I think at this point they are just hoping for the best. They know they (and the country) is ******...
Mortgage Rate Rises
- Thread starter glenimp617
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Caporegime
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If we hit a recession, what would happen to the rates then?
I don't see it working.
Isn't inflation loaded onto food and core stuff? Ie stuff you can't not buy?
Its not like demand for food can go down.
"guys you need to stop eating. For the sake of the country"
Maybe this rate rise allows them to pause for a bit and create some stability in mortgage world. Rather than chaos of deals getting pulled all the time
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I guess some people will literally have to as they won't be able to afford food
Interesting, it makes you think they don't know what they're doing.
same two have been consistently voting for no increase every time
but hey, majority must be right, right?
Companies go under, jobs are lost, demand for goods/services is reduced.
Then as things start to turn and the cycle nears it's end, rates are decreased in order to stimulate growth out of the recession.
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Soldato
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they will crash....
Food banks are the answer
Are we at the point where we could implement better tools to spread the hurt of rate rises?
It just seems like rate rises hurt people so unequally.
Unless I'm missing something, if state pensions go up by as much as they have, and many have substantial savings, aren't the older/richer demographic generally just given a financial boost? Thats before you look at the opportunity to pounce on people who are so badly hit they lose thier homes?
It just seems like rate rises hurt people so unequally.
Unless I'm missing something, if state pensions go up by as much as they have, and many have substantial savings, aren't the older/richer demographic generally just given a financial boost? Thats before you look at the opportunity to pounce on people who are so badly hit they lose thier homes?
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Increasing interest rates isn't only about lowering demand, in fact that's a rather insignificant side effect, it's main purpose is to reduce the amount of money that's circulating in the economy.
Tough times for many I am sure. I can't see how we can avoid a formal recession, which could even be a deep one I fear where many will suffer and impact. I am one of the few who fixed my mortgage for a long time at 1.x% rate but that was moment in time stuff, not clever planning. I got lucky.
Problem is that with State pensions for instance, trying to "unpick" the triple lock situation is almost impossible now - court cases/legal battles etc.
The state pension triple lock has proved to be a burden for successive governments, as it has proved costly for the taxpayer. On several occasions the government has considered modifying the triple lock, for example to replace it with a double lock based only on increases in earnings or CPI (whichever is the higher). However, voters have so far proved to be against the idea.