Interest Rate Up

[Quickenthetempo]

Last month, I got an email from Lloyd's bank, a day or two before the bank of England met to put interest rates up.
The email asked me how I was going to cope with the interest rate going up x amount.

They sent an apology and to ignore the email, the exact same email was sent after the bank of England told everyone they put it up.

It was either pre decided and Lloyd's knew or it's decided higher up and they're told what to do.

[dsr]

I'm not surprised - £60k in the 1970s was a significant amount in real terms and many multiples of the average price of a house back then.

The point isn't the size of the house, it's that a £60k mortgage cost more to service then, than a £400k mortgage does now. And a £400k house now is pretty huge - 4 bedroom brand new detached houses are going for £300k.

[taio]

The point isn't the size of the house, it's that a £60k mortgage cost more to service then, than a £400k mortgage does now. And a £400k house now is pretty huge - 4 bedroom brand new detached houses are going for £300k.

Of course it cost more to service. For the reason I said (I didn't say anything about size). In real terms a £60k house in the 1970s was a much bigger financial commitment than a house costing £400k now.

[Rowls]

Last month, I got an email from Lloyd's bank, a day or two before the bank of England met to put interest rates up.
The email asked me how I was going to cope with the interest rate going up x amount.

They sent an apology and to ignore the email, the exact same email was sent after the bank of England told everyone they put it up.

It was either pre decided and Lloyd's knew or it's decided higher up and they're told what to do.

They have a good idea of what's going to happen and have the emails ready to send. It's possible they've had a tip off of what's going to happen but these things are fairly easy to predict.

[Lancasterclaret]

There's obviously a few exceptions but what on earth has happened recently? High level politician caught embezzling funds?

I don't think the best interests of the country are being served by the current government

Its 2022, and all they have is arguing about 2016, which is fine for the likes of me and you on here, but less than ideal for an actual government in the middle of a cost of living crisis

[Lancasterclaret]

The point isn't the size of the house, it's that a £60k mortgage cost more to service then, than a £400k mortgage does now. And a £400k house now is pretty huge - 4 bedroom brand new detached houses are going for £300k.

If you would provide the relative sizes of the house dsr, then I might take you seriously

[taio]

The point isn't the size of the house, it's that a £60k mortgage cost more to service then, than a £400k mortgage does now. And a £400k house now is pretty huge - 4 bedroom brand new detached houses are going for £300k.

A house costing £60k in say 1975 (mid-point) would be circa £1.5m today.

[dushanbe]

The point isn't the size of the house, it's that a £60k mortgage cost more to service then, than a £400k mortgage does now. And a £400k house now is pretty huge - 4 bedroom brand new detached houses are going for £300k.

£400,000 houses aren't huge at all and a brand new 4 bed detached house also costs a lot more than £300,000 or at least the evidence near me suggests otherwise. Two new estates going up in Worsthorne and Cliviger currently and 4 bed detached houses start at £340,000 and some are nudging £400,000, for not much more than a pretty bog standard house with a bit of garden.

[ChrisG]

£400k might get you something in the Burnley area, but anywhere decent near a city, you're getting a terraced house for that.

[taio]

£400,000 houses aren't huge at all and a brand new 4 bed detached house also costs a lot more than £300,000 or at least the evidence near me suggests otherwise. Two new estates going up in Worsthorne and Cliviger currently and 4 bed detached houses start at £340,000 and some are nudging £400,000, for not much more than a pretty bog standard house with a bit of garden.

Spot on. And of course that's Burnley where house prices are typically lots lower. A £400k doesn't buy you a pretty huge house at all. Whereas £60k in the 1970s would buy you pretty much a mansion. The difference is so stark I don't really understand the original point being made.

[ClaretAndJew]

A 770 square feet two bed apartment in Kendal where I now live is £225,000.

A 4 bed detached property is going for £1.25 million.

[claret2018]

In clitheroe a 4 bed detached is north of 400k, and 500k in a nice part of town

[dsr]

FORGET THE HOUSE.

My point, and my only point, was that if you borrowed £60k in the seventies and eighties you had to make a higher monthly repayment than if you borrowed £400k last year. This is nothing to do with what you were borrowing, it is because interest rates were much higher.

[dsr]

Though if it mattered

https://www.persimmonhomes.com/new-home ... rwood-park

Houses up to 4 bedroom, prices up to £279k. I live in Colne, my friend lives in Colne, his son lives in Colne, so using Colne prices is probably a fair comparison.

[Rowls]

Its 2022, and all they have is arguing about 2016, which is fine for the likes of me and you on here, but less than ideal for an actual government in the middle of a cost of living crisis

The only people still banging on about Europe are the Remainers. Mainly on internet forums.

[taio]

Though if it mattered

https://www.persimmonhomes.com/new-home ... rwood-park

Houses up to 4 bedroom, prices up to £279k. I live in Colne, my friend lives in Colne, his son lives in Colne, so using Colne prices is probably a fair comparison.

A pretty standard - not pretty huge - 4 bed detached at Spring Meadows, Red Lane, Colne costs £390k.

