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Post by dodgydave on Nov 6, 2022 1:54:41 GMT
Morgan that might all be fine for them that can afford to save in this present economic climate. But its not Good on them that will see there mortgage rise or people who have to borrow money like small Businesses. There 2milllion mortgages set to rise and a further 1.5 million set to rise next year when there sort term mortgage end This is how the world works. When they give projections, they give best / likely / worse case examples. Depending on the narrative you want, you pick one. If this case, you are quoting the worst-case figures, which quite frankly will never happen. The likeliehood is that interest rates will peak next year at 6%, instead of the 7% thought previously. This should actually mean mortgages and loans becoming cheaper as they are priced on the length of the deal, not the current rate. BTW UK monetary policy is set by the independent Bank of England, it has nothing to do with the government. As always, I would suggest you follow what the rest of the world is doing before following the pathetic rhetoric coming from Labour. Central banks all over the world are pushing for higher interest rates to combat inflation. Yelling about the biggest increase for 40 years when the rates are historically low is just laughable. If you can't afford the historically low rates we still have, then you are an idiot for over-stretching and ignoring the financial advice you were given at the time of taking out the mortgage. Normal people don't mortgage to the hilt. Most people I know have actually been overpaying while the rates are so low. |
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Post by totheleft3 on Nov 6, 2022 6:14:07 GMT
That maybe interest rates was at there historical lowest .
That doesn't change that interest rates will see house reprocessed increase.
Despite people paying over their mortgage payments now
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Post by Red Rackham on Nov 6, 2022 6:41:00 GMT
That maybe interest rates was at there historical lowest . That doesn't change that interest rates will see house reprocessed increase. Despite people paying over their mortgage payments now TTL, I accept mortgage payers are going to suffer, that's because people today are used to unrealistically low interest rates that were never going to last. The average since the 1970's is 7%, in 1989 it went up to 15%. Today it's 3% and people are suffering. Do you think interest rates have peaked at 3%? Not a chance, believe me interest rates are moving and they aint moving down, not for a couple of years. I'm sorry for people who are about to be repossessed, but it's going to happen. In 1989, 79,000 people were repossessed, that's a record. I hope it's a record that's not beaten over the next couple of years. But judging how people live today, I'm not hopeful. |
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Post by totheleft3 on Nov 6, 2022 7:37:11 GMT
Yea ok red I accept what you say . But don't understand what you mean by how people live today.
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Post by borchester on Nov 6, 2022 7:49:36 GMT
That maybe interest rates was at there historical lowest . That doesn't change that interest rates will see house reprocessed increase. Despite people paying over their mortgage payments now TTL, I accept mortgage payers are going to suffer, that's because people today are used to unrealistically low interest rates that were never going to last. The average since the 1970's is 7%, in 1989 it went up to 15%. Today it's 3% and people are suffering. Do you think interest rates have peaked at 3%? Not a chance, believe me interest rates are moving and they aint moving down, not for a couple of years. I'm sorry for people who are about to be repossessed, but it's going to happen. In 1989, 79,000 people were repossessed, that's a record. I hope it's a record that's not beaten over the next couple of years. But judging how people live today, I'm not hopeful. True.
In a horrible sort of way, the rise in interest rates suggests that the good times are about to roll. The flu epidemic and Quantitative Easing were examples of the government trying to solve problems by chucking money at them. Nice ideas, but it resulted in the world awash with money that no one really had a use for. But now they have so interest rates will rise.
Lefties aren't really into happiness, but I suspect that they will just have to get used to it.
