Interest Rates Up Again!!

[southend4ever]

Interest rates increase 0.25% to 5.75%....

Great news :thump:

all the people being interviewed are saying that it will affect more people that you believe!

and that there will be another raise soon...

GREAT! NOT!

thoughts?

Is it Alistair Darling who is responsible for this!?

"up to 33% of peoples income is being taken off by interest rates!!!"

shocking. :mad:

 

[DTS]

I think the BOE are trying to put an end to all mortgage brokers.....

I might be looking for a floor to sleep on at this rate.

 

[southend4ever]

I think the BOE are trying to put an end to all mortgage brokers.....

I might be looking for a floor to sleep on at this rate.

haha, you and me both!!

 

[Mad Cyril]

I'm considering going fixed rate for 5 years. An good deals?

 

[DTS]

I'm considering going fixed rate for 5 years. An good deals?

Whats your LTV Mad Cyril????

 

[Pubey]

Interest rates increase 0.25% to 5.75%....

Great news :thump:

all the people being interviewed are saying that it will affect more people that you believe!

and that there will be another raise soon...

GREAT! NOT!

thoughts?

Is it Alistair Darling who is responsible for this!?

"up to 33% of peoples income is being taken off by interest rates!!!"

shocking. :mad:

how can alistair darling be responsible for this?? the rate is set by the MPC who are an independent committee at the BoE set up when labour came into power.. one of the best things they did when they came in IMO

 

[Mad Cyril]

Whats your LTV Mad Cyril????

Less than 50%

 

[duncan bulgaria]

In fairness i think that the BOE are trying to calm down all the excessive spending and borrowing people are amounting as there are record numbers of people in debt .

Although nothing to massively worry about just yet , i do feel that by the end of 08 we may see them as high as 6.50%-6.75%, not to sure what effect this will have on the housing market here down south , but can see a lot of peolpe bang in trouble if they carrying on living beyond their means.

 

[Jam_Man]

Yep, I hear horror stories of how much people are being allowed to borrow, think thats going to come back and bite a few people.

Im so glad I managed to buy 10 years ago and sympathise with anyone trying to get a first time property now, although at some stage surely the prices will come tumbling...

 

[Pubey]

although I'm an economist this definitely isn't my area.. however i would suggest that this may be the last raise for a while. it seems that inflation is slowing (although still over 2%) and that the MPC should perhaps take a couple of months to let the effects really kick in. The MPCs statement does seem to suggest that they may still look to increase the base rate but i reckon once this months CPI comes out there will be evidence that the corner has been turned and the MPC will calm down a bit. It's a delicate and tricky job but patience is important and as DtS said the rates are meaning many with mortages are suffering

 

[southend4ever]

how can alistair darling be responsible for this?? the rate is set by the MPC who are an independent committee at the BoE set up when labour came into power.. one of the best things they did when they came in IMO

sorry i knew that jon, i just have a problem with darling and brown LOL... i apologise mr darling.

 

[DTS]

Less than 50%

Well Mad Cyril.........

We have access to a 5.79% deal with Halifax which has free val and free legals. Arrangement fee is £599 which is Halifax's fee and can be added.

You need to move quick if you want is as with BOE going up to 5.75% they are not going to offer 5.79% for long.

I am assuming credit is good, you have income of not more than 4x what you want to borrow and that you are not really Mad?

DtS

 

[londonblue]

Well Mad Cyril.........

We have access to a 5.79% deal with Halifax which has free val and free legals. Arrangement fee is £599 which is Halifax's fee and can be added.

You need to move quick if you want is as with BOE going up to 5.75% they are not going to offer 5.79% for long.

I am assuming credit is good, you have income of not more than 4x what you want to borrow and that you are not really Mad?

DtS

I got a good deal with Standard Life a few months ago. Fixed for 5 years at 5.5%. LTV of about 37%, although the rate is for anything below 75%. I looked on their web site yesterday, and the equivalent now is 6.1%.

Needless to say i'm feeling a bit smug at the moment. Still, in 3 years time when rates are 2.5% you can all turn round and laugh at me!

 

[Wessex]

Dave I recently locked in to a 5 year fixed deal with First Active for 5.79%, given the current market was this the right thing to do?

 

[C C Csiders]

Remain at 4% in the Eurozone.

 

[DTS]

Dave I recently locked in to a 5 year fixed deal with First Active for 5.79%, given the current market was this the right thing to do?

Not sure there is a right or wrong on this really.

If rates are high then I would question if its really a good idea to fix in long term. In contrast if rates are low its a cracking idea. I did a 10 year fix for someone at 4.64% last year with no fees and they are delighted.

I would say that if you are happy with the rate and can afford the repayment then you have done right. I would also make sure the mortgage is portable (Can be moved to a new home) to avoid issues if your circumstances change.

DtS

 

[Shrimp_Stu]

Aren't most Fixed Rates tracked to forward interest rates anyway, and as such any immediate rate increases would have already been factored in to current Fixed Deals before this latest rise?

Thankfully I fixed back in 2005 for 5 years at 4.49%

:guns: :guns:

Historically, Interest rates are relatively still low, at least they aren't double digits.

 

[RobM]

I have just paid my mortgage off.

But I was in the 80's when the mortgage rate was ... gulp...15%.

More than once our evening meal was made from the veggies I'd grown in my tiny garden.

We survived.

 

[Matt the Shrimp]

I did a 10 year fix for someone at 4.64% last year with no fees and they are delighted.

So they should be! I fixed at 4.98% for 10 years in January at 80% LTV, which I thought wasn't too bad at the time...

:minger:

 

[Benfleet A1]

how can alistair darling be responsible for this?? the rate is set by the MPC who are an independent committee at the BoE set up when labour came into power.. one of the best things they did when they came in IMO

Because Mr Brown gave the decision making for interest rates to The Bank of England. When it's good they say 'Great idea by us' when it's bad, they say 'Nothing to do with us' Another piece of bullsh!t spin from New Labour.