Mortgage Rate Rises

danlightbulb said:
Might be scary but not surprising. If cost of living is high, house prices/renting are high, inflation is high and wage growth is low, how can people save money?
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I'm sure it was the same in the 2010s.

But I get it. Especially if you max out getting a mortgage and don't then get better pay.
 
BUDFORCE said:
The problem is even if you do save and keep a good wodge away for a rainy day, with inflation the value of your savings reduces.

So for example if you had a years worth of buffer savings say 2 years ago, you'll probably now find that same money will only cover 6 months.
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For Sure.
I've been looking at buying a van, and in hindsight, due to inflation, would have been better to buy "stuff" and sell it later, such is the cost of assets now vs cash.

If I had cashed half my savings and bought that van, would have been better off. That's why I'm switching to spending now vs savings.
 
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413x said:
Hopefully we escape the unemployment scenario this time. That would truly be devastating.

Personally, I have a big buffer. It would destroy my savings, but I wouldn't lose the house for a few years.

But that's not typical. It's scary how little savings most have. Really Shocking.

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I finished work 4yrs ago for health reasons, so just living on my private pension until I'm eligible for the state one, no savings. The wife is working part time, so finding it a bit of a struggle. Luckily when the rates go up the rise is only a couple of pounds at a time and we have only 5yrs to go.
 
413x said:
I'm sure it was the same in the 2010s.

But I get it. Especially if you max out getting a mortgage and don't then get better pay.
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The best time to get a mortgage is when rates are high, so you know you can afford it comfortably. When they come down you win. Get a mortgage when the rates are low you need to consider if you can afford the payments doubling.
 
danlightbulb said:
So essentially there is nothing an individual can do about rate risk. So the points earlier (not specifically from you) about it being obvious rates would rise and the last 15 years is the anomoly are irrelevant. People had no choice but to accept the risk that is the point I am making. It is made out like there is a choice, there is not.
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As an individual you simply have to try to earn more money.
 
tonys said:
The best time to get a mortgage is when rates are high, so you know you can afford it comfortably. When they come down you win. Get a mortgage when the rates are low you need to consider if you can afford the payments doubling.
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That sounds sensible but would actually be a terrible idea financially to actively aim for. You win if you get a cheap mortgage and hold onto low rates as long as you possibly can.
 
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Freakbro said:
Not that I disagree with any of that, but I think the UK's 'productivity puzzle', whereby our productivity is so much lower than our peers has also contributed to this issue and I'm not sure we've got to the bottom of why that is.
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not enough investment in the processes and automation to improve said productivity

for example...i've just moved trusts to a new icu where they rolled out a "brand new" it system 6 years ago - you can see where this is going...
from what i've heard...the trust "saved" £8m by acquiring the most basic system without the automation that was offered in the more advanced packages

i've timed myself and basically it takes me 35-40% more time to review the electronic noting and investigations and double the time to type my reviews up
in an average week, i spend 2-3 hours wasted waiting for the system to start to work/retype my noting because the computer system crashes and loses the notes etc

that's where the loss in productivity is. it basically takes me 1.5x the time i should be spending to do the most basic things that should be just a few clicks.
there's about 20-25 staff on the icu, 8-10 per ward on a normal ward x 14 wards
now count how many (wo)man hours that is wasted because of an inefficient it system

that £8m saved turns to a few 10s of millions wasted over the next decade or so...but this isn't counted because of the headline figure saved
and one wonders why productivity is stagnating...
 
danlightbulb said:
So essentially there is nothing an individual can do about rate risk. So the points earlier (not specifically from you) about it being obvious rates would rise and the last 15 years is the anomoly are irrelevant. People had no choice but to accept the risk that is the point I am making. It is made out like there is a choice, there is not.
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An adoption of a 30year mortgage or long term rates like other countries do would be a way.
 
sigma said:
In part, but there are other contributors, energy prices etc.
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I know, but like I said it has to start somewhere.
You want a wage increase because the cost of living has gone up. The company gives you the wage rise but to maintain profitability they put their prices up. This means the cost of living goes up so you want another wage rise( simplistic I'm aware of that )
 
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