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Post by Baron von Lotsov on Nov 6, 2022 14:45:54 GMT
That maybe interest rates was at there historical lowest . That doesn't change that interest rates will see house reprocessed increase. Despite people paying over their mortgage payments now You want the honest truth about this. Our interest rates for hundreds of years were a stable 3% and hardly shifted until Thatcher. Interest rates need to be positive in the real sense, i.e. when we subtract the rate of inflation we need a positive number. The reason is that how the economy works is like say you lend £100 to a factory for a year then that factory invests the money and makes that £100 into lets say £105 for you, as in your payment for giving them use of your resources and then a bit of profit for the factory as well to go into their pockets. This is how it should be and how it works. Now lets say interest rates go right down and you lend your £100 to the factory and you only get back £101 after a year. You find yourself after doing this for a time with not much more than your started with. However here is why it is really bad. Now you put your £100 up for offers on the market and say I only expect £101 at the end of the year, and who wants to take my money and do that deal out of all you factories. On the factories side of the fence this looks great because returning only £1 interest on the £100 is far easier. There are many more ways to turn £100 into £101 than there are in turning £100 into £105. Now the bar has been lowered this rapidly expand the number of factories and factories doing really useless and inefficient things can still give you one quid extra back, even taking tea breaks like a British worker. So now after we do this we look at the market and we see the bulk of industry can only go 100-> 101. Our average industrial productivity has gone right down and this is why we all end up poor. |
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Post by Toreador on Nov 6, 2022 15:23:50 GMT
That maybe interest rates was at there historical lowest . That doesn't change that interest rates will see house reprocessed increase. Despite people paying over their mortgage payments now You want the honest truth about this. Our interest rates for hundreds of years were a stable 3% and hardly shifted until Thatcher. Interest rates need to be positive in the real sense, i.e. when we subtract the rate of inflation we need a positive number. The reason is that how the economy works is like say you lend £100 to a factory for a year then that factory invests the money and makes that £100 into lets say £105 for you, as in your payment for giving them use of your resources and then a bit of profit for the factory as well to go into their pockets. This is how it should be and how it works. Now lets say interest rates go right down and you lend your £100 to the factory and you only get back £101 after a year. You find yourself after doing this for a time with not much more than your started with. However here is why it is really bad. Now you put your £100 up for offers on the market and say I only expect £101 at the end of the year, and who wants to take my money and do that deal out of all you factories. On the factories side of the fence this looks great because returning only £1 interest on the £100 is far easier. There are many more ways to turn £100 into £101 than there are in turning £100 into £105. Now the bar has been lowered this rapidly expand the number of factories and factories doing really useless and inefficient things can still give you one quid extra back, even taking tea breaks like a British worker. So now after we do this we look at the market and we see the bulk of industry can only go 100-> 101. Our average industrial productivity has gone right down and this is why we all end up poor. May I suggest, as an example, you take a look at the hikes managed by the Wilson government in the 1960s when the mortgage rate came close to doubling. |
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Post by sword on Nov 6, 2022 15:46:12 GMT
Of course, it's all the fault of the Tories nothing to do with Covid that swept the globe during which the Tories spent huge sums of money to pay peoples wages to stay at home, buy PPE, ventilators, fund the race to find a vaccine and roll it out etc etc, borrow large sums of money to do it, whilst they were doing that the economy was booming all on its own. The strikes don't really affect our economy either the Treasury Coffers are full to overflowing America and all the other nations are doing well their economies are intact, America is not really in a recession nor is China, The Energy crisis all down to the Tories, nothing to do with a Raving Mad far left Dictator in Russia invading a peaceful neighbour and bombing the crap out of it, if WW3 breaks out and we all end up glowing in the dark, that will all down to the Tories.  The energy crisis is down to our and other Western Countries boomerang sanctions on Russia,following Washingtons orders,and blowing up a gas pipeline that would have sent cheap energy to Europe,of course clowns like you will blame other things including Putin. |
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Post by Baron von Lotsov on Nov 6, 2022 16:29:48 GMT
