First interest rise in ten years

[dutch]

Maybe, the interest rate in the UK is primarily dependant on domestic inflation rate and economy performance.

 

As soon as they announce HS2 is not financially feasible interest rates will have to raise to levels that cost the economy more than the cost of HS2.

[Jeffrey Shaw]

the interest rate in the UK is primarily dependant on domestic inflation rate and economy performance.

Also:

a. HMG has no control over the Bank of England's setting of its Base Rate; and

b. alteration of the Base Rate has no automatic effect other than on others' rates pegged to it.

[Cyclone]

No automatic effect, but it's structural effect and influence is huge.

[Calahonda]

The EU and the USA have attempted to destroy the value of the U.K. pound post the Brexit referendum. However this has had a reverse effect on trade by making the U.K. a very good value area to trade with. IMHO interest rates will remain at an artificially low level until an acceptable Brexit deal has been struck. It beggars belief that the population of a basket case such as the Irish Republic are flooding over the border to shop in what they consider to be a ‘fire sale’.

 

Nothing will be normal until the U.K. becomes a stronger nation, we’ve been the EU’s whipping boy for so long that the attempted destruction of the pound has closed down numerous retail giants, giving Brussels great satisfaction, at least a low BOEBR will allow those still standing to prop themselves up on the cheap.

Edited June 15, 2018 by Calahonda

[choogling]

Yes, although you don't mean 'deposit' [= the 10% payable on exchange of contracts, whether or not the purchase is funded by mortgage advance].

You mean simply the offering of mortgage advances of 90% LTV (Loan To Value ratio).

 

---------- Post added 09-11-2017 at 18:13 ----------

 

Also see today's BBC News item http://www.bbc.co.uk/news/business-41917884

The replies are interestingly supportive of at least new controls being introduced.

I posted the following there, as its post #23:

 

Falling average prices? Excellent news.

The expected level used to be about 3.5 to 4 x salaries.

The mortgage advance was mostly capped at the lower of:

a. 70% LTV (Loan To Value); and

b. 2.5 to 3 x main earner's salary.

For the UK's long-term good, return to those levels.

Yes, London is too expensive.

Solutions:

1. Limit foreign investor purchases.

2. Move more jobs out of the SE.

 

I think in the real world most people will refer to it as a deposit.

[Cyclone]

The EU and the USA have attempted to destroy the value of the U.K. pound post the Brexit referendum. However this has had a reverse effect on trade by making the U.K. a very good value area to trade with. IMHO interest rates will remain at an artificially low level until an acceptable Brexit deal has been struck. It beggars belief that the population of a basket case such as the Irish Republic are flooding over the border to shop in what they consider to be a ‘fire sale’.

 

Nothing will be normal until the U.K. becomes a stronger nation, we’ve been the EU’s whipping boy for so long that the attempted destruction of the pound has closed down numerous retail giants, giving Brussels great satisfaction, at least a low BOEBR will allow those still standing to prop themselves up on the cheap.

 

The EU and the US haven't had to do anything, the very stupid act of deciding to leave the EU is what has damaged the £.

 

Your blind optimism about the future is touching, it's a shame that people of your generation are damming your grandchildren to a future of reduced prosperity and economic hardship, all in the name of some jingoistic vision of the days of empire.

 

---------- Post added 15-06-2018 at 21:10 ----------

 

I think in the real world most people will refer to it as a deposit.

 

What do you mean by "lowering" it to 10%? Do you mean making a 10% deposit (ie a 90% LTV) to be the lowest amount a person can contribute? Ie no 95 or 100 LTV mortgages?