BOE Interest Rate is UP

[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.

[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.

[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.

[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.

[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]

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

Soon being at least 10 years from now.

[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

[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]

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.

[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.