My current mortgage deal comes to an end in October.
My broker has given me prices for a new 2yr or 5yr deal. Needless to say my payments are going up substantially.
With rates likely to go up again this week, would the advice be to lock in a deal now for when my current deal comes to an end?
Or wait it out to see if rates come down before then?
From what I've read it seems rates could peak by the end of this year and possibly fall back by the end of 2025.
So I'm thinking go for a 2yr now and hope rates come down.
Thoughts and advice welcome.
Similar situation but for reasons my change options are very limited thinking of taking a tracker now in the hope it plateaus at or below the current fixed rate and then falls over the rest of the two year period.
I hadn't actually considered trackers.
I must get some pricing to see what the difference would be.
Interest rates will probably go up 0.25% this week, a very outside chance it could be 0.5%.
Tough times ahead. Uk owe 2.5 trillion and rate they have to pay is going up every day.
House prices could take a serious hit.
Quote from: tbrick18 on June 20, 2023, 07:55:44 PM
My current mortgage deal comes to an end in October.
My broker has given me prices for a new 2yr or 5yr deal. Needless to say my payments are going up substantially.
With rates likely to go up again this week, would the advice be to lock in a deal now for when my current deal comes to an end?
Or wait it out to see if rates come down before then?
From what I've read it seems rates could peak by the end of this year and possibly fall back by the end of 2025.
So I'm thinking go for a 2yr now and hope rates come down.
Thoughts and advice welcome.
Go for the 2 year, was in a similar position back in early 2008 and went for the 5 year. Next thing BoE cut the shite out of interest rates to mitigate impact of recession so was paying through the nose for the majority of the 5 years.
We've been lucky 2 more years left on 5 year fixed. Hoping things drop back come 2025.
How are first timers going to afford a mortgage these days
Quote from: Milltown Row2 on June 20, 2023, 08:34:23 PM
We've been lucky 2 more years left on 5 year fixed. Hoping things drop back come 2025.
How are first timers going to afford a mortgage these days
First timers at least might at least get a cheaper house, but someone who bought last year and did not fix for a decent period will find it a big increase.
Quote from: armaghniac on June 20, 2023, 09:00:58 PM
Quote from: Milltown Row2 on June 20, 2023, 08:34:23 PM
We've been lucky 2 more years left on 5 year fixed. Hoping things drop back come 2025.
How are first timers going to afford a mortgage these days
First timers at least might at least get a cheaper house, but someone who bought last year and did not fix for a decent period will find it a big increase.
Agree, if you have not bought you will be ok as you will be in a position to take advantage of falling prices. Those who bought at with possibly a 10% but definitely a 5% deposit are in a for big shock at the end of their 2 years. Re those 5% deposit they are going to be stuck with their current lender as well as they will have not enough equity to move to another lender.
House prices might be falling but they are falling from a high! So not so sure that they are actually that cheap, £172,000 for the average house in NI, from £173,000 at the start of the year... How much would a monthly payment for that be over 25 years at the current rate?
Quote from: Milltown Row2 on June 20, 2023, 09:31:50 PM
House prices might be falling but they are falling from a high! So not so sure that they are actually that cheap, £172,000 for the average house in NI, from £173,000 at the start of the year... How much would a monthly payment for that be over 25 years at the current rate?
With a 10% deposit you'd be looking at around £975 per month. The same terms 2 years ago would have been around £750 or less depending on what you could get from the lenders.
Quote from: square_ball on June 20, 2023, 10:29:43 PM
Quote from: Milltown Row2 on June 20, 2023, 09:31:50 PM
House prices might be falling but they are falling from a high! So not so sure that they are actually that cheap, £172,000 for the average house in NI, from £173,000 at the start of the year... How much would a monthly payment for that be over 25 years at the current rate?
With a 10% deposit you'd be looking at around £975 per month. The same terms 2 years ago would have been around £750 or less depending on what you could get from the lenders.
With electric, gas/oil, food, cars, children, phones/broadband, as basics leaves it really difficult to find for extras, nights out, eating out, holidays, savings..
That's providing they have no loans/credit card payments and whatever else I've left out..
Tough on young people/families
Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.
It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.
