bank of England base rate now 5.75% ouch

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more and more glad my mortgage is fixed rate;)
 
Icesave up to 6.2 from 13 jul. 1st to do so yippeee

05/07/2007 – Bank of England Base Rate increased

The Bank of England today announced an increase in the Base Rate from 5.50% to 5.75%. Icesave is committed to offering a consistently competitive return on our Easy Access Savings Account and will be increasing the interest rate from 5.95%AER to 6.20%AER with effect from Friday 13 July.

gary
 
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What is going on?


Inflation is threatening to run beyond permitted levels - consumer spending hasnt subsided - therefore yes rates will go up..

Think of the positives
  • More people save money in this country than borrow - trouble is they are the quiet forgotten pensioners who need income for living
  • Pound will remain strong against other currencies - enjoy your holidays
  • Interest rates still half the level they were in mid '90s.
Housing boom will slow down - those who bought to make a quick killing may discover that property like all assets can go down in value as well as up...
 
Holy S**t!

My payments went up £105 last time, not more!
 
Holy S**t!

My payments went up £105 last time, not more!


£105 a month on a 25 basis point rise? That's not a mortgage you're running its a 3rd world national debt...
 
I didnt add, I was on a fixed rate, then it changed as the rates went up, im in the process of trying to get a fixed again :(
 
Holy S**t!

My payments went up £105 last time, not more!

Hot Diggedy !!!!

My payments rise by £25 for each quarter per cent ....

It's liveable with , but it's still gone up over a ton over the last year ....

:mad:
 
Two years left on a 12 year mortgage that I used to buy flats to renovate and rent out and some land to build flats on.

Total cost at the time £110 000 - value now almost half a million with the land still unbuilt - and the tenants cover the mortgages.

So while I should be able to retire before my mid 40s - interest rates dont really matter when so near the end of a loan.

However, its alarming that someone on average income has left to live on when they buy an average house now.

http://scotland.shelter.org.uk/howtohelp/howtohelp-7700.cfm

The banks have increased lending multipliers and relaxed lending criteria resulting in an increase in demand - effectively swapping individuals previously disposable income for bank profits/interest payments.
 
The banks have increased lending multipliers and relaxed lending criteria resulting in an increase in demand - effectively swapping individuals previously disposable income for bank profits/interest payments.

This is why the house prices have risen so much. There is too much easy money in the system, hence prices go up which creates inflation.

Then the brakes go on to curb the inflation.
 
Two years left on a 12 year mortgage that I used to buy flats to renovate and rent out and some land to build flats on.

Total cost at the time £110 000 - value now almost half a million with the land still unbuilt - and the tenants cover the mortgages.

So while I should be able to retire before my mid 40s - interest rates dont really matter when so near the end of a loan.

However, its alarming that someone on average income has left to live on when they buy an average house now.

http://scotland.shelter.org.uk/howtohelp/howtohelp-7700.cfm

The banks have increased lending multipliers and relaxed lending criteria resulting in an increase in demand - effectively swapping individuals previously disposable income for bank profits/interest payments.


Nice one - well done --- but there's no way you'll be able to retire on £500k at mid 40....so assume this is just a very small part of your portfolio..
 
Anyone remember when base rate went to 15.6%. Happy days:)
 
Hot Diggedy !!!!

My payments rise by £25 for each quarter per cent ....

It's liveable with , but it's still gone up over a ton over the last year ....

:mad:

Not nice to have to pay, but the value of the mortgaged part of the property has gone up much more than £1200 so as a return on investment it's a good bet.


Anyway, you guys haven't lived, try going back to 1989 interest rates went to 16.25%. That hurt Baaaaad...!:(
 

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