What is remotely interesting about interest rates?
Not a lot I once thought.
As soon as I became a homeowner, a heavily-mortgaged homeowner to be correct, they suddenly became all too important. When I was searching for my first flat the banks were literally falling over themselves to lend me money. There were mentions even of 110% mortgages with no deposit and it was all too easy. I still had those niggling little voices in my head though from hearing stories of the stress and strain a 13% interest rate put on my lovely parents when we were growing up. A situation that seems almost impossible now. Still, it was enough to stop me doing anything TOO crazy.
When Mr B and I were searching for our first house together it was an entirely different kettle of fish. The country was pretty much on it’s knees, the property bubble had burst and the number of mortgage advisors losing their jobs was increasing at an alarming rate. Despite us both being fully employed in relatively well paid, stable jobs, virtually NO ONE wanted to lend us the money. We eventually managed to scrabble together a deposit of 8.5% and were finally able to buy Casa B.
Whilst we have enjoyed the recent years of incredibly low interest rates that have kept our mortgage repayments to a minimum, we were actually quite surprised by the amount of criticism from our peers who were then making no interest on their savings.
That’s right, their SAVINGS.
I had no idea most of my peers were lucky enough to have any savings. I just assumed we were pretty much all muddling through the remainder of our student debt. Perhaps, unlike me, they did not run straight to town the day they cashed in their student loan for an almighty clothes shopping spree.
I must admit that the predicted rise in interest rates has been a factor in deciding to sell Casa B and make the move to Devon. Property prices are currently high where we live and, I suspect, a rise in interest rates will soon put an end to this.
Our main motivation however is a change in lifestyle. More space. A slower pace. A nice big garden for the kids to run about in. Smaller schools.
The possibility of putting away some money into a savings account for our family though is a huge bonus and putting some money aside for the children’s future even more so.
You never know. Maybe one day I will even be the one moaning about low interest rates ruining my savings profile…you never know.
How about you? Would you be for or against a slight rise in interest rates or does it not interest you at all? Do let me know below.
Disclosure: This post was brought to you in association with Santander but all words and opinions are entirely my own.