Mortgage Rate Rises

Hagar said:
Your claim that 4% now would have been equivalent to 20% then is another escalation of a well worn claim. First it was 8% then 10% then 15% and now 20%. There probably is an answer but not as simple as you and others make out.
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www.estateagenttoday.co.uk

6% mortgage rates are equivalent to 25% in 1980, lender claims - Estate Agent Today

Leeds Building Society has pledged to honour any mortgage offers and support borrowers during this period of market uncertainty.
www.estateagenttoday.co.uk www.estateagenttoday.co.uk

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The average pricing on a two-year fixed rate have hit 6.43% and the building society highlights that while this may be lower than the 15% borrowers paid in the 1980s, higher property values and debt makes the current environment more tough

In 1980, the average UK house price was around £21,000 and mortgage costs accounted for 11.3% of disposable income.
Today, those figures are around £292,000 and 45.1% respectively.


Its research suggests the 6.43% mortgage rates of today are equivalent to a rate of 25.7% in 1980.
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a1ex2001 said:
So how many people need this ‘wake up call’ if you are so convinced it is a serious number then surely there is lots of well researched evidence to support the accusation? I’m not saying there are none but if the numbers are significant there will be serious research articles out there to support it not just people feels, articles in the daily mail or comments from low rent politicians.

There is plenty to support the fact that food bank usage is primarily driven by people not being able to afford food, and knowing people who refer families to food banks the social stigma is huge.

bmcpublichealth.biomedcentral.com

Understanding the post-2010 increase in food bank use in England: new quasi-experimental analysis of the role of welfare policy - BMC Public Health

Background The number of food banks (charitable outlets of emergency food parcels) and the volume of food distributed by them increased multi-fold in the United Kingdom (UK) since 2010. The overwhelming majority of users of food banks are severely food insecure. Since food insecurity implies a...
bmcpublichealth.biomedcentral.com bmcpublichealth.biomedcentral.com
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Read your own link?

"However, there is a shortage of robust, causal statistical analyses of drivers of food bank use, hindering social and political action on alleviating severe food insecurity"

Correlation doesn't equal causality.
 
dLockers said:
Read your own link?

"However, there is a shortage of robust, causal statistical analyses of drivers of food bank use, hindering social and political action on alleviating severe food insecurity"

Correlation doesn't equal causality.
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Afaik you can't just rock up to a food bank, you need to be referred by a relevant agency, so I would have thought you need to be in a certain circumstance to get that referral.
 
dLockers said:
Poor people have it rough but the biggest debt trap IMO is cars with a 'marketed' 3 year shelf life. The industry is the absolute pits of society.
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marketed? we are adults for crying out loud not children. anyone claiming to be skint but driving around in a car they replace every 5 years is exactly the mindset which bothers me.
we have 2 cars, one 11 years old, one 12 years old . both solid reliable runarounds.
 
dLockers said:
Read your own link?

"However, there is a shortage of robust, causal statistical analyses of drivers of food bank use, hindering social and political action on alleviating severe food insecurity"

Correlation doesn't equal causality.
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So you’ve decided that one caveat invalidates everything else in the report as that is not what the authors said, but I doubt I will convince you that there are poor people forced to use food banks to get by anyway.
 
Freakbro said:
Afaik you can't just rock up to a food bank, you need to be referred by a relevant agency, so I would have thought you need to be in a certain circumstance to get that referral.
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You ring CAB and say you're hungry and you get a 3 day voucher.
 
a1ex2001 said:
So you’ve decided that one caveat invalidates everything else in the report as that is not what the authors said, but I doubt I will convince you that there are poor people forced to use food banks to get by anyway.
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You are making a straw man - I am not arguing with you, or any of your points - I just said I believe food bank stats are self perpetuating and shouldn't be used as the 'gotcha' the press use them as.
 
a1ex2001 said:
So how many people need this ‘wake up call’ if you are so convinced it is a serious number then surely there is lots of well researched evidence to support the accusation?
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personal experience of seeing how much people waste Inc living with someone who earned the same amount of me but who declared bancrupsy - but still managed to waste more than I did even after getting most of their debts written off.

but hey you don't believe me, that is your right i guess if you believe we don't have a society where we think it's ok to get into debt for things we don't need. IF these people didn't, then there would be more support for those who really need help.
 
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Freakbro said:
Afaik you can't just rock up to a food bank, you need to be referred by a relevant agency, so I would have thought you need to be in a certain circumstance to get that referral.
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Almost every food bank user has been referred by an outside agency and the stigma is significant, imagine as a parent telling someone that you are struggling to feed your children. Plenty of people who 12 months ago were making ends meet no longer can and are having to ask for help despite working hard.
 
a1ex2001 said:
Almost every food bank user has been referred by an outside agency and the stigma is significant, imagine as a parent telling someone that you are struggling to feed your children. Plenty of people who 12 months ago were making ends meet no longer can and are having to ask for help despite working hard.
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Seems like you've come here to prove your point rather than get any reciprocal benefits out of the discussion; even if it was just to hear other viewpoints. Best of luck (y)
 
Freakbro said:
www.estateagenttoday.co.uk

6% mortgage rates are equivalent to 25% in 1980, lender claims - Estate Agent Today

Leeds Building Society has pledged to honour any mortgage offers and support borrowers during this period of market uncertainty.
www.estateagenttoday.co.uk www.estateagenttoday.co.uk
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A piece written by a building society for an estate agents website. It quotes house prices, not mortgages although they are obviously higher. Then comparing disposable income from societies 40 years apart. Taxation and spending is totally different. I would be persuaded by scientific data researched and independantly verified. Not fluff by a chief exec of a lending society.
 
bigmike20vt said:
personal experience of seeing how much people waste Inc living with someone who earned the same amount of me but who declared bancrupsy - but still managed to waste more than I did.

but hey you don't believe me, that is your right i guess if you believe we don't have a society where we think it's ok to get into debt for things we don't need. IF these people didn't, then there would be more support for those who really need help.
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I do believe you but you are throwing anecdotal evidence in the face of established research, if the situation you describe was a huge issue surely there would be some or even any research to back up the point? I can’t even find any made up right wing fakery to support that bad budgeting is the main driver to people being poor.
 
dLockers said:
Seems like you've come here to prove your point rather than get any reciprocal benefits out of the discussion; even if it was just to hear other viewpoints. Best of luck (y)
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Happy to read other people’s points but people should be able to back up opinions with facts not feels.
 
a1ex2001 said:
Happy to read other people’s points but people should be able to back up opinions with facts not feels.
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Much like your point of view where you linked to a site that said there is a shortage of robust casual data that you then said was 'just a caveat'. :cry::cry::cry::cry::cry::cry::cry:
 
dLockers said:
Read your own link?

"However, there is a shortage of robust, causal statistical analyses of drivers of food bank use, hindering social and political action on alleviating severe food insecurity"

Correlation doesn't equal causality.
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You need funding to open foodbanks, so increasing demand does not lead to more foodbanks, as it would with a very high demand new chain restaurant or something.

So you cannot use data concerneing food bank use from foodbanks, except a single foodbank that has been opened since X, to then have recorded traffic, while also taking into consideration increases in populations or so
 
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