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Post by Best Mate on Dec 20, 2010 20:59:40 GMT
What do you mean Peter? If the rates rise - your mortgage will if on a variable rate.
Was not quite sure what you meant! Or did you mean take advantage of negotiating a low rate whilst you can?
I am waiting for the bathroom to be done (in Feb) and then will get revalued and mortgaged onto a fixed rate....
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Post by Yellow River on Dec 23, 2010 8:30:41 GMT
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Post by slappy on Dec 23, 2010 8:53:27 GMT
If VAT was 15% a year ago in 2009 and is now 17.5% doesn't that sort of explain some of the price inflation? (together with duty increases on fuel and booze and fags)?
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Post by Yellow River on Dec 23, 2010 9:05:24 GMT
If VAT was 15% a year ago in 2009 and is now 17.5% doesn't that sort of explain some of the price inflation? (together with duty increases on fuel and booze and fags)? VAT just about to go up to 20% in January, so even higher inflation coming our way perhaps? Add to that rising prices in grain, cotton and oil, a lot of which is imported and we have no direct control over the price.
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Post by Behind The Goal on Dec 25, 2010 13:00:59 GMT
Just going to get a fixed rate at 2.75%, and £250 cash back with Nat West My tracker at 0.74% is just ending
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Post by peterdevo on Dec 26, 2010 18:21:46 GMT
My tracker is at 0.9% above the base rate so hopefully as long as I can get some of the bloody capital paid down..
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Post by Yellow River on Dec 27, 2010 8:35:14 GMT
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Post by peterdevo on Dec 27, 2010 9:29:37 GMT
I think it has already become a problem. I am beginning to wonder if the recession has already ended with a mad stampede to the sales, FTSE booming and moves to increase interest rates
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Post by Gavin Archery on Dec 27, 2010 10:15:36 GMT
Tough times ahead then......
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Post by peterdevo on Dec 27, 2010 14:37:00 GMT
For the economy yes but not for OUFC
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Post by Yellow River on Dec 27, 2010 15:46:01 GMT
Ouch! Pay freeze or cut for many in 2011, says BCC Fewer than half of firms plan pay rises in 2011, says the BCC UK economic growth revised down UK borrowing rises to record high CBI revises growth forecast down More than half of UK companies plan to freeze or cut their employees' pay in 2011, according to a survey by the British Chambers of Commerce (BCC). www.bbc.co.uk/news/business-12082884
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Post by peterdevo on Dec 27, 2010 16:44:35 GMT
My pay has been the same for the last twelve months and of course we have the double whammy of inflation and increasing taxes to cope with over the next couple of years
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Post by Yellow River on Jan 1, 2011 9:15:27 GMT
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Post by peterdevo on Jan 1, 2011 18:51:19 GMT
Of course the Conservatives were all going on about the difficulties faced by people in rural areas before the election...so how do they equate this with raising fuel duties in the same way that Labour did over the last ten years or so?
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Post by slappy on Jan 1, 2011 20:01:21 GMT
What I dont understand is when economists say that low interest rates fuel spending and cause inflation. The base rate might be low but loan and new mortgage rates aren't. I stand by my theory that current inflation is due to rising raw material costs and tax and duties. The view that rising prices will eventually force people not to buy needs more than just a rise in base rates.
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Post by Yellow River on Jan 2, 2011 10:35:42 GMT
What I dont understand is when economists say that low interest rates fuel spending and cause inflation. The base rate might be low but loan and new mortgage rates aren't. I stand by my theory that current inflation is due to rising raw material costs and tax and duties. The view that rising prices will eventually force people not to buy needs more than just a rise in base rates. We are also now seeing the effect of The Bank of England's decision to try and stimulate the economy by printing billions of pounds of money (Quantitative easing) this has also greatly contributed to inflation.
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Post by Yellow River on Jan 4, 2011 6:05:27 GMT
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Post by Yellow River on Jan 5, 2011 18:05:12 GMT
Quite . . . I was thinking of switching and fixing from my current deal as I'm paying over the odds on interest (about 5.75%) on my current fixed deal which has two years to run. I could switch products (with no fee) and fix for three years at 4.1%, which seems like a no-brainer really! Who knows where rates will be by 2013, but the evidence in that piecer suggests everyone expects them to be about where they are now (perhaps 0.25%- 0.5% higher). The money I save will go towards the increased cost of living in terms of fuel/energy/shopping/childcare Panicked homeowners are rushing to remortgage because they fear interest rates are about to rocket, experts said yesterday. Figures from the Bank of England revealed a 42 per cent jump in the number of people remortgaging, compared to the same month in 2009 www.dailymail.co.uk/news/article-1344072/Remortgage-number-switching-loans-rival-jumps-42.html
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Post by peterdevo on Jan 5, 2011 18:37:48 GMT
I wouldn't trust experts who are publishing articles in the Daily Mail. It is a fact though that low interest rates will fuel spending because there is more disposable income after the mortgage has been paid. Once interest rates rise to stem demand then price rises will be restricted. The resulting unemployment will also cause a fall in demand through the economy resulting in less inflation. Tax rises will of course have the effect of reducing demand through reducing disposable income
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Post by Yellow River on Jan 9, 2011 12:23:34 GMT
Inflation set for new high as pay slumps. Inflation is now running at three times the rate of public and private sector pay increases exposing an increasing real-terms pay slump which is threatening to derail the recovery. The situation for pay looks set to worsen, as the BoE's central projection is for inflation to peak at 3.6pc as the VAT increase filters into prices. New data has revealed that employees are suffering painful real-term pay cuts as salary increases fail to keep up with the rate at which prices are rising, according to the take home pay indices to be published by the payments processor VocaLink. Both public and private wage growth nose-dived in the three months to December to an annual rate of 1.1pc, figures to be published this week show. Meanwhile the official rate of inflation, the consumer price index (CPI), hit 3.3pc in November – three times that rate of increase – and is expected to have remained on an upward path since then. Rising prices are affecting companies' profitability, putting pressure on them to cut costs and avoid wage increases, said Marion King, chief executive VocaLink. "It's double bad news for consumers because not only is there a real drop in take-home pay, inflation is going up at the same time," she said. "I don't think it bodes well for the economy." Prices are being pushed up by the growing cost of commodities, such as oil and food, as global demand recovers, as well as the feed-through effect of this month's VAT increase. www.telegraph.co.uk/finance/jobs/8247910/Inflation-set-for-new-high-as-pay-slumps.html#disqus_thread
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