Interest rates increased
- Thread starter Dirk Diggler
- Start date
Cheers.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
So yes, we are paying less now than many of the previous years.
Interesting. Some lenders let you choose a new deal within the last 6 months if you stay with them. Nationwide let me do this.
Soldato
- Joined
- 30 Sep 2005
- Posts
- 16,706
I've checked and as I suspected, Santander don't reduce the early repayment fee the near to the end you get. They just have the same fee throughout the fixed period.
Will keep my eye on it nearer the time and see how everything pans out. Just hope the banks don't go silly. Usually they fix 1.5% above the base rate, so if that jumps to say 2.5% next year, we could be looking at mortgage rates at 4%
Permabanned
Enough on the whole we had it worse than you nonsense children.
Setting up a meeting with my mortgage advisor next week. Typically my 5 year fix ends next year so potentially looks like buying out and fixing for another 5 years will be the best thing for us.
Meanwhile shell are announcing huge profits. Yeh for the over achievers in life.
Setting up a meeting with my mortgage advisor next week. Typically my 5 year fix ends next year so potentially looks like buying out and fixing for another 5 years will be the best thing for us.
Meanwhile shell are announcing huge profits. Yeh for the over achievers in life.
You post this here on your fancypants computer on this new-fangled internet like it ain't no thang, you young'uns have no idea how good you have it
Permabanned
I know I’m a symptom of this sick world we live in. Shame on me.You post this here on your fancypants computer on this new-fangled internet like it ain't no thang, you young'uns have no idea how good you have it
Ironic thing is all us younguns’ who don’t know how good we have it and all the snow flakes ect were raised by those that symbolise the remaining greatness left in the universe. Sorry but you failed somewhere I guess.
I haven't added salaries in as well, cant do everything.
Problem with inflation is it varies substantially depending on what measure you use, CPI, RPI, RPIX, "real inflation" etc. (all of which are calculated differently back then than they are now because the government tries to massage the figures), it's such a kettle of fish I don't touch it. But then you should acknowledge you cant make direct quantitative comparisons between actual amounts decades apartI haven't added salaries in as well, cant do everything.
Permabanned
Yeah sarcasm is often lostI mean, it was clearly a joke, but ok
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Soldato
To be fair I think he posted it to counter a bad argument by another, who posted the initial table as a big stick to hit anyone post-boomer generation.
Soldato
Im on a tracker atm can fix for 2, 5 or 7yrs at 2.8%, I'm thinking this is a wise choice due to the almost constant rate increases, what would you do GD?
That's a poor rate for anything more than 5 years. Remember your LTV will improve and rates will 'step down' anyway.
Right, you'd need an economist to analyse the dataset, I started looking for historical salary information so I could show it as a % of income but could only find it back to 1996 and it was gross not net, so doesn't take into account the increased rate of taxes etc.
One thing I would say though is that with house prices so high, just the slightest increase in interest rates can make the mortgage unaffordable, an extra 1% can add loads on and with the interest rates being so low at the moment just a 1% increase is a very large proportional increase in rate compared to going from 16% to 17%.
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Soldato
just out of interest ,mortgage payments percentage of take home pay
I'm no expert by any means but I was looking at a 10 year fixed mortgage with Barclays and even paying the early leavers fee to our current mortgage provider! It turns out the fee higher than I thought but if interest rates now are at their lowest and a good way to curb inflation is raising interest rates then they're only going one way!
Our mortgage is due to renew next year and my guess is we will have seen a few rate raises by then.
I can't say it's the right decision for sure but I'm looking to fix ASAP for as long as possible!
UK GDP growth 2023 | Statista
The UK's GDP growth in 2023 was far weaker than in 2022 and 2021, with the economy stalling towards the end of the year.www.statista.com
Doesn't look so bad for the 80's
GDP alone is only one factor in economic health, it's just productivity. There's inflation, interest rates, unemployment, insolvency etc. Even if GDP goes down the economy can actually be considered to be in better shape if the other factors have improved.
Fantastic, was trying to find that data. So while 15% of our take home pay went to mortgages at the start of 1995 that had increased to over 32% by the end of 2020, and with Rishi's NI increase reducing our take home pay and house prices and the interest rates going up I would not be surprised to see that hit 40% by the end of the financial year.
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it does not publish methodology , it also says uploads/2017/02/mortgage-payments-by-pay-uk.png suggesting 2017 yet the graph says 2021. there for it is unreliable.
Anyway a correction is going to happen, 20% drop with increase in Taxes and inflation. The ftse will lose lots of companies Russian listed companies, money moving away from the UK.
I've been hearing people say that for over 20 years