That would work too, but I can imagine they'd be quick to increase VAT to slow inflation but when it comes to reducing it again.... Not so much!
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Soldato
Like yourself you mean?
Oh here we go...
Can't comment on anything that impacts me? (Even though it also impacts many thousands of others if not more).
Have a proper discussion instead of going for the cheap shot.
Inflation erodes wealth, the wealthy do lose. Let's not pretend this doesn't come off the back of 0% on cash for 12 years either.
Honestly though, mortgage holders are collateral here, rates fixed for the entire term would solve that as we see elsewhere but then I'm sure if rates fell people would be moaning they are locked to a higher rate!
They'd be moaning. But it would fall on deaf ears.
At least if there was the risk free choice theres the risk free choice.
Personally I'd still take the trackers/short fixes myself. But for those closer to the edge.. The option of it being there would be nice
2yr fix might be the way to go for now. Tracker is just too expensive due to base rate sitting high.
You probably need the base rate to go to 3% or less by end of 2024 for the tracker to be competitive with a 2yr.
There are discount mortgage out there which might be useful as it will revert back to a tracker type (standard variable) after the initial offer period.
In all fairness, life time fixed mortgage should be the way to go. It’s mad that everyone needs to renewal every 2/3/5yrs. Albeit you can roll with the dice on tracker and incur non of the fees associated with fixed.
I know people did well in the last 12yrs on tracker
You probably need the base rate to go to 3% or less by end of 2024 for the tracker to be competitive with a 2yr.
There are discount mortgage out there which might be useful as it will revert back to a tracker type (standard variable) after the initial offer period.
In all fairness, life time fixed mortgage should be the way to go. It’s mad that everyone needs to renewal every 2/3/5yrs. Albeit you can roll with the dice on tracker and incur non of the fees associated with fixed.
I know people did well in the last 12yrs on tracker
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But is it not still a liability?
If you lend to someone with 0 deposit, and it all goes wrong, you could be left with a lot of Toxic debt?
Soldato
Should You Pay Off Your Mortgage or Invest? (A 50-year historical backtest)
A look into the past to assess how often investing has beaten paying off your mortgage. Graphs from the videohttps://go.novawm.com/MortgageGraphsFinancial Pl...
youtu.be
It's a liability yes. But also these loans would be government backed as I understand it.
Soldato
Ok, here's the point... The very structure of your argument separated out renters as less important, or arguably 2nd class to mortgage holders. If you had them on the same footing then instead of writing it as:
You would have written it similar to:
So your bias is either deliberate or its not. Given your posting history, its likely the former.
On your point, which in itself is wrong - it doesn't ONLY affect mortgage holders or "renters as a knock on". As an example - raising interest rates can stop businesses from investing including expansion and can also result in job losses. This will affect mortgage holders and renters but also others like their children who may be plunged into poverty with their parent(s) out of work.
So, yes, I did call you out on it. Say its a "cheap shot" all you want but your post reinforces the fact that you focus solely on your own situation (to the point of narrowing it even further by mentioning "more recent buyers" which is essentially your situation) and anyone else's differing situation didn't get a look in.
That do you for a "proper discussion"?
Yes. I expect the banks will be more than happy with that arrangement.
But I the end.. It only props up house prices.
Slight tangent. Looks like some recent hefty falls in Wales. But very very unequal!
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Soldato
12 percent of the population work there. That's a huge impactI fear Port Talbot area will end up like Grimsby after the fishing left unfortunately
The cheek of these people!
A Tory MP said he quit his ministerial role because he could not afford to pay his mortgage on a salary of £118,300.
Mid Norfolk MP George Freeman resigned as science minister in November.
In a blog post, he said he stood down: "Because my mortgage rises this month from £800pcm to £2,000, which I simply couldn't afford to pay on a ministerial salary."
A take home pay of ~£ 6,229.78 + god knows how much he can fleece as "expenses", and he cannot afford a £2000 a month mortgage?
The people just dont live the same reality that the vast majority in this country do.
George Freeman quit as minister as he 'couldn't afford' mortgage
George Freeman says he could not afford the repayments, despite a salary of £118,300.
www.bbc.co.uk
A Tory MP said he quit his ministerial role because he could not afford to pay his mortgage on a salary of £118,300.
Mid Norfolk MP George Freeman resigned as science minister in November.
In a blog post, he said he stood down: "Because my mortgage rises this month from £800pcm to £2,000, which I simply couldn't afford to pay on a ministerial salary."
A take home pay of ~£ 6,229.78 + god knows how much he can fleece as "expenses", and he cannot afford a £2000 a month mortgage?
The people just dont live the same reality that the vast majority in this country do.
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The cheek of these people!
George Freeman quit as minister as he 'couldn't afford' mortgage
George Freeman says he could not afford the repayments, despite a salary of £118,300.www.bbc.co.uk
A Tory MP said he quit his ministerial role because he could not afford to pay his mortgage on a salary of £118,300.
Mid Norfolk MP George Freeman resigned as science minister in November.
In a blog post, he said he stood down: "Because my mortgage rises this month from £800pcm to £2,000, which I simply couldn't afford to pay on a ministerial salary."
A take home pay of ~£ 6,229.78 + god knows how much he can fleece as "expenses", and he cannot afford a £2000 a month mortgage?
The people just dont live the same reality that the vast majority in this country do.
Haha. I read that too.
I love an out of touch vote shedding story like that.
If it's not enough, leave and get a new job. Don't moan and try and get a sob story and all the mental health stuff.
"my choices have taken a toll on my family"
Wtf.
Yeh. "I made such bad life choices, that somehow even a salary of £118,300 is not enough and means i can't afford my £2k mortgage"
What a clown. He is literally in the top 5% (maybe even 4%) of earners in this country.
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Its incredibly out of touch. It reads as some sympathy card that we should pay politicians more.
Like you say, this excludes all the perks they get.
Also, not sure how a 800 mortgage has gone to 2k.because that's my mortgage and at no point could I set it going to 2k
I can only see that happening if he has had to go onto some 8%+ standard variable rate or something (for some reason)
For sure. Which would be svr. And there's no reason to be on that unless it's a choice
