Interest rates increased

[Semple]

Personally I think the energy is driving the inflation and thus driving the Base Rate.

Absolutely. Higher energy prices means production costs increase, higher fuel prices also mean transportation costs increase for goods. All of which gets passed onto the consumer. Which then causes prices to go up and inflation tags along.

If we had a source of cheap energy, it would likely drive the shift to electric vehicles quicker and overall we'd be less impacted by increases to fuel costs.

 

[Kill_Phil]

Absolutely. Higher energy prices means production costs increase, higher fuel prices also mean transportation costs increase for goods. All of which gets passed onto the consumer. Which then causes prices to go up and inflation tags along.

If we had a source of cheap energy, it would likely drive the shift to electric vehicles quicker and overall we'd be less impacted by increases to fuel costs.

Indeed, simply raising interest isn't going to solve this issue. They need to get the energy market under control first which aint happening anytime soon.

 

[kona786]

After me adding in the ONS data do you not think there is a reason the high interest rates were less of an issue back then?

People paying 2.96% interest today are paying twice as much in interest compared to people paying 16.63% interest in 1981.

These numbers don't look like they've been adjusted for inflation?

The pound doubles/halves in value roughly every 30 years if I'm not mistaken?

 

[Trifid]

I note the front pages of the papers have a lot of talk about a recession. With the answer to a recession being to reduce interest rates, would these increases just be a blip so they have something to do next year? I suspect history may show too little too late if they aim to keep them above 0 for the entire of the 2020's?

 

[Freddie1980]

Glad I've just fixed my mortgage for the next 5 years, I can see interest rates hitting 2.5%/3% in the next 12 months, god help you if your on a variable deal.

 

[kona786]

Glad I've just fixed my mortgage for the next 5 years, I can see interest rates hitting 2.5%/3% in the next 12 months, god help you if your on a variable deal.

Same, fixed mine in Oct. 1.2% 5yr.

However I missed out on the energy fix, dammit.

 

[413x]

Great rate! ^

When remortgage goes through I'm fixed at 1.93 for 5 years
Energy fixed at 22p a kwh electric until August 2024.

I expect to pay more than my fix in 2024 unfortunately

 

[CapitalOne]

I note the front pages of the papers have a lot of talk about a recession. With the answer to a recession being to reduce interest rates, would these increases just be a blip so they have something to do next year? I suspect history may show too little too late if they aim to keep them above 0 for the entire of the 2020's?

Stagflation is a likely issue, i.e. inflation but no growth. It's the "worth of boast worlds".

 

[dlockers]

"worth of boast worlds".

Dude it's before 10am, what have you been drinking?

Edit: It's now post 10am and I get it.

 

[krooton]

It's an intentional spoonerism.

 

[Puzzled]

These numbers don't look like they've been adjusted for inflation?

The pound doubles/halves in value roughly every 30 years if I'm not mistaken?

True

£1808 in 1979 would be £7177 today.

Inflation calculator

Use our inflation calculator to check how prices in the UK have changed over time, from 1209 to now.

www.bankofengland.co.uk

 

[omnomnom]

His wages were lower

So was everything else. You talk utter nonsense. The facts are laid out for you and still this is your argument.

 

[HungryHippos]

My mortgage is officially at the base rate for the first time ever, and soon I expect it to be below the base rate (1% for 5Y fix last November).

At least crunch on costs won't come from all angles for a while yet. No energy fix either! :O

 

[Minusorange]

He clearly didn't live through those times or he wouldn't be talking such nonsense. A significant part of the 80s were terrible for a huge part of the population.

A significant part of every year is terrible for a huge part of the population, the poor are always suffering, not sure what your point is at least back then benefits were a far better safety net compared to what they are today with sanctions and restrictions and having to provide evidence you've spent 35 hours a week looking for work for only £80. How many food banks did we have back then ? There's more poor people today than there are middle class compared to the 80's http://london.worldmapper.org/analysis/poverty-and-wealth-1980-2010/

 

[CapitalOne]

It's an intentional spoonerism.

It's a Partridge quote (and indeed a spoonerism) I'll get my coat...

 

[glenimp617]

My fixed rate at 2.29% ends June 2023. Wonder what's best to do. There is a £5k early repayment charge so I think I'm best off just leaving it and see what happens next year.

 

[413x]

My fixed rate at 2.29% ends June 2023. Wonder what's best to do. There is a £5k early repayment charge so I think I'm best off just leaving it and see what happens next year.

Im paying mine. (ends in March)
Just couldn't handle the risk of ridiculous mortgage monthly costs.

5k sounds like a significant mortgage?

 

[glenimp617]

Im paying mine. (ends in March)
Just couldn't handle the risk of ridiculous mortgage monthly costs.

5k sounds like a significant mortgage?

£90k outstanding

 

[413x]

£90k outstanding

And your fee is 5k? Most mortgages I looked at now and when we bought were 1 percent in the final year.

With 90k I would not pay 5k.

 

[glenimp617]

And your fee is 5k? Most mortgages I looked at now and when we bought were 1 percent in the final year.

With 90k I would not pay 5k.

That's what it's saying on the app so I assume it's correct. I've kept all the paperwork so I'll double check.