Interest Rate Up

[jurek]

I'm one of the lucky ones in the sense that
I paid off my mortgage about 15 years ago

The only affect it has had on me was that my saving rates tumbled
over the last 5 years or so to such a low percentage that it was pitiful..
Just not worth saving

Having said that I do remember back in the 80's (or was it the 90's)
going to work one morning and coming back home in the afternoon
to find my mortgage had gone up from 9.5% to 14.5%!

Food for thought there but do recall that at the time we couldn't afford
the rise and if it wasn't for a stroke of good fortune in the following month
(me getting a rise at work and the wife getting a part-time job)
we would have been up sxxx creek without the proverbial paddle.

[ElectroClaret]

Chancellor Jeremy Hunt said to be locked in talks tonight to see how the effect of this bank collapse on UK tech can be limited.

Bloomberg reporting that the "shock waves" from this are spreading around the world.

[PaintYorkClaretnBlue]

Being on a lifetime tracker I've had a good run for the last 15 years.

I’m on a lifetime tracker which tracks at 0.17% above the base rate, it’s been a fantastic last 15 years! Got savings in a tracker which tracks 0.85% above the base rate so my mortgage is fully offset with a bit of a profit each month.

[Big Vinny K]

In reality the Bank of England is semi-autonomous after legislation around 87, which gave them some freedom from Gov't intervention based upon Gordon Brown's light touch approach.

Labour had a 'third way' approach based upon the work of the likes of Anthony Giddens whereby capital created the wealth and Gov't spent it on good works and social equity.

What actually happened was Labour created economic growth based upon consumer credit and the debt of the working classes, which then crashed
the economy because the debt just became too much.

In the states Bill Clinton adopted a similar approach and what we ended up with was a cataclysm of bad debt, which the the banks started to trade largely because the baara boys sim[ply didn't understand the complexity of the trades.

The middle class narcissist's that comprise the Left always deny this but it is undeniably true that Labour and the democrats crashed the world economy based upon the debt of the working classes and light touch regulation of the banking sector.

And yes, I blame ALK because let's be honest why not....!

And I predict that this will get this thread deleted..."

Aye….that’s reight is that. I remember it well how those factory lads from Halifax managed to get on the board of those American banks and persuaded them to listen to their derivatives proposals that they had come up with in the Friday afternoon session in the Dog & Duck.
And that’s fact I tell thee Pete….fact

[Quickenthetempo]

The 90s brought everyone's living standards up massively and was well needed for this country.

[Cooclaret]

The 90s brought everyone's living standards up massively and was well needed for this country.

And the next few years will bring them right back down again, roll on the roaring 30’s.

[Longsider]

Suggest a stocks and shares ISA investment fund if you can set aside for five years or more.

Is this likely to return more than 4.6 % pa? The markets seem really volatile.

[fatboy47]

Aye….that’s reight is that. I remember it well how those factory lads from Halifax managed to get on the board of those American banks and persuaded them to listen to their derivatives proposals that they had come up with in the Friday afternoon session in the Dog & Duck.
And that’s fact I tell thee Pete….fact

For sure Vinny....mind you I'd sooner seek investment advice from the Dog and Duck tap room than from the assembled wisdom on this thread

[taio]

Is this likely to return more than 4.6 % pa? The markets seem really volatile.

Yes very likely but would suggest committing to at least five years. Then reasonable to expect 8% average annual growth, but obviously ups and downs. Some great products through Vanguard, AJ Bell and Fidelity for example that are perfect for beginners.

[Longsider]

Yes very likely but would suggest committing to at least five years. Then reasonable to expect 8% average annual growth, but obviously ups and downs. Some great products through Vanguard, AJ Bell and Fidelity for example that are perfect for beginners.

Thanks.

[Hipper]

I think invading Belgium would help. They are hardly going to put up a fight.

It may not help the economy, but nicking all that chocolate and beer would keep the spirits up of the female and male population of this country.

But they can keep the mayonnaise on chips. F***ing weirdos.

If Burnley invade Belgium surely we'd be looking for some more decent footballers?

This is where we need Redbeard and his shipload of cutthroats.

