TheCountOfNowhere Posted December 16, 2015 Share Posted December 16, 2015 bank of England assuring people there will be no rate rise soon, despite telling people for the last year rates will rise soon. there people have less than zero credibility in my book. the won't raise rate because the whole economy is based on an insane housing bubble pyramid scheme, if you ask me. the bottom line is surely, if the us raise part 0.5% then the bank of England will raise. that might be 3 months away, not soon, not bloody soon enough. I'll say it again, the fraud squad should be investigating the bankers. Quote Link to comment Share on other sites More sharing options...
olde guto Posted December 16, 2015 Share Posted December 16, 2015 Will be interesting to see what the Fed will do today (I think it is today). If the Fed start increasing the base rate then it clear sign that their economy is doing better, hopefully that'll make people start asking questions about how if our economy is doing so well we're not raising ours. At the end of the day this even more evidence that suggests the recovery is a big fat phony. Quote Link to comment Share on other sites More sharing options...
Noallegiance Posted December 16, 2015 Share Posted December 16, 2015 Funny because every 7 minutes on Bloomberg there's an ad that shows Carney saying he'd rather the British public thought a rate rise was likely as it's prudent and good for markets. The more I see these 'experts' the funnier they get. Quote Link to comment Share on other sites More sharing options...
winkie Posted December 16, 2015 Share Posted December 16, 2015 Not this year....we do what we are told is good for us.....who is running this show anyway? Quote Link to comment Share on other sites More sharing options...
You Ain't Seen Nothing Yet Posted December 16, 2015 Share Posted December 16, 2015 I don't see how they can raise it - I don't see it happening. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 Does it really matter though? I know someone who just got a new btl, the interest is 3.25% fixed rate? won't matter for 2 year. tracker? will matter immediately. you'd think people would learn and not be taken in by the bankers, we nearly had tanks on the streets in 2007 if brown is to be believed, now we have a London mega bubble and people saying ten times local salaries for basic housing in the shires. really, are people just mad? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 I don't see how they can raise it - I don't see it happening. ...without wiping out the housing bubble and causing another crisis. it has to come eventually, might as well be now. we might be about to find out our special relationship with the US is akin to a playground bully and his scared little cohorts. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 I mean mortgage rates are going up regardless of what the boe does. Disconnect right, gotcha. are mortgage rates going up? FLS was extended for 2 years, supposedly for non mortgage lending, will believe that when I see it, so maybe they are hoping to suppress rates a bit longer. I've seen some savings rates of circa 3% which, if you the inflation reports makes compound interest savings the sane choice, if you don't mind locking your cash away. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted December 16, 2015 Share Posted December 16, 2015 Even though on the unemployment test it has well and truly busted the 7% threshold was it? Now 5.2%, lowest for ten years......... http://www.bbc.co.uk/news/business-35111020 Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 Even though on the unemployment test it has well and truly busted the 7% threshold was it? Now 5.2%, lowest for ten years......... http://www.bbc.co.uk/news/business-35111020 yeah, that is hilarious. I think they never intended to raise rates. I think someone must have come up with the great idea of setting some unobtainable goal with which to blame not raising rates. then they obtained it. then they've shot right past it. they've made themselves look either, stupid, incompetent, corrupt, crazy . take your pick. I suspect they never had any intention and still don't. however, they're not in control, or their magic figure would never have been breached and maybe they really have no idea what is going on. it seems to me at every turn they are making things worse. Quote Link to comment Share on other sites More sharing options...
frederico Posted December 16, 2015 Share Posted December 16, 2015 Haha, probably means rate rise soon then.. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted December 16, 2015 Share Posted December 16, 2015 Rising rates will suck out lots of disposable income, some outstanding mortgage amounts are huge which implies large increases in any repayments for those not on fixed deals. Plus those on fixed deals will start to sweat and may curb spending to payoff debt. Catch 22. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 (edited) Rising rates will suck out lots of disposable income, some outstanding mortgage amounts are huge which implies large increases in any repayments for those not on fixed deals. Plus those on fixed deals will start to sweat and may curb spending to payoff debt. Catch 22. without a doubt, but their policies have created several unstable asset bubbles, one of which is causing massive social and economic problems.they've stopped the banks collapse only to find out their solution is making things more unstable. who'd have thought that seemingly unlimited free money would cause any social or economic issues. Edited December 16, 2015 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
renting til I die Posted December 16, 2015 Share Posted December 16, 2015 I find it hard to see UK ever raising rates by choice. At some point something will move their hand and I'm guessing it won't be pretty (of course, the way things are going, this might be after years of negative rates! What a crazy world we live in!) Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 I find it hard to see UK ever raising rates by choice. At some point something will move their hand and I'm guessing it won't be pretty (of course, the way things are going, this might be after years of negative rates! What a crazy world we live in!) if you believe we do what the US does then we will find out today where the UK is heading. I've said for a long time, buying a house in the UK is a massive risk. buying one in London now is financial suicide. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted December 16, 2015 Share Posted December 16, 2015 if you believe we do what the US does then we will find out today where the UK is heading. I've said for a long time, buying a house in the UK is a massive risk. buying one in London now is financial suicide. Yes indeed. Osborne's decision to increase the deficit in the Autumn budget suggests that the UK economy is about to fall off a cliff. Quote Link to comment Share on other sites More sharing options...
