2022 mini-budget discussion

[purplesky]

Of course banks lose, but they get managed out.

Yes, but it's not losing is it when it was all funny money to begin with.

 

[Deleted User 298457]

QE has been and gone. The banks profited massively, and they will continue to, either through those who can pay their mortgage with increased interest, or by repossession. It's all win for the banks.

Tbf that is the basic premise of being a bank, no?

 

[purplesky]

Tbf that is the basic premise of being a bank, no?

It is, but QE allowed them to loan out eye watering sums of money without there being any repercussions for them. This increased house prices to insane levels. The outcome could only ever be mass customer default and repossession.

 

[glenimp617]

The banks safety net is the damn taxpayer. They can't fail.

 

[Alibaba99]

So the real question is do I wait till mid next year to buy a house in the hope there are tons of defaults and lots of repossessions hitting the market and prices drop like a stone OR do I bite the bullet now and just get on the ladder (again) in the hope of getting something locked in before the further impending rises? Not sure what is the best idea atm.

Personally, I would rather be paying back a small mortgage with high(ish) interest, especially if you can fix the rate. Once you start making overpayments that will have a dramatic effect on the overall term and how much you pay back.

 

[potatolord]

Nuts. Apparently!
Will certainly be shelling out!

I'm only up the road and have a spare room now the oldest has moved out, if you need one.

You will LOVE the valleys.

 

[413x]

I'm only up the road and have a spare room now the oldest has moved out, if you need one.

You will LOVE the valleys.

Crazy how much more you get for your money up there!

 

[Minusorange]

Na, the 1990s crisis had the end of the Cold War as a cause. We are just starting one! Totally different

1890's ?

 

[potatolord]

Crazy how much more you get for your money up there!

My house would be more than double the price if it were 8 miles further south.

I actually prefer living here now.

Horses for courses, I suppose.

 

[413x]

My house would be more than double the price if it were 8 miles further south.

I actually prefer living here now.

Horses for courses, I suppose.

I want to move more rurally. Only moved here due to job access.. Which is now WFH anyway! Grr

 

[Raymond Lin]

My house would be more than double the price if it were 8 miles further south.

I actually prefer living here now.

Horses for courses, I suppose.

Before the one I got now, there was another that had offer accepted but the seller changed her mind and sold it to someone else without a chain, that house is worth double now, it's just because of it's 2 streets down. Essentially mine is at the bottom of a hill, the other is at the top of it, with a view over the city, next to a park.

 

[delta0]

The better question is, how many % of mortgages are coming up to renewal in the next 12 months.

Roughly 6% of households. About 27% of mortgages. 1.8 million mortgages out of 6.6 million that have mortgages.

 

[Surveyor]

Roughly 6% of households. About 27% of mortgages. 1.8 million mortgages out of 6.6 million that have mortgages.

6.6 million would seem to be just for England and only for owner-occupiers.

 

[delta0]

6.6 million would seem to be just for England and only for owner-occupiers.

I would assume it’s fairly similar across the UK.

 

[Yaayuh!]

Our fixed rate ends in May next year. Eeek.

 

[doodah]

I'm surprised it took this long, there's reaching and there's reaching....

https://twitter.com/x/status/1574675552560087041

 

[Freakbro]

Those Conservative sycophants must be draining the worlds copium at an alarming rate

 

[Hawk Tuah]

I really don't understand how this budget is going to help. IMO we should have been increasing taxes for majority and wealthiest, to cover the cost of the pandemic, Ukraine and energy crisis.

I hate the idea of plunging the country into a horrific spiral of debt that I doubt will be paid off in my lifetime.

Have they really done this to force whoever is in Government in 2025 to have to raise taxes to pay it off?

 

[Slam62]

Yes, but it's not losing is it when it was all funny money to begin with.

Yes managed out with free funny money.

 

[Slam62]

I really don't understand how this budget is going to help. IMO we should have been increasing taxes for majority and wealthiest, to cover the cost of the pandemic, Ukraine and energy crisis.

I hate the idea of plunging the country into a horrific spiral of debt that I doubt will be paid off in my lifetime.

Have they really done this to force whoever is in Government in 2025 to have to raise taxes to pay it off?

They say they think it will stimulate economic growth and pay for itself