UK Interest Rates
Aug 7th 2013, 6:49 pm
#1
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Thread Starter
Joined: Mar 2011
Posts: 1,518
UK Interest Rates
Bank of England hints at (with conditions) low interest rates for the next 3 years. Not much good for savers. Good news for business and mortgagees. It may even help re-kindle interest in overseas markets and inward investment.
Aug 7th 2013, 7:01 pm
#2
Lost in BE Cyberspace
Joined: Feb 2007
Location: Land of no recession
Posts: 10,717
Re: UK Interest Rates
At least you know where you stand and it is easier to plan ahead, although there are caveats.
Aug 8th 2013, 9:46 am
#3
Account Closed
Joined: May 2013
Posts: 1,176
Re: UK Interest Rates
I have heard many different time spans on low rates. My worry will be if there is any control shown once they start increasing
Too many greed merchants will be wanting to recoup their perceived losses!
Aug 8th 2013, 10:29 am
#4
Banned
Joined: Oct 2012
Posts: 26,724
Re: UK Interest Rates
One of the downsides is for those looking to take a pension.
Will interest rates staying low annuity rates will also be low.
Your savings also receive virtually no interest.
Some you win, some you lose.
It would be nice to win sometimes.
Will interest rates staying low annuity rates will also be low.
Your savings also receive virtually no interest.
Some you win, some you lose.
It would be nice to win sometimes.
Aug 8th 2013, 10:40 am
#5
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Joined: Aug 2008
Location: Madrid
Posts: 6,400
Re: UK Interest Rates
At least the pound is holding steady at about 1.16. Worrying me a little - I have to transfer some money next month. Unlikely to change much over that time?
Aug 8th 2013, 10:51 am
#6
Banned
Joined: Dec 2006
Location: Living in a good place
Posts: 8,824
Re: UK Interest Rates
I am one affected by low interest rates, in the Autumn I have a 5 year bond finishing which has been paying 7%
however it could possibly work ok in the long term as people look to other ways of investment on the stock market or in private equity thus assisting the economy. The downside it could just encourage more people to buy to rent. Some lenders are offering rates like 1.64% fixed, no brainer really.
however it could possibly work ok in the long term as people look to other ways of investment on the stock market or in private equity thus assisting the economy. The downside it could just encourage more people to buy to rent. Some lenders are offering rates like 1.64% fixed, no brainer really.
Aug 8th 2013, 10:59 am
#7
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: UK Interest Rates
Thats what's happened over the past 5 years in the UK and why the property market has recovered from the 2008 crash
Anybody with cash has to look to property or shares to get any returns.
Interest rates will be kept low for the next 20 years, nevermind the next 2-3 years, otherwise the property and share bubble will explode again as people cash in their assets i.e. deleverage
I have cash waiting for a decent property to buy here in Asturias. Although prices have come down from peak, there is still very little value in the market. People are playing a waiting game, it seems that nobody actually needs to sell.
The same places are for sale now as from a year or so ago. I have called up a couple of owners who have their flat for sale, and they say they are not prepared to negotiate on the price
Frustrating. I will try again next year when they are still up for sale 
Anybody with cash has to look to property or shares to get any returns.
Interest rates will be kept low for the next 20 years, nevermind the next 2-3 years, otherwise the property and share bubble will explode again as people cash in their assets i.e. deleverage
I have cash waiting for a decent property to buy here in Asturias. Although prices have come down from peak, there is still very little value in the market. People are playing a waiting game, it seems that nobody actually needs to sell.
The same places are for sale now as from a year or so ago. I have called up a couple of owners who have their flat for sale, and they say they are not prepared to negotiate on the price
Frustrating. I will try again next year when they are still up for sale