Assume The Opposite Posted December 16, 2015 Share Posted December 16, 2015 (edited) What determines mortgage rates? Is it the bank swap rate thing? Edited December 16, 2015 by Assume The Opposite Quote Link to comment Share on other sites More sharing options...
billybong Posted December 16, 2015 Share Posted December 16, 2015 (edited) Even though on the unemployment test it has well and truly busted the 7% threshold was it? Now 5.2%, lowest for ten years......... The amusing thing is that the threshold was busted so soon after he made it a condition - then the threshold condition was dumped so quickly. Likely all the current statements denying a UK base rate hike will be dumped just as quickly after the US hikes their rate. Edited December 17, 2015 by billybong Quote Link to comment Share on other sites More sharing options...
Dorkins Posted December 16, 2015 Share Posted December 16, 2015 Rising rates will suck out lots of disposable income, some outstanding mortgage amounts are huge which implies large increases in any repayments for those not on fixed deals. Plus those on fixed deals will start to sweat and may curb spending to payoff debt. Catch 22. Or will it just reallocate disposable income from borrowers to savers? Falling homeownership means the number of people with a mortgage is falling all the time. A few years ago 37% of UK properties were mortgaged according to the Guardian, that's probably down to 35% by now. Take out the BTL sacrificial lambs and you probably only have a quarter of the population who are carrying enough mortgage debt to want low interest rates. Quote Link to comment Share on other sites More sharing options...
bendy Posted December 16, 2015 Share Posted December 16, 2015 Rising rates will suck out lots of disposable income, some outstanding mortgage amounts are huge which implies large increases in any repayments for those not on fixed deals. Plus those on fixed deals will start to sweat and may curb spending to payoff debt. Catch 22. Don't think so - when there are no new entrants to the market there is no market. Such a big part of the system that they've allowed to run amok it's time to start curbing it or else all goes to shit. Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted December 16, 2015 Share Posted December 16, 2015 (edited) Thank God it has been officially denied. That means a rate rise in the UK within 6 months is a certainty. Edited December 16, 2015 by stormymonday_2011 Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 Thank God it has been officially denied. That means a rate rise in the UK within 6 months is a certainty. 3 months me thinks, maybe 4 at a push. maybe 1 best case. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 16, 2015 Author Share Posted December 16, 2015 Don't think so - when there are no new entrants to the market there is no market. Such a big part of the system that they've allowed to run amok it's time to start curbing it or else all goes to shit. it's gone to shito everyone is shopping at aldi or food banks, house asking prices are insane. petrol prices have collapsed government borrowing getting worse. most people I know are seriously skin. there is no real economy to talk of. do I need to go on? Quote Link to comment Share on other sites More sharing options...
streamingfreedom Posted December 16, 2015 Share Posted December 16, 2015 it's gone to shito everyone is shopping at aldi or food banks, house asking prices are insane. petrol prices have collapsed government borrowing getting worse. most people I know are seriously skin. there is no real economy to talk of. do I need to go on? You'require absolutely right, although one of the things that may happen with the economy in this state is that rather than become more egalitarian, affordable realistic housing etc, actually society can become more polarised; ridiculous house prices only a few can afford, longer working hours, societal ladders further removed - sounds like I'm describing where we are now, but it can get so much worse... Quote Link to comment Share on other sites More sharing options...
spyguy Posted December 17, 2015 Share Posted December 17, 2015 I find it hard to see UK ever raising rates by choice. At some point something will move their hand and I'm guessing it won't be pretty (of course, the way things are going, this might be after years of negative rates! What a crazy world we live in!) No country raises them from choice. They raise to fight inflation or to try and protect their currency. Brazail and India have relatively high Rs. They did not do that through choice rather necessity. Quote Link to comment Share on other sites More sharing options...
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