Reply to: BOE Interest Rate is UP

[SueEllen]

Oh yes it is

Yeah I should have said England not the UK.

Though taken into consideration into England.

[AtW]

Not legally valid in the UK.

Oh yes it is

[SueEllen]

Should have signed pre-nup

Not legally valid in the UK.

[motoukenin]

Usually an interest rate rise makes the currency appreciate.

The market thinks that the economy is going to tank?

The market and about 16 million remain voters

[AtW]

My ex-wife being one of them. The others being BP's ex-wives.

Should have signed pre-nup

[DimPrawn]

But 2/3 of people don't have mortgage - so what's the problem?

.

My ex-wife being one of them.

The others being BP's ex-wives.

[AtW]

but higher rates will crash the housing market and whats left of the economy...

But 2/3 of people don't have mortgage - so what's the problem?

Plus, they'll blame evil EU for all of this anyway.

[eek]

US is already on over 1%, they plan to get to 2% next year.

The only protection against massive post-hard-Brexit inflation will be higher rates

but higher rates will crash the housing market and whats left of the economy...

So all in all a perfect storm is coming...

[AtW]

Soon being at least 10 years from now.

US is already on over 1%, they plan to get to 2% next year.

The only protection against massive post-hard-Brexit inflation will be higher rates

[DimPrawn]

+0.25% is the first step, we'll soon get into 2-3% territory.

Soon being at least 10 years from now.

[AtW]

2/3 of homeowners own their houses outright (have no mortgage). They are unaffected.

Just because they've paid off their mortgages does not mean value of their houses won't be affected in case of a lot of foreclosures in the remainder 1/3 who won't be able to afford payments.

+0.25% is the first step, we'll soon get into 2-3% territory.

[DimPrawn]

Unless my mathematics is off, a .25% increase in loan repayments is £250 per £100,000 loaned per year. Can't see too many repossessions on that, but I'm willing to bet that will be one of the shock horror headlines.

2/3 of homeowners own their houses outright (have no mortgage). They are unaffected.

Of the remaining 1/3, 94% of new mortgages are fixed rate, for 2 or more years. They are unaffected.

So, a 0.25% rate increase affects the minority of home owners.

Overall effect == feck all.

[sasguru]

And was cut from 0.5% to 0.25% soon after the Brexit vote "due to post Brexit vote deflation"

Carnage hasn't got a clue. Cut, raise, no doubt cut again next year.

Well let's see what happens. The last set of consumer spending figures was down by a lot.
It could be that the rate reduction in 2016 was right, and this is a mistake, especially now.

[sasguru]

Unless my mathematics is off, a .25% increase in loan repayments is £250 per £100,000 loaned per year. Can't see too many repossessions on that, but I'm willing to bet that will be one of the shock horror headlines.

Yeah because mortgage companies/credit card companies/loan companies only ever raise their rates by exactly the BofE base rate rise.
Sometimes I wonder if you're just thick or both thick and deceitful.

[DimPrawn]

BOE Interest Rate is UP @ 0.5% "due to post Bexit vote inflation"

And was cut from 0.5% to 0.25% soon after the Brexit vote "due to post Brexit vote deflation"

Carnage hasn't got a clue. Cut, raise, no doubt cut again next year.