Jump to content
House Price Crash Forum
TheCountOfNowhere

Interest rates to rise, to be sure to be sure

Recommended Posts

http://www.independent.ie/business/personal-finance/property-mortgages/homeowners-told-prepare-for-higher-interest-rates-35478118.html

 

Homeowners are being warned to prepare for interest rate rises, as the era of cheap debt is set to end. The Governor of the Central Bank warned that falling house prices could become a reality again.

The ECB rate is currently at zero - a boon to 350,000 Irish households lucky enough to have a tracker mortgage, linked by contract to the official rate.

Share this post


Link to post
Share on other sites
5 hours ago, TheCountOfNowhere said:

http://www.independent.ie/business/personal-finance/property-mortgages/homeowners-told-prepare-for-higher-interest-rates-35478118.html

 

Homeowners are being warned to prepare for interest rate rises, as the era of cheap debt is set to end. The Governor of the Central Bank warned that falling house prices could become a reality again.

The ECB rate is currently at zero - a boon to 350,000 Irish households lucky enough to have a tracker mortgage, linked by contract to the official rate.

Interest rates are low because there's no demand for money. There's no demand for money because the euro zone is still swamped with debt.

A re-normalisation of interest rates in such circumstances is highly unlikely.

 

Private-Credit.png

Share this post


Link to post
Share on other sites

No surprise there....MMR

Mortgage Market Review sees that when people take on long-term debt commitments they are made aware that interest rates can both rise and fall......most people who have purchased a property with debt are only to aware of that have accepted that, worked around that, lived with that.....

Share this post


Link to post
Share on other sites
8 hours ago, zugzwang said:

Interest rates are low because there's no demand for money. There's no demand for money because the euro zone is still swamped with debt.

A re-normalisation of interest rates in such circumstances is highly unlikely.

 

alright, alright, god, you could have sugar-coated that a bit

Share this post


Link to post
Share on other sites

^

Independent link

Quote

"Higher interest rates are good news for the banks," Mr McCoille said.

Low interest rates with bailouts or high interest rates it always seems to be win win win win for the banks.

Edited by billybong

Share this post


Link to post
Share on other sites

Well the narrative I'm increasingly hearing from the banks is that low interest rates are the cause of all their current woes?

 

(That's posed as a question btw,I'm no where near knowledgeable enough to understand if banks are in favour of low IR's or not)

Share this post


Link to post
Share on other sites
23 hours ago, TheCountOfNowhere said:

The Governor of the Central Bank warned that falling house prices could become a reality again.

That would imply the gimps Crystal ball was working...

Share this post


Link to post
Share on other sites

Word is that several banks (mainly those catering to wealthier clients) are updating their T&C so that they can charge interest on savings accounts. 

I'm guessing that means that they think that rates are going down before they go up (of course, it could also mean that bankers are clueless).

Share this post


Link to post
Share on other sites
6 minutes ago, ChumpusRex said:

Word is that several banks (mainly those catering to wealthier clients) are updating their T&C so that they can charge interest on savings accounts. 

I'm guessing that means that they think that rates are going down before they go up (of course, it could also mean that bankers are clueless).

Coutts are one of them

Share this post


Link to post
Share on other sites
37 minutes ago, North London Rent Girl said:

yeah, bloody zugzwang, his delivery of grim reality, avoid it if you're having a bad day

Ignore reality and we end up chasing rainbows. ;)

Just like these clowns:

 

screen%20shot%202016-02-24%20at%207.05.4

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   11 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.