Interest rates

Bugger. I’ve been waiting for interest rates to go up (it was obvious they were going to at some point this year) cos I’ve got a variable mortgage, but it would have been nice to start the mortgage before the payments went up! The rate’s still lower than the lowest fixed rate though… I’m just a risk taker.


10 responses to “Interest rates

  1. Pete August 4, 2006 at 10:11 am

    If it’s any consolation, we just did exactly the same thing as you. Boo.

  2. Tim August 4, 2006 at 12:04 pm

    Boo-fucking-hoo. Check out what I’m paying on my variable mortgage in NZ.

  3. Rachel August 4, 2006 at 1:05 pm

    Ackroyd, I’ve told you before about using “Tim” on here!
    And I bet your mortgage amount is about threepence.

  4. Tim August 4, 2006 at 1:16 pm

    That is such a trademark Rachel response.

  5. Rachel August 4, 2006 at 1:58 pm

    Um, hun, people generally don’t get in-jokes that develop over an email conversation…
    Now that’s a trademark response.

  6. Will August 4, 2006 at 5:40 pm

    So who wants a lesson in making lots of money?
    1. Take out a loan/mortgage in the UK for around 5%
    2. Invest it in NZ with a deposit rate of over 7%
    3. Sit back and watch the money roll in….(and hope exchange rates don’t fluctuate too much)

  7. Tim August 7, 2006 at 10:57 am

    Rachel – I don’t care about other people.
    Will – considering the NZ dollar has lost 25% of it’s value against the pound since December (and doesn’t look like it’s going to bounce back anytime soon) I think that’d be a sure way to lose money.

  8. Rachel August 7, 2006 at 1:07 pm

    I don’t understand economics. Which is amusing given who I work for (no, don’t post it, I don’t want to be fired). So does that mean that your UK earnings go further in NZ?

  9. Tim August 7, 2006 at 3:45 pm

    Sort of, but it fluctuates.
    Say I was in the UK last December and had £10,000 which I decided to invest in NZ.
    Sending it to NZ at the then exchange rate of GBP/NZD 2.40 would give me NZ$24,000
    I invest the NZ$24,000 in NZ at a monthly compounding interest rate of 7%.
    Today I need to bring the money back to the UK. With interest the amount is now NZ$25,289
    25289 = 24000(1+(.07/12))^9
    However the exchange rate is now GBP/NZD 3.05 which means the when I bring it back to the UK I only get £8,291.
    However, say the reverse happens:
    I invest £10,000 in NZ now.
    £10,000 @ 3.05
    after nine months you’ll have:
    30500(1+(.07/12))^9 =
    and lets optimitically say the exchange rate has gone back to GBP/NZD 2.40, when you convert it back:
    NZ$32,139/2.4 =
    Better than a kick in the teeth.

  10. Rachel August 7, 2006 at 3:50 pm

    You’re wasted updating websites, you know that?

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