Mortgage Rate Rises

unwashed potato! said:
Remember that it is likely that most landlords have already paid off many years of the properties mortgage,
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That isn't how the landlord game works. There is no incentive to tie up capital more than required. Any excess capital should be used to save up to buy another house on interest only.

Any landlord actually paying the mortgage is a hobbyist landlord and has missed the point.
 
Anyway savers are a much larger group than landlords and should stand to gain most from higher rates. It was a totally borked market with rates at sub 3% so long may this continue.
 
Vanquish-Storm said:
Are there more savers than landlords?
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Of course

www.money.co.uk

UK Savings Statistics 2024 - Saving Facts and Stats Report | money.co.uk

We’ve collated the latest UK savings statistics for 2024, investigating how people can save money, and the average amount of savings held by UK adults.
www.money.co.uk www.money.co.uk

Overview: UK savings statistics 2023​

  • The average person in the UK has £17,365 in their savings.​
  • 34% of adults had either no savings, or less than £1000, in a savings account.​
  • 61% of UK adults save money either every, or most, months.​
  • Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.​
  • Savings accounts are the most popular savings method among UK adults, with over half (57%) using these to save money.​
  • 23% of savers don’t check the interest rate before opening an account.​
  • Men have more savings on average than women across every age group.​
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Vanquish-Storm said:
I would have thought more people would be paying a mortgage than saving.
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Those aren't mutually exclusive
 
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Freakbro said:
Of course

www.money.co.uk

UK Savings Statistics 2024 - Saving Facts and Stats Report | money.co.uk

We’ve collated the latest UK savings statistics for 2024, investigating how people can save money, and the average amount of savings held by UK adults.
www.money.co.uk www.money.co.uk




Those aren't mutually exclusive
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These stats dont make sense to me. Could someone clarify;

The average person in the UK has £17,365 in their savings.
61% of UK adults save money either every, or most, months.

Then
Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.

So the average person has 17k in savings and can't last 3 months without borrowing money? What do they do in those 3 months, go to Vegas and spend 6k a month?? Or maybe eat out at a good restaurant everyday for 3 months, spending £193/day. Quality idea when you lose your job :D
 
Guest2 said:
These stats dont make sense to me. Could someone clarify;

The average person in the UK has £17,365 in their savings.
61% of UK adults save money either every, or most, months.

Then
Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.

So the average person has 17k in savings and can't last 3 months without borrowing money? What do they do in those 3 months, go to Vegas and spend 6k a month?? Or maybe eat out at a good restaurant everyday for 3 months, spending £193/day. Quality idea when you lose your job :D
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Likely the top 1/3 of population have a huge amount more saved than the bottom 2/3 and skew the stats.
 
Guest2 said:
These stats dont make sense to me. Could someone clarify;

The average person in the UK has £17,365 in their savings.
61% of UK adults save money either every, or most, months.

Then
Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.

So the average person has 17k in savings and can't last 3 months without borrowing money? What do they do in those 3 months, go to Vegas and spend 6k a month?? Or maybe eat out at a good restaurant everyday for 3 months, spending £193/day. Quality idea when you lose your job :D
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It is a bit odd, but then if we look at the wording...

The average person has £17k in savings, but what's the median saving?
It says 61% save money, but it doesn't say how much. Only being able to put £50 away a month counts as saving, and is probably the reality for a lot of people.
65% of people wouldn't last three months, so two thirds of the country don't have 3 months of expenses tucked away in a "proper" emergency fund. Taking the median salary of about £32k in the country, that's only £2,150 take-home. If you take 3 months of that then it's only £6,450. 65% of people say they won't even have that.


EDIT: Just pulled the government figures. In the FY20-21, the 50th percentile income before tax was £26,300, so way lower than my estimate. 75th percentile was £39,800 and 90th percentile £59,200.
 
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Guest2 said:
So the average person has 17k in savings and can't last 3 months without borrowing money?
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Perhaps people don't consider their savings as an account that can be touched?

Obviously there's those ones that you pay in a certain amount each year tax free, and if you take out from that, you can't put it back 2 months later without using up tax free allowance.

