Well I remember when the 4 Yorkshireman sketch was cutting edge humour, when Ronnie Corbett's monologues were considered quickfire one liners.....kiloran wrote:I think this thread is heading into Four Yorkshiremen territorypje16 wrote:I'm sure someone will beat me BUT
my first mortgage was fixed for 2 years at 11% when the SVR was 13.75%
A few years before that I had a bank paying me 15% on my savings (which became my house deposit)
--kiloran
Bloody Hell! How old am I?
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- Lemon Quarter
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Re: Bloody Hell! How old am I?
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- The full Lemon
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Re: Bloody Hell! How old am I?
And on investment matters, it is remarkable how little effect all the gloom and doom from the B of E has had on the stockmarket, little or nothing so far anyway.
Dod
Dod
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Re: Bloody Hell! How old am I?
Why should it? Aren't we all ahead of the BoE here?Dod101 wrote:And on investment matters, it is remarkable how little effect all the gloom and doom from the B of E has had on the stockmarket, little or nothing so far anyway.
Dod
The peak of inflation expected by the BoE is on an upward trend. Does anyone expect 13% to be the top?
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Re: Bloody Hell! How old am I?
Not if all the miltant unions demand more than thatUncleEbenezer wrote: Why should it? Aren't we all ahead of the BoE here?
The peak of inflation expected by the BoE is on an upward trend. Does anyone expect 13% to be the top?
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Re: Bloody Hell! How old am I?
You were done. My first house was a six story Georgian mansion in Belgrave Square and the bank paid ME to buy itscrumpyjack wrote:[
It cost £20k but it was 4 storeys and in Notting Hill and in those days mortgage interest was tax deductible.
A great strain at the time but it really worked out very well in the end
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Re: Bloody Hell! How old am I?
House prices are driven by supply and demand. But that's supply and demand of money, not houses. Socialised, in that government supplies a very high proportion of the money.Lootman wrote:It would be luck. Interest rates are going up because inflation is going up, which means that wages and prices are going up, all of which puts upward pressure on home valuations.UncleEbenezer wrote:With a bit of luck, rising rates will finally help make houses more affordable for the next generation, despite government's best efforts to pump them ever upwards. Back to something closer to your experience.
Yes, I remember rapid rises in the 1980s: it's what told me that I wasn't just a couple of (new-graduate) payrises from being able to buy something. But interest rates were falling, so were below the expectations we'd grown up with. And - crucially - mortgage lending was being eased, which was a huge driver for price rises. And of course with there being no rentals market (unless you had a grapevine), buying was much more urgent than today, so all that mortgage easing drove prices skywards.Back in the 1980s when we had the mortgage rates that others are talking about (and mine was 16% for a while as well) home prices still went up nicely. As a real asset property is a decent inflation hedge.
Prices are set on the margins. Cash buyers are not the margins.Also one third of houses in the UK are bought for all-cash so mortgage rates won't affect those at all.
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Re: Bloody Hell! How old am I?
He has my sympathy
https://www.bbc.co.uk/news/business-62432568
he must feel like he's talking to children to explain the basics of economics
https://www.bbc.co.uk/news/business-62432568
he must feel like he's talking to children to explain the basics of economics
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- The full Lemon
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Re: Bloody Hell! How old am I?
I am not sure if you are serious. If the B of E is right (and that is a big if, given their record) we will be back to the late 1990s when I returned to live in this country. The markets did nothing for several years if I remember correctly. A falling GDP is hardly a recipe for an increasing valuation of the stockmarket. Real assets might increase in value but commercial property is usually valued on its yield. I cannot see that rising for a while.UncleEbenezer wrote:Why should it? Aren't we all ahead of the BoE here?Dod101 wrote:And on investment matters, it is remarkable how little effect all the gloom and doom from the B of E has had on the stockmarket, little or nothing so far anyway.
Dod
The peak of inflation expected by the BoE is on an upward trend. Does anyone expect 13% to be the top?
Dod
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Re: Bloody Hell! How old am I?
What's the alternative to the stockmarket - go into cash and earn a guaranteed minus 13% per annum? If this inflation persists for a few years your assets will be severely devalued.Dod101 wrote:And on investment matters, it is remarkable how little effect all the gloom and doom from the B of E has had on the stockmarket, little or nothing so far anyway.
