Jump to content
House Price Crash Forum
Bruce Banner

Rates on the way up?

Recommended Posts

3 minutes ago, Bruce Banner said:

For instant access?

Not instant access any time, restrictions on how many withdrawals a year, can close any time....1.41%. 😉

Share this post


Link to post
Share on other sites
3 minutes ago, winkie said:

Not instant access any time, restrictions on how many withdrawals a year, can close any time....1.41%. 😉

Yeah, I've recently opened an eISA at 1.35% on similar terms, which is worth a bit more than that taking tax into account.

Share this post


Link to post
Share on other sites

I dont think people have fully grasped whats happening in the world and how itll pan out in the UK.

US is raising rates. More so  now the Euro has packed in trying to be a global currency. The US sets the global risk free rate - FED rates/10Y treasuries - our curency, your problem.

UK has to to set its rates at FED rates + 0.5% - no choice. Otherwsie infrlation rises and it needs to raise them anyway. Trashing the poind just does not work - fux all people work i nthe UK, fux all of fux all work in export industries.

Ayyone taking our a post MRMmrotgage will be fine - these are stress tested at 6%/30% of houseghold income.

But the problems are not with MMR mortgages. They are with IO loans and the self certs.

Banks now have to ge ttheir capital up. They need to do this via equity and deposits.

The likes of Nationwide and Covernry BS who are the most exposed in the UK have to compete for savings. Having GS park a bs  ntheir loan means they are fuxed. Or ratehr their over leveraged custoems are fuxed - all that extra spread to beat  GS/Marus is going straight on a IO BTLers SVR.

 

 

 

Share this post


Link to post
Share on other sites

There are several 1 year savings bonds at 2% out there. Not ISAs but you can get £2K of savings interest tax free.

https://moneyfacts.co.uk/savings/fixed-rate-bonds/

Now the FED is continuing to raise rates, it will be interesting to see if our savings rates will go up. Why would anyone be interested in sterling at a 2% fix for a year when they can get a 2.25% fix on dollars for a month.

Share this post


Link to post
Share on other sites
1 hour ago, Bruce Banner said:

You're right, we should put all our money into property :rolleyes:.

Not that I'm advocating either option... but in the current state of affairs which one is more likely to give you a retirement income?

Share this post


Link to post
Share on other sites
5 minutes ago, cashinmattress said:

Not that I'm advocating either option... but in the current state of affairs which one is more likely to give you a retirement income?

The current housing market is rather like the Tech. bubble that burnt a lot of people, but at that time seemed eminently sensible.  I would much rather collect my 1.5% and still have a shirt.

 

Share this post


Link to post
Share on other sites
11 minutes ago, Freezer? Best place for it said:

The current housing market is rather like the Tech. bubble that burnt a lot of people, but at that time seemed eminently sensible.  I would much rather collect my 1.5% and still have a shirt.

 

Yup. Me too.

Share this post


Link to post
Share on other sites

Atom Bank 2% for 1Y fixed FSCS protected. They supposedly offer mortgages as well but only the fixed Saver products work. No requirement for a current account, actually they don't offer a current account just savings accounts. 

Not an ISA though so watch out for the £500 interest earned free of tax limit for higher earners

Share this post


Link to post
Share on other sites

And for instant access I use the NatWest builder account, you have to save £50 a month to get the 1.5% and it is capped at £5000, reduced to 1% up from 5k to 10k. So a smart use of the two is enough to not feel like praising the GS' product

Share this post


Link to post
Share on other sites
14 minutes ago, Freki said:

And for instant access I use the NatWest builder account, you have to save £50 a month to get the 1.5% and it is capped at £5000, reduced to 1% up from 5k to 10k. So a smart use of the two is enough to not feel like praising the GS' product

1.5% limit now raised to £10k

They allow joint versions of these accounts, so the Mrs and I have three of them between us.

Share this post


Link to post
Share on other sites
1 hour ago, Captain Kirk said:

There are several 1 year savings bonds at 2% out there. Not ISAs but you can get £2K of savings interest tax free.

https://moneyfacts.co.uk/savings/fixed-rate-bonds/

Now the FED is continuing to raise rates, it will be interesting to see if our savings rates will go up. Why would anyone be interested in sterling at a 2% fix for a year when they can get a 2.25% fix on dollars for a month.

I think a lot of people would be cautious about a foreign currency savings account, they do have some risks.

(Of course a foreign currency mortgage is even more risky).

Share this post


Link to post
Share on other sites
1 hour ago, Freezer? Best place for it said:

The current housing market is rather like the Tech. bubble that burnt a lot of people, but at that time seemed eminently sensible.  I would much rather collect my 1.5% and still have a shirt.

 

and me...

Share this post


Link to post
Share on other sites
4 hours ago, spyguy said:

I dont think people have fully grasped whats happening in the world and how itll pan out in the UK.

US is raising rates. More so  now the Euro has packed in trying to be a global currency. The US sets the global risk free rate - FED rates/10Y treasuries - our curency, your problem.

UK has to to set its rates at FED rates + 0.5% - no choice. Otherwsie infrlation rises and it needs to raise them anyway. Trashing the poind just does not work - fux all people work i nthe UK, fux all of fux all work in export industries.

Ayyone taking our a post MRMmrotgage will be fine - these are stress tested at 6%/30% of houseghold income.

But the problems are not with MMR mortgages. They are with IO loans and the self certs.

Banks now have to ge ttheir capital up. They need to do this via equity and deposits.

The likes of Nationwide and Covernry BS who are the most exposed in the UK have to compete for savings. Having GS park a bs  ntheir loan means they are fuxed. Or ratehr their over leveraged custoems are fuxed - all that extra spread to beat  GS/Marus is going straight on a IO BTLers SVR.

 

 

 

Spy, how high do you see rates going in the UK and what kind of timespan? I know @durhamborn has been saying this for ages but seems things are finally happening...

Share this post


Link to post
Share on other sites

The world has been walking on its head for a while with those interest rates. 

The fact that both the BoE and BCE rates have for a long time been below the FED's is unnatural. When will there be a reckoning though? I don't know.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 261 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%



×
×
  • Create New...

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.