We had our letter from Halifax today, rates up ½% from 1st May. Halifax blames the increased cost of borrowing money.
I wonder how gammy and cloggs will deal with the flak when peoples mortgages are shooting up this year because you can bet that the mortgage providers won’t be happy with just a small rise, it will be every other month now till the end of the year.
We’ve had historically low rates for some time now, artificially low really. Good times are over it’s time to pay the piper!
44 Tonne Ton:
We’ve had historically low rates for some time now, artificially low really. Good times are over it’s time to pay the piper!
Yeah, I have a feeling also that anyone who rents will be targeted, the higher the mortgages go the rented sector will rise also, everyone is always looking for a way to rip somebody off these days.
It has to happen. If the interest rates don’t look worthwhile, the people with money will invest it in countries which give a worthwhile return. That does nothing for this country as there is no money in our banks to lend out. If the price of houses fails to rise year on year, they are not worth building and being as this is the biggest sector that increases the transport sector immediately, the sooner things start to creep upwards the better. It does cause a little pain for a while before it filters down to actually help, but it is one of the shortest for the returns, however, it needs to be a gradual increase not a massive whack.
Yeah, I have a feeling also that anyone who rents will be targeted, the higher the mortgages go the rented sector will rise also, everyone is always looking for a way to rip somebody off these days.
Rents have always been rising, thats the thing about renting, they generally do, across the board each year. They didn’t suddenly drop when the interest rates fell.
It has been a long time at low rates, for those with mortgages, so it is due to go up. But what I find interesting is that, if you keep half an eye on financial websites, so called experts have been predicting it (and getting it so very wrong) for years. Literally, the past 2 years. Saying rates will rise.
It just goes to show that there is no such thing as an ‘expert’. Nobody can predict it with any great certainty. So thats comforting in a way.
I shouldn’t think the rates will rise now month on month like you say. But i’m not an expert 
“The economy depends about as much on economists as the weather does on weather forecasters.”