Soldato
- Joined
- 2 Feb 2010
- Posts
- 11,128
- Location
- Crowmarsh
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Man of Honour
- Joined
- 21 Nov 2004
- Posts
- 46,299
The problem is that is a pretty depressing life for a large number of people that will lead to all kinds of social unrest, antisocial behaviour and people who will just think ‘screw it, I’ll go on benefits’. None of which helps the country in the long run. Plus as above, plenty of people were already squeezed before any of this happened.
I’m someone who this barely affects, but I think it’s disgusting that this is the route we’re going down that will negatively affect so many people and so far has proven to be ineffective and once it does prove effective, the outcome could well be worse.
Last edited:
The poorest in society have the highest prevelance of smoking, that's an expensive habit.
There's always some fat that can be trimmed and if you are literally down to bread and water and can't afford the mortgage, then unfortunately you lose your house. We can't protect everyone from bad things happening to them.
Plus if they did have flashy holidays and cars, they could gave forgone those previously to have some security for future difficult times? My business partner is one of those 'live for the day' types 'why save for a rainy day, it never rains'.
Well, it's raining now.
Caporegime
- Joined
- 7 Apr 2008
- Posts
- 25,080
- Location
- Lorville - Hurston
What's wrong with buying a nice car and a holiday? Is that a sin all of a sudden?
Soldato
- Joined
- 2 Feb 2010
- Posts
- 11,128
- Location
- Crowmarsh
Of course not, but people have been conditioned by society to be massive consumers well beyond their means. Cheap abundant credit, cars on tick, maxing out mortgage affordability, latest phones (and for this forum graphics cards
) All great while the economy engine is running not so great when that seizes up and all the monthlies becomes unaffordable.Our (my) parents generation were brought up with make do and mend, our generation and below have been brought up on consume and discard.
Last edited:
Again, I don't think you can say that. Go look at the graph of inflation for the UK, it was rising like a covid wave! And now it has peaked and dropped, you can't say it wouldn't have continued rising on the same trajectory without the raising of interest rates over the last year.
Keep in mind, products designed that way now.
We've cut back as far as we can, the only option left would be to get rid of our cats, and screw that.
A lot of new vehicles don't belong to the person driving them, they are leasing. What percentage I don't know.
Soldato
- Joined
- 22 Apr 2009
- Posts
- 3,748
- Location
- North-West
Indeed but people are struggling so a small few can add a few more £ to their fortunes which does not help the economy.
That was me. I think we could probably cut back on my wife not losing several dozen of our kids' toothbrushes each week by leaving them lying around the house... that might save a few grand a year.
Tbh the BTL is not the main issue - we have two kids in nursery in some of the most expensive childcare areas around. One goes in 4 days a week, the other 3 days... and it costs us almost £2.5k per month. Difficult to say whether it's worth my wife working her 3 day week at those prices.
You'd all **** yourself if you saw the mortgage on our main house!
Good thing we've got 3 and 4 years left of the split mortgage on that property otherwise we'd be properly ******...
Last edited:
Soldato
- Joined
- 4 Aug 2007
- Posts
- 21,989
- Location
- Wilds of suffolk
I was thinking that. I cannot see how the average UK disposable income was 18k in 1980!
As a population, if people are only working to live that is not healthy or good.
BoE monetary committee is occupied by out of touch self claimed economists/bankers.
BoE admits their forecast and estimate have been wrong for at least last 2years. Yet they are weirding this mallet of a weapon called Base Rate as a tool to address a problem they don’t fully understand or have any sort of intimate knowledge of. It’s like a doctor just giving you radiation therapy for all over your body without knowing where the cancer is or if it is a cancer.
In all fairness BoE has not got much right since as far as I can remember. They dither from one crisis to another and from one scandal to another, from one recession to another and from one bubble to another and never ending and never learning their mistake.
The problem with central bank is that they are a law to their own. No one is holding them accountable for their incompetence or inaction or corruption.
BoE monetary committee is occupied by out of touch self claimed economists/bankers.
BoE admits their forecast and estimate have been wrong for at least last 2years. Yet they are weirding this mallet of a weapon called Base Rate as a tool to address a problem they don’t fully understand or have any sort of intimate knowledge of. It’s like a doctor just giving you radiation therapy for all over your body without knowing where the cancer is or if it is a cancer.
In all fairness BoE has not got much right since as far as I can remember. They dither from one crisis to another and from one scandal to another, from one recession to another and from one bubble to another and never ending and never learning their mistake.
The problem with central bank is that they are a law to their own. No one is holding them accountable for their incompetence or inaction or corruption.
Last edited:
It is right you have to get on with it. It does suck. And I do think other methods except the old hammer of endless rate rises could be implemented to spread the pain more evenly.