You want the honest truth about this. Our interest rates for hundreds of years were a stable 3% and hardly shifted until Thatcher. Interest rates need to be positive in the real sense, i.e. when we subtract the rate of inflation we need a positive number. The reason is that how the economy works is like say you lend £100 to a factory for a year then that factory invests the money and makes that £100 into lets say £105 for you, as in your payment for giving them use of your resources and then a bit of profit for the factory as well to go into their pockets. This is how it should be and how it works. Now lets say interest rates go right down and you lend your £100 to the factory and you only get back £101 after a year. You find yourself after doing this for a time with not much more than your started with. However here is why it is really bad. Now you put your £100 up for offers on the market and say I only expect £101 at the end of the year, and who wants to take my money and do that deal out of all you factories. On the factories side of the fence this looks great because returning only £1 interest on the £100 is far easier. There are many more ways to turn £100 into £101 than there are in turning £100 into £105. Now the bar has been lowered this rapidly expand the number of factories and factories doing really useless and inefficient things can still give you one quid extra back, even taking tea breaks like a British worker. So now after we do this we look at the market and we see the bulk of industry can only go 100-> 101. Our average industrial productivity has gone right down and this is why we all end up poor. May I suggest, as an example, you take a look at the hikes managed by the Wilson government in the 1960s when the mortgage rate came close to doubling. It's superfluous to my argument. |
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Post by Toreador on Nov 6, 2022 17:52:58 GMT
May I suggest, as an example, you take a look at the hikes managed by the Wilson government in the 1960s when the mortgage rate came close to doubling. It's superfluous to my argument. So you didn't know what you were saying when you said: Our interest rates for hundreds of years were a stable 3% and hardly shifted until Thatcher. |
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Post by Baron von Lotsov on Nov 6, 2022 19:07:25 GMT
It's superfluous to my argument. So you didn't know what you were saying when you said: Our interest rates for hundreds of years were a stable 3% and hardly shifted until Thatcher.It looks lieka seismograph plot at that scale: a ripple preceding an almighty spike which peaked in Thatcher's time. Tell me what does a few years make any difference to the general picture I was trying to convey in brief eh? Yea fuck all, now lets get on and move forwards shall we. |
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Post by dodgydave on Nov 6, 2022 20:43:42 GMT
That maybe interest rates was at there historical lowest . That doesn't change that interest rates will see house reprocessed increase. Despite people paying over their mortgage payments now Again, it is not certain mortgages will go up, because interest rates are now expected to spike at 6%, not 7%. That Truss spike was because they snubbed the financial establishments so allowed the speculators to create massive uncertainty. She is gone, so the uncertainty has gone. The rates would be the same regardless of Truss. At the end of day, what Truss did plays second fiddle to what the US does. The US will keep on raising them, forcing us to do the same... the same with much of the world. Despite the bollocks Labour keep talking (I heard one of them say everybody has seen their mortgage increase by £500), mortgages are priced over the term of the deal. So, like I said previously, the deal rates should come down. Repossessions are not guaranteed. Providers are a lot more responsive that they used to be. If you talk to them, they might agree to lesser payments for a period, or to extend the term until the rates drop then you can remortgage again onto a new deal. |
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Post by totheleft3 on Nov 6, 2022 20:56:35 GMT
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Post by Baron von Lotsov on Nov 6, 2022 21:10:52 GMT
That maybe interest rates was at there historical lowest . That doesn't change that interest rates will see house reprocessed increase. Despite people paying over their mortgage payments now Again, it is not certain mortgages will go up, because interest rates are now expected to spike at 6%, not 7%. That Truss spike was because they snubbed the financial establishments so allowed the speculators to create massive uncertainty. She is gone, so the uncertainty has gone. The rates would be the same regardless of Truss. At the end of day, what Truss did plays second fiddle to what the US does. The US will keep on raising them, forcing us to do the same... the same with much of the world. Despite the bollocks Labour keep talking (I heard one of them say everybody has seen their mortgage increase by £500), mortgages are priced over the term of the deal. So, like I said previously, the deal rates should come down. Repossessions are not guaranteed. Providers are a lot more responsive that they used to be. If you talk to them, they might agree to lesser payments for a period, or to extend the term until the rates drop then you can remortgage again onto a new deal. Talk does not pay their bills. Why should they take the hit for your gamble eh? |
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Post by dodgydave on Nov 6, 2022 21:12:45 GMT
Cool, show me your historical data for climate change, race to be carbon neutral, financial crisis, sovereign debt crisis, global pandemic, worldwide supply chain problems and then a war in Europe  Like I said, you can choose the prediction you want. The likely one is that interest rates and inflation will peak next year, and then come down, so mortgages will be priced on that. Mortgage providers cannot be as negative as Labour / LibDems / SNP... they would never sell a mortgage again |
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