just can't see the logic behind it apart from "this is what we normally do" well things are very different to what they used to be if nothing else years ago nearly all mortgages were variable rate where as most are now fixed rate & period . This mean there is a "cliff edge" for many though it will take much longer to effect all .
My 5yr fixed term ends in April, **** knows what I'm going to do. I was really struggling a few months back. Only reason I'm not struggling now (not exactly flush either) is because my youngest's diagnosis finally came through so we were able to claim DLA. Not exactly what DLA support is for but least it's helping to keep food on the table and a roof over his (and ours) head!
Hope little ones all good? **** situation for lot. Not having kids is def helpful atm although cat and dog are bloody expensive at times Just living in hope that by time it comes round they’ve dropped a bit or someone has used some common sense to force banks to at least offer some sort of support
by then it is possible / probable inflation will have reduced greatly though mu guess is interest rates ( rightly imo ) won't go back to such low levels as they were held at previously .
Scary situation. As Solid says, with any luck inflation and interest rates have hit their peak and will come down again soon. When they do, if it's anything like last time, you'll have another 40 years before they hit peaks like this again... You can move in with one of your kids then. Convince them all to become doctors so they'll have plenty of money. Better yet, settle in for fixed when mortgage rates get back down to low single digits again. Worst case scenario, earn some money on the side. I don't think Only Fans has tapped into the middle aged men eating KFC photo market yet, you could become a pioneer.
err interest rates at the current rate historically aren't that unusual though getting there the real outlier has been having practically zero interest rates for a decade . Personally thought they should have raised interest rates a bit about 3 years ago just to remind folk they could go up and (this will be unpopular) raise the affordability rate .
Think anyone under age of 40 is probably not used to interest rates being anywhere above 3ish. You only really pay attention when looking for a mortgage and I know since I’ve done they’ve been pretty low. Those in their 50s and above prob Remmeber when they were far higher, albeit I believe when house prices weren’t about 10x the average salary so your actually mortgage amount wasn’t quite as high? Ive been lucky that all my mortgage rates for the last 9/10 years that I’ve owned a home have always been around 2% which is management. So doubling that to 4% seems a huge increase.
I think as harsh as it seems everyone needs to realise that once the rates go up they are not going to come down for a long time. Why? the banks will just make more money off us. good for the banks and good for the shareholders Inflation is now 8.7% (massive.) down form 11%. there is no account of year 2 of the winter war in this number. Euro rate inflation is 7.1% The likelihood here is that the blunt tool that is interest rates will be baked in by analysts and a further 2 to 3 rises are going to happen as they have been signals. IRRESPECTIVE of whether that are overshooting the correction needed or not. They really need to get this down below 4% to call a half and then the euro zone will keep at it till they are at 2% and cripple thier economy. The uk government will likely be less harsh I'd expect about 6.5% to be the high folks.
It's a standard response to an abnormal situation. Inflation is being driven by the basics being more expensive, **** people can't do without. It's not like you have a choice whether to buy food, or keep the house warm. We'll I suppose you do, you can starve or freeze to death. All this is doing is squeezing people, more and more money flowing to the banks and the already rich, while little people and little businesses fall by the wayside.
4% would still be a really good rate for most time periods (that's lower than my previous mortgages). We were lucky enough to lock in at 3% fixed before things started going crazy here with inflation. Different markets of course... But 4% is considered low here. 2% is amazing. I thought we did well with our 3%.
On the good news front my fuel payments were reduced last month as we had udef less than they estimated we would and today got an e-mail saying due to falling prices another 30 quid a month is coming off so suddenly £50 per month better off .
I'll add, I've just had to make a lass redundant today. Absolutely ****ing horrible thing to have to do. But people's spare money has dried up. Businesses are going to the wall. The wonder that is our government are doing absolutely **** all about it. A stupid grin and a shrug of the shoulders. We'd be better off being run by the circus.
Well yes but. it's about taking the money out of your pocket do you spend less. it's about making borrowing money to do things more expensive, whether that's buy a car or build a factory etc so higher interest rates hammer business and their growth just like it hammers us.
I understand the point of it, I also understand this is the wrong situation to apply it to. The basics are expensive, no amount of interest rises are going to bring the price down. Because its the basics, businesses can't cut there prices because that's how much it costs to make. Margins are already down to **** all. I suppose it will make a difference, when everything goes bust and we are all on the dole. They are yshering in a recession with out a care in the ****ing world.
My wife is currently on long term sick leave from work (had a really bad negative reaction from the 1st Covid vaccine which triggered multiple vestibular and autoimmune issues), she's still getting some sick pay, but when that stops we're down to one salary too. Its a ****er.
yea, interest rates won't bring anything down. they are "encouraging" them to not keep going up. a 1 quid product is now 1.1. they don't want it to be 1.21 next year. nothing is going down
**** me. The interest rate rises have done absolutely **** all, but heap pressure, stress and misery on people. An already ****ty situation made worse, by a clueless organisation the boe and a redundant government. Again, I understand what they are designed to do, I'll reiterate, they are the wrong tool for the job.
This is the problem. Inflation up, they stick interest rates up so people spend less and save more. But what happens is people spend exactly same amount at Tesco because they have to buy food to supermarket gets tonne of money but the nice things at small independent shops etc get less business, have to make redundancies and cut back costs to stay afloat. Just makes no common sense
Yeah, actual mortgage rates will not fall as quickly as the base rate, if the BoE does eventually start lowering it. The bank ****ers are very quick to raise them (even pre-emptively raising their offers before this latest rate rise).
