Interest rates are going up again
 

We have another rise on "interest rates" and for home buyers and many paying their mortgage it is a nightmare:mad:

It does have a knock-on effect and when many of us are on a tight budget anyway, and don't have too much spare cash, suddenly, interest rates go up and many cut down on spending on non-essential items.

This can lead to more businesses going out of business.

I know we have been there before and interest rates have fallen and it has helped a lot. But this time, it is going to be worse, as bills today are much higher in general.

1) Does this rise or the thought of future rises in interest rates affect you?

2) Or is it a great thing, as you have many thousands in the bank and a house fully paid for and the rise in interest rates can only make you richer over time?

3) It is good for the rich, or is there more to it?









nodisharmony :angel:

It's very worrying for me, and probably the majority of my generation - I'm 17 and after college&Uni, I'll be at the stage where I'll be looking to buy a house: something, with no savings whatsoever, will be virtually impossible!

It is a hard situation and this is what I am hearing from a lot of people I know.

Remember how much petrol & deisel costs today, then every other increase on bills in general.

For first time buyers, it is going to be a disaster and I think this will continue, as Gordon Brown will have a plan:bored:







nodisharmony :angel:

As you say Nodis, everything increases when the Interest Rates go up.

For those that remember that late 80's and the terrible time and the start of repossesion of homes. Nowadays it happens all the time, back then it was a huge thing.

We looked in the local property paper today and saw how much the house down the road is on the market for and nearly fell through the pavement. Our house is not dissimilar, mabe slightly bigger, with it's own driveway so maybe it would get a little more if the right person came along (and if we were selling!) But what we found out was our house is now worth over 4 times more than we paid for it and had we been trying to buy it now we actually would not be able to afford it?:puzzled:

I dread to think what it is like for those attempting to buy their first home. How on earth do you manage it?

im gonna move abroad after uni, probably spain, malaysia or brazil. I think the UK is going on a fast paste, things are moving too fast including money.

My parents took out their first mortgage in 1977 it was 11/12% and they recall having a very difficult job convincing their lender they could afford it. When we took ours out 5 years ago we were offered a minumum of 5 times our combined salary even though I was pregnant so obviously might not have carried on working.

We have been lucky in a very sad way because my husband's unmarried Aunt died last year and he was left enough money to pay off our mortgage. It must be very difficult to get a foot on the property ladder, it was for us, and I feel sorry for those starting out now but ask your parents about the 70's.

I refuse to think about this, ever. :bouncy: Blissful ignorance.