I find myself in a position where I do actually have a healthy amount of savings, but when I consider day to day spending, I don't feel I have that much to use, and a big expense could set us back and borrow on credit cards etc, even if it's the stupid way to do it, the savings are similar to say a stock, on that you could sell it and have instant money, but you consider it gone until it will be used for it's intended use, e.g a holiday/wedding/paying off mortgage early etc.

Sounds stupid, but I just wonder if that's messing up the figures. Credit card spending is borrowing after all. If we had to buy a new washing machine (not that I'd buy brand new), but they can go for £500 plus, tumbles the same, any white good in fact, you may borrow to buy that.

Also the key word from the report is the word 'beleive'.

People believing something doesn't make it true
 
unwashed potato! said:
Perhaps people don't consider their savings as an account that can be touched?

Obviously there's those ones that you pay in a certain amount each year tax free, and if you take out from that, you can't put it back 2 months later without using up tax free allowance.

I find myself in a position where I do actually have a healthy amount of savings, but when I consider day to day spending, I don't feel I have that much to use, and a big expense could set us back and borrow on credit cards etc, even if it's the stupid way to do it, the savings are similar to say a stock, on that you could sell it and have instant money, but you consider it gone until it will be used for it's intended use, e.g a holiday/wedding/paying off mortgage early etc.

Sounds stupid, but I just wonder if that's messing up the figures. Credit card spending is borrowing after all. If we had to buy a new washing machine (not that I'd buy brand new), but they can go for £500 plus, tumbles the same, any white good in fact, you may borrow to buy that.

Also the key word from the report is the word 'beleive'.

People believing something doesn't make it true
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True, many people have ISAs but i'm sure if they were made reduntant wouldnt touch it due to losing months/years of interest.
That said, savings are there usualyl to save for something but if something crops up out the blue they can be used for whatever.

I have savings but always buy my everyday stuff on credit card and pay it off after a month on payday from my debit card. Some people never use credit cards for fear of not because able to pay them off. Not great for building up a good credit rating
 
squerble said:
EDIT: Just pulled the government figures. In the FY20-21, the 50th percentile income before tax was £26,300, so way lower than my estimate. 75th percentile was £39,800 and 90th percentile £59,200.
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Oh yea, people really overestimate the amount you need to earn to be in the top % of earners in the country. Which really highlights a) how skewed the 0.1% make the whole chart and b) how poorly paid the vast majority of workers are.
 
Guest2 said:
That said, savings are there usualyl to save for something but if something crops up out the blue they can be used for whatever
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Exactly, but whether when being asked, people believe that or not is the question. I bet a lot don't instantly consider those savings as accessible, even if they are.

Plenty of wealthy people will still feel poor due to not feeling like their isa/stocks etc are cash they can access.
 
Guest2 said:
These stats dont make sense to me. Could someone clarify;

The average person in the UK has £17,365 in their savings.
61% of UK adults save money either every, or most, months.

Then
Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.

So the average person has 17k in savings and can't last 3 months without borrowing money? What do they do in those 3 months, go to Vegas and spend 6k a month?? Or maybe eat out at a good restaurant everyday for 3 months, spending £193/day. Quality idea when you lose your job :D
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Because they probably use the mean.
They should be using the median.


9 savers
With savings pots of
1,2,3,4,5,6,7,8,12345678


Median is 5 pounds
Mean is over a million

If articles are lazy they just use average. Because the average (lol) Joe and wouldn't understand mean/median
 
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If I really lost all my income tomorrow and couldn't get another job.. I think I could last 2.5-3ish years. But I'd have 0 at the end in savings.

That includes paying my current share is the mortgage, bills, etc

Would be dire to lose all that. But at some point it does have to be spent
 
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413x said:
If I really lost all my income tomorrow and couldn't get another job.. I think I could last 2.5-3ish years. But I'd have 0 at the end in savings.

That includes paying my current share is the mortgage, bills, etc

Would be dire to lose all that. But at some point it does have to be spent
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Does that include selling all the legos though?
 
413x said:
Because they probably use the mean.
They should be using the median.


9 savers
With savings pots of
1,2,3,4,5,6,7,8,12345678


Median is 5 pounds
Mean is over a million

If articles are lazy they just use average. Because the average (lol) Joe and wouldn't understand mean/median
Click to expand...

Jeez, the number of times i have had to explain the difference between mean and median to people who really should know better...
 
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