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Gideon Gono

Fed Leaves Rates Unch At 0.25%

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Comment made was "rates will be low for a sustained period of time". Can you really see the UK being any different? I cant.

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Comment made was "rates will be low for a sustained period of time". Can you really see the UK being any different? I cant.

Nope. Both fu*ked.

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Comment made was "rates will be low for a sustained period of time". Can you really see the UK being any different? I cant.

Base Rates will stay low for years. Those on a tracker or capped SVR will be laughing all the way to the bank for years.

Those who buy now or in the future may not be so lucky, as the bank margins are currently ridiculous. It doesn't take a lot of years for a 4% rate differential to eat up that 17% (and getting smaller by the day) theoretical saving on house prices....... :lol: Particularly when you tack on the several years of rent it's cost to wait. :lol::lol:

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"As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn."

http://www.federalreserve.gov/newsevents/p...y/20090624a.htm

Can't be good for their credit rating :lol:

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Those on a tracker or capped SVR will be laughing all the way to the bank for years.

If you speak to any of the large banks lending departments about interest rate hedging they are all expecting base rates to rise to at least 3/4% within the next 18 months. Of course the volatility of the last 18 months virtually renders any predictions virtually worthless.....

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It's looking more and more like a prolonged period of deflation by the day. Japan knows what that's like, particularly its effect on house prices. :lol::lol::lol::lol::lol::lol::lol:

It's a win-win situation for the bears.

Edited by Von Moses

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Base Rates will stay low for years. Those on a tracker or capped SVR will be laughing all the way to the bank for years.

Those who buy now or in the future may not be so lucky, as the bank margins are currently ridiculous. It doesn't take a lot of years for a 4% rate differential to eat up that 17% (and getting smaller by the day) theoretical saving on house prices....... :lol: Particularly when you tack on the several years of rent it's cost to wait. :lol::lol:

So true - When i was originally mortgage shopping HSBC's big selling point was "we will never have rates higher than 1% above base". Not the case for a few years I think.

Those on lifetime trackers are laughing.

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If you speak to any of the large banks lending departments about interest rate hedging they are all expecting base rates to rise to at least 3/4% within the next 18 months. Of course the volatility of the last 18 months virtually renders any predictions virtually worthless.....

No they wont. The govt can control the interest rates and will. We may see something after the election but until then I doubt they will move at all.

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So true - When i was originally mortgage shopping HSBC's big selling point was "we will never have rates higher than 1% above base". Not the case for a few years I think.

Those on lifetime trackers are laughing.

And how are FTBs with no/small deposits going to take advantage of these rates? Without FTBs, any recovery in house prices will be short lived.

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No they wont. The govt can control the interest rates and will. We may see something after the election but until then I doubt they will move at all.

Hahahahahahahahahahahahahahhahahahahahahahahahahahahahahahahahahaha

(draws breath)

Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah

(wipes tears from eyes)

Ah, thank you, Osborne, I haven't laughed like that for a long time! Bless.

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And how are FTBs with no/small deposits going to take advantage of these rates? Without FTBs, any recovery in house prices will be short lived.

They'll just have to pay a higher rate. It's still cheaper than renting for 25 years. ;)

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It's still cheaper than renting for 25 years. ;)

You sure about that? Have you included the costs of running, maintaining the house etc in your calculation?

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Comment made was "rates will be low for a sustained period of time". Can you really see the UK being any different? I cant.

Can you see the banks taking any notice?

I can't? :)

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No they wont. The govt can control the interest rates and will. We may see something after the election but until then I doubt they will move at all.

The government can do and say what they like, the banks aint listening pal.

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Actually the stock market outperforms property long term.

try getting the bank to lend you hundreds of thousands to invest in the stock market though.

It's all about leverage dear boy.

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They'll just have to pay a higher rate. It's still cheaper than renting for 25 years. ;)

Who said anything about renting for 25 years? I doubt they will pay a higher rate while it is much cheaper to rent instead. Maybe rent for 3-4 years more and see how the prices look then?

Speaking of which, I just noticed a 4 bed, 3 reception detached house, complete with a garage, 2 stables, a paddock and 1 acre of land a few miles down the road. It's up for rent, very nicely furnished at £795 pm. I would hazard a guess that the place would be worth about 500k. It's a bit big for our humble needs, but it demonstrates how ridiculous house prices are still - as an FTB, I'd be lucky to get a 120k mortgage for that (and then I would need a big deposit).

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try getting the bank to lend you hundreds of thousands to invest in the stock market though.

It's all about leverage dear boy.

[/quote

Leverage downwards? :blink:

Better off sticking with unleveraged stocks and shares at the moment. Thankyou. ;)

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try getting the bank to lend you hundreds of thousands to invest in the stock market though.

It's all about leverage dear boy.

So what do you think interest payments on a mortgage are then? Don't forget maintenance, insurance and all the other costs associated with a house. I can pay as much, or more, into the stock market or other investment vehicle as the average mortgage holder pays off of his capital on a monthly basis. I can also borrow at low rates and stick it into the market if I wish. The great housing myth has people enslaved by bricks and mortar for life.

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