Inflation holds for another month. The BoE interest rate policy isn't working, which is hardly a surprise given that the cause of inflation is pay rises, commodity prices, energy costs & Brexit. Punishing mortgage holders is nuts. Someone somewhere is making a lot of money at the expense of the masses. Same old.
Quote from: square_ball on June 20, 2023, 10:41:50 PM
Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.
It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.
I've instructed my broker to try to lock in the 2yr fixed rate he quoted me for last week. If it's still available I'll be jumping from 1.62% to 4.9%. That's just over 3 times the interest rate.
I see some calls to raise the BOE base rate to 5% tomorrow. I'm just hoping I can still get the 4.9.
The vast majority of us, I think, are on fixed incomes. With the cost of living rises and mortgage increases, how are people meant to survive?
Outgoings in my house on things like groceries, have more than doubled in a year. This is going to be another sizeable chunk going out.
The only people the increased interest rate serve are those 5% really high earners.
The rest of us suffer.
Quote from: tbrick18 on June 21, 2023, 05:48:44 PM
Quote from: square_ball on June 20, 2023, 10:41:50 PM
Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.
It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.
I've instructed my broker to try to lock in the 2yr fixed rate he quoted me for last week. If it's still available I'll be jumping from 1.62% to 4.9%. That's just over 3 times the interest rate.
I see some calls to raise the BOE base rate to 5% tomorrow. I'm just hoping I can still get the 4.9.
The vast majority of us, I think, are on fixed incomes. With the cost of living rises and mortgage increases, how are people meant to survive?
Outgoings in my house on things like groceries, have more than doubled in a year. This is going to be another sizeable chunk going out.
The only people the increased interest rate serve are those 5% really high earners.
The rest of us suffer.
How are the interest rate hikes serving the high earners?
I locked in last November time to a 3 year deal that is the SVR - 3.45% (long term customer with the Progressive), I had an option to take a fixed rate but I thought rates would start to come down this year and over the 3 years I'd be better off, gonna get humped over the 3 years now by the looks of it.
Does anybody know what the current fixed rated Ulster bank (Natwest) seem to be difficult to bring up on their site?
When will they start to admit Brexit fucked up the UK National economy.
Quote from: Muck Savage on June 21, 2023, 06:08:11 PM
Quote from: tbrick18 on June 21, 2023, 05:48:44 PM
Quote from: square_ball on June 20, 2023, 10:41:50 PM
Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.
It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.
I've instructed my broker to try to lock in the 2yr fixed rate he quoted me for last week. If it's still available I'll be jumping from 1.62% to 4.9%. That's just over 3 times the interest rate.
I see some calls to raise the BOE base rate to 5% tomorrow. I'm just hoping I can still get the 4.9.
The vast majority of us, I think, are on fixed incomes. With the cost of living rises and mortgage increases, how are people meant to survive?
Outgoings in my house on things like groceries, have more than doubled in a year. This is going to be another sizeable chunk going out.
The only people the increased interest rate serve are those 5% really high earners.
The rest of us suffer.
How are the interest rate hikes serving the high earners?
High earners can afford to save, increased interest rates means they earn more off savings.
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
2-5 year fixed would be the the norm
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
Yes, Ive read they are typically much longer in America. One of the tactics talked about for getting out of this unpredictability is to offer long term mortgages like the states.
I still have 3 years left on my 5 year fixed and I don't think that will be enough time for the whole thing to turn around tbh. I would have went with a 10 year fixed as the rates were super low at the time but converting from a Danske Bank self build loan to mortgage they only offered 5 years max.
It looks like there is going to be a bit of pain for some folk over the next number of years.
Quote from: Saffrongael on June 21, 2023, 07:22:37 PM
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
2-5 year fixed would be the the norm
When you say 2-5 year fixed I assume that does NOT mean you have paid it off in 2-5 years. Assuming you don't do anything at the end of the 5 years what happens?
Quote from: dec on June 21, 2023, 08:53:28 PM
Quote from: Saffrongael on June 21, 2023, 07:22:37 PM
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
2-5 year fixed would be the the norm
When you say 2-5 year fixed I assume that does NOT mean you have paid it off in 2-5 years. Assuming you don't do anything at the end of the 5 years what happens?