[expoultryboy]

I also use Barclays isa's Ian . With the 3 withdrawals , you can only take 10% of your balance . They had a two year flexible isa at 4.6% until about 3 weeks ago , but it's not showing on the app anymore. Waiting for April to open/transfer another one so waiting to see what the rates are .

[IanMcL]

Yes the offers come and go rapidly. I was looking at Atom and there it was...gone!

Open one now, for sure, for your allowance this financial year, then another fro. 6 April onwards either with new money or a transfer, if better rates than your old one. Another £20k if you have another pocket!

[GodIsADeeJay81]

HSBC have paid £1 to buy the British section of the Silicone Valley bank

[GodIsADeeJay81]

https://twitter.com/spectatorindex/stat ... BS8SA&s=19

Credit Suisse looks like its in trouble

[Paul Waine]

Having said that I do remember back in the 80's (or was it the 90's)
going to work one morning and coming back home in the afternoon
to find my mortgage had gone up from 9.5% to 14.5%!

Black Wednesday, September (or October) 1992. We'd moved to Den Haag a few months earlier. We were renting house out back in UK. The higher mortgage rate pushed our net rental income into negative territory. Luckily it got sorted.

[KateR]

Been good for Crypto though today, the weekend was a worry for sure but it was a good time to buy last week, in fact the last 6 months has seen some good opportunities to buy, banks, you just can't trust them

[Nori1958]

I'm one of the lucky ones in the sense that
I paid off my mortgage about 15 years ago

The only affect it has had on me was that my saving rates tumbled
over the last 5 years or so to such a low percentage that it was pitiful..
Just not worth saving

Having said that I do remember back in the 80's (or was it the 90's)
going to work one morning and coming back home in the afternoon
to find my mortgage had gone up from 9.5% to 14.5%!

Food for thought there but do recall that at the time we couldn't afford
the rise and if it wasn't for a stroke of good fortune in the following month
(me getting a rise at work and the wife getting a part-time job)
we would have been up sxxx creek without the proverbial paddle.

It was the 80s....worrying times, but we got through it, just like people will now if they budget correctly

[Big Vinny K]

It was the 90s…..and lots of people did not get through it.
You can budget all you want but unexpected and steep rises in short space of time like happened back then and have happened in the last 18 months can be a nightmare for individuals and families who have been prudent all their life.

[KateR]

HSBC have paid £1 to buy the British section of the Silicone Valley bank

Interesting that Hunt & the Gov't are taking credit here, it was an auction and for example The Bank of London, among others offered more than HSBC, yet the Gov let HSBC have it.

The problem with the bank collapse, a few by the way, is all down to inflation and the fact that SVB had maximised the use of long term Treasury Bonds. With the inflation rises you could get more through other means and have access to your funds, lot's of people decided they wanted SVB to sell there TB's, this started the run.

Circle, a Crypto company that owns/sells USDC Crypto, which is a 1:1 stable coin had their funds in SVB and once they couldn't access the funds in order to sell USDC, it de-pegged from the USD and only became worth a fraction of $1. Hence panic by many selling to cut losses, yet the whales were buying in the 10's of millions, firmly believing the Gov would step in and cover the bank, which did happen. The fall of USDC caused Bitcoin & the rest of the crypto market to fall, I am many others were buying what we could, while there were definitely others selling.

Yesterday Bitcoin and most of the market were back to before the start of this issue, today Bitcoin went into new territory for the first time in months, but the market is still way down from the highs of Nov 2021, and we're still in a bear market.

[GodIsADeeJay81]

Interesting that Hunt & the Gov't are taking credit here, it was an auction and for example The Bank of London, among others offered more than HSBC, yet the Gov let HSBC have it.

The problem with the bank collapse, a few by the way, is all down to inflation and the fact that SVB had maximised the use of long term Treasury Bonds. With the inflation rises you could get more through other means and have access to your funds, lot's of people decided they wanted SVB to sell there TB's, this started the run.

