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  • #1

    UK interest rates remain at record low of 0.5%

    UK interest rates remain at record low of 0.5%


    It has also decided not to extend its quantitative easing programme, designed to stimulate lending in the economy, beyond the £375bn already spent.

    The Bank's Monetary Policy Committee has held rates at 0.5% since March 2009 in a bid to help economic recovery.




    More ------>http://www.bbc.co.uk/news/business-29929499
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.
    Tags: action, arrears, bank, banks, bbc, borrowers, business, competition, help, homes, house prices, housing, hsbc, interest, interest rates, legislation, lending, low, money, mortgage, mortgages, order, policy, prices, rate, rates, recovery, rise, suspended, vulnerable
  • #2
    Re: UK interest rates remain at record low of 0.5%

    Originally posted by Deepie View Post
    UK interest rates remain at record low of 0.5%

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    • #3
      Re: UK interest rates remain at record low of 0.5%

      Originally posted by PlanB View Post
      Absolutely. If the rates do start to rise, is it likely to drive the prices down? I was speaking with relatives the other day who said the interest rate was 15% when they bought their first house!
      When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

      Comment

      • #4
        Re: UK interest rates remain at record low of 0.5%

        The biggest knock-on effect of interest rate rises will be repossessions. So many borrowers are clinging onto their homes by their fingernails so another £20 per month could tip them over the edge and into arrears. Those who already have a suspended possession order will be the most vulnerable.

        I doubt interest rate rises will drive house prices down since the banks will ignore them. Currently HSBC and others are offering mortgages at 0.99% interest rate fixed for years. There's massive competition between them to lend. If banks don't lend money they don't make money.

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        • #5
          Re: UK interest rates remain at record low of 0.5%

          Originally posted by PlanB View Post
          The biggest knock-on effect of interest rate rises will be repossessions. So many borrowers are clinging onto their homes by their fingernails so another £20 per month could tip them over the edge and into arrears. Those who already have a suspended possession order will be the most vulnerable.

          Yes, it always sends a shiver down my spine when i hear of people who have a mortgage repayment not far off one persons earnings and think to myself what if one has an accident, or has a baby. Stretched out when interest rates are low is far from ideal but the sacrafice a lot of people have made to get on the housing ladder.


          Originally posted by PlanB View Post
          I doubt interest rate rises will drive house prices down since the banks will ignore them. Currently HSBC and others are offering mortgages at 0.99% interest rate fixed for years. There's massive competition between them to lend. If banks don't lend money they don't make money.

          The only reason i said this is because if house prices increase and interest rates rise - it will be even harder to get on the housing ladder.


          Makes you wonder if they will make a change in legislation and local authorities begin building houses again.
          When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

          Comment

          • #6
            Re: UK interest rates remain at record low of 0.5%

            Originally posted by SA Gold View Post
            Makes you wonder if they will make a change in legislation and local authorities begin building houses again.
            The easiest and cheapest way to solve the housing crisis is to bring back into action the 635,127 empty homes (based on council tax statistics so probably many more). These are just the ones in the private sector not the thousands of empty council properties due to mismanagement by Local Authorities.

            While regeneration of "deprived" areas is all well and good in theory, demolition and rebuild (which takes forever) seems to be the first option in stead of renovating the housing stock which already exists. This breaks down communities and destroys history. Don't get me started

            George Clarke puts it better than me http://www.emptyhomes.com/what-we-do...emands/2470-2/

            Comment

            • #7
              Re: UK interest rates remain at record low of 0.5%

              Interesting article PlanB and certainly makes you wonder.
              When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

              Comment

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