[Lancasterclaret]

The only people still banging on about Europe are the Remainers. Mainly on internet forums.

Ah, i love it when you go fact free when you've got nowt else

Never change Rowls, never change

[JohnMcGreal]

The only people still banging on about Europe are the Remainers. Mainly on internet forums.

Remain voters on Internet forums.........and seemingly the Prime Minister and his government, who are spending their time 'banging on about Europe' so much that they're even ripping up their own deal, pouring petrol on an existing crisis in the process.

Not the best week to make such a ludicrous claim like that, Rowls.

[Rowls]

Ah, i love it when you go fact free when you've got nowt else

Never change Rowls, never change

I'm too busy to play this game today, despite apparently being in demand for quotes and soundbites on a couple of threads. It's tricky being popular. Sorry!

[Lancasterclaret]

I'm too busy to play this game today, despite apparently being in demand for quotes and soundbites on a couple of threads. It's tricky being popular. Sorry!

Like I say mate, never change Rowls, never change

Can I recommend a book for you to read, its by a bloke called George Orwell, and its quite good, called 1984

Very relevant if you are someone who is telling everyone stuff that isn't remotely true

Give it a go, you'll love it!

[Herts Clarets]

Rate increased to 1.25% as expected

[Lancasterclaret]

Rate increased to 1.25% as expected

Won't be long before it goes up again one would think

[Quickenthetempo]

Estate agents could be busy today with people putting their houses up for sale.

[Zlatan]

About 2 months ago I started the process of attempting to remortgage from our 2.02% 5 year fixed to a 2.29% 10 year fixed rate with Lloyds. Long story short, I was rejected for the 2.29% rate based on affordability so I had to shop around for a different deal which I found with Nationwide at 2.99% fixed for 10 years. Essentially it’s cost me nearly £12k extra over 10 years so I’m a little annoyed… especially since Lloyds call me last week to offer me 2.78% and say I meet the affordability requirements! What’s that all about? Genuinely makes no sense to me at all

[Nori1958]

Rate increased to 1.25% as expected

Excellent news... Long may it continue, about time I got some benefit from my hard earned money...... And before anyone has a dig... I use some of of my hard earned money, to the benefit of my younger family members who might struggle otherwise, so the more money I have, the better it is for them

[Quickenthetempo]

Excellent news... Long may it continue, about time I got some benefit from my hard earned money...... And before anyone has a dig... I use some of of my hard earned money, to the benefit of my younger family members who might struggle otherwise, so the more money I have, the better it is for them

Have the banks put the interest rates up for savers?

They're not usually very fast to do so.

[mealdeal]

Excellent news... Long may it continue, about time I got some benefit from my hard earned money...... And before anyone has a dig... I use some of of my hard earned money, to the benefit of my younger family members who might struggle otherwise, so the more money I have, the better it is for them

Yeah incredible, your little nest egg is probably only losing value at a rate of about -8% per year now, way to go Scrooge.

[Nori1958]

Have the banks put the interest rates up for savers?

They're not usually very fast to do so.

Last couple of times it did... Plus indexinked pensions

[Nori1958]

Yeah incredible, your little nest egg is probably only losing value at a rate of about -8% per year now, way to go Scrooge.

Don't think scrooge gave any away...

[Lancasterclaret]

https://twitter.com/Simon_Nixon/status/ ... 9590589446

Worrying

[Billy Balfour]

Lancs, no point in posting that link. The people who voted for it will never own it. I'm mean, would you seriously admit to being pwned by the likes of Jacob Rees-Mogg and Alexander Boris de Pfeffel Johnson?

[taio]

https://twitter.com/Simon_Nixon/status/ ... 9590589446

Worrying

He's cherry picking economic data.

[dsr]

https://twitter.com/Simon_Nixon/status/ ... 9590589446

Worrying

It's strange that anyone could blame the fall in Sterling from $2 in 2008 down to $1.50 in 2016, on Brexit. Surely the pandemic and the war in Ukraine would share an equal part of the blame? (he might have got more impressive figures if he had used the figure from the 1860's. $10 to the pound then. Of course, it would be hard to link it to the price of petrol!)

I'd be interested too, if the UK's petrol price increase is down to Brexit, what his reasoning is for the USA's petrol price increase. Surely not Brexit for them? Perhaps there are other factors at work in the price increase, as well as Brexit?

[Carport]

So any suggestions ( sensible) where to put savings to reduce the risk of them losing value to inflation? Where am I likely to get a minimum 11% return at low to medium risk? I guess nowhere!!

[taio]

So any suggestions ( sensible) where to put savings to reduce the risk of them losing value to inflation? Where am I likely to get a minimum 11% return at low to medium risk? I guess nowhere!!

Your best chance is in an investment fund in a stocks and shares ISA wrapper. Providing you can commit for at least a few years.

[Rileybobs]

Delighted to learn that I can get a huge house for £400k. I’m going to put mine on the market tomorrow.

[Lancasterclaret]

He's cherry picking economic data.

