BoE Base Rate, What if...
Discussion
Granfondo said:
BigLion said:
Gecko1978 said:
BigLion said:
This thread just highlights the lack of financial understanding of the markets within this forum and also demonstrate peoples desperate attempt to pretend they have the knowledge and pass this of as fact.
Honestly some of the things posted are laughable !!!
I disagree strongly the question what would happen if base rate rose is one of conjecture. If I knew exactly then I could become very rich with my crystal ball like ability. Facts as you say are hard to state when talking about future events. My own knowledge when working at LBG showed many books were what was a considered internally risky though pre the crash acceptable. The reality is many people do not have spare income to cover a large shock like a 4% rise as suggested. It does not need to be majority etc just a large minority defaulting and you have another crisis. An for the record I have 15 years credit and market risk experience so am happy I understand this.Honestly some of the things posted are laughable !!!
t Sherlock.gibbon said:
Jimboka said:
My Base rate + 0.59% IF mortgage taken out in 2008 was a lucky move. Not worth paying it off early, savings earn more.
As I'm costing them money, do mortgage companies cut a deal, lower settlement amount?
You are not costing them money. You can get a new fixed rate around that now.As I'm costing them money, do mortgage companies cut a deal, lower settlement amount?
No, they wont cut you a deal.
BigLion said:
gibbon said:
Jimboka said:
My Base rate + 0.59% IF mortgage taken out in 2008 was a lucky move. Not worth paying it off early, savings earn more.
As I'm costing them money, do mortgage companies cut a deal, lower settlement amount?
You are not costing them money. You can get a new fixed rate around that now.As I'm costing them money, do mortgage companies cut a deal, lower settlement amount?
No, they wont cut you a deal.
May as well let it run for the duration, or pay it off when/if the rates go up.
Funny how they write to me regularly though saying they may have more suitable deals (at far higher interest!!)
Can you really get a fixed rate @ 1,09% with no fees Gibbon? Doesn't make sense on the graphs
Edited by anonymous-user on Sunday 24th April 18:06
BigLion said:
Granfondo said:
BigLion said:
Gecko1978 said:
BigLion said:
This thread just highlights the lack of financial understanding of the markets within this forum and also demonstrate peoples desperate attempt to pretend they have the knowledge and pass this of as fact.
Honestly some of the things posted are laughable !!!
I disagree strongly the question what would happen if base rate rose is one of conjecture. If I knew exactly then I could become very rich with my crystal ball like ability. Facts as you say are hard to state when talking about future events. My own knowledge when working at LBG showed many books were what was a considered internally risky though pre the crash acceptable. The reality is many people do not have spare income to cover a large shock like a 4% rise as suggested. It does not need to be majority etc just a large minority defaulting and you have another crisis. An for the record I have 15 years credit and market risk experience so am happy I understand this.Honestly some of the things posted are laughable !!!
t Sherlock.
Jimboka said:
Oh well, worth a try!
May as well let it run for the duration, or pay it off when/if the rates go up.
Funny how they write to me regularly though saying they may have more suitable deals (at far higher interest!!)
Can you really get a fixed rate @ 1,09% with no fees Gibbon? Doesn't make sense on the graphs
Not even close!May as well let it run for the duration, or pay it off when/if the rates go up.
Funny how they write to me regularly though saying they may have more suitable deals (at far higher interest!!)
Can you really get a fixed rate @ 1,09% with no fees Gibbon? Doesn't make sense on the graphs
Jimboka said:
Oh well, worth a try!
May as well let it run for the duration, or pay it off when/if the rates go up.
Funny how they write to me regularly though saying they may have more suitable deals (at far higher interest!!)
Can you really get a fixed rate @ 1,09% with no fees Gibbon? Doesn't make sense on the graphs
Not without fees, but that wasnt the question. May as well let it run for the duration, or pay it off when/if the rates go up.
Funny how they write to me regularly though saying they may have more suitable deals (at far higher interest!!)
Can you really get a fixed rate @ 1,09% with no fees Gibbon? Doesn't make sense on the graphs
Edited by Jimboka on Sunday 24th April 18:06
Anyone who got a mortgage since 2012 should be able to cope with 6%, that was the whole point of the stress testing from then. It obviously wouldn't be nice, and assumes you have the same salary/ies or better though. I always wondered if they were going to wait out for those who took mortgages before then to start clearing them before putting the rates up, in which case, people in general should be able to cope.
As we're only 4 years from 2012, if this was actually true, we still have a good 10years+ of low interest rates, enough time to get saving and get a pay rise.
As we're only 4 years from 2012, if this was actually true, we still have a good 10years+ of low interest rates, enough time to get saving and get a pay rise.
Xaero said:
Anyone who got a mortgage since 2012 should be able to cope with 6%, that was the whole point of the stress testing from then. It obviously wouldn't be nice, and assumes you have the same salary/ies or better though. I always wondered if they were going to wait out for those who took mortgages before then to start clearing them before putting the rates up, in which case, people in general should be able to cope.
As we're only 4 years from 2012, if this was actually true, we still have a good 10years+ of low interest rates, enough time to get saving and get a pay rise.
Why do people keep thinking 'they' set the base rate primarily with the affordability or not of the housing market? Mortgages are a function of the base rate, not the other way around. As we're only 4 years from 2012, if this was actually true, we still have a good 10years+ of low interest rates, enough time to get saving and get a pay rise.
The base rate is primarily a function of inflation, something we dont have enough of, no where near the generally perceived target of 2%.
gibbon said:
Xaero said:
Anyone who got a mortgage since 2012 should be able to cope with 6%, that was the whole point of the stress testing from then. It obviously wouldn't be nice, and assumes you have the same salary/ies or better though. I always wondered if they were going to wait out for those who took mortgages before then to start clearing them before putting the rates up, in which case, people in general should be able to cope.
As we're only 4 years from 2012, if this was actually true, we still have a good 10years+ of low interest rates, enough time to get saving and get a pay rise.
Why do people keep thinking 'they' set the base rate primarily with the affordability or not of the housing market? Mortgages are a function of the base rate, not the other way around. As we're only 4 years from 2012, if this was actually true, we still have a good 10years+ of low interest rates, enough time to get saving and get a pay rise.
The base rate is primarily a function of inflation, something we dont have enough of, no where near the generally perceived target of 2%.
Derek Chevalier said:
We have plenty of inflation, but this is not picked up on official measures
Only in certain areas. And it would be bad form to assess targets against one benchmark only then to shift the benchmark used when it doesn't suit. (Not that political types are immune to doing such things).Murph7355 said:
Only in certain areas. And it would be bad form to assess targets against one benchmark only then to shift the benchmark used when it doesn't suit. (Not that political types are immune to doing such things).
We have massive house price inflation, our nation's biggest problem. The cost of a roof over a person's head is now a huge % of their income. Thus seriously eroding life quality for many millions.The ONLY answer is a big relaxation of planning rules.
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