Predictions on Base Rate in 2 years
Discussion
All this talk of 'defaltion' is just smoke and mirrors to conceal the fact that the BOE seems set on deliberatly stoking inflation.
At some point, once the economy has stopped falling, they will need to raise rates sharply to combat the inflation they have created.
So I would guess on 6% in 2 years time.
At some point, once the economy has stopped falling, they will need to raise rates sharply to combat the inflation they have created.
So I would guess on 6% in 2 years time.
VTECMatt said:
Hmm if only we knew the answer!
I would like to see how people came up with this margical 8% and what it is based on.
If I were you I would opt for a slightly more expensive Flexible mortgage giving you the ability to move to a fixed rate if things start climbing.
8% is roughly the long term average over the last 60 yearsI would like to see how people came up with this margical 8% and what it is based on.
If I were you I would opt for a slightly more expensive Flexible mortgage giving you the ability to move to a fixed rate if things start climbing.
NoelWatson said:
VTECMatt said:
Hmm if only we knew the answer!
I would like to see how people came up with this margical 8% and what it is based on.
If I were you I would opt for a slightly more expensive Flexible mortgage giving you the ability to move to a fixed rate if things start climbing.
8% is roughly the long term average over the last 60 yearsI would like to see how people came up with this margical 8% and what it is based on.
If I were you I would opt for a slightly more expensive Flexible mortgage giving you the ability to move to a fixed rate if things start climbing.
anonymous said:
[redacted]
I remember 15% back in the early 90s, not nice. Me and a mate stuck in a flat and on the dole. How we managed to keep it I'll never know as people were handing their keys back left right and centre.Our £50K flat was worth £30K and the mortgage had doubled. The only good thing was that back then the dole would pay your loan interest.
Fittster said:
I'm impressed even with the collapse of the Financial Services sector people still believe that it is possible to predict the future.
Why?I make a confident prediction about each week's lottery numbers.
I haven't, to date, been right; but I'm confident each time, nonetheless
I'm fairly certain that rates will stay low.
It's all about the recent past.
We have just had a decade of low rates below 6 percent and below 5 for most of it. This means that an entire generation of house buyers are now running their finances on the basis that this is normal.
To raise rate above 6 percent would require iron political will and a very high risk of electoral suicide. It won't be allowed to happen unless it does so very slowly, so we all get used to it, or very briefly, so we'll all forget about it.
I still stand by my long term housing market prediction that in real terms buying a house will get ever more expensive.
Oh yes, prices and rates may look favourable compared to two years ago but look at the required deposits and also at the rates that you are actually being charged. Simple supply and demand, with ever greater demand for homes and ever greater restrictions on their supply must lead to houses being more expensive. This might be the headline price, which we appear to be fixated on, but it may just as well be lending criteria or a hike in stamp duty or any other hurdle or expense in the future.
It's all about the recent past.
We have just had a decade of low rates below 6 percent and below 5 for most of it. This means that an entire generation of house buyers are now running their finances on the basis that this is normal.
To raise rate above 6 percent would require iron political will and a very high risk of electoral suicide. It won't be allowed to happen unless it does so very slowly, so we all get used to it, or very briefly, so we'll all forget about it.
I still stand by my long term housing market prediction that in real terms buying a house will get ever more expensive.
Oh yes, prices and rates may look favourable compared to two years ago but look at the required deposits and also at the rates that you are actually being charged. Simple supply and demand, with ever greater demand for homes and ever greater restrictions on their supply must lead to houses being more expensive. This might be the headline price, which we appear to be fixated on, but it may just as well be lending criteria or a hike in stamp duty or any other hurdle or expense in the future.
Wurls said:
NoelWatson said:
VTECMatt said:
Hmm if only we knew the answer!
I would like to see how people came up with this margical 8% and what it is based on.
If I were you I would opt for a slightly more expensive Flexible mortgage giving you the ability to move to a fixed rate if things start climbing.
8% is roughly the long term average over the last 60 yearsI would like to see how people came up with this margical 8% and what it is based on.
If I were you I would opt for a slightly more expensive Flexible mortgage giving you the ability to move to a fixed rate if things start climbing.
To be frank, if interest rates go much above 6% or 7% then half the country will be rendered homeless, especially if the country is emerging from a long recession.
Whatever happens, I don't think any Government can afford to allow interest rates to go up much - it would herald massive social problems and dissent.
Whatever happens, I don't think any Government can afford to allow interest rates to go up much - it would herald massive social problems and dissent.
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