As of today 2nd November 2017 interest rates are up 0.25% till 0.5% in the United Kingdom. A lot of people are feeling negative and pessimistic about the situation. Mainly concern about the mortgage rates, credit card rates and car loan variable rates etc.
I would like to put some positive spin on the interest rates rise today.
- Interest rates hike symbolise a growing economy. We should be more concern with interest rates decrease!
- Our pounds will grow stronger and this will help with our oversea travels and shopping too. Look at the cost of the new iPhone and Nikon lenses due to the poor pounds. Now it’s time to crawl our Royal £££ back.
- Now we can start savings and generate save income again. Our beloved ISA and fix savers can come back up again. Not much but we are on the uphill again.
- Most major mortgage lenders are being sensible and not giving a enormous hike yet. But we should be focusing on our Loan to Ratio for our mortgage. House price increase then we have lower loan to ratio hence perhaps cheaper mortgage.
- This will push the house price market up. After the Brexit we have welcome plenty of buyers from overseas and making low interest rates from them. Perhaps it’s time for our economy to make more money!
- Stop overseas company taking over our beloved UK companies. We need growth growth growth. So far a lot of monies have been pumped into utilities and REIT companies which does not boom our growth. We need investors to start moving their money into techs, banks and cyclicals shares again. So we can research, develop and deliver. We lost ARM to Japanese last year and almost lost Unilever to Kraft.
- US are moving their interest rates quickly and we need to catch up before EU catches up.
Finally, the world is currently in a positive economic cycle. Asia, Brazil, Australia, Russia, India, US, Japan are all growing fast and we need to catch up with the money circling around. We cannot be left behind before the Brexit deals goes ahead.
Let’s stay positive to the UK economy and push for growth!
We all at home should do the following.
- Start paying credit cards off!
- Start tightening our household budget.
- Lock our mortgage rates if expiring in next six months.
- Start savings accounts again.
Remember to only spend after you save. Not save after you spend!