One way to cut the population! Fewer poor people, some on here will rejoice.
Mortgage Rate Rises
- Thread starter glenimp617
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Soldato
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Caporegime
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So the Thanos way? click fingers and half the population gone?
Honestly I've got no idea.
We held on to the flat when we bought our house, withdrawing as much equity as we could in the process.
The question for us has always been whether to sell it within three years and receive the 3% second home stamp duty and what was left or the equity, or at some point getting onto a capital repayment BTL mortgage and have it paid off over the next thirty years as a retirement asset.
We've missed the stampy duty rebate - didn't sell within three years. Undecided at this point what we'regoing to do with it butnim thinking we wait and reevaluatein December when the term is up.
We don't own the BTL property as an income option, as it makes a small amount of money and doesn't really cost us anything. So it just kind of sits there.
More like press keys on keyboard and slowly chip away, yeah.
It's all irrelevant anyway, we'll get out of this in maybe 5 years, which will only leave a other 5 or so before the climate emergency really starts to bite! That won't be fixed easily...Isn’t stagflation enough for you?
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Can't trust banks with the numbers.
The editors calculations
Average wage in 1980 was ~ £5k knock off 1k for 20% tax, NI etc so ~4k disposable income = ~ 50% of income assuming you can trust any other numbers.
That would make the current 6.5% approx equal to 15% back in the day
In addition in 1980 the basic rate of income tax was reduced to 30% from 33% between incomes of £1375 and £11250, rising in stages to 60% at the top rate of tax. Your tax calculation is generous.
I earned £3500 in 1982
Soldato
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I see someone said that their mortage went from something like £1200 to £2600 per month. What do you suggest they cut back on?
Given mortgage isn't the only thing that's risen, just eating is costing more per month.
jingle bells
everything
Surely that's not possible?
Soldato
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I don't disagree with your tax point - personally I would like to see an increase in tax free allowance to the point where someone in full-time work would not pay any income tax if they only earnt the living wage - but this would drive inflation - not decrease it, so it's not the right time.
Inflation is caused by having to much money chasing to few goods - so stopping spending is not necessary if you can increase supply sufficiently.
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Everything!!!
Soldato
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I don’t think a lot of people could reduce their outgoings that much.
The other question is why should people reduce what they do? So banks and energy companies can’t make record profits?
Caporegime
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But if people stopped buying those sort of stuff then those companies will lose money and the staff get sacked and many become jobless.
Remind me why do we need to stop people from spending money?
Soldato
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You have to live within your means at the end of the day. Adjust your outgoings according to the current landscape.
We are always careful with what we spend. Mostly our money goes into the house.
But some people cannot do without their fancy holidays and flashy cars. They'll just have to learn how to rein it in for now.
We are always careful with what we spend. Mostly our money goes into the house.
But some people cannot do without their fancy holidays and flashy cars. They'll just have to learn how to rein it in for now.
Because always maintaining or improving your standard of living isn't a law of nature. People have got used to a cushy standard of living and its a shock now things are getting tougher.
Yes, the poorest in society are struggling even more than usual, but they always have struggled and people lose their homes to repossession every year without barely a mention, but now the middle are being dragged down to that level its the end of the world!
Everyone keeps talking about solving this inflation problem with methods that cause no pain, well especially no pain to themselves, but that's not going to happen. We've been through this before, many times, we'll get through it again and come out the other side.
Hell, if we think this economic turmoil is bad, just wait till the effects of climate change kick in with full force, which probably isn't going to be that long.
What about the growing number of people who don't have fancy holidays, flashy cars and have nothing left to rein in? People can only rein in so far and a lot of people hit the limit of what they can rein in a while ago. Are you somehow unware of what has been happening over the past years? People having being reining it in year after year and have nothing left to rein in.
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