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British pound hits record low against the dollar

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Re: British pound hits record low against the dollar

#291

Post by mFixman »

kypro wrote: post #252

So the bigger news here imo is what's happening in the bond market. It's now expected that the BoE will increase rates above 6% by the middle of next year. Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I m…

I'd expect rents to raise at least as much as mortgages, so until the next 2008-style house price crash nobody who bought a house during the pandemic is losing money.

Re: British pound hits record low against the dollar

#292

Post by fmajid »

photochemsyn wrote: post #210

It's worth noting that there was an apparent real opportunity to resolve the Russia-Ukraine conflict in April 2022, via diplomatic negotiations, but UK's Boris Johnson reportedly disrupted those talks by threatening to withdraw UK/US support for Zelensky if he proceeded with negotiations. If the war had been resolved and sanctions on Russian export of gas to Europe had been lifted, this would have lowered gas prices…

Zelensky tried to negotiate with Putin when he came to power, but quickly understood Putin was not interested in peace, only the complete subjugation of Ukraine, and stopped talking. It had nothing to do with Boris Johnson.

Re: British pound hits record low against the dollar

#293

Post by justinator »

kypro wrote: post #252

So the bigger news here imo is what's happening in the bond market. It's now expected that the BoE will increase rates above 6% by the middle of next year. Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I m…

> Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes.

You (UK) keeps using that word (fixed). I don't think it means what you think it means.

Also, I'm really sorry you're in this position. One of these days we'll figure out something better than Capitalism.

Re: British pound hits record low against the dollar

#294

Post by mFixman »

blitzar wrote: post #165
pavlov wrote: post #116

Earlier quoted context omitted.

I lived in London for some years and wouldn’t choose to go to the UK as a tourist in the winter. It’s bleak and damp. If the UK travel industry does benefit from the cheap pound, it probably won’t have any effect until next summer.

I lived in London for some years and wouldn’t choose to go to the UK as a tourist in the summer. There is a reason everyone in the UK goes to Europe in summer - it is much nicer.

The tragedy of the UK is that its many spots with world-class beauty such as the Lake District, Snowdonia, or the breath of Scottish Highlands aren't as popular internationally as they should be since they are pricy.

Maybe it's for the best: hiking trails not being extremely crowded during the warm seasons makes tourism more enjoyable.

Re: British pound hits record low against the dollar

#295

Post by caseysoftware »

kypro wrote: post #252

So the bigger news here imo is what's happening in the bond market. It's now expected that the BoE will increase rates above 6% by the middle of next year. Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I m…

> I'm reading online that I was stupid for buying a house in a bubble and that rates need to go up and house prices need to fall.

Everyone looks "stupid" afterwards when something "everyone knew would happen" actually happens. The problem is that NO MATTER WHAT, there's someone who predicted this exact case and everyone forgets that wider consensus, etc was the other way moments ago. Even the "inflation is going to explode" people thought this was going to happen 2+ years ago (like myself) so it's easy to be right eventually.

> I do understand this is my fault, but it sucks because I've also let my family down big time by deciding to buy a house.

Cut that out. You haven't.

Tell your closest family members your concerns. They're not as close to the specifics and may have different perspective or at minimum can help you emotionally. Try to get help now - even if it's just moral, not financial - before things get ugly.

Re: British pound hits record low against the dollar

#296

Post by denton-scratch »

May became Prime Minister saying "There's no magic money tree". Boris didn't really have a manifesto, in the sense of a programme; it was just "Get Brexit Done".

So the last government that was elected with a proper programme had exactly the opposite economic policies to the present unelected shower of deadbeats.

https://www.youtube.com/watch?v=7XxRJuG9qfQ

Re: British pound hits record low against the dollar

#297

Post by lamontcg »

kypro wrote: post #252

So the bigger news here imo is what's happening in the bond market. It's now expected that the BoE will increase rates above 6% by the middle of next year. Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I m…

The same thing is going to happen to commercial real estate loans. In general any risky investment which was financed with low short term rates is going to see its cost of borrowing jacked up enormously and will cause failures and bankruptcies.

Re: British pound hits record low against the dollar

#299

Post by pjc50 »

justinator wrote: post #293
kypro wrote: post #252

So the bigger news here imo is what's happening in the bond market. It's now expected that the BoE will increase rates above 6% by the middle of next year. Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I m…

> Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. You (UK) keeps using that word (fixed). I don't think it means what you think it means. Also, I'm really sorry you're in this position. One of these days we'll figure out something better than Capitalism.

That is literally how they are marketed, and the rate is fixed for N years.

Re: British pound hits record low against the dollar

#300

Post by pjc50 »

theGnuMe wrote: post #271
kypro wrote: post #252

So the bigger news here imo is what's happening in the bond market. It's now expected that the BoE will increase rates above 6% by the middle of next year. Most people in the UK are on fixed rate mortgages, most of which are 2-3 year fixes. Those who brought a home during the pandemic or fixed at a low rate typically fixed at around 1-2%. I personally fixed for 2 years at a rate of 1.7% just over a year a go when I m…

The UK has longer fixed rate mortgages right? Can you refinance now?

Quite hard to get one above 5 years, although HSBC are still offering https://www.hsbc.co.uk/mortgages/our-rates/
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