What will a Intrest Rate rise in the uk do for us here

[juice777]

So it looks like the bank of England is finally going to rise Intrest rates soon. Just the mention of this has made the Pound go up about 1.3 THB. So do any of you Financial Wizards got any speculation if and how much it will go up if there is and actually rate rise. I have 2 mortgages to pay and I trying to guess how much THB I will loose. I can work out my mortgages with a simple mortgage calculator. But I won't know the exchange rate. I always said that if Intrest rates go up 2 much I will probably have to go home. This is OK its not a major problem.But that's probably still a long way of. I Am hoping that if there will be a rise in the pound again if there is a rate rise and I won't be to much out of pocket.

 

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[scubascuba3]

Probably will go up 0.25% once or twice in the next two years so nothing to get excited about although may add 1-2 baht to the exchange rate. I think they are trying to talk £ up at the moment which is better than the usual talking it down. Downside is as £ goes up often FTSE goes down the equivalent

 

 

[juice777]

Probably will go up 0.25% once or twice in the next two years so nothing to get excited about although may add 1-2 baht to the exchange rate. I think they are trying to talk £ up at the moment which is better than the usual talking it down. Downside is as £ goes up often FTSE goes down the equivalent

 

 

Sorry if I don't really understand all this but as a Landlord living here. Will the rise or fall of the FTSE effect me?

 

Thats all just to do the stock market isn't?

 

Actually I forgot I got a rent increase a few months ago. So I will probably be back to where I started. So not all bad I suppose. But I imagine the pound will go into free fall when we finally leave The EU. So I suppect I will be going home then. I will just rent a cheap room and work for a year then come back for a year and so on.

 

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[scubascuba3]

Sorry if I don't really understand all this but as a Landlord living here. Will the rise or fall of the FTSE effect me? 
Thats all just to do the stock market isn't?
 
Actually I forgot I got a rent increase a few months ago. So I will probably be back to where I started. So not all bad I suppose. But I imagine the pound will go into free fall when we finally leave The EU. So I suppect I will be going home then. I will just rent a cheap room and work for a year then come back for a year and so on.
 
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If you have a personal pension in the UK the FTSE going down will probably effect you, it's been going up for sometime now so not much to worry about.

If you have mortgages in the UK yes any base rate increases will effect you if you have a tracker mortgage or once your fixed rate deal ends. Banks and building societies are quick at putting mortgage rates up and slow at putting saving rates up.

See how much 0.25-1.00% interest rate increase effects your mortgage.

[AlexRich]

It's difficult to give a precise answer to your question as currency direction is incredibly difficult to predict. If inflation continues to rise in the UK the Bank of England are likely to increase the rate in 0.25% increments. The Brexit negotiations and the possible impact on business and consumer confidence may well ensure that they take a cautious approach to any rate hikes. This should strengthen the GBP rate, and as the uncertainty surrounding Brexit becomes clearer it is likely to strengthen further. So ironically, I would not expect GBP to plunge after we leave the EU ... I would expect it to mean-revert to historical levels. 

[Oxx]

8 hours ago, scubascuba3 said:

Downside is as £ goes up often FTSE goes down the equivalent

 

This would only be true if (a) all the income for companies in the FTSE 100 (which is what I presume is meant here) originated overseas, and (b) there was no hedging of FX risk.

 

The impact on conventional bond values will be more dramatic.  The amount of the fall depends upon the time to maturity of the bond (technically, the duration).  Bonds with a short time to maturity will typically be less affected than those with a long time to maturity.

[scubascuba3]

 
This would only be true if (a) all the income for companies in the FTSE 100 (which is what I presume is meant here) originated overseas, and ( there was no hedging of FX risk.
 

It's something that has been really noticeable since brexit, commentators talk about it daily

[hocuspocus]

I fixed my two UK property loans early this year for 5 years (yes at a higher rate) so interest rate rises will not bother me for 5 years. But if loans go up so will the interest on my ISA's go up so happy days. Then also i get the benefit of more Bahts to the Pound. 

[Dene16]

1 hour ago, hocuspocus said:

But if loans go up so will the interest on my ISA's go up so happy days.

Wow! if you have money invested in a UK ISA it was, is and will continue to lose money 

The best ISA's are paying half of the inflation rate so all you will be doing is lose less money

I have been investing in peer to peer lending and stocks and shares  for many years now to very good effect 

I realise people are worried about losing their money but that is exactly what you are doing now in ISA's

UK banks can not afford to increase interest rates without a knock on effect

Inflation is high due to the drop in pound and thus higher cost of imports (to simplify things) 

I have always believed that it is a false economy because it creates the belief to the rest of the world in it is causing more stability by stopping people borrowing and thus increases the strength of the pound

In a period where we are desperately trying to lower the countries debt an increase will not help

In some circumstances it will help but this is not one of them. You could speak to 10 economists  and get a 50/50 split

There is no proof at the moment that inflation,hopefully, is spiralling out of control. 

I must stop blabbering sorry 

 

 

 

[Oxx]

6 minutes ago, Dene16 said:

Wow! if you have money invested in a UK ISA it was, is and will continue to lose money 

 

Wow! It's only been since 1999 that individuals have been able to invest in stocks and shares in an ISA.  And before that there were PEPs, which also allowed investing in equities.  Perhaps you've been in a coma for a couple of decades?

[Eff1n2ret]

2 minutes ago, Oxx said:

 

Wow! It's only been since 1999 that individuals have been able to invest in stocks and shares in an ISA.  And before that there were PEPs, which also allowed investing in equities.  Perhaps you've been in a coma for a couple of decades?

