Remortgage advice

[Maroon Manc]

The announcement today which will allow a change from repayment to interest only for 6 months will certainly a lot of people which will give them some breathing room in the hope rates aren't as high in 6 months but for some its just a stay of execution.

Anyone with a mortgage of £250,000 their looking at paying around £10,000 a year extra then they would have been 12 months ago, that will put plenty of families on the breadline.

Surely a rise in income tax would help bring inflation down.

[tbrick18]

The announcement today which will allow a change from repayment to interest only for 6 months will certainly a lot of people which will give them some breathing room in the hope rates aren't as high in 6 months but for some its just a stay of execution.

Anyone with a mortgage of £250,000 their looking at paying around £10,000 a year extra then they would have been 12 months ago, that will put plenty of families on the breadline.

Surely a rise in income tax would help bring inflation down.

All the interest rate "help" does is kick the can down the road. Do they expect interest rates to drop in 6 months? Typically interest rate rises take several months (maybe even 6) to have any impact on inflation. So in 6 months, how can anyone expect a drop in rates if yesterday's rate rise hasn't had enough time to impact inflation?
It doesnt make sense to me.
It feels more like a solution to make it look like government are helping, but they're not really.

[Saffrongael]

The announcement today which will allow a change from repayment to interest only for 6 months will certainly a lot of people which will give them some breathing room in the hope rates aren't as high in 6 months but for some its just a stay of execution.

Anyone with a mortgage of £250,000 their looking at paying around £10,000 a year extra then they would have been 12 months ago, that will put plenty of families on the breadline.

Surely a rise in income tax would help bring inflation down.

All the interest rate "help" does is kick the can down the road. Do they expect interest rates to drop in 6 months? Typically interest rate rises take several months (maybe even 6) to have any impact on inflation. So in 6 months, how can anyone expect a drop in rates if yesterday's rate rise hasn't had enough time to impact inflation?
It doesnt make sense to me.
It feels more like a solution to make it look like government are helping, but they're not really.

What do you recommend they do with mortgages ? Not having a go, curious to what people think.

There aren't any great options as far as I can see

[Hereiam]

This is the quickest way for the government to pull all that COVID money out of the economy without raising taxes which is political suicide. We all knew this was going to happen once things got back to normal. This will induce a resession to kerb inflation which is the only option they have.

[marty34]

Are house prices on the slide now with the constant increase in interest rates ?

I'd say that's the way we're heading.

As I mentioned earlier, demand to buy houses is not the same. No real bidding wars as far as I can see. For Sales signs are staying up.

People are a bit worried with all these rate rises and are sitting tight.  The asking prices will have to drop a good bit for people to bite I think.

[quit yo jibbajabba]

This is the quickest way for the government to pull all that COVID money out of the economy without raising taxes which is political suicide. We all knew this was going to happen once things got back to normal. This will induce a resession to kerb inflation which is the only option they have.

We're all paying for Covid and the war as we knew we would

[Milltown Row2]

Was a lovely 3 months off though

[clarshack]

Was a lovely 3 months off though

Maybe for those who were able to get the time off.

[Milltown Row2]

Was a lovely 3 months off though

Maybe for those who were able to get the time off.

It was, thankfully I managed to get back to work 

[JimStynes]

I was a hero too

[Dougal Maguire]

How do UK interest rates compare with Ireland and the rest of the UK?

[RedHand88]

How do UK interest rates compare with Ireland and the rest of the UK?

Rest of the EU im assuming you mean.
Crap, essentially. UK is 8.7%, Ireland is 6.6%, Germany is 6.1%. France is 5.1%.

[Saffrongael]

How do UK interest rates compare with Ireland and the rest of the UK?

Rest of the EU im assuming you mean.
Crap, essentially. UK is 8.7%, Ireland is 6.6%, Germany is 6.1%. France is 5.1%.

Is 8.7% not inflation, as opposed to the interest rates? It's 5%

[armaghniac]

How do UK interest rates compare with Ireland and the rest of the UK?

As I posted a couple of pages back, AIB charge a variable rate of 3.3% in the south and 7.25% in the North.

[RedHand88]

How do UK interest rates compare with Ireland and the rest of the UK?

Rest of the EU im assuming you mean.
Crap, essentially. UK is 8.7%, Ireland is 6.6%, Germany is 6.1%. France is 5.1%.

Is 8.7% not inflation, as opposed to the interest rates? It's 5%

Sorry, half asleep.