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BoE sends 'clear signal' interest rates will be held

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    BoE sends 'clear signal' interest rates will be held

    Following on from last month where Mark Carney announced that base rate would stay at 0.5% until unemployment falls below 7%, Deputy Governor - Charlie Bean has announced that it will not be raised in the near future.


    BoE sends 'clear signal' interest rates will be held | News | Mortgage Strategy

    It will be interesting to see how banks react to this as standard variable rates do not have to fall in line with base rate as we recently saw with the Bank of Ireland.

    #2
    He has also said he can't see can't see signs of a bubble emerging.


    BOE’s Bean Says Can’t See Signs of Housing Boom Emerging


    Clearly this lot are as clueless as their predecessors who couldn't spot the last bubble.

    Comment


      #3
      Originally posted by RedSauce View Post
      He has also said he can't see can't see signs of a bubble emerging.


      BOE’s Bean Says Can’t See Signs of Housing Boom Emerging


      Clearly this lot are as clueless as their predecessors who couldn't spot the last bubble.
      It's hard to tell the difference between an unsustainable growth and a healthy market of limited resources with competing humans that will do pretty much whatever they need to in order to buy their own home. The fact that we are likely to see a situation soon where inflation will do to my mortgage what it did for my dads I am not sure it matters anyway....

      Unless you are sat on the sidelines begging for a massive crash so you can have a great house for free.

      Comment


        #4
        Originally posted by bobspud View Post
        It's hard to tell the difference between an unsustainable growth and a healthy market of limited resources with competing humans that will do pretty much whatever they need to in order to buy their own home. The fact that we are likely to see a situation soon where inflation will do to my mortgage what it did for my dads I am not sure it matters anyway....

        Unless you are sat on the sidelines begging for a massive crash so you can have a great house for free.
        I am in a position to buy, but the rate prices are rising in the SE are worrying, and the fact that (despite this strong rise) the government still feels the need for more intervention in January (via right to buy votes), indicates they are still not confident in the sustained rate of HPI. I also find it very odd that the government have been "pressing" news agencies to release articles about the strength of the market.

        Comment


          #5
          Originally posted by RedSauce View Post
          I am in a position to buy, but the rate prices are rising in the SE are worrying, and the fact that (despite this strong rise) the government still feels the need for more intervention in January (via right to buy votes), indicates they are still not confident in the sustained rate of HPI. I also find it very odd that the government have been "pressing" news agencies to release articles about the strength of the market.
          Stand a little further back and observe things with a wider perspective.

          I bought my place ten years ago and it has doubled in value. Even if the worst came to pass, my house would have to lose more than 50% to have cost me anything instead even though we had a massive crash in the last few years its still worth 50K more than it was when I needed it valued in 2006.

          Fact of the matter is that despite all the tulip and gloom the lefty ******* at the beeb spent 2011/12 putting out, far from a triple dip recession we didn't even have a double dip. So I think its not so much the government leaning on them its the fact that there just isn't any bad news left that isn't already factored into the figures.

          Comment


            #6
            Originally posted by Martin@AS Financial View Post
            Following on from last month where Mark Carney announced that base rate would stay at 0.5% until unemployment falls below 7%, Deputy Governor - Charlie Bean has announced that it will not be raised in the near future.
            They keep repeating it so often now

            Comment


              #7
              Originally posted by bobspud View Post
              Stand a little further back and observe things with a wider perspective.

              I bought my place ten years ago and it has doubled in value. Even if the worst came to pass, my house would have to lose more than 50% to have cost me anything instead even though we had a massive crash in the last few years its still worth 50K more than it was when I needed it valued in 2006.

              Fact of the matter is that despite all the tulip and gloom the lefty ******* at the beeb spent 2011/12 putting out, far from a triple dip recession we didn't even have a double dip. So I think its not so much the government leaning on them its the fact that there just isn't any bad news left that isn't already factored into the figures.
              Good post.

              There is a whole generation of people who will struggle to get on to the ladder. In the 80's and 90's, the average house price was roughly 4x the average salary, not it is over 9x. The is probably seen as good news for many homeowners, or those wanting to get their cash out the property, but what about first time buyers? They are going to have to wait longer to get on the market, or use the government help-to-buy schemes which I can't see how the government can ever stop.

              I am still convinced a correction is overdue, but the governments actions are delaying it, and when it eventually does happen, more people will be burnt.

              Comment


                #8
                Originally posted by RedSauce View Post
                I am in a position to buy, but the rate prices are rising in the SE are worrying, and the fact that (despite this strong rise) the government still feels the need for more intervention in January .
                Exactly.

                Here in London, things are already super busy and I really can't see how this is going to help. I'm looking to buy again soon and watching the monthly increases in property value (or cost before Dim Prawn jumps in - hehe) is getting silly.

                A property valued at £250,000 today could easily be around the £350,000 mark this time next year because of this scheme which is going to have an adverse effect on the very people it is supposed to be helping.

                Comment


                  #9
                  Originally posted by Martin@AS Financial View Post
                  Exactly.

                  Here in London, things are already super busy and I really can't see how this is going to help. I'm looking to buy again soon and watching the monthly increases in property value (or cost before Dim Prawn jumps in - hehe) is getting silly.

                  A property valued at £250,000 today could easily be around the £350,000 mark this time next year because of this scheme which is going to have an adverse effect on the very people it is supposed to be helping.
                  What is your plan then? As someone who specialises in finance, you must have your ear pretty close to the ground, do you think it is a good time to get on the road to riches, or do you think a correction is likely?

                  Comment


                    #10
                    Originally posted by RedSauce View Post
                    Good post.

                    There is a whole generation of people who will struggle to get on to the ladder. In the 80's and 90's, the average house price was roughly 4x the average salary, not it is over 9x. The is probably seen as good news for many homeowners, or those wanting to get their cash out the property, but what about first time buyers? They are going to have to wait longer to get on the market, or use the government help-to-buy schemes which I can't see how the government can ever stop.

                    I am still convinced a correction is overdue, but the governments actions are delaying it, and when it eventually does happen, more people will be burnt.
                    I agree that average wages are a problem but the solution as I keep telling my kids is don't be average. My mum and dad bought their house for £17k about a year before the first bubble kicked off. They were the first generation in my family to actually own a home. The previous two generations had rented or had a council home. That purchase was a severe struggle for them and they spent my childhood renovating the place, They sold it 15 or 20 years later for over 10 times their purchase price. They moved out of London to a relatively cheap area, and it allowed my father to have a comfortable retirement with my mum until her death a year or so ago. I can't talk to him about money because the most he earned was 20k or so. I think it would blow his mind if he saw my mortgage payments, I am regularly ashamed of my material wealth compared to them.

                    We had a correction the wrong way at the end of the 80's and that didn't go so well for the banks because people just wandered into the banks and gave back the keys to the houses. This uncontrolled collapse increased the supply at exactly the wrong moment. I am convinced the banks are ruling the government now and ensuring that they won't see that happen again. Either way there is only so much property available and the answer is average people can't afford a house.

                    Comment

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