Interest rate raised to 2.25%, the highest level since 2008


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Interest rate raised to 2.25%, the highest level since 2008


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851
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28 Comments

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  1. Well on our way to interest rates above 4% at the end of next year. Just at the time the Government is taking out a loan of £150bn+ to bail out households.

  2. My generation were shafted with ludicrously expensive housing (in part driven by low rates). Now we’re finally on the market we’re about to be shafted again.

    My mortgage fixed rate will end early next year.
    I’m looking at an extra £200 to £300 per month just for this… On top of the increase in energy and other living costs.

    I’m sure we’ll survive this – we have to… But what kind of life are we going to be living? Getting very anxious.

  3. BTL leeches: “Cool, my tenants will deal with it. They don’t want to be homeless after all. Anyway, honey which designer handbag you wanted again?”

  4. Smaller rise than expected!

    Bank believe we’re already in recession and GDP will fall in Q2 22/23.

    My mortgage is fixed until May next year ha ha ha cry.

  5. Fixed my mortgage for five years a few months back, which now feels good. Was toying with 2 years fixed, no idea how much more it’ll go up. Many predicting 4% by end of year.

  6. Hopefully house prices will fall to reflect this.

    The insanely low interest rates since 2008 have contributed by far the most to the price increases.

    The amounts people can actually afford per month is actually quite fixed, so something’s got to give.

  7. This was a lower rise than expected and needed, and seems completely reckless in the light of soaring inflation, a plummeting pound, the Fed pulling US rates up way ahead of us and inflationary tax changes expected tomorrow.

    Worryingly, Swati Dhingra, the dove installed by Rishi Sunak last month to replace hawkish Michael Saunders, actually voted for an only 0.25% rise! (The rest being split 5-3 between 0.5% and 0.75%). We’re going to have a hard time keeping a lid on inflation with lunacy like that.

  8. I genuinely feel bad for people whose fixed terms are ending later this year or in 2023+

    My fix my husband and I did less than a year ago is lower than the base now and it was *sheer dumb luck.*

    I am sure that there will be lots of “screw you I’ve got mine” from some people who fixed low rates a year ago but it feels so unfair on people already struggling who just about made it onto the ladder.

  9. Jesus… Truss wants to emulate Thatcher down to the last crippling policy, no?

    I’m looking forward to 13% interest rates, 4 million unemployed and record breaking personal and business bankruptcies as much as I did the first time round. Go Tories!

  10. I fixed for 10 years a couple of years ago when the rates where in the toilet. People said I was daft as they could go lower- but unless the rates went negative I thought the chance of them going higher was greater than them going lower, given the beating we’ve all had over the last decade.

    So glad I did, though of course I’m gambling that we will have sorted out our shit by the time those fixed deals expire!

  11. Damn… and I thought my 2.9% 5 year fix was a bit high for my mortgage – my bank is now offering almost 4% for the same product

  12. I remember David Cameron giving a Speech before the 2015 Election proclaiming that Governing Britain is a back-and-forth between Labour Destroying the Economy and The Conservatives Rebuilding It…. I’ve seen all sorts of things in my life but I’ve never seen a Cunt so Full of Shit.

  13. So glad I fixed my mortgage for 5 years last year, better start trying to save somewhere while the savings rates are higher….makes me nervous though 😞

  14. Why TF all those people overpaid and outbid eachother for those houses in pretty, but traditionally poor, areas with few job prospects I’ll never know. Everyone could see this was coming after covid, didn’t they?

    Our house rose by >20% in the post-covid boom, just because its been all over the metro papers as “out of the rat race”, “in the country”, “on the coast”. Can’t move for Patagonia shirts and VW vans now.

    And now they live in an area where 90% of the jobs are minimum wage tourism, supermarkets and carers

    Crazy

  15. Here are some quotes from the MPC over the last year.

    August 2021 –
    Inflation is above our 2% target. We expect it to rise further in the coming months, but then fall back to our target

    November 2021 –
    We expect inflation to rise to around 5% in the spring, but then fall back

    February 2022 –
    We expect inflation to rise to around 7% in the spring, but then fall back

    March 2022 –
    We expect inflation to rise to around 8% in spring 2022 and perhaps even higher later this year.

    May 2022 –
    We expect inflation to rise to around 10% this year, and the economy to slow

    June 2022 –
    CPI inflation is expected to be over 9% during the next few months and to rise to slightly above 11% in October.

    August 2022 –
    In June, prices had risen by 9.4% compared to a year ago. That is well above our 2% target. We think those price rises will push inflation even higher over the next few months, to around 13%.

    September 2022 –
    Given the Energy Price Guarantee, the peak in measured CPI inflation is now likely to be lower than projected in the August Report, at just under 11% in October. Nevertheless, energy bills will still go up and, combined with the indirect effects of higher energy costs, inflation is expected to remain above 10% over the following few months, before starting to fall back.

  16. It’s not nearly enough, central banks are playing with fire, talking about 11% inflation by the end of October being positive because it’s not the 13% they projected. Constant spin by thieves

  17. Ahh yes the third “once in a generation” recession is underway. This time I’m a recent undergrad so looks like no job for me 👍

  18. We’re heading back towards more ‘normal’ interest rates, so this is more of a correction than anything.

    The last decade or so of artificially low interest rates got people into a false sense of security that money would be that cheap forever.

    Granted, the increase in house prices that have skyrocketed in that time and incomes that have remained stagnant mean that it won’t be a return to pre crisis, as homes will be even more unaffordable at those ‘old’ rates and current house prices.

  19. I feel like this has set me back another 10 years. I’m single and 34 years old and I honestly feel I’ll never be able to afford my own house.