Ok. So they had failed Thatcher clone. We all know what's next, they're going to find a fat rich man who smokes cigars and drinks all day and go for a poor man's Churchill clone.
I cant believe there's talk of boris coming back. It's obvious we are at the bottom if the barrel now, but **** me if we've got to start recycling the dregs we are in some sorry state.
Which screws over homeowners as end up losing **** load of equity. Housing market would just freeze as no one would sell their house. Which I guess would make prices go back up as less on the market
But it does free up alot of new homes from people foreclosed on because they couldnt afford the mortgage? I'm not saying it's good, but its happened before. Every now and again the housing market goes pop, then it climbs again. **** if you lose, great if you win.
I've been perusing a few political sights and he still has backing. It's astonishing. Amazing how far you can get having messy hair, a posh accent and make people laugh
well to be frank everyone who has had a mortgage in the last decade has had it easy in historic terms and should have planned for interest rate rises . Personally thought they should have been raised slightly years ago just to remind people that they can go up .
Interest rates remove money from the rcomony by forcing us to eat tesco beans on untrusted unbutton plan white bread as nothing else can be afforded. As the money is not in the economy inflation comes down. Inflation makes everyone poorer in real terms so the impact of inflation is worse than the effect of interest rates if(big if) you've borrowed at rate you can repay. Growth and inflation are not necessarily linked. Growth is down to demand and supply of capital etc. Inflation can be down to lack of supply. In the end here it sounds fine to keep interest rates down but a couple years of high inflation and suddenly you can't afford anything.
And everyone who had a mortgage 20 years ago paid 60k for a 4 bedroom detached house which is now worth 500k.
Have you.worked out the compound interest on a a 60k mortgage at 5% or 10% a year over 20 years OK 250k a year but 1 and 2% compounded over 20 years. The power of compound interest is compelling Do it excel and see how much someone pays. Then ask what was someone's wage on average in 2000 (which was a case of love to see the 60k House btw cos it'd be in a depressed area) 1999 17.8k 2021 31k Now sorry but the cost of housing for people today is scandalous frankly but the standards and regs have also improved etc. Its all a load of ahit but not old folks fault all the time. I know people who bought a house for 5k and struggled every month to pay their mortgage and are now retired and know people who got done over like a kipper in 2008 buying and kids today who can't ever afford to buy. It's not like people had it easy in the past, my day or now. The cost has shot up.
Inflation is my friend. I'm paying 3% mortgage. As long as inflation keeps being a twat to the world, my mortgage debt is shrinking... Mainly because of the housing boom more than inflation, but my house and land is already worth 25% more than I paid for it. That was a price locked in 18 months ago when construction started and paid back in Feb when house was finished. Coming recession will eat some of that growth though.
That's the power of fixing I suppose. I knew a yank who had several jobs (cos he was ****) in several states and he always bought foreclosures and did them up In real terms your mortgage isn't really shrinking though is it over the whole term. The npv of the thing could be calculated but the power of compound interest isn't to be under estimated.
Mine is worth 80% more than I paid 5.5 years ago, doesn't make it any easier that I stand to lose said house if interest rates stay the same or raise further over the next 18mths.
Yeah, it no good to anyone that you can sell all your hard work and whatever to make the bank happy and you have to then do whatever with what's left so that's really ****ty but it's the only lever the bank of England has to reduce inflation The sooner the pound goes back up the more the price of imports drops. That's really the only next step.