Sure he is, and I added the whole thread because some of the comments do point that out a bit

Course, we are still in the denial stage of what is going on, and until we accept that there are issues, we won't be sorting them anytime soon

[taio]

Sure he is, and I added the whole thread because some of the comments do point that out a bit

Course, we are still in the denial stage of what is going on, and until we accept that there are issues, we won't be sorting them anytime soon

I didn't read down because it was so obvious it was cherry picking. But fair play for showing it all. I agree there's still a lot to run but I don't think we'll know until the world has stabilised after major events.

[Cirrus_Minor]

Out if interest, how much of a % of your income was your mortgage payment?

Reason I ask is that I believe the % is way higher now and any increase in interest rates will scupper many people (which in turn brings down inflation but makes people poorer)

Sorry for late answer

I am struggling to remember exactly, but it was a fairly large percentage, probably near 50%

[fatboy47]

So any suggestions ( sensible) where to put savings to reduce the risk of them losing value to inflation? Where am I likely to get a minimum 11% return at low to medium risk? I guess nowhere!!

I'd look at buying some equity in the higher yielding blue chips as an option for an acceptable percentage of your stash carport. Look at company's with a good consistent track record in respect of dividend payments. Whilst unpredictable, prices are some way from their peak right now, and there's value to be found.

Taio's suggestion also has clear merit.

[Top Claret]

The world needs stability and we won't get that until the Chinese stop covid lockdowns and the Russians are pushed out of the Ukraine.

Putin needs defeating at all costs and if it means the use if NATO forces to push the Russians back over the Ukraine so be it. The Russian people need to be taught a lesson and to realize that they live in a dictatorship and that the free world will no longer tolerated there murder and brutality

[OssyClaret]

Hi

Been fortunate enough to lock in a 5 year fix in October 2021 at 0.99%.

I’ve not got round to sorting out a small regular overpayment with the new mortgage supplier yet which we did on our previous mortgage.

When working out what is more beneficial (overpaying mortgage Vs. Saving) is it as simple as finding a savings account paying more than 0.99% (less any tax on savings)?

We can afford the overpayment so would be happy to lock the overpayment money away until the end of this fix to achieve the best rate. Any suggestions on the type of account I could look at would be appreciated.

Thanks

[BabylonClaret]

It’s not a left or right thing. It’s a con on us all whichever nonce you vote for. The link above explains it all pretty well. Given everyone on this thread agrees the government create money (apart from the young fella who works as a cashier at Burnley Building Society) then it’s not a massive step to accept the logic the government doesn’t need to borrow. They just pretend they do to keep us down and quiet.
It’s a method to steal those few remaking real ale vouchers out of your wallet Rowls

Spot on. Its all based on trust and bullshit. The crash in 2009 proved that actually global economics has to be propped up by Governments.

So what if we spaffed a load of money on furlough. What a **** idea supporting people who have no other income, keeping businesses viable I mean ffs. If a G9vernment isn't there to protect the lives of citizens in a crisis and shell out to do that then what's the ******* point of them.

Even the concept of money is pure abstract thing anyway. Even gold which is effectively what people see as hard value is only valuable as long as other people prize it. In terms if what it actually is you can't eat it, it can't keep you warm and it wo t keep the rain off your head either. It doesn't even make decent tools to do stuff.

It's shiny, stays shiny and doesn't tarnish. It's value is a concept.

[BabylonClaret]

FORGET THE HOUSE.

My point, and my only point, was that if you borrowed £60k in the seventies and eighties you had to make a higher monthly repayment than if you borrowed £400k last year. This is nothing to do with what you were borrowing, it is because interest rates were much higher.

Unless you have the actual.numbers I very much doubt that in actual terms seeing as the capital alone on 400k over 25 years would be 1300 per month. Even at 15% you'd be struggling to hit that off a capital outlay of 60000

[timshorts]

The only people still banging on about Europe are the Remainers. Mainly on internet forums.

Probably because they are the only ones who can say "told you so".

Ok, perhaps they didn't make it entirely clear that Northern Ireland were going to be the turkey in the oven ready deal, but hey go. Boris can always blame it on russia/immigrants/civil servants/Brussels. Well pretty much anyone but himself.

[Alanstevensonsgloves]

The point isn't the size of the house, it's that a £60k mortgage cost more to service then, than a £400k mortgage does now. And a £400k house now is pretty huge - 4 bedroom brand new detached houses are going for £300k.

Wow where is this?

[dsr]

Though if it mattered

https://www.persimmonhomes.com/new-home ... rwood-park

Houses up to 4 bedroom, prices up to £279k. I live in Colne, my friend lives in Colne, his son lives in Colne, so using Colne prices is probably a fair comparison.

[Alanstevensonsgloves]

With the Hatfield...convert 1st floor cupboard to shower accessible from bathroom and bedroom 1 en suite to walk in wardrobe...

These modern planners know nowt

[Buxtonclaret]

Indeed it is.

And the economic reality right now is that we're going through the biggest shift in wealth towards the already rich in our history.

Been creeping in now for years, around the time Bonus Payments in the City were given free reign. The Very Rich chucked down Golden Crumbs and soon became Super Rich. Aided and abetted by Governments.

[Winstonswhite]

Wow where is this?

Burnley