Bank rate raised to 3% - wonder if this means that my savings might actually show some sort of return that isn't an insult?
My son and DIL very worried about their new mortgage costs.
I suppose like so many they have been effectively brainwashed by the successive governments and the BoE into expecting cheap money to last forever
The way house prices have gone cheap money is essential.
Of course if interest rates stay high then house prices may actually begin to fall leaving many with negative equity. This has been caused by HMG printing money.
I know for a fact my son and DIL will be voting Labour from now on. :rolleyes:
People with a mortgage and those trying to get on the ladder are hit hard..
It would seem that those with money.. will benefit..
I feel for the young.. I really do...
Brian must be laughing all the way to the bank.. !!
Quote from: Alex on November 03, 2022, 01:04:30 PMI know for a fact my son and DIL will be voting Labour from now on. :rolleyes:
Until they get burned worse by them of course....
Quote from: Michael Rolls on November 03, 2022, 12:46:37 PMI suppose like so many they have been effectively brainwashed by the successive governments and the BoE into expecting cheap money to last forever
For the whole time I had a mortgage I can't recall the interest rates ever being nearly as low as they are at the moment.
True but during the whole time I had a mortgage houses were affordable at those higher interest rates by people on pretty average incomes. That isn't so now. Supply and demand has pushed house prices out of the reach of many even at low interest rates. Pushing interest rates up now is going to leave an awful lot of blameless folk urgently seeking...
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Quote from: klondike on November 03, 2022, 02:53:34 PMTrue but during the whole time I had a mortgage houses were affordable at those higher interest rates by people on pretty average incomes. That isn't so now. Supply and demand has pushed house prices out of the reach of many even at low interest rates. Pushing interest rates up now is going to leave an awful lot of blameless folk urgently seeking...
It's the result of stupidly low interest rates & people not having the wit to follow the good advice about only getting a mortgage that you could afford if interest rates hit 10%.
The low interest rates pushed up house prices as people who couldn't afford them in the real world scenario, suddenly could as they were paying peanuts for a mortgage.
cheap money is an illusion - keeping rates so low and just printing money was a recipe for eventual problems. One news item reckoned that house prices could fall be as much as 30%, which sounds pretty alarmist, and if it happens a lot of folk will find themselves in negative equity
Long overdue, should have happened ten years ago. Hopefully house prices will fall 30% , back to a sensible level.
Savings will earn more than inflation with a bit of luck.
Quote from: 1955vintage on November 04, 2022, 09:18:24 AMSavings will earn more than inflation with a bit of luck.
I don't recall that
ever being true in the past.
depends on the type of savings, of course. Certainly 'safe' investments have never outstripped inflation that I can remember, but speculative ones certainly have, even in times like these - but, of course, they are risky - and at times like this, very risky