Interest rates going up soon...
Discussion
jonah35 said:
If they get up to 3% then some people in mortgaged up houses will feel it. 2.75% extra interest on £500k is £14k or so per year - enough to make people think ‘is it worth it’
Why do you think the economy is strong enough to cope with that? GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
Fittster said:
Why do you think the economy is strong enough to cope with that?
GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
So why have rates just risen? GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
jonah35 said:
Fittster said:
Why do you think the economy is strong enough to cope with that?
GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
So why have rates just risen? GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
Do you see lots of people getting above inflation rises? Do you see lots of investment in the economy leading to productivity growth?
jonah35 said:
Now rates are rising
One rise. One rise is not a trend.jonah35 said:
and likely to keep rising
What evidence do you have to support that? One rise is not a trend.jonah35 said:
the trend is upwards now
One rise is not a trend.jonah35 said:
people can now see the direction things are going
One rise is not a trend.Fittster said:
Why do you think the economy is strong enough to cope with that?
GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
I think you are looking at this from the wrong perspective. Low interests rates are not the response to a problem they are the problem.GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
Following the financial crises we moved in to a strange new world of virtually zero interest rates and the consequences in terms of asset price bubbles and a contributory factor in poor productivity growth are becoming clear to see.
Interest rates should be moved toward a more normal level when conditions allow.
Puggit said:
So every time the BoE has held rates steady, the pound has sunk. Now the rate has gone up, the pound has sunk.
Can someone please explain?
The effect on sterling had already been priced in over the previous week or so as analysts had pretty much confirmed it was going to happen. Can someone please explain?
The announcement from the Bank of England makes it look remote they will do anything further for some time.
So disappointing news in terms of sterling pricing.
jonah35 said:
If they get up to 3% then some people in mortgaged up houses will feel it. 2.75% extra interest on £500k is £14k or so per year - enough to make people think ‘is it worth it’
I'm not sure why people keep trotting this viewpoint out.Interest rates were at 4.5% when we took our current mortgage in 2006 and they rose even higher in 2007. With the booming housing market back then people really were committing more of their takehome pay in order to get onto the ladder.
Since then we've had quite a shakedown in terms of lending eligibility and increased scrutiny on affordability. What makes you think that people won't cope at 3% when they were able to do so at 4-5% just over a decade ago?
JagLover said:
I think you are looking at this from the wrong perspective. Low interests rates are not the response to a problem they are the problem.
Following the financial crises we moved in to a strange new world of virtually zero interest rates and the consequences in terms of asset price bubbles and a contributory factor in poor productivity growth are becoming clear to see.
Interest rates should be moved toward a more normal level when conditions allow.
Very good, I completely agreeFollowing the financial crises we moved in to a strange new world of virtually zero interest rates and the consequences in terms of asset price bubbles and a contributory factor in poor productivity growth are becoming clear to see.
Interest rates should be moved toward a more normal level when conditions allow.
king news ?Good old Calamity Carney.
He panicked after Brexit and cut rates too soon last year, continued to talk down the economy this year, let inflation spiral out of control, and is now raising rates too late at a time of slowing growth that may well tip the UK into recession.
Carney is one of the worst BoE governors in history.
He panicked after Brexit and cut rates too soon last year, continued to talk down the economy this year, let inflation spiral out of control, and is now raising rates too late at a time of slowing growth that may well tip the UK into recession.
Carney is one of the worst BoE governors in history.
Rovinghawk said:
jonah35 said:
Now rates are rising
One rise. One rise is not a trend.jonah35 said:
and likely to keep rising
What evidence do you have to support that? One rise is not a trend.jonah35 said:
the trend is upwards now
One rise is not a trend.jonah35 said:
people can now see the direction things are going
One rise is not a trend.
What point are you trying to get across? JagLover said:
Fittster said:
Why do you think the economy is strong enough to cope with that?
GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
I think you are looking at this from the wrong perspective. Low interests rates are not the response to a problem they are the problem.GDP per head growing this year at a third of its average pace since the recession of 2009. This isn't exactly a boom that needs to be choked off especially with more austerity and Brexit damage to come.
Following the financial crises we moved in to a strange new world of virtually zero interest rates and the consequences in terms of asset price bubbles and a contributory factor in poor productivity growth are becoming clear to see.
Interest rates should be moved toward a more normal level when conditions allow.
eltawater said:
jonah35 said:
If they get up to 3% then some people in mortgaged up houses will feel it. 2.75% extra interest on £500k is £14k or so per year - enough to make people think ‘is it worth it’
I'm not sure why people keep trotting this viewpoint out.Interest rates were at 4.5% when we took our current mortgage in 2006 and they rose even higher in 2007. With the booming housing market back then people really were committing more of their takehome pay in order to get onto the ladder.
Since then we've had quite a shakedown in terms of lending eligibility and increased scrutiny on affordability. What makes you think that people won't cope at 3% when they were able to do so at 4-5% just over a decade ago?
rover 623gsi said:
The people who had a mortgage before 2007 possibly can cope with the interest rise, but the ones who have taken out mortgages since then may well struggle
But is that really the case? Pre-2007 you could quite easily take out a mortgage with less than a 5% deposit. Since then I expect the larger deposit amounts required to secure a favourable mortgage rate will equate to a smaller capital proportion being subject to the effects of increasing interest rates.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff