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Base Rate Increase Speculation

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On the Santander website front page, there is a link called 'Base Rate increase Speculation'. http://www.santander.co.uk/csgs/Satellite?canal=CABBEYCOM&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_Home

Following recent media speculation about a potential rise in the Bank of England’s base rate, we would like to advise our customers that no change has been announced.

We can also confirm that if you currently have a mortgage with us your rate remains unchanged.

When will the Base Rate change?

The Bank of England Base Rate has remained at 0.5% since 5 March 2009. The next Monetary Policy Committee meeting where the Bank of England decides whether to change the base rate is on Thursday 10 March.

This page will be updated with any changes on the Friday after the meeting is held.

Is this a sign that people are starting to panic over the possibility of a measly 0.25% increase in IRs?

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Ha. Unprecendented number of phone calls, they must be fed up. Sure, now rates will go up as it becomes a self-fulfilling prophecy within the bank.

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FFS, why the 'speculation'?

There's no way the base rate is going up any time soon with those GDP numbers today

What? They revised last year's figure down by 0.1%. Not exactly massive news.

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FFS, why the 'speculation'?

There's no way the base rate is going up any time soon with those GDP numbers today

Why? what is a 0.25% increase in the scheme of things, it shows they mean business if not it might be a bigger jump later........in the early 90s recession base rate average was around 10%.

http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_Kingdom

Why does these words keep popping up?

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Edited by winkie

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I have to say, I don't yet see rates going up by 0.75% this year which apparently, is the collective amount the city is pricing in.

What with the Geo Political situation as it is and becoming more uncertain daily, theses forecasts and views don't appear to take into account this 'black swan event' i.e. the ME wanting 'change' which may mean forecasts will have to revised again?

Whatever happens we are not alone in all this and will work with member states to synchronise changes. ;)

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Can someone explain to me why they think a rise in the base rate to say 1% is gonna make much difference to the current situation? I tried to start a new topic asking the same question, but for some reason the mods haven't approved it??

Obviously I understand the economics behind a rise in interest rates, but what a lot of people are forgetting is that most people currently sat on SVR are already saving a good 2-3% on what they originally took their mortgage out at. Take one of my friends for example, whose fixed deal at around 5% finished about a year ago. He has been sat on the SVR at approx 2.5% ever since. Until the base rises to around 3% he will be no worse off than he was originally.

Even if you take someone who isn't saving loads, a 0.5% increase in Interest rates is only going to add around £60 per month to someone with a £150k mortgage. Now whilst it's not nice to have to find that extra £60, it wouldn't be difficult for most people surely?

I'm a bear on the housing market long term, but I can't see a big drop that many are expecting. Personally I think prices will be stagnant for a good few years, until Interest rates start to rise back toward reasonable levels and that is going to be a very slow drawn out process imo.

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Can someone explain to me why they think a rise in the base rate to say 1% is gonna make much difference to the current situation? I tried to start a new topic asking the same question, but for some reason the mods haven't approved it??

Obviously I understand the economics behind a rise in interest rates, but what a lot of people are forgetting is that most people currently sat on SVR are already saving a good 2-3% on what they originally took their mortgage out at. Take one of my friends for example, whose fixed deal at around 5% finished about a year ago. He has been sat on the SVR at approx 2.5% ever since. Until the base rises to around 3% he will be no worse off than he was originally.

Even if you take someone who isn't saving loads, a 0.5% increase in Interest rates is only going to add around £60 per month to someone with a £150k mortgage. Now whilst it's not nice to have to find that extra £60, it wouldn't be difficult for most people surely?

I'm a bear on the housing market long term, but I can't see a big drop that many are expecting. Personally I think prices will be stagnant for a good few years, until Interest rates start to rise back toward reasonable levels and that is going to be a very slow drawn out process imo.

Agreed. Unfortunately, I believes that this is the gameplan for this government - they will manipulate the market as much as possible to prevent HP from sliding significantly. A HPC would be bad for votes.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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