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Post by yattongas on Aug 4, 2022 11:30:44 GMT
so BoE going to raise interest rates and put the squeeze on working people as well. Not sure how driving up rents and Mortgages is going to help the economy. The recession train is coming Always thought an increase in interest rates will help to lower inflation. Home owners with mortgages have benefited for many many years through very low interest rates. If they borrowed to the max based on ability to repay when rates were at an all time low they should have made allowances should rates increase. So in effect they only have themselves to blame for not making contingency measures. Who recalls paying 15% on their mortgage...I do. Contingency plans were built into anyone applying for a mortgage with people having to prove they could still pay the mortgage if it went 3% higher . Although that was scrapped this week 🙄. |
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Post by peterparker on Aug 4, 2022 11:31:46 GMT
so BoE going to raise interest rates and put the squeeze on working people as well. Not sure how driving up rents and Mortgages is going to help the economy. The recession train is coming Always thought an increase in interest rates will help to lower inflation. Home owners with mortgages have benefited for many many years through very low interest rates. If they borrowed to the max based on ability to repay when rates were at an all time low they should have made allowances should rates increase. So in effect they only have themselves to blame for not making contingency measures. Who recalls paying 15% on their mortgage...I do. interest rates have needed to go up, but doing it now is just using a sledge hammer to fix a problem that doesn't exactly exist People literally don't have spare money to drive inflation, taking more money out of the economy in the form of mortgages and rents is just going to kill the economy www.taxresearch.org.uk/Blog/2022/08/04/the-bank-of-england-is-going-to-continue-with-its-policy-of-driving-people-into-poverty-today/ |
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Post by francegas on Aug 4, 2022 11:34:04 GMT
Always thought an increase in interest rates will help to lower inflation. Home owners with mortgages have benefited for many many years through very low interest rates. If they borrowed to the max based on ability to repay when rates were at an all time low they should have made allowances should rates increase. So in effect they only have themselves to blame for not making contingency measures. Who recalls paying 15% on their mortgage...I do. Contingency plans were built into anyone applying for a mortgage with people having to prove they could still pay the mortgage if it went 3% higher . Although that was scrapped this week 🙄. So up until this week anyone who has a mortgage should pretty much be unaffected by a raise in the BOE base rate. |
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Post by peterparker on Aug 4, 2022 11:39:58 GMT
Contingency plans were built into anyone applying for a mortgage with people having to prove they could still pay the mortgage if it went 3% higher . Although that was scrapped this week 🙄. So up until this week anyone who has a mortgage should pretty much be unaffected by a raise in the BOE base rate. Unaffected and being able to afford it are two different things. People might be able to afford it, but they will still be affected. If your mortgages goes up £100 a month, on top of the £100+ increases on energy bills that is a lot of money taking out of the economy. add in rising food prices and wages being held down... people don't have disposable income now, raising interest rates can't curb people spending too much, it will just drive people further into trouble |
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Post by francegas on Aug 4, 2022 11:47:13 GMT
Always thought an increase in interest rates will help to lower inflation. Home owners with mortgages have benefited for many many years through very low interest rates. If they borrowed to the max based on ability to repay when rates were at an all time low they should have made allowances should rates increase. So in effect they only have themselves to blame for not making contingency measures. Who recalls paying 15% on their mortgage...I do. interest rates have needed to go up, but doing it now is just using a sledge hammer to fix a problem that doesn't exactly exist People literally don't have spare money to drive inflation, taking more money out of the economy in the form of mortgages and rents is just going to kill the economy www.taxresearch.org.uk/Blog/2022/08/04/the-bank-of-england-is-going-to-continue-with-its-policy-of-driving-people-into-poverty-today/To an extent I agree with you. However only around 10% of people have a variable rate mortgage that would be affected by a rate increase. Therefore 90% of homeowners with mortgages will be unaffected. |
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Post by stuart1974 on Aug 4, 2022 12:33:24 GMT
To an extent I agree with you. However only around 10% of people have a variable rate mortgage that would be affected by a rate increase. Therefore 90% of homeowners with mortgages will be unaffected. Only immediately. My fixed rate comes to an end in a few months, providers will take note of the prevailing wind and will probably expect rates to go even higher so any deals available will factor that in. If most of people's money is going on mortgage repayment, fuel and food, it doesn't leave much of a discretionary spend that keeps the economy going. Luckily we're only a few years away from clearing the mortgage and a cushion in terms of my redundancy money, but I'd hate to be in situation of many others and it's likely to get worse before it improves (without significant government intervention). |
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Post by oldie on Aug 4, 2022 13:01:20 GMT
so BoE going to raise interest rates and put the squeeze on working people as well. Not sure how driving up rents and Mortgages is going to help the economy. The recession train is coming Always thought an increase in interest rates will help to lower inflation. Home owners with mortgages have benefited for many many years through very low interest rates. If they borrowed to the max based on ability to repay when rates were at an all time low they should have made allowances should rates increase. So in effect they only have themselves to blame for not making contingency measures. Who recalls paying 15% on their mortgage...I do. I paid 15% at one point. Interest rates are a blunt instrument when inflation is, in the main, based upon imported inflation, either by cost inflation or devaluation of our currency when we have to pay for imports in source currency. For example Oil and Gas imports are usually paid for in $USD. Sadly, since Brexit, there has been considerable devaluation in ÂŁGBP On your point on housing, yes absolutely, but is it helpful for a Government to intervene and use taxpayers funds to support policies such as help to buy? This just pushes up house prices because they help prevent the true market value of houses to adjust based upon affordability. Another genius Tory idea to buy votes and push the solution to the housing crisis down the road. |
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Post by yattongas on Aug 4, 2022 13:30:13 GMT
Inflation forecast to hit 15 ( Fifteen) percent ! We really are heading towards the sunny uplands.
