First interest rise in ten years

[Cyclone]

Well, this will be an easy one to test won't it. We'll revisit it in a few years, same time of year so you're on your half term break again, and see.

[El Cid]

So that was 1.75% above the base rate, and only the people with the best credit ratings and high deposits can get that rate.

FTB typically have something closer to 4%.

 

I think 4% is way too high for the average FTB.

 

https://www.statista.com/statistics/386301/uk-average-mortgage-interest-rates/

 

Roughly half of Britain’s 11m mortgage borrowers are on fixed rates, while the other half are on a tracker, standard variable or discounted rates.

Edited November 5, 2017 by El Cid

[area 51]

Moan all you want. Not my problem if people are not astute enough with their money. No government is going to change the current status quo. There has already been changes to how buy to let interest rates can no longer be considered as a cost for tax purposes. Which is why you don’t have a mortgage in the first place

 

No I don't have a mortgage because I paid it off years ago.

[euclid]

Is the main reason for low interest rates for businesses to invest, at low cost?

No,its so the rich/super rich,Government ministers etc..can take out multi-million pound mortgages to buy large homes while house prices/rates are low,doing what they always do..looking after themselves...and pretending they are helping the poorer ones....

[Jeffrey Shaw]

But if they're so rich, whyever would they want to pay unnecessary interest?

[Cyclone]

The super rich surely don't take out mortgages at all.

[Supertramp]

No,its so the rich/super rich,Government ministers etc..can take out multi-million pound mortgages to buy large homes while house prices/rates are low,doing what they always do..looking after themselves...and pretending they are helping the poorer ones....

 

Good economics there.

 

Also El Cid, rates are low to encourage investment and also to encourage spending. If rates are higher, people are more likely to save.

 

Also decreases the value of the £ making British goids cheaper for foreigners.

[Cyclone]

Unfortunately props up the housing market bubble though, in fact has encouraged residential prices to continue rising, which hasn't been in the interests of anyone except property investors in the long run. In the shorter term it's in the interest of people who don't want to end up in negative equity (but ONLY in the short term).

[Jeffrey Shaw]

Also decreases the value of the £ making British goids cheaper for foreigners.

I don't think that goids are made in the UK nowadays- nor anywhere else.

They can't get the wood, you know.

[choogling]

The housing market needs a major make over starting with stopping buy to let mortgages and reducing the deposit to ten percent for first time buyers.