UK Interest Rate Rise

EarthRod

So the BoE has put up the interest rate by 0.25% to 0.5%, the first time since er... July 2007.

I suppose inflation is to blame plus uncertainty over the ongoing Brexit negotiations.

tapzilla2k

It's the BoE testing the waters I think, putting up interest rates too quickly would probably send a lot of people over the edge due to being in debt through credit (some are having to use credit to pay for bills). Which in turn could crash the consumer side of the Economy. So a small rate rise to test the waters then press ahead if it looks ok. Only so far the BoE can push interests rates up, without damaging the Economy.

EarthRod

Back in the 1970s and 1980 inflation was very high, I think the interest rate peaked at about 17% or so, remember mortgage rate being about 15%

raduv1

They can do as they bloody well please now , I now do not care as my mortgage ends in 5 months.  So bring on the interest rate hikes as it's our savings that matter to us now . Yup selfish I know but it's great to actually come out on top on buying a house at the right time , getting good fixed rate deals and then not having to bother cus of low interest rates .

kbfern

Bit of a none event, he only put it up because they have been signalling a rise for a month or two and would have looked a tit had they not put them up now.

Inflation will be on the way down to just over 2% within 12 months so they won't need to put it up again baring any disasters. Like Raduv my mortgage has only 1 more year to run so will only cost me a £1 per month if it goes up by a quarter point.

IronGiant

Thought the same thing a while back, ours ended in April   We were stuffed with misperforming Endowments and ISAs but a sudden surge in the Stock Market just before we needed the money meant we were able to pay it off. Thanks Brexit vote

raduv1

Shouldn't really , ah hell why not .
                                                                       

beckford

Wish mine ended in April. Unfortunatly, I have 19 years, 3 months left Good news is, i've just fixed for 10 years on a cheeper rate then before

IronGiant

Given we were worrying at one point whether we would keep the house, that image is appropriate

raduv1

We had that problem with our endowment, tried to claim back direct with the mortgage supplier but they didn't want to know and said we had no claim . Think it was only 3 months later they had to review it cus the FSA got on their arse and we got a nice lump sum that we re invested to pay off any shortfall.  

Was a worry at the time but we now will have a lil extra left over for a nice holiday