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General Melchett

Interest Rates On Hold

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interest rates on hold = lower pound = higher oil = higher inflation

Nope. Pound virtually unmoved, markets know economy does not need an IR hike.

1 GBP $1.61338 Euro 1.16781

Thjey will hint at hikes to keep the pound high and to make the IMF happy but in reality IR are going nowhere until the housing market is secure (2015 or therabouts after a drop of another 20-40% depending on area).

Merv did the right thing--a hike would have devastated the already crashing housing market.

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An interesting argument someone gave for the BOE keeping them on hold is the enormous number of people on variable rate mortgages (90%) ... 10M people and the BOE might want them to keep more money in their pockets.

By the same token a drop in house prices and rents would mean most people had more money in their pockets to spend.

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An interesting argument someone gave for the BOE keeping them on hold is the enormous number of people on variable rate mortgages (90%) ... 10M people and the BOE might want them to keep more money in their pockets.

By the same token a drop in house prices and rents would mean most people had more money in their pockets to spend.

Yep but it`s the 90% on svr mortgage`s that is going to reduce profits for the bank`s which will reduce lending = HPC

But iI think It will be the fact that 90% on svr will cause the mortgage IR`s to rise regardless of the BOE rate ,as sooner or later all those cheap svr deals will have to be refinanced

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Yep but it`s the 90% on svr mortgage`s that is going to reduce profits for the bank`s which will reduce lending = HPC

But iI think It will be the fact that 90% on svr will cause the mortgage IR`s to rise regardless of the BOE rate ,as sooner or later all those cheap svr deals will have to be refinanced

I think you are getting your trackers and your svr mixed up. svr is what you end up on when your deal has finished.

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Merv did the right thing--a hike would have devastated the already crashing housing market.

But isn't that a good thing? Sooner crashed, sooner the recovery can start.

Oh, wait, you've just bought a house haven't you? ;)

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Nope. Pound virtually unmoved, markets know economy does not need an IR hike.

1 GBP $1.61338 Euro 1.16781

Thjey will hint at hikes to keep the pound high and to make the IMF happy but in reality IR are going nowhere until the housing market is secure (2015 or therabouts after a drop of another 20-40% depending on area).

Merv did the right thing--a hike would have devastated the already crashing housing market.

Wait until the ECB lift next month.

So what's inflation going to do to your equity by 2015?

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Wait until the ECB lift next month.

So what's inflation going to do to your equity by 2015?

Wipe it out as you won't be able to afford to pay your mortgage.

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Wipe it out as you won't be able to afford to pay your mortgage.

He won't have a mortgage will he, just equity that will most likely only buy a packet of crisps.

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Would a 0.25% increase actually change anything anyway?

no but I'd rather keep my money to spend it on stuff I want rather than just "give" it to the bank.

Banks are stupid. I have played them well with regards to mortgages for the last 5 years and have paid virtually nothing on my debt and have saved loads in the process in case I one day need to pay it down. That and having fun with the extra cash.

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no but I'd rather keep my money to spend it on stuff I want rather than just "give" it to the bank.

Banks are stupid. I have played them well with regards to mortgages for the last 5 years and have paid virtually nothing on my debt and have saved loads in the process in case I one day need to pay it down. That and having fun with the extra cash.

How exciting :rolleyes:.

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Yep, threat of an increase but the headlines of manufacturing growing will override everything. To the man in the street inflation is a mystery that making people poorer through crashing the housing market won't help.

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  • 311 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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