As someone with a tracker mortgage I hope interest rates are still 0.5% for some time to come even thought my savings are suffering as a result. I am really worried what will happen to people like me if the interest rates suddently shot up. If house prices haven't yet started to recover or at lesst stop falling then we could be in real trouble with getting new remortgage agreements.
Having taken early retirement in September last year I have seen the rates on my cash savings plummet. True, I am paying less on my base rate tracker mortgage but that only has 2 more years to run and is considerably less than my savings.
Before retirement I opened a number of fixed rate and protected savings deals which partially protects me, until they mature, from the slump in interest rates. However, my father in law and many other pensioners have seen real reductions in their disposable income and it is these people I feel really sorry for. They don't have mortgages or other debts to enable them to benefit from reduced rates, just savings that they rely on to enhance their pension.
hopefully it will start to recover, up to 2% or more if possible. As a saver its so unfair, you work all your life and when you finally get to a point where you have some savings you are penalised by this governments reckless policies and knee jerk reactions. You cannot borrow your way out of debt you cant print money History teaches us this if they bothered to look.
I hope interest rates will rise but not to the excessive levels suffered under the Thatcher government - of which my family and I have very uncomfortable memories. It seems my generation paid dearly for our mortgages and are now suffering because our savings, which supplement our pension, are at almost zero interest.
I have had enough, low Interest rates for people who have tried to save are now left with no Interest. why bother to save, if we did not the borrowers with have nothing to borrow for their mortgages, what would happen then.
I have cancelled all my subsciptions. We have stopped going out to dinner. We have cut down any future plans. I will not give in to this robbery of savers. Normally you pay for things you need. Like borrowing money.
This Countries common sense has long gone.
We will now all pay for years for this mistake of lowering the Interest rate this low, and all this borrowing. It is not much of a brain teaser to see that. So have you fun with low rates while you can, because they wont last very long.
August my mortgage was £941 now its £141 but come June when I come out of my deal it will be going up to £650.
There should be one fixed rate for both borrowing and saving the bank of england should own all the banks one same rate for borrowers and one for lending so everyone knows where they stand.
People are loosing their homes, their homes are being auctioned off at half the market value, WHY the person living in that house could prob afford half the market value, but the government like to see people struggle and get chucked out of their house, what more are they good for.
Oh dear. Someone who wants the Bank of England to own all the banks. What about shareholders in banks? What about the need for competition?
Perhaps you should think about moving to Russia. You would like it there!
If the bank of england does not raise increase interest rates we will get hyperinflation.
the house prices NOT decreasing is NOT a good sign.
Asset prices have to bottom, and they are not dropping because 0.5% rates have allowed people to hold properties they cannot afford.
That has lead to limited supply in the market and hence an unrealistic pause in price drops.
I don't know about being able to or asked to resign, the man is incompetant and should have been sacked out of hand, I.E. NO PENSION AT ALL.
News, articles and guides on all things money related, from pensions and investments to savings and mortgages. Moneywise offers independent news and views, video and blogs as well as uniquely independent and interactive comparison services.
Moneywise distributes services supplied by Interactive Investor. Interactive Investor Trading Limited, trading as "Interactive Investor", is authorised and regulated by the Financial Conduct Authority. Copyright © 2016 Moneywise.