No you just get a fixed interest rate for 2- 5 years usually & then most people "go again" & fix for another few years. The problem now is people who are coming to the end of a deal that was probably 2-3% interest rate will probably have an interest rate double that
Quote from: clarshack on June 21, 2023, 08:50:16 PM
I still have 3 years left on my 5 year fixed and I don't think that will be enough time for the whole thing to turn around tbh. I would have went with a 10 year fixed as the rates were super low at the time but converting from a Danske Bank self build loan to mortgage they only offered 5 years max.
It looks like there is going to be a bit of pain for some folk over the next number of years.
When we were remortgaging earlier this year the 5 year rate was better than the 2 year rate. Which suggested they felt the increases were close to the top now and trying to get people signed into the 5 years when rates were high.
The yield curve is arseways because of inflation. Short term rates are higher than 5 year. 5 year is more logical until inflation is destroyed.
A lot of people on interest only mortgages also.
Quote from: Wildweasel74 on June 21, 2023, 06:42:41 PM
When will they start to admit Brexit fucked up the UK National economy.
Lockdowns and Furlough have to be a factor in this as well?
Yeah but brexit has been a massive issue... every other economy took the hit of those things so why is it the uk economy that has went so south?
All very different to how it works stateside. 20 or 30 year mortgages are standard. You can go with fixed interest for the full term, or chance it with one that fluctuates along with general interest rates.
Refinancing is (or at least was a few years ago when we did it) fairly handy too. The rates were moving down, and we would get letters every few weeks from the big banks to refinance. Saved us a fair whack when we actually did it, during the Obama years.
Quote from: RedHand88 on June 21, 2023, 08:32:45 PM
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
Yes, Ive read they are typically much longer in America. One of the tactics talked about for getting out of this unpredictability is to offer long term mortgages like the states.
Ours is 30 year fixed. Got in low and refinanced a couple of years back for a lower rate still.
It all depends on timing
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
It's the "discount period". The mortgage terms would still be 25 or 30 years.
You get that rate for 2 years but usually pay a feee to get it. If you're not in that standard period you go to svr where you get royally screwed -usually.
Quote from: J70 on June 22, 2023, 12:21:49 AM
Quote from: RedHand88 on June 21, 2023, 08:32:45 PM
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
Yes, Ive read they are typically much longer in America. One of the tactics talked about for getting out of this unpredictability is to offer long term mortgages like the states.
Ours is 30 year fixed. Got in low and refinanced a couple of years back for a lower rate still.
Wasnt aware that was the case...
How do the US/ fed control inflation then? Obviously we are accustomed to Govt / BOE raising interest rates to stem inflation & then lowering them to encourage economic growth, consumer spending and so on. And the cycle continues
Quote from: God14 on June 22, 2023, 07:44:15 AM
Quote from: J70 on June 22, 2023, 12:21:49 AM
Quote from: RedHand88 on June 21, 2023, 08:32:45 PM
Quote from: J70 on June 21, 2023, 07:20:13 PM
Most of you lads who are commenting seem to be on very short term mortgages.
Is that the norm in Ireland?
Yes, Ive read they are typically much longer in America. One of the tactics talked about for getting out of this unpredictability is to offer long term mortgages like the states.
Ours is 30 year fixed. Got in low and refinanced a couple of years back for a lower rate still.
Wasnt aware that was the case...
How do the US/ fed control inflation then? Obviously we are accustomed to Govt / BOE raising interest rates to stem inflation & then lowering them to encourage economic growth, consumer spending and so on. And the cycle continues
The Federal Reserve does the same in the US.
It's affecting housing supply at the moment. First time buyers, even if they do qualify for what is now a much more expensive mortgage, are faced with fewer options because those already in houses are much more reluctant to sell. Even though housing prices significantly increased over the past five years, partly due to telework opening up a lot of places to growth, those already on the ladder are sitting on a low rate mortgage and don't want to give that up to move somewhere else on a higher rate.
BOE raises rates from 4.5 to 5%. Ouch.
Quote from: clarshack on June 22, 2023, 12:12:39 PM
BOE raises rates from 4.5 to 5%. Ouch.
This could be the straw that breaks the camels back.
Quote from: LC on June 22, 2023, 12:29:56 PM
Quote from: clarshack on June 22, 2023, 12:12:39 PM
BOE raises rates from 4.5 to 5%. Ouch.
This could be the straw that breaks the camels back.
More rises to come if they want to bring inflation down.
Two members voted not to change the rate at all. Wtf?
How do they stablise it? Talk of going back into a recession to help, more wages bigger inflation higher rates..
Can't wait to go on holiday this year, it may be the last
Would a VAT cut and corporation tax increase not help ease this at all?? Was the go to measure in the 2008 crisis.. Genuine question for the more financially clued in members of the board.
Not sure what drawbacks there would be on this? I know Truss wanted a VAT cut but people rebelled and though Rishi had saved the day but look at how the economy is under that tit now
Quote from: Mourne Red on June 22, 2023, 12:49:37 PM
Would a VAT cut and corporation tax increase not help ease this at all?? Was the go to measure in the 2008 crisis.. Genuine question for the more financially clued in members of the board.
Not sure what drawbacks there would be on this? I know Truss wanted a VAT cut but people rebelled and though Rishi had saved the day but look at how the economy is under that tit now
I'm no expert either, but I'd hazard a guess that a VAT cut just gives retailers more of a profit margin. There's no guarantee the cut is passed on to the consumer and let's face it, it probably wouldn't. Big retailers will just cry about the cost of everything else as justification.
Quote from: Milltown Row2 on June 22, 2023, 12:41:07 PM
How do they stablise it? Talk of going back into a recession to help, more wages bigger inflation higher rates..
Can't wait to go on holiday this year, it may be the last
Could well be the case for a lot of people.
Quote from: Mourne Red on June 22, 2023, 12:49:37 PM
Would a VAT cut and corporation tax increase not help ease this at all?? Was the go to measure in the 2008 crisis.. Genuine question for the more financially clued in members of the board.
Not sure what drawbacks there would be on this? I know Truss wanted a VAT cut but people rebelled and though Rishi had saved the day but look at how the economy is under that tit now
The UK government has a big deficit and it already has corporation tax higher than other places. Cutting VAT is expensive and if the UK government does not put forward a credible plan than the markets will not lend it money, bond rates will rise and that will drive up interest rates further. At present the UK bonds are at 4.35% while the Irish ones are 2.8%, borrowing is expensive for the government too. They could print money, but then Sterling would fall and that would put up prices of all imported products. They might be able to tax the rich folks and non doms at bit more.
Quote from: armaghniac on June 22, 2023, 01:27:21 PM
Quote from: Mourne Red on June 22, 2023, 12:49:37 PM
Would a VAT cut and corporation tax increase not help ease this at all?? Was the go to measure in the 2008 crisis.. Genuine question for the more financially clued in members of the board.
Not sure what drawbacks there would be on this? I know Truss wanted a VAT cut but people rebelled and though Rishi had saved the day but look at how the economy is under that tit now
The UK government has a big deficit and it already has corporation tax higher than other places. Cutting VAT is expensive and if the UK government does not put forward a credible plan than the markets will not lend it money, bond rates will rise and that will drive up interest rates further. At present the UK bonds are at 4.35% while the Irish ones are 2.8%, borrowing is expensive for the government too. They could print money, but then Sterling would fall and that would put up prices of all imported products. They might be able to tax the rich folks and non doms at bit more.
Not this government.
It's going to be high rates for ages or a major recession.
Not a great choice unfortunately.
Quote from: marty34 on June 22, 2023, 02:52:17 PM
It's going to be high rates for ages or a major recession.
Not a great choice unfortunately.
The only circumstances I can see interest rates coming down again is the onset of a recession as low interest rates will be required to stimulate growth, similar to what they did back in 2008.
Its like the Thatcher years all over again
The 1979 Conservative government
The incoming administration of Margaret Thatcher raised interest rates to 17 per cent, as the government of the time saw this as a critical weapon in combating inflation, which was steadily rising at the time. It did have the effect of reducing inflation, although critics noted its negative impact on UK manufacturing exports. Interest rates began to rise again towards the end of the 1980s, partly under the pressure of house price rises. Interest rates had gone from 17% in 1979 down to 9% in 1982, and were back to 14.88% in October 1989.
