Osimabu

iTrader: (2)

Anyone else depressed at the news that they won't be going up for at least three years, and that they're now directly linked to unemployment rates?

Some people have been prudent and saved, rather than riding the popular tidal wave of debt, and they've been penalised for it for the last five years.

My OAP mum relies on a meagre pension and interest from a few savings to survive. Prices constantly go up, her savings go down, and she gets less and less interest from them.

This policy encourages borrowing, the reason the country landed in the mire in the first place, and it's high time for a radical shift of policy in my opinion.

AndyC_772

iTrader: (2)

Right... but low rates mean more money in your pocket if you're a net borrower - like, say, everyone who has a home with a mortgage. You can't have it both ways!

Borrowing is no bad thing provided you can afford to pay it back, and having money tied up in savings isn't generating any business and so isn't helping the economy.

Midlife......

iTrader: (2)

I sympathise with your mum but it's the same for us with mortgages........ prices go up, wages stay the same so less money to pay the mortgage. Standard of living drops. No spare cash to pay loans so don't buy cars etc.......

Increased interest rates just makes that worse.

Unless you have a shed load of money or paid off your mortgage / cars then having a loan / debt is somewhat inevitable.

Shaun

The Pink Ninja

iTrader: (23)

It works for me, Not really got any savings to speak of but I've got 60k left on a mortgage to pay off so it's better in my pocket than theirs

f1_fan

iTrader: (9)

I have paid ofmy mortgage and have no borrowings and yes my savings aren't doing brilliantly given the interest rates, but you know what? I am very lucky to be a lot better off than most so I am not going to moan about losing a few percentage points interest!

dpb

So the basis of all this is,

If you've actually got any cash at all in your accounts , your a c**t

AndyBaker

******* Hell have you been drinking.

davegtt

F1 not going to moan? quick start a football thread. Personally over joyed at the news. Im paying 0.5% on my interest only mortgage and quite damn happy pretty much living for free at the present

f1_fan

iTrader: (9)

Cheers chaps

PaulC72

We need the low interest rates to enable us to pay the tax on our wages to support all the dole leeches who have 000's in savings new TV's etc and to support the 5 bed house for the illegals..........the system works well I don't see then struggling at all.

Chip

Same here, no mortgage. Well I have, but have all the money offsetting what I owe.

Got a fixed rate bond of 4% with Sainsbugs and maxed out on Prem bonds which return next to nothing. Rest in div shares which beat all other savings plans hands down.

Oh, and got my solar PV which returned gave a return of 18% tax free last year. Happy days.

stevebt

iTrader: (8)

Some idiot was on the radio today saying he can't afford to save for a deposit for a house due to the low interest rates! What the stupid ****** doesn't realise is that when the rates do rise it will make buying a property even more silly.


I had a mortgage when they had 15% interest rate and all those years ago I was paying £324 for a £24k mortgage so a world of pain awaits if they rise

dpb

You don't think he meant the low interest rates were pushing prices up, so therfore he couldn't afford a deposit for the mortgage

scoobynutta555

Sorry I have little sympathy for todays pensioners who have seen house prices rise stratospherically in their time. Who had a retirement age of 60 for women and 65 for men. I doubt very much there will be any state pension for anyone under 80 when I retire. Yes interest rates are low. QE has boosted the stock market massively and in turn pension schemes, so what you lose in interest you gain in other ways. Not to mention rises in pensions with the so called triple lock.

stevebt

iTrader: (8)

If the government pushed the interest rates up to say 15% where it was after a recession years ago it would of just killed the country as my wage was cut by about 45% so add that to massive inflated food prices etc and we would be like Greece now. I don't think many would be working never mind be able to afford a property.

tony de wonderful

With fractional reserve banking the banks needs deposits from savers in order to lend. No savers = no lending. At least that was how it was before central banks could use QE, etc.

Interest rates this low are not normal, we are at 300 year lows.

scoobynutta555

IIRC high interest rates were due to the ERM and pegging our currency. Didn't they go up to 20-25% briefly. I've not googled any of this by the way!

tony de wonderful

Property prices would have fallen, making them affordable. Higher interest rates also means people on fixed incomes and savers have more money to spend.

scoobynutta555

Houses wouldn't be more affordable as the economy would collapse and the banks would not lend.

dpb

One mate managed to sell his flat and another posted front door keys through letterbox of the lender

Matteeboy

Reward the goons on the never never flying high on the artificial property bubble, punish the prudent.

Oh and then do EVERYTHING possible to make the debt ridden goons spend more; genius!

No wonder Germany now laughs at our dumb **** ways.

dpb

It wasn't those rates for very long.

But now we've got the reverse, unless people believe they're houses are going up in value they won't spend anything.

scoobynutta555

They are going up in value. They're going up rapidly around here. I'll be fixing in for 5-10 years soon,, happy days

stevebt

iTrader: (8)

This, it would bankrupt that many people who have bought properties for their pensions and how many people do you think would be able to afford their mortgage and be able to live? It would push far too many people over the edge. As that's what happened in the US and its what started the global crisis.

stevebt

iTrader: (8)

I don't think it makes any difference if the property rises as its about affordable living? No matter what your work situation is you always need somewhere to live and now any rents for any property is far far higher than any mortgage even if it was social housing. Buying is now the cheapest way to live.

tony de wonderful

Then you could buy a house for a loaf of bread.

Anyway, who said the economy would have collapsed?

scoobynutta555

I remember the last crash. Nobody would buy anything and good luck getting a loan.

Matteeboy

I disagree.

Our old place - worth around £700k, cost us £1000pcm for six years, we claimed over 1/4 of that back from the business. A five bed place with five acres overlooking a river less than two miles from a City...

New one doesn't appear such a bargain but despite being slightly higher rent, is a much more desirable location so harder to find long term lets. Four/five bed place with a big garden and sea views for slightly more but again we claim a chunk back of all bills.

If we chucked say £100,000 in as a deposit, a £600k mortgage would cost FAR more. The trick is to rent places owned outright by the landlord, not buy to let with a mortgage to cover.

The old place needed a new boiler, most of a roof, a new garage and many other bits - we paid for none of it.

Current place has had a new oil tank, major plumbing work, etc - total hours lost and money spent on it by us directly? Nowt.

For those who choose not to buy and abhor the thought of spending any time of yet another DIY project, renting can make sense.

For the rest of Europe it often makes sense.

For our government, so entrenched in making the population "feel good" by propping up prices to make them spend more, they'll keep doing it until the whole thing collapses. At the moment, they're just stalling again and again.

dpb

It was banks lending money they didn't have that caused the collapse and people overstretching themselves.

stevebt

iTrader: (8)

Matteboy. I don't know where you live but I know of people renting out say a £250k property and they are getting £800 per month. A frind has £70k flats and rents them out for £340pcm.

If I could rent a £700k property for the price your saying I doubt I would bother buying either but that's not the norm?