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What reason did they give this time??

Merv's looking like a sad case these days as all rational thinking has been thrown out the window, in the hope that the public are fooled into thinking that he's doing what is best for them. :rolleyes:

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What reason did they give this time??

Merv's looking like a sad case these days as all rational thinking has been thrown out the window, in the hope that the public are fooled into thinking that he's doing what is best for them. :rolleyes:

God knows, we'll hear in a couple of weeks.

Fingers crossed for a Eurozone rise, that will put a bit more pressure on the BoE and give me a bit more interest on my Euros. HMRC will get 20% of it though.

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BoE hold interest rates yet again :rolleyes:.

...Except here: http://www.housepricecrash.co.uk/forum/index.php?showtopic=166258

I see that the BBChave a lot to say about it too..

The Bank of England's Monetary Policy Committee (MPC) has kept UK interest rates on hold at a record low of 0.5%.

Economists had expected no move in rates as the latest data has shown the UK economic recovery remains weak.

The committee's decision comes despite the annual rate of inflation remaining at 4.5% in May, well above the Bank's 2% target.

It is the 28th month in a row that the Bank's nine-strong committee has left interest rates unchanged.

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It's down to the rain, everyone knows how we all make life altering financial decisions based on the weather :rolleyes:

lol, yep. Wonder what conditions are required for those printy printers though??

Rain or shine the QE2 presses will keep on rolling no doubt.........until economic oblivion!! :blink:

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What will it take for them to raise rates ?

Primary legislation linking their pensions to their own base rate.

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Anyone mind explaining to me why you want interest rates up? Yeah I get that it will cause a lot of bloodshed and you might be able to buy a house.. but the country would be in a bit of a dire state. Do you really think you'll get your cash out of the bank in order to buy that house you've been looking at?

Low IRs mean low BTL loans, low rent. (Low cost of living)

Low IRs mean low savings interest, low amount of savings lost by buying rather than saving in a bank. (Low cost of living).

Firstly get this part - if you live somewhere worth 200k whether rented or bought and, 200k in the bank and IRs are 5% you either gain 10k a year but spend enough to cover the landlord's 5% mortgage + give him some profit. Alternatively you buy the house and lose 5% of your potential interest on savings each year. Net cost is the same. If rates rise and properties remain static or fall then you are paying more than the cost of living for your home.

0.5% interest rate :

Lose just 6 thousand or so on my cash assuming 3% ISA every year by buying a house (or paying a BTLers mortgage) instead of saving my cash, but pay a shocking 6% extra on my shopping every year (what's that, an extra few hundred quid a year down at tesco? Throw in cost of bills and maybe I'm losing a grand or so extra)

6% interest rate :

Lose well over ten thousand every year on my cash by buying a house (or paying a BTLers mortgage instead of putting it a savings account). But hey at least

In terms of COST OF A ROOF

3% IRs plus avg house price of 200k

=

6% IRs plus avg house price of 100k

=

4.5% IRs plus avg house price of 150k

The BoE are keeping IRs down because the cost of living CANNOT rise right now without severe consequences. People are already squeezed.

The last DECADE has been a ruse. Keep cost of living the same but RISE the value of bricks and mortar. Why? VESTED INTEREST.

If I own a BTL property worth 100k, the property value going up at the same time as IRs come down means I charge pretty much the same rent as demonstrated above. Cost of living does not change. But when I sell up I gained loadsa cash. This is what the bankers have been doing over the last decade.

Rates will not rise for at least 5 years unless the shti really really hits the fan, as in lehman 2. Luckily, eurozone is here to do just that. It has all been one massive cycle. Increase commodity prices/property prices, bank the profits, inflate away the debt worldwide simultaneously.

Yes the price of property is disgusting, I agree and have agreed for years with this forum. Yes many bastards made a lot of money at the expense of youngsters. Things aren't right. But wishing for mass IR hikes to fix the market is not how to fix things. It'll cause a lot of pain to a lot of people. Do you really want your dumb indebted family and friends living on the street?

Edited by fadeaway

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..............or paying a BTLers mortgage....... ..........or paying a BTLers mortgage instead of putting it a savings account..........

These days I just skim read and look for the VI catchphrases :rolleyes:.

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These days I just skim read and look for the VI catchphrases :rolleyes:.

Fully agree, but unfortunately these VI posts can still influence casual lurkers (which is why they are being posted in the first place).

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Things aren't right. But wishing for mass IR hikes to fix the market is not how to fix things. It'll cause a lot of pain to a lot of people. Do you really want your dumb indebted family and friends living on the street?

Why not?

Is it better for the prudent to repay the debts of the foolish?

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It'll cause a lot of pain to a lot of people. Do you really want your dumb indebted family and friends living on the street?

Yes.

The govt will pick up the tab, won't they.... B)

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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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