People are much more leveraged now with mortgages, it's a bigger chunk of wages, and people now have debt that didn't really exist in the 80s
Quote from: Saffrongael on June 22, 2023, 03:38:19 PM
People are much more leveraged now with mortgages, it's a bigger chunk of wages, and people now have debt that didn't really exist in the 80s
Everything on credit now.
Quote from: marty34 on June 22, 2023, 04:19:09 PM
Quote from: Saffrongael on June 22, 2023, 03:38:19 PM
People are much more leveraged now with mortgages, it's a bigger chunk of wages, and people now have debt that didn't really exist in the 80s
Everything on credit now.
Now? I'm married 24 years and that generation on women wanted the best of shit straight away and deal with it later, I'm glad to say I've very very little on her credit card!
I'd be feeling very sick if I knew what was wasted over the years on taking/getting 'stuff' on credit!
Listening to a number cruncher last night and he reckons that mortgage leveraging means 6% now has the same effect as 13% rates in the late 70s.
Quote from: Milltown Row2 on June 22, 2023, 03:30:48 PM
Its like the Thatcher years all over again
The 1979 Conservative government
The incoming administration of Margaret Thatcher raised interest rates to 17 per cent, as the government of the time saw this as a critical weapon in combating inflation, which was steadily rising at the time. It did have the effect of reducing inflation, although critics noted its negative impact on UK manufacturing exports. Interest rates began to rise again towards the end of the 1980s, partly under the pressure of house price rises. Interest rates had gone from 17% in 1979 down to 9% in 1982, and were back to 14.88% in October 1989.
Similar pattern in the US. 30 year mortgage rates over the last decade have been far lower than anything in the four decades preceding. The Fed dropped interest rates way down after 2008 and its only the past two years with the post-Covid shutdown inflation surge that they've raised them again. Greenspan had pushed them through the roof early in Reagan's terms to try to bust the inflation that started in the 70s.
https://fred.stlouisfed.org/series/MORTGAGE30US (https://fred.stlouisfed.org/series/MORTGAGE30US)
Quote from: J70 on June 22, 2023, 06:11:20 PM
Quote from: Milltown Row2 on June 22, 2023, 03:30:48 PM
Its like the Thatcher years all over again
The 1979 Conservative government
The incoming administration of Margaret Thatcher raised interest rates to 17 per cent, as the government of the time saw this as a critical weapon in combating inflation, which was steadily rising at the time. It did have the effect of reducing inflation, although critics noted its negative impact on UK manufacturing exports. Interest rates began to rise again towards the end of the 1980s, partly under the pressure of house price rises. Interest rates had gone from 17% in 1979 down to 9% in 1982, and were back to 14.88% in October 1989.
Similar pattern in the US. 30 year mortgage rates over the last decade have been far lower than anything in the four decades preceding. The Fed dropped interest rates way down after 2008 and its only the past two years with the post-Covid shutdown inflation surge that they've raised them again. Greenspan had pushed them through the roof early in Reagan's terms to try to bust the inflation that started in the 70s.
https://fred.stlouisfed.org/series/MORTGAGE30US (https://fred.stlouisfed.org/series/MORTGAGE30US)
Generally, interest rates have been much lower and consequently house prices have become higher. In the UK the interest rates have now gone up to a middle level, but the loans for the houses are at a high level, which is why people are under such pressure. In Ireland, the loans were pretty conservative since the crash so people have some headroom, I'm not sure that this was the case in Britain.
By way of comparison, AIB charge 3.3% variable in the 26 counties, while AIBNI charge 7.25% variable in the 6 counties.
Now of course houses are twice the price in the 26 counties, but people are earning 40% more, so things are significantly tighter now in the North.
The For Sales signs at houses could be stsying up a lot longer now. This time last year the signs were hardly up, then the house was sold. Now the For Sale signs are staying up a lot longer, a lot longer.
Quote from: marty34 on June 22, 2023, 08:09:56 PM
The For Sales signs at houses could be stsying up a lot longer now. This time last year the signs were hardly up, then the house was sold. Now the For Sale signs are staying up a lot longer, a lot longer.
