How high will rates go and why are they still going up? TiM podcast

And there it was, another rate hike.

Another quarter point up seems almost commonplace now, but think back to the post-financial crisis era and we had to wait nearly a decade for base rates to rise above the 0.5 percent ’emergency’ level.

First it was cut and then the base rate reached the heady heights of 0.75 percent, before being cut again when Covid hit.

But less than 18 months since the Bank of England began raising rates in December 2021, key interest rates have skyrocketed from 0.1 percent to 4.5 percent.

The rate itself is historically relatively low, the size of the increase is not.

So, are the Bank’s price setters right to continue voting for increases, is the full pain already felt, and why do this when all forecasts suggest that inflation will soon take a nosedive?

In this podcast, Georgie Frost, Tanya Jefferies and Simon Lambert discuss the latest rate hike and how high interest rates are going to be.

Plus, is the return of the 100 percent mortgage absolute madness, a helping hand for stuck tenants, or something in between?

Why people should claim retirement or help their friends or relatives who could.

And finally, not only will it miss Succession’s sharp one-liners, but a legacy drama isn’t something you want to get into, so how can people avoid one?

The Charts You Must See Before Taking a 100% Mortgage

In this week’s podcast, the team discusses 100 percent mortgages and Simon references some home prices and mortgage charts he thinks people should consider before taking one out. These are those charts.

Mortgage rates are lower than they were after the mini budget spike, but still much higher than they’ve been in years – with low rates allowing buyers to pay more for homes

Home prices have fallen from their peak and buyers should consider how much of the increase since 2020 is due to super-low mortgage rates that no longer exist