Interest Rates at 3%
- Thread starter BoroMart
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Nobby_Barnes
Well-known member
Great for savers
BoroMart
Well-known member
It is, personally I can't complain, but the vast majority of the country have little in the way of savings.Great for savers
Johnnyweetabix
Well-known member
I thought more people had savings than loans?
Funky_Chicken
Well-known member
No not really - i was thinking a loud fart may be more fitting
NorthumberlandBoro
Well-known member
The Federal reserve in the US have just announced its fourth consecutive three-quarters of a percentage point hike in interest rates .
Not great over there either.
Not great over there either.
It's good this for me people who live at home saving for a house. As interest rates on savings will rise and house prices will crash hoping to get a house on a bargain in the next year. Should help more people onto the housing market. It is sad though this crash will come about from people having their houses repossessed due to being unable to pay inflated mortgages
Lightweight
Well-known member
Or less homes available for first time buyers as the people in starter homes will not think it is viable to move up the property ladder
Boro in Devon
Well-known member
If house prices come down, the banks wont be lending to first time buyers, unless you have a huge deposit.
Pak_Doo_Ik
Well-known member
Savers need to make the most of the increasing interest rates as the BoE also said the country is about to enter is deepest and longest recession for a hundred years and guess what the BoE traditionally do when the country is in recession 
Funky_Chicken
Well-known member
Give bankers a massive bonus ?Savers need to make the most of the increasing interest rates as the BoE also said the country is about to enter is deepest and longest recession for a hundred years and guess what the BoE traditionally do when the country is in recession
Nobby_Barnes
Well-known member
There are winners and losers with every decision made about the economy.
The trick is to make small changes to try and get the best outcome for the most people...
The trick is to make small changes to try and get the best outcome for the most people...
Corcaigh_the_Cat
Well-known member
Two basket case nations, too many right wing nut jobs amongst the electorate.
Billy Horner
Well-known member
I’m afraid you’re falling into the usual trap of underestimating the impact of higher interest rates on your mortgage payments.
Most mortgage deals have leapt from 4% fixed to around 6% in the last month. Assuming that you take out a 95% mortgage over 25 years on a property worth £150k, the extra interest alone will add c£50k to your repayments over the lifetime of the mortgage.
In order to ‘save’ that £50k you would need house prices to fall by around 20%. And that’s just to get back to the position you would have been in one month ago. The presumption is that interest rates will go even higher, which would require an even steeper fall in house prices for you to just stand still.
ForssAwakens
Well-known member
I don’t banks would remove high ltv mortgages, more likely to charge more for them die the risk associated
thewanderer
Well-known member
If houses prices are falling there will be less houses available to buy. I.e. who would put there house up for sale in a falling market?
If inflation is higher than the savings rate (and it is , significantly) then it is bad for savers. What you mean is minimally less bad for savers.Great for savers
MolteniArcore
Well-known member
And not all savers take advantage of the better rates, and some will even have their cash in low yield investments tied up for a year or two so can't move them.
The old "it's great for savers" talk is just someone clinging to the final positive of a very knackered and crashed economy. Savers will be poorer because of inflation, like the rest of us. It's bad news all round.
The only positive in all of this is that it should finish the Tories off.
Uwefuchs
Well-known member
I work between 40 and 60 hours most weeks, have a decent job and have always been fairly comfortable financially until about 18 months ago. Now I'm financially worse off every month.
Gas bills have gone through the roof, petrol is sky high, the food shopping is more expensive on every visit.
Forget about holidays and nights out, just covering the essentials is getting more and more difficult now. Its hard to rejoice at the death of the Tory party when you're lying in bed at night worrying about the bills.
Gas bills have gone through the roof, petrol is sky high, the food shopping is more expensive on every visit.
Forget about holidays and nights out, just covering the essentials is getting more and more difficult now. Its hard to rejoice at the death of the Tory party when you're lying in bed at night worrying about the bills.
Nobby_Barnes
Well-known member
Thanks I pictured David Brent as I read that