Circle, an Crypto company that owns/sells USDC Crypto, which is a 1:1 stable coin had their funds in SVB and once they couldn't access the funds in order to sell USDC, it de-pegged from the USD and only became worth a fraction of $1. Hence panic by many selling to cut losses, yet the whales were buying in the 10's of millions, firmly believing the Gov would step in and cover the bank, which did happen. The fall of USDC caused Bitcoin & the rest of the crypto market to fail, I am many others were buying what we could, while there were definitely others selling.

Yesterday Bitcoin and most of the market were back to before the start of this issue, today Bitcoin went into new territory for the first time in months, but the market is still way down from the highs of Nov 2021, and we're still in a bear market.

From what I've read, HSBC weren't even in the initial bidding process and snuck in at the last min when other potential buyers pulled out of the deal.
Teams from the treasury worked some long hours to try and get a deal done and prevent public money being needed to prop the bank up.

[KateR]

From what I've read, HSBC weren't even in the initial bidding process and snuck in at the last min when other potential buyers pulled out of the deal.
Teams from the treasury worked some long hours to try and get a deal done and prevent public money being needed to prop the bank up.

Doesn't alter the fact that The Bank of London have publicly called foul by the Gov, as their offer was higher and another large/major bank got the deal of a lifetime. Let's see what HSBC do with the staff for example with SVB (UK) and how they support the start up's, which the Bank was set up for!

[fatboy47]

Doesn't alter the fact that The Bank of London have publicly called foul by the Gov, as their offer was higher and another large/major bank got the deal of a lifetime. Let's see what HSBC do with the staff for example with SVB (UK) and how they support the start up's, which the Bank was set up for!

The fall...not massive.. in HSBC share price yesterday doesn't really support the "deal of a lifetime" theory.

.. Regardless of the general fall in the ftse.

[KateR]

The fall...not massive.. in HSBC share price yesterday doesn't really support the "deal of a lifetime" theory.

.. Regardless of the general fall in the ftse.

Well, like many things we will have to agree to disagree on this point!

[elwaclaret]

Doesn't alter the fact that The Bank of London have publicly called foul by the Gov, as their offer was higher and another large/major bank got the deal of a lifetime. Let's see what HSBC do with the staff for example with SVB (UK) and how they support the start up's, which the Bank was set up for!

Bloody dreadful bank for start ups, I wouldn’t use a HSBC atm, never mind bank with them. Just check out the fines they have had in recent years, sadly too late for the business I trusted them with.

[GodIsADeeJay81]

Doesn't alter the fact that The Bank of London have publicly called foul by the Gov, as their offer was higher and another large/major bank got the deal of a lifetime. Let's see what HSBC do with the staff for example with SVB (UK) and how they support the start up's, which the Bank was set up for!

Long term they'll integrate SVB(UK) into their systems and maybe even keep doing what SVB did.
Will have to wait and see.

[KateR]

Long term they'll integrate SVB(UK) into their systems and maybe even keep doing what SVB did.
Will have to wait and see.

Very true, but I'm sure they will continue to do what they were set up for. However, I'm sure their oversight and risk group are working on the changes as we speak, this is not a normal bank with ordinary depositors, it's for wealthy individuals and start up's! I've no idea HSBC's experience in regard to start up's but they've just acquired a whole new group who are experienced for a pound, if that's not a good deal I don't know what is!

However, I will say that companies I worked for looked at competitors who won a lot of projects on low cost as ideal to partner with or buy, this happened numerous times but once the corporation and the risk group put the added requirements in, they were no longer the cheapest and I'm well aware of many failures.

[GodIsADeeJay81]

Deutsche Bank rumoured to be a real mess, not quite Credit Suisse, but not far behind

[expoultryboy]

Just had a look at the Barclays isas ian , they've dropped both the 1 year and 2 year flexible to 3.2%

[ElectroClaret]

https://twitter.com/spectatorindex/stat ... BS8SA&s=19

Credit Suisse looks like its in trouble

Reportedly got a £44.5 billion loan from Swissbank.
( BBC/ Sky)

[GodIsADeeJay81]

Reportedly got a £44.5 billion loan from Swissbank.
( BBC/ Sky)

Yeah saw that, but I think that's papering over the cracks and won't be enough