There were also "Tessas" first introduced by Joh Major in his brief period as Chancellor during the late 1980s. But as well as shares ISAs, you could also buy a cash ISA. I had one which I closed a month ago, as it was paying a derisory .05% (1/50th%!) along with other similar investments where the interest rate was virtually nil. As a non-UK resident it's now virtually impossible to open new accounts, so I've taken the money to the Channel Islands. But I still have one shares ISA, which I'll hang on to, as the capital growth is more significant than any income.

[Dene16]

2 minutes ago, Oxx said:

Wow! It's only been since 1999 that individuals have been able to invest in stocks and shares in an ISA. 

 That's true i was only referring to cash ISA's as the OP is a very apprehensive investor (hence his decision to get a fixed interest mortgage at larger cost). My presumption was that these are what he has

Thank you for your reply it brought a smile to my face

 

[Jonmarleesco]

Well, for many, paid in GBP, it will be much heralded.

 

And I don't attempt to guess the direction of interest rates, or of any other financial data. Remember there are only two kinds of forecaster: those who don't know, and those who don't know they don't know. 

[Jonmarleesco]

20 hours ago, juice777 said:

But I imagine the pound will go into free fall when we finally leave The EU.

Why would you imagine that? Markets factor in these things in advance, not on the day - and not always accurately.

[connda]

You'd be better off worrying about the Yellowstone Super Volcano erupting or an asteroid hitting the City of London.  Rate hikes?  

[baansgr]

The weakness of Sterling is simply down to Carney and his cronies deliberatly dumbing it down. Post Brext Sterling recovered to almost 47 Baht then retracted once BOE reduced the interest rate. Over the past 9 months Sterling always rises just befor BOE meetings then declines after due to Carneys  comments. Its plain to see over the past week what effect a raise in rates has on XE. Its long overdue, rates need to rise and so should Sterling too. Leaving the EU is anyones guess on what will hapoen. Personally I feel they shoukd rise to 5% seeing the damage low rates for so long has done to the younger generation and the decades to come what problems they will incur. OP is living here on the backs of other peoples hard work soley down to easy credit one property isnt enough, he has two. Its criminal what is happening, young familes never owning their home because of greedy BTLs that should be ashamed of themselves.

[juice777]

The weakness of Sterling is simply down to Carney and his cronies deliberatly dumbing it down. Post Brext Sterling recovered to almost 47 Baht then retracted once BOE reduced the interest rate. Over the past 9 months Sterling always rises just befor BOE meetings then declines after due to Carneys  comments. Its plain to see over the past week what effect a raise in rates has on XE. Its long overdue, rates need to rise and so should Sterling too. Leaving the EU is anyones guess on what will hapoen. Personally I feel they shoukd rise to 5% seeing the damage low rates for so long has done to the younger generation and the decades to come what problems they will incur. OP is living here on the backs of other peoples hard work soley down to easy credit one property isnt enough, he has two. Its criminal what is happening, young familes never owning their home because of greedy BTLs that should be ashamed of themselves.

When it comes to me you have Zero Ideal what you are talking about. I find that totally insulting. I am far from a greedy BTL landlord. If you must know I lived in 1 for nearly 10 years. And the other one was from a inheritance which I had no idea what to do with the money and felt like I had a duty to invest it wisely and that was the simplest thing to do. After I came of my fix morgrtage rate on one of them I did the sums and realised I could live here for a few years . While the rates are low. If you read my first post I said I am totally OK going home. I just see this as a way to stop working for a few years. I would be mad not to I totally hate my job. I fill sorry for any young person who can't afford to buy a house I THINK IT'S disgusting the prices they have to pay. And I think it's bad policy for any government to sell of council houses but I don't blame anyone for actually buying them. If the housing market was fixed tomorrow and I lost everything in the process. I would say fair enough at least people who work hard can afford to buy a house. I think you should not paint everyone with the same brush before you have cheap shots at people behind your keyboard. I've been very good to my Tennants and didn't put my rent up on any of them.When I could of. I even lost 1000s on one of them when she lost her sick benefits and I kept on giving her more time.

 

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[Ulic]

Carney's likes to talk up an interest rate hike and then hold pat.

Not saying there will not be a hike but it will take longer that

expected and then be less than expected.

[topt]

On ‎15‎/‎09‎/‎2017 at 11:51 PM, juice777 said:

Actually I forgot I got a rent increase a few months ago.

 

 

So how did you get it?

On ‎17‎/‎09‎/‎2017 at 8:02 AM, juice777 said:

I've been very good to my Tennants and didn't put my rent up on any of them.When I could of.

 

 

On ‎17‎/‎09‎/‎2017 at 7:02 AM, baansgr said:

The weakness of Sterling is simply down to Carney and his cronies deliberatly dumbing it down. Post Brext Sterling recovered to almost 47 Baht then retracted once BOE reduced the interest rate. Over the past 9 months Sterling always rises just befor BOE meetings then declines after due to Carneys  comments. Its plain to see over the past week what effect a raise in rates has on XE. Its long overdue, rates need to rise and so should Sterling too. Leaving the EU is anyones guess on what will hapoen. Personally I feel they shoukd rise to 5% seeing the damage low rates for so long has done to the younger generation and the decades to come what problems they will incur. OP is living here on the backs of other peoples hard work soley down to easy credit one property isnt enough, he has two. Its criminal what is happening, young familes never owning their home because of greedy BTLs that should be ashamed of themselves.

Just think what would happen to all those hard working people with mortgages if the base rate suddenly went from 0.25% to 5%.............or is it they have easy credit and should suffer.......

Your rant has so many holes I should really have left it to sink without trace