Dod
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Re: Bloody Hell! How old am I?
Not much I guess, but I am puzzled about why the LSE seems not to be a bloodbath. Maybe of course because it has never been over valued anyway, unlike some markets.MrFoolish wrote:What's the alternative to the stockmarket - go into cash and earn a guaranteed minus 13% per annum? If this inflation persists for a few years your assets will be severely devalued.Dod101 wrote:And on investment matters, it is remarkable how little effect all the gloom and doom from the B of E has had on the stockmarket, little or nothing so far anyway.
Dod
Dod
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Re: Bloody Hell! How old am I?
Already priced in, I guess. Had rates gone up 0.75% it would have likely tanked, 0.25% it would have risen?Dod101 wrote:Not much I guess, but I am puzzled about why the LSE seems not to be a bloodbath. Maybe of course because it has never been over valued anyway, unlike some markets.MrFoolish wrote: What's the alternative to the stockmarket - go into cash and earn a guaranteed minus 13% per annum? If this inflation persists for a few years your assets will be severely devalued.
Dod
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Re: Bloody Hell! How old am I?
Ah happy days. I had just bought my first bachelor pad in 1979, having come to the bitter end of my first marriage, and I'd moved into my new pad with no money and very little furniture. And the first week I was there, the mortgage rate went up to 17% overnight.
I cried bitter tears of desperation, as anyone would have. But fortunately the gubmint sent out an order to all the lenders that they should cushion people like me by deferring the increase, so that owners could carry on paying the old monthly instalments, and that the shortfall would be added to the outstanding mortgage sum. That wouldn't have been a great solution in the long term, but fortunately the skyrocketing mortgage rates didn't last long, so honour was quickly satisfied and sanity soon returned.
But maybe we ought to ask the snowflake millennials what they'd have done, apart from crying a lot louder than me?
BJ
I cried bitter tears of desperation, as anyone would have. But fortunately the gubmint sent out an order to all the lenders that they should cushion people like me by deferring the increase, so that owners could carry on paying the old monthly instalments, and that the shortfall would be added to the outstanding mortgage sum. That wouldn't have been a great solution in the long term, but fortunately the skyrocketing mortgage rates didn't last long, so honour was quickly satisfied and sanity soon returned.
But maybe we ought to ask the snowflake millennials what they'd have done, apart from crying a lot louder than me?
BJ
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Re: Bloody Hell! How old am I?
I remember it well not that 15% was what you’d call cheap anyway! We had just decided on a stretch move upmarket when the rate soared. All the more galling as our new mortgage just exceeded the threshold for an extra 0.5% on top. Couldn’t understand why the best customers were charged the highest rates.bungeejumper wrote:Ah happy days. I had just bought my first bachelor pad in 1979, having come to the bitter end of my first marriage, and I'd moved into my new pad with no money and very little furniture. And the first week I was there, the mortgage rate went up to 17% overnight.
BJ
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Re: Bloody Hell! How old am I?
It seems Citibank are giving us the next forecast in the sequence.UncleEbenezer wrote:Why should it? Aren't we all ahead of the BoE here?Dod101 wrote:And on investment matters, it is remarkable how little effect all the gloom and doom from the B of E has had on the stockmarket, little or nothing so far anyway.
Dod
The peak of inflation expected by the BoE is on an upward trend. Does anyone expect 13% to be the top?
e.g. https://www.reuters.com/world/uk/uk-inf ... 022-08-22/
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- The full Lemon
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Re: Bloody Hell! How old am I?
That seems unduly speculative but, if you buy it, then there are some ways to navigate and profit from it.UncleEbenezer wrote:It seems Citibank are giving us the next forecast in the sequence.UncleEbenezer wrote: Why should it? Aren't we all ahead of the BoE here?
The peak of inflation expected by the BoE is on an upward trend. Does anyone expect 13% to be the top?
e.g. https://www.reuters.com/world/uk/uk-inf ... 022-08-22/
Shorting bonds and going long volatility are obvious ones.
Longer term, equities and property benefit from inflation, but could see short-term losses.
Maybe time for gold to finally become golden? Whilst cash becomes trash.
There are always ways to make money no matter what the situation. Personally I relish volatility and chaos as money-making opportunities.