fish'n chips and you didnt actually buy it (both the paper and the article).
10. techieman said...
mark i hope you mean buying and selling and selling and buying.....
11. Pablo Silver Or Lead? said...
end of the year! The blink of an eye for a 25 yr commitment!!!
12. quiet guy said...
"record low interest rates until at least the end of next year"
Unless there is an outlier event, this looks like a good bet. Labour daren't raise rates before the election and Cameron will be reluctant to antagonise voters soon after starting a government.
"Michael O’Flynn, director of FindaProperty.com, said: “If this prediction plays out then it is certainly good news for the property market. First-time buyers and home movers will be encouraged to enter the market knowing their repayments aren’t going to shoot up.”"
Take on a mortgage after the worst financial shock after the 30s because rates will stay low until the end of next year?
13. tenyearstogetmymoneyback said...
quiet guy said..."Cameron will be reluctant to antagonise voters soon after starting a government."
I wonder about that. His approach may be claim that Labour had made a bigger mess of the economy
than any one imagined and that because of that Interest Rates have to go back to sensible levels.
Alternatively he might get told that by the IMF.
14. tenyearstogetmymoneyback said...
quiet guy said..."Cameron will be reluctant to antagonise voters soon after starting a government."
I wonder about that. His approach may be claim that Labour had made a bigger mess of the economy
than any one imagined and that because of that Interest Rates have to go back to sensible levels.
Alternatively he might get told that by the IMF.
15. alan_540 said...
@10 tenyearstogetmymoneyback...
I agree with you on interest rates rising with a Cameron win.
In the very unlikely event of Brown winning he would also have no option but to put rates up.
The only difference would be that Brown would lie about why interest rates had to rise.
16. uncle tom said...
Such drivel this paper - utter drivel..
17. Realness said...
Like they say what comes down must go up, i believe people are blinded into getting on the ladder now , then interest rates will rise , nuff said , the banks and higher need to get the cash flow back in , i was in the housing game and its shocking how some big time developers are dissapearing giving the big cars back to the banks credit lines sucked , 2o properties a 30 grand car all on credit and a million in debt but his wife likes to think they are millionaires , some people need to look in the mirror , reality check is comming big time you just watch , il just be sat there with my spring water , keeping it real in my shed , cereal all over the floor
18. hpwatcher said...
''end of the year'' - what a joke.
19. dgj said...
I can see that the papers want to encourage some sort of positive look but when its all BS it amuses nobody, I remember someone telling me about the headline ages ago how house prices are on the rise, the next month it was the opposide!
What amuses me is when I see a news article on how a stock or currency has risen dramatically by 2% but its up and down more than 5-10% every other day!
20. braindeed said...
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