Mortgage Rate Rises

bigmike20vt said:
yeah i was wondering about that... if so its all gravy as i dont have any other income. Thanks
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It's a bit odd but you actually get £5,000 of a starting rate for savings (which is different to the £1,000 and £500 Personal Savings allowances for "higher earners") if you don't earn much, that reduces for every £ over the £12.5k personal allowance (A bit like the personal allowance reduces when you hit over £100k)

www.gov.uk

Tax on savings interest

You do not pay tax on your savings interest if you're on a low income.
www.gov.uk www.gov.uk

Personal Allowance​


You can use your Personal Allowance to earn interest tax-free if you have not used it up on your wages, pension or other income.


Starting rate for savings​


You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings.


The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be.


If your other income is £17,570 or more​


You’re not eligible for the starting rate for savings if your other income is £17,570 or more.


If your other income is less than £17,570​


Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.


Example
You earn £16,000 of wages and get £200 interest on your savings.
Your Personal Allowance is £12,570. It’s used up by the first £12,570 of your wages.
The remaining £3,430 of your wages (£16,000 minus £12,570) reduces your starting rate for savings by £3,430.
Your remaining starting rate for savings is £1,570 (£5,000 minus £3,430). This means you will not have to pay tax on your £200 savings interest.
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Thought I read yesterday of a possible 6% base rate peak in mid-2024. Supposedly markets now predicting a peak of 5.9% by year's end!

Edit - 0.5% increase it is then.
 
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This is the first 0.5% increase right? Think previous lifts have had some members of the board want bigger increases but more members voted for the smaller/0.25% increase.

Edit - never mind, there have been previous 0.5% increases in this cycle.
 
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I'm actually surprised. Thought it would be 4.75.

I actually don't think it will make any difference to inflation either.
I do think it will really screw a small set of individuals.

I'm still of the opinion vat changes would be better if you want to stop people buying stuff.
 
"I know things are difficult, but if we can hold our nerve I’m confident this plan will deliver."
doesn't mention what makes him confident and what exactly it will deliver except misery
 
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