What would that mean for myself and my wife who are looking to buy a house in the next 5 years?
That's the only thing I can think. More borrowing to stimulate the economy.What exactly would that mean if I wanted to borrow more on my mortgage to do some home improvements?
I guess it just means that interest rates would be practically zero, right? They're already between 1%-2%?
I read that earlier. It really leaves everything up in the air.What would a negative interest rate mean for UK consumers?
Bank of England is considering pros and cons of drastic move as Covid-19 weighs on economywww.theguardian.com
I'm no expert but my understanding is that the lower the rate the better it is for borrowing and the worse it is for saving.So in layman's terms as I'm not really clued up with money, good or bad?
Some may remember I contemplated investing in stocks, sacked that idea off as a lot of it was going way over my head.
So in layman's terms as I'm not really clued up with money, good or bad?
Some may remember I contemplated investing in stocks, sacked that idea off as a lot of it was going way over my head.
Exactly this. It's bad for savers, and better for borrowers. May well be good for the stock market too, as some people with cash may well turn to equities for a better return. (Although I guess largely happened already).I'm no expert but my understanding is that the lower the rate the better it is for borrowing and the worse it is for saving.
So I guess it would be good for getting a mortgage.
I suppose a downside could be that banks get spooked and want to hoard rather than lend so they make the borrowing criteria more difficult?
I'm putting some cash in a managed portfolio within an ISA, and topping up in the new tax year.Exactly this. It's bad for savers, and better for borrowers. May well be good for the stock market too, as some people with cash may well turn to equities for a better return.
Mortgages will be cheap, but I'm sure most new ones will sufficiently above the base rate that you'll be paying. Some folk with old variable rate deals will be paying tiny amounts though!
I’m no expert, but a managed portfolio does about 10%, even more if you take on a bit more risk.Get your savings in premium bonds for the next year or two, nothing is going to beat their 1% return anytime soon. My ISA is paying 0.01% at the moment!
Interest rates that banks offer will probably remain very much the same, maybe a little lower. In and around 1%. Margins are already strained. Most have clauses in tracker rates that they don’t pass on negative interest rateWhat would that mean for myself and my wife who are looking to buy a house in the next 5 years?