People just need to cut back & they will be ok

[nameschangg]

Following a discussion on the radio about mortgages/col I made the comment that even for those that can afford the increased mortgage costs it's difficult to get one's head around paying more just to service debt. Colleague replied that's exactly the problem & the media are over egging it. His argument was recent buyers have stress tested & many will still have seen jumps in house value. He said any older buyers will likely have a ton of equity so can just shift to interest only or sell. His main argument was people can afford the rises & they just don't want to give up the nice things they are used too. He said the gov know this & know how much people saved in lockdown. Admittedly everyone in the office did say they saved quite a bit (including myself). I argued that not everyone fits that criteria but he believes the majority do & the media needs to stop scaremongering. Does he have a point?

You’re very aggressive for someone who is wrong. Look at my example, it’s really basic and should help.

That depends on the type of work you do and if you were self employed with 3 years accounts....new business or ones who had not made profit in 3 years didn't get the same as the rest.

So your assuming the economy is going into a deflationary spiral and our money will be worth less as in pre war Germany deflation is not good

Just in case you missed it...

Wtf?

no one is assuming anything of the sort. We’re trying to explain that a reduction in the published rate of inflation doesn’t necessarily mean prices are still increasing. Mathematically they can fall, and that lead to the rate of inflation still being positive but lower.

something you said wasn’t possible.

nothingnis being said about any economic assumptions

Well fucking bully for you. Plenty of people lost their livelihoods be that being made redundant or having to close their business. Just because you saved thousands, plenty of others didn't.

Right. Words of one syllable

a year ago something cost 100
last month it went up to 110. Comparing that to 100 gives 10% inflation
this month it comes down to 205. Comparing tat to 100 (which it was a year ago as it only went up to 110 last month) inflation is 5%

a fall in costs, a fall in the rate of inflation. Not impossible

Comes down to 105! Typo rather than maths fail!

Can I just derail this arguement to

Energy prices have come down
Food prices have come down (see news today)
The progress we have made as a country towards renewables has excellerated

We just need better inflation results over the coming months

Then interest rates can begin to go down.

Then we can all untense our squeeky bums.

The real problem is that the COVID relief schemes have I think created the impression that the role of government is to pay when private households can't. That's communism, and the reason it doesn't work is because the money that governments hand out is our money. If that's what we want, then we will own nothing of our own at all. I've seen so many calls for government subsidies - on meals, tampons, formula, care, and now mortgage interest. In the end it becomes pointless to aspire to anything, because for the government to carry on with larger and larger handouts, it would have to start appropriating vast swathes of the economy, until eventually only the government can own houses. Sounds fine in theory, my east German family tell me it was not.

Saved during covid? Eh no my husband who is a self employed tradesman couldn't work at all and we got in to debts which we have only just started to get rid of and get a handle on and quite rightly are enjoying finally having spare money. Very very narrow minded opinion.

Given that, we’ve just had the lowest rate of unemployment since postwar Britain, there’s absolutely no excuse to have not recovered by 2023.

Why couldn’t he work ? Next Door were having an extension built at the time and they literally didn’t stop throughout lockdown.

Following this thread with interest as DH desperately wants us to go next year (me, him, and 3 boys, DS, DSS1, DSS2 aged 11,12, 12). We're both mid 50s and I'm not exactly the camping/roughing it type. DH is North American /Canadian so very outdoorsy. He has agreed to us going for one of the VIP/glamping options, and our boys are pretty adventurous so hoping it will be bareable. I do worry about the crowds and weather though, and will there be enough to entertain the kids away from the music.

Oops, wrong thread....😩😂

Apparently it breaks down like this - About a third of homeowners will have a big mortgage be on a medium income and find it tough going. About a third have paid a chunk of their mortgage off or have a smaller mortgage and are on a decent income. They will find it a PITA and can just cut down elsewhere. About a third are older and own their homes outright. The third most affected it an awful lot of people though.

Too much of a wild generalisation that really only applies to those households with relatively high earners with wfh jobs that they were able to keep during the pandemic and save lots of cash.

Loads of people with mortgages struggled professionally during covid, lots of businesses went under, not every one was able to save! And the stress test on mortgages in conjunction with spiralling cost of living increases on food and utilities is breaking people.

Food prices are not coming down.

Yet another very dry summer will push food prices up as we see crop failures, grass not growing for livestock feed, feed has to be imported from overseas etc.

Oh but it can and will happen again.
My grandparents bought their first house in the 1950’s for £400. 30 years later it’s worth 50k. 40 years later it’s 500k. Another 40 years may well be 5mil. It’s really not out of the question at all. And it’s all relative unless you die before needing care and someone inherits, or massively downsize. You just spend it on the next house which has also gone up x10

As do pizz poor insurance company players like the “Davies Group.”

fulled in new starter form mid April - where did this data go?!?

nearer to July 23 absolutely never paid for hours worked 👎 scum, scum scum.

😂😂😂 that made me lol

Then they were breaking the law then. During the first lockdown of March 2020 no building work should have happened. That was relaxed slightly during subsequent lockdowns.

Stress testing is good and bad, good in that it gives an indicator, bad in that it compares an average family’s likely outgoings on various things and not the specific family. The issue is, as far as understand it, the test only inflates the mortgage rates (to 8% I think) so it doesn’t take into account all other increases. A lot of costs a family incurs, like childcare, will effectively be a double increase as the extra cost added is to pay extra costs the business is incurring but we’re also getting those costs day to day so are hit twice.

Thats not true. “Travelling to and from work is permitted, but only when absolutely necessary and your job cannot be done from home.”

Boris, march 2020 not that it’s relevant, because as I say, we’ve had three years since