There won't be many houses being built either. I posted recently in the Building a House thread that I was talking to someone who worked in construction and the work had dried up for the company he works for. It's not going to get any better after today.
Quote from: clarshack on June 22, 2023, 08:21:37 PM
Quote from: marty34 on June 22, 2023, 08:09:56 PM
The For Sales signs at houses could be stsying up a lot longer now. This time last year the signs were hardly up, then the house was sold. Now the For Sale signs are staying up a lot longer, a lot longer.
There won't be many houses being built either. I posted recently in the Building a House thread that I was talking to someone who worked in construction and the work had dried up for the company he works for. It's not going to get any better after today.
Funny that, in a way, as more houses are/will be needed and now would be a good time to build them.
But with the higher interest rates, the cost of materials and the cost of living crisis, then it's a catch 22.
Quote from: clarshack on June 22, 2023, 08:21:37 PM
Quote from: marty34 on June 22, 2023, 08:09:56 PM
The For Sales signs at houses could be stsying up a lot longer now. This time last year the signs were hardly up, then the house was sold. Now the For Sale signs are staying up a lot longer, a lot longer.
There won't be many houses being built either. I posted recently in the Building a House thread that I was talking to someone who worked in construction and the work had dried up for the company he works for. It's not going to get any better after today.
Where is he working?
Quote from: Maroon Manc on June 23, 2023, 10:04:04 AM
Quote from: clarshack on June 22, 2023, 08:21:37 PM
Quote from: marty34 on June 22, 2023, 08:09:56 PM
The For Sales signs at houses could be stsying up a lot longer now. This time last year the signs were hardly up, then the house was sold. Now the For Sale signs are staying up a lot longer, a lot longer.
There won't be many houses being built either. I posted recently in the Building a House thread that I was talking to someone who worked in construction and the work had dried up for the company he works for. It's not going to get any better after today.
Where is he working?
In the North.
Where's best to place savings now then?
Under the mattress?
Property abroad?
Crypto?
S&P fund?
None of those would be classed as savings
Quote from: 5times5times on June 23, 2023, 12:30:36 PM
Where's best to place savings now then?
Under the mattress?
Property abroad?
Crypto?
S&P fund?
Lump it all on Ireland to qualify for the Euros. It's a sure thing ;D
Quote from: quit yo jibbajabba on June 23, 2023, 12:35:00 PM
None of those would be classed as savings
Apols, I meant ££ kept in a rubbish 0.0001% savings account..
Quote from: 5times5times on June 23, 2023, 12:43:34 PM
Quote from: quit yo jibbajabba on June 23, 2023, 12:35:00 PM
None of those would be classed as savings
Apols, I meant ££ kept in a rubbish 0.0001% savings account..
Surely high interest rates means you can get a better yielding account?
It does. Generally the interest on loans if higher than on savings but you shone fit to get four percent our so on cash isas.
Quote from: J70 on June 23, 2023, 01:08:56 PM
Quote from: 5times5times on June 23, 2023, 12:43:34 PM
Quote from: quit yo jibbajabba on June 23, 2023, 12:35:00 PM
None of those would be classed as savings
Apols, I meant ££ kept in a rubbish 0.0001% savings account..
Surely high interest rates means you can get a better yielding account?
It does, but the author has been hoodwinked by investing into crypto bro.
Majority of people will have their money in poor interest paying accounts, key is too keep moving it. If everyone did that we'd get better rates but unfortunately that will never happen.
Quote from: 5times5times on June 23, 2023, 12:30:36 PM
Where's best to place savings now then?
Under the mattress?
Property abroad?
Crypto?
S&P fund?
Right now it's short term bonds
Are house prices on the slide now with the constant increase in interest rates ?
Quote from: Saffrongael on June 23, 2023, 01:45:59 PM
Are house prices on the slide now with the constant increase in interest rates ?
The data is always months behind. We probably won't know for sure for another 3-6 months. Mortgages all come down to the monthly at the end of the day. So depends on peoples affordability and what they are willing to pay. But there are no shortage of jobs and wages are on the rise still so its a case of waiting and see.
https://www.frbsf.org/economic-research/publications/economic-letter/2023/march/house-prices-respond-promptly-to-monetary-policy-surprises/
Not quoting the mass-ignored poster above. Seems to be a couple of weeks for housing market to react to monetary policy change.
