Wednesday, Sep 29, 2010
1 in 4 Brits fear base rate rises
The Inside Edge: 1 in 4 Brits fear base rate rises
A QUARTER of British homeowners are worried about Bank of England base rates going up, after an 18 month period of 0.5 per cent rates, according to research from Moneysupermarket.com The Bank of England’s Monetary Policy Committee is expected to hold base rate at 0.5 per cent at their monthly meeting in just over a week’s time, marking more than 18 months of no change.
Interest rates will have to start rising at some point and if base rates were to return to pre-credit-crunch levels, average monthly payments could rocket by up to £563 (based on someone with a £150000 interest-only mortgage on a 2.5 per cent SVR and a base rate increase of 4.5 per cent.)
Posted by james marchington @ 08:07 AM (638 views) Add Comment
6 Comments
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1. mr g said...
Bring it on, the sooner the better!
Those who have been prudent will have the last laugh.
2. alan_540 said...
Hear, hear, can't wait.
3. nickb said...
I also want to see heavvy house price correction, as I am priced out of the market. But unfortunately not everyone will profit from it that has been prudent - as debt is paid down, money supply will contract and many of us will be thrown out of work. 55-65% of UK money supply is created as mortgage debt. Like it or not we are "all in it together."
Nick
4. alan_540 said...
It all harks back to the Tories saying unemployment "is a price worth paying" which I failed to understand as a kid. I fail to understand, as an adult, why Labour allowed this bubble to occur this time round, knowing that it would lead to the same thing. Seems to me they just took the easy way out in order to stay in power. Anyway, we are where we are and I hope that prices get back to normal as quickly and as painlessly (in terms of unemployment) as possible. I guess that smacks of having my cake and eating it!
5. letthemfall said...
Given that the economy is really managed for the wealthly, the "price worth paying" quote from Lamont really means that the general populace can suffer for the benefit of the few. The major problem Labour had was changing this. It was difficult, so they decided not to.
6. alan_540 said...
letthemfall, I think Labour spent too much time, effort and money pulling in opposite directions. Blair & Brown's infighting ended up hamstringing their first term and most of the second. Blair should have sacked Brown but wasn't ruthless enough and Brown's failure to go for the leadership haunted him until he managed to foce Blair out. All in all, wasted opportunities for a government that had a massive majority and the mandate to push through whatever policies they wanted in the first term and well into the second. They could have achieved so much but wasted the opportunity.