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Post by peterparker on Aug 4, 2022 13:31:26 GMT
Steering back to the This Government part of the thread. Given the BoE have said recession is already here (or will be confirmed in Q4) and will last for months, why would Sunak or Truss actually want the job of PM
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Post by yattongas on Aug 4, 2022 13:40:32 GMT
Steering back to the This Government part of the thread. Given the BoE have said recession is already here (or will be confirmed in Q4) and will last for months, why would Sunak or Truss actually want the job of PM Because they are power hungry monsters . As a Tory you’re not into making life better for the poor, the sick , refugees etc etc . You’re in politics to serve the 30-40% mainly affluent Tory voters get richer at the expense of others . Why else be would you be a Tory ? |
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Post by stuart1974 on Aug 4, 2022 13:43:59 GMT
Steering back to the This Government part of the thread. Given the BoE have said recession is already here (or will be confirmed in Q4) and will last for months, why would Sunak or Truss actually want the job of PM Probably why some of the bigger names are waiting. Let someone else carry the can, lose to Labour and then step up when they can blame someone else. Cynical? Moi? 🤠|
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Post by oldie on Aug 4, 2022 13:53:54 GMT
Steering back to the This Government part of the thread. Given the BoE have said recession is already here (or will be confirmed in Q4) and will last for months, why would Sunak or Truss actually want the job of PM Probably why some of the bigger names are waiting. Let someone else carry the can, lose to Labour and then step up when they can blame someone else. Cynical? Moi? 🤠If Starmer does not trounce Truss, then I give up. |
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Post by stuart1974 on Aug 4, 2022 14:42:30 GMT
Probably why some of the bigger names are waiting. Let someone else carry the can, lose to Labour and then step up when they can blame someone else. Cynical? Moi? 🤠If Starmer does not trounce Truss, then I give up. Apparently Labour would prefer Sunak as he's predictable and heavily involved in the situation we are in. Truss is much more of an unknown quantity. |
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Post by yattongas on Aug 4, 2022 14:46:42 GMT
If Starmer does not trounce Truss, then I give up. Apparently Labour would prefer Sunak as he's predictable and heavily involved in the situation we are in. Truss is much more of an unknown quantity. Mary Truss is the longest serving cabinet minister isn’t she ? |
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Post by trevorgas on Aug 4, 2022 15:15:18 GMT
Probably why some of the bigger names are waiting. Let someone else carry the can, lose to Labour and then step up when they can blame someone else. Cynical? Moi? 🤠If Starmer does not trounce Truss, then I give up. Comes across as such a limp d..k,wish I knew what he stands for. |
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Post by yattongas on Aug 4, 2022 20:18:10 GMT
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Post by fintanstack on Aug 4, 2022 20:41:01 GMT
Yes, but they were all the fault of Labour. |
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Post by yattongas on Aug 4, 2022 20:47:44 GMT
Yes, but they were all the fault of Labour. Goes without saying 🙄 |
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Post by Gassy on Aug 4, 2022 21:02:45 GMT
Yes, but they were all the fault of Labour. 100%. The 1709 recession is why I’ll never vote Labour again |
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Post by oldie on Aug 4, 2022 21:44:59 GMT
Yes, but they were all the fault of Labour. 100%. The 1709 recession is why I’ll never vote Labour again It was also the fault of Labour in 1066. |
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