Why are we giving inflation huge pension boosts if we are trying to reign in inflation?
Why aren't we taxing wealth more?
Its easy and lazy and doesn't affect the elite at all. Everyone should shoulder the burden.
We all have to go without something. Unlike many of our parents, we will end up with less.
No longer will you end up with an expensive paid off house, able to bring up 2-3 kids, one parent works, a state pension and often a lucrative private work pension.
Its not a reason to hate the older generation, we just have to accept it. If we just keep voting the same lot in, or don't take to the streets and protest (it's a long way from that) just have to do best you can.
Cut the kids, cut the grand home expectations, cut the expensive holidays. At least the average person doesn't have to cut everything. We have no kids and should do OK. We can still have the holidays and will be mortgage free. But it won't be a lavish house like my parents.
Things are getting worse and just have to deal with it.
As a few have said. Climate change is knocking on the door. That's when the real hell will begin.
Why are we giving inflation huge pension boosts if we are trying to reign in inflation?
Why aren't we taxing wealth more?
Its easy and lazy and doesn't affect the elite at all. Everyone should shoulder the burden.
We all have to go without something. Unlike many of our parents, we will end up with less.
No longer will you end up with an expensive paid off house, able to bring up 2-3 kids, one parent works, a state pension and often a lucrative private work pension.
Its not a reason to hate the older generation, we just have to accept it. If we just keep voting the same lot in, or don't take to the streets and protest (it's a long way from that) just have to do best you can.
Cut the kids, cut the grand home expectations, cut the expensive holidays. At least the average person doesn't have to cut everything. We have no kids and should do OK. We can still have the holidays and will be mortgage free. But it won't be a lavish house like my parents.
Things are getting worse and just have to deal with it.
As a few have said. Climate change is knocking on the door. That's when the real hell will begin.
I’ll be honest - I don’t really understand economics that well,
But for a long time now I've been asking exactly how long the current inflation can continue, things have just gotten insanely expensive - to the point where it feels as though companies are just scalping, or keeping prices high for the sake of it, on pretty much everything across the board..
It felt like the levee had to break, and I guess this is what it looks like...
Last edited:
Of course not, but people have been conditioned by society to be massive consumers well beyond their means. Cheap abundant credit, cars on tick, maxing out mortgage affordability, latest phones (and for this forum graphics cards
Our (my) parents generation were brought up with make do and mend, our generation and below have been brought up on consume and discard.
True, but the entire western economy is built on this premise. Infinite growth on a finite planet.
Regarding food and general shopping basket items. We know the super markets are making HUGE profits. They are scalping consumers. Consumers are reining in spending but they can’t spend less £££ because super markets are scalping on basics like bread milk and eggs.
Sainsbury annual gross profit for 2022 was $3.231B, a 39.94% increase from 2021.
That’s just one of the many industries who are profiteering.
The capitalist market has stopped working ie there is no competition. It is like everyone is looking at each other raising prices to match one another as opposed to the other way round.
Sainsbury annual gross profit for 2022 was $3.231B, a 39.94% increase from 2021.
That’s just one of the many industries who are profiteering.
The capitalist market has stopped working ie there is no competition. It is like everyone is looking at each other raising prices to match one another as opposed to the other way round.
Last edited:
Caporegime
- Joined
- 22 Oct 2002
- Posts
- 28,283
- Location
- Boston, Lincolnshire
We are still massively wealthy compared to the vast majority of the world. People don't realise that. They just look at Joe Bloggs in his Ferrari.
Can't pay the mortgage? Get a second job. It sucks yes but you have people who work 7 days a week in the world who own nothing.
I only work 3.5 days a week but if it hit the fan and I needed money I would be doing 5/6 days as much as legally possible.
Near enough everyone survives on a dual income these days so what happens if one of you gets seriously sick? You find a way and crack on.
Can't pay the mortgage? Get a second job. It sucks yes but you have people who work 7 days a week in the world who own nothing.
I only work 3.5 days a week but if it hit the fan and I needed money I would be doing 5/6 days as much as legally possible.
Near enough everyone survives on a dual income these days so what happens if one of you gets seriously sick? You find a way and crack on.
Last edited:
Personally I think there are limits to the benefits of rising interest rates now, 5% is possibly already at the level of breaking things. I see no benefits of raising further.
Of course not, but people have been conditioned by society to be massive consumers well beyond their means. Cheap abundant credit, cars on tick, maxing out mortgage affordability, latest phones (and for this forum graphics cards
Our (my) parents generation were brought up with make do and mend, our generation and below have been brought up on consume and discard.
They were also brought up with an expectation of secure housing, a decent pension, potentially a job for life etc etc.. the social contract is broken.
You can't blame people for not living at a time that they weren't born.