State of the Market

[Fraidycat]

Some good news this morning:

UK inflation falls to Bank of England's 2% target rate for first time in nearly 3 years

[edison]

Some good news this morning:

UK inflation falls to Bank of England's 2% target rate for first time in nearly 3 years

Yes but markets are pricing in only a 5% chance of a base rate cut this month due to high wage and services inflation. I'm guessing high wage inflation must be in sectors outside technology!

September now forecast to be most likely date for a cut.

Presumably this will continue to ensure the market remains slow as we enter the summer holiday period.

[Unix]

Yes but markets are pricing in only a 5% chance of a base rate cut this month due to high wage and services inflation. I'm guessing high wage inflation must be in sectors outside technology!

September now forecast to be most likely date for a cut.

Presumably this will continue to ensure the market remains slow as we enter the summer holiday period.

I think so, after maybe 2 rate cuts and US election (assuming the US republic doesn't collapse) I think spring for market recovery.

[jamesbrown]

Some good news this morning:

UK inflation falls to Bank of England's 2% target rate for first time in nearly 3 years

Actually, slightly worse news than expected. While headline inflation is back to target, services inflation is still way too high. Implied bank rate for later this year actually increased following the announcement.

[Snooky]

When going to an interest-only only please be aware of the debt trap, because you are not repaying the bulk of your mortgage then it is building

Minor point: if you pay the full interest due each month, the capital outstanding does not grow/build, but it does remain static unlike in a repayment arrangement where some of it gets paid down along with the interest every month (and the interest subsequently due becomes less).

But I think I know what you mean - if OP pays only interest for X months, he'll be worse off because more of the capital remains outstanding than if he'd been able to pay the full repayment amount, and the monthly interest amount won't decrease (assuming the same interest rate) because the capital hasn't reduced. So at some point before the end of the mortgage he'll have to find a way of paying down that extra capital. If he switches back to repayment but keeps the same remaining term, this means the monthly payments will be higher than they might otherwise have been.

[sreed]

Actually, slightly worse news than expected. While headline inflation is back to target, services inflation is still way too high. Implied bank rate for later this year actually increased following the announcement.

Ah, so that’s why swap rates have gone slightly up rather than down.

[rocktronAMP]

Minor point: if you pay the full interest due each month, the capital outstanding does not grow/build, but it does remain static unlike in a repayment arrangement where some of it gets paid down along with the interest every month (and the interest subsequently due becomes less).

But I think I know what you mean - if OP pays only interest for X months, he'll be worse off because more of the capital remains outstanding than if he'd been able to pay the full repayment amount, and the monthly interest amount won't decrease (assuming the same interest rate) because the capital hasn't reduced. So at some point before the end of the mortgage he'll have to find a way of paying down that extra capital. If he switches back to repayment but keeps the same remaining term, this means the monthly payments will be higher than they might otherwise have been.

You explained it better than I did. This is it ^^^ . Well Done Snooky ! Paying the full interest each mortgage each month, means that you keep your house, but the money goes elsewhere like council tax, food and heating. You also added the benefit of drawing out the mortgage deal term. It buys you some wiggle room and time.

[rocktronAMP]

I think most contracts worth worrying about don't go near the job boards anymore.

I think that I agree with that. Ergo, your personal Linkedin profile is very important to get right. Recruiters will search for the top 10 talent from there.
Keep adjusting your profile in Linkedin until you start getting hits.

Sadly, I don't know if there is a equivalent to Hacker Rank just for contractors.
But since there are people just now desperate for any work including perm, add a profile to https://hired.co.uk/ and https://cord.co/

[SchumiStars]

You explained it better than I did. This is it ^^^ . Well Done Snooky ! Paying the full interest each mortgage each month, means that you keep your house, but the money goes elsewhere like council tax, food and heating. You also added the benefit of drawing out the mortgage deal term. It buys you some wiggle room and time.

Hoping to have long departed before I get to the end of the mortgage. Although, I may bring it forward if this does not resolve soon.

I can see why people do themselves in. The pressure is immeasurable.

[Unix]

Hoping to have long departed before I get to the end of the mortgage. Although, I may bring it forward if this does not resolve soon.

I can see why people do themselves in. The pressure is immeasurable.

Can you rent for while, just cut your cloth till things pickup. I've had to do that after divorce etc things will get better.