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uncle_monty

Lenders Ignore Boe Base Rate

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Does "could" mean "will"?

Nothing in life is 100% GUARANTEED. But considering this appears on the front page of The Sunday Times Money section (a leading property VI rag), I thought it worth highlighting.

Impact on sentiment if this view persists could kill off this bull trap bounce.

What's your point?

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Nothing in life is 100% GUARANTEED. But considering this appears on the front page of The Sunday Times Money section (a leading property VI rag), I thought it worth highlighting.

Impact on sentiment if this view persists could kill off this bull trap bounce.

What's your point?

Would the impact on sentiment kill of the bull trap or increase it? In other words would buyers JUMP (if they can) before fixed rate deals go up? Never quite sure with articles like this if they are trying to ENCOURAGE people to JUMP before rates go up ...

Edited by Sybil13

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And if they hit 10% what will inflation be at?

10% I can't see happening without wage inflation, there is no way the economy could be sustained with interest rates that high.

You would get interest rate led debt destruction.

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And if they hit 10% what will inflation be at?

10% I can't see happening without wage inflation, there is no way the economy could be sustained with interest rates that high.

You would get interest rate led debt destruction.

I think they are saying if BOE goes back to 5%, some mortgage rates (those currently 5.5%) will be 10%.

Most SVRs will then be around 7.5%.

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Guest absolutezero
Experts warned that fixed-rate mortgages could soar to 10% when the Bank of England starts to raise rates again, if lenders continue to profiteer.

So they won't be reaching 10% for quite some time then.

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And if they hit 10% what will inflation be at?

10% I can't see happening without wage inflation, there is no way the economy could be sustained with interest rates that high.

You would get interest rate led debt destruction.

non.. higher interest rates remove money from the economy.

also makes borrowing a little harder, as money becomes valuable.

Many new mortgages are already above 5%.

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These kind of Sunday newspaper articles are pointless. Unless they have boobies

shouldnt you be snoring in a high winged armchair by now? :lol:

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shouldnt you be snoring in a high winged armchair by now? :lol:

It is getting that way! All joking aside, there is very little bad news out there at the moment. The headlines of the front page of this site are full of "could" and "may".

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It is getting that way! All joking aside, there is very little bad news out there at the moment. The headlines of the front page of this site are full of "could" and "may".

no news is good news...sheeple think.

course, debt is still there undermining everything in the US and here.

Please stop the UK, I want to get off.

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It is getting that way! All joking aside, there is very little bad news out there at the moment. The headlines of the front page of this site are full of "could" and "may".

The propaganda machine has gone into overdrive, with the collapse in demand last year there was inevitable going to be a bounce in demand. This is being ramped to high heaven that it's a "real" recovery time will tell if this optimism is warranted. However with the many mortgage resets about to hit both here and the US 2010 could become very interesting. For me they are trying to talk the economy up so that we get debt spending back in vogue amongst the consumer in an attempt to avoid a depressionary collapse.

Will the Austrians get proved correct or not?

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i dunno , im getting close to 10% yield on my barclays bonds altho it is down from 14% a few months ago maybe 10% is closer than we think , people putting money in an institution like icici for less than 20% after NR and the iclandic banks debacle deserve to be parted with it quick

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That's steep already, can they survive the hike or will it be game over for them?

Well there's equity which could help with refinancing but the increase is huge. I think a lot of people don't appreciate the way %'s work until its too late, an increase from 4% to 5% is actually a 25% increase etc.

If its indicative of the economy as a whole then it suggests there's plenty of pain yet to come.

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Well there's equity which could help with refinancing but the increase is huge. I think a lot of people don't appreciate the way %'s work until its too late, an increase from 4% to 5% is actually a 25% increase etc.

If its indicative of the economy as a whole then it suggests there's plenty of pain yet to come.

I agree that there's plenty more pain to come yet unless they can engineer a real recovery.

With the base rate at 0.5% an if that moves back to 5% that's a nice 1000% increase.

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No, No, this isnt true....there was no mention of lending rate increases on the BBC :rolleyes:

something should be done, it's a disgrace.

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