Monetary policy operates with an unknown lag.
Quote from: 5times5times on June 23, 2023, 12:43:34 PM
Quote from: quit yo jibbajabba on June 23, 2023, 12:35:00 PM
None of those would be classed as savings
Apols, I meant ££ kept in a rubbish 0.0001% savings account..
Havent checked in a while youd hope 2-3% available from the shysters...
How many times have we heard this will be the event that eventually tips the housing market?? I do think this is the one though :D housing in GB, specifically SE England, is the driver of the whole UK market, when it drops there as already appears to be on the horizon, the contagion will spread to the peasants in the regions.
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.
Quote from: Maroon Manc on June 23, 2023, 04:26:09 PM
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.
Quote from: tbrick18 on June 23, 2023, 04:58:34 PM
Quote from: Maroon Manc on June 23, 2023, 04:26:09 PM
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
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.
Quote from: Saffrongael on June 23, 2023, 01:45:59 PM
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.
Quote from: Hereiam on June 23, 2023, 05:48:19 PM
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
Was a lovely 3 months off though ;D
Quote from: Milltown Row2 on June 23, 2023, 06:37:17 PM
Was a lovely 3 months off though ;D
Maybe for those who were able to get the time off.
Quote from: clarshack on June 23, 2023, 09:39:57 PM
Quote from: Milltown Row2 on June 23, 2023, 06:37:17 PM
Was a lovely 3 months off though ;D
Maybe for those who were able to get the time off.
It was, thankfully I managed to get back to work :P
I was a hero too
How do UK interest rates compare with Ireland and the rest of the UK?
Quote from: Dougal Maguire on June 24, 2023, 10:27:13 AM
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%.
Quote from: RedHand88 on June 24, 2023, 10:51:18 AM
Quote from: Dougal Maguire on June 24, 2023, 10:27:13 AM
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%
Quote from: Dougal Maguire on June 24, 2023, 10:27:13 AM
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.
Quote from: Saffrongael on June 24, 2023, 11:05:57 AM
Quote from: RedHand88 on June 24, 2023, 10:51:18 AM
Quote from: Dougal Maguire on June 24, 2023, 10:27:13 AM
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.
I get the impression, bankers are f**king us over again. Where does this extra rates money go to? Wonder what the, English think Brexit now the dumb fools. Sunk us along with them. Bunch of rich men dictating rates to the poor when it wouldn't actually affect them in the slightest
There's gonna be loads of mortgage defaults, repossessions, property fire sales, former family homes bought by wealthy landlords and the rich get richer. Sad thing is that those who are caught are younger people who voted remain and the purchasers most likely Brexiteers
Quote from: Dougal Maguire on June 25, 2023, 12:23:12 AM
There's gonna be loads of mortgage defaults, repossessions, property fire sales, former family homes bought by wealthy landlords and the rich get richer. Sad thing is that those who are caught are younger people who voted remain and the purchasers most likely Brexiteers
That's pessimistic. People buying houses now will find the market softer, educated people voted remain and many of these will be able to get a house in this market.
do not rely on interest rates coming down, always prepare for the worst
they could go to 8, 10 or even 15 percent as it was in the 1970's and 80's (it is unlikely but the possibility is not zero)
a timely reminder to not overextend yourself financially
Quote from: Mikhail Prokhorov on June 25, 2023, 10:03:59 PM
do not rely on interest rates coming down, always prepare for the worst
they could go to 8, 10 or even 15 percent as it was in the 1970's and 80's (it is unlikely but the possibility is not zero)
a timely reminder to not overextend yourself financially
Bill Gates would notice a 15%?rise ffs
But what the point putting them up, I don't think it bring inflation dwin like in the past. This inflation coming off the bck of Covid, Brexit, Ukraine, and I can't see it settling. Liz Truss got the ball rolling f**king us over. Bitch! But if them English clowns vote these rich Elton based snobs in again, they deserve all they get, roll on a united Ireland.