In not having much sympathy with a couple on £45k plus per year having some benefits cut?

[ssd]

There is loads of this on the news just now about how "middle income" families will be having some child tax credits cut and might be paying more tax. They news are showing what to me looks like comfortable off families having to do with a bit less. Is this really so bad? I know an income of £45-£50k per year might not be much in central London but will keep you in style in parts of the north, but how bad will it be? So people might have to change jobs/give up the second car/holiday at home instead of Spain every year? SO WHAT? There are plenty of us living on less than £25k a year who have had to cut back since having kids and take this as a fact of life.

I know MN is made up of mostly middle earners and I'll get pelters for this, but I don't really care. Anyone I know on a middle income can afford to give up some things _ its called life.

Cobbstar, it obviously depends on what percentage your over payment is.

We were looking at our mortgage statement the other week. We've paid about 102k in mortgage payments over the last 3yrs but our outstanding debt has only gone down by about 30k. It's due to it all being top heavy with fees etc and being fixed in at 6% when everyone else has enjoyed low interest rates. It really is gut-wrenching to read.

'I'm advocating that people forget about their CB and CTC pretend it isn't there, then you won't miss it and if interest rates mean that your mortgage goes up by £500 a month you'll have that £500, well at least for one month eh ?'

Not everyone has a mortgage.

Probably, fewer and fewer will be able to get one or afford one at all as time goes on.

The first-time buyer rate has been at all-time lows for a couple of years running now.

I wouldn't worry expat I'm sure there will be plenty of other things increasing in price you can spend it on.

you coudl ge a lot for 45k at brownhills market coudlnt you fio

And don't forget how inflation can benefit you. I remember the 70s and very high inflation. I fyou have high debt it can be hugely diminished with inflation(....she says enthusiastically clutching her £1m+ mortgage) Although I am not an inflation fan for countries. Makes things harder for people in general but it does erode debt. We have had time in britain where people have know a big loan will soon be "worth" a lot less because of inflation.not much good for savers though which is very unfair.

It's not a nice way of making debt smaller.
So if £100 would buy you 100 pints of milk in 1970 and today 1000 and in 1970 you owed £100 on your mortgage and since then wages have gone up as much now you still indeed owe £100 but that is now a tiny sum. It is a tenth of what you borrowed and your income has also risen 10x so the loan is miniscule albeit it still £100. That's all.

Now of course if you ahve 2000% inflation like Zimbabwe and pensions and wages do not rise at all you starve so it is by no means a cure all but it certainly erodes debt and in 30 years my £1m+ mortgage whether we have high or low inflation (and over that period at times it will be high and at times low) will be much less than it now is.

Fio- it's that your debt is smaller compared to the cost of buying things.

eg- if you assume that there is always going to be wage inflation and you take on a £1000 pcm mortgage, which at the moment is 1/3 of your income. In 25 years you will still be paying £1000pcm but that amount may only be 5-10% of your income.

Inflation is the reason why loans over longer periods of time are at lower APRs than short loans.

Actually I'm starting to think that inflation might be the only/best way to get rid of the deficit.

I think it's been the plan all along tbh, fine as long as nobody needs to eat.

Fiofio I think I might buy that house as a base for returning to the country when we leave.

What's Walsall like?

shit

Not so shite in a fifty grand house with zilcho mortgage surely. Not sure i could buy in Kabul for that?

You realise that is for a 50% share don't you and that you could have bought a 4 bed detached on that estate 10 years ago for the same money.
It's a sorry state of affairs.

Don't mind the 50% share as a rule, the only thing I hate is the HA making a % profit on the house should you sell, that bit sticks in my throat slightly....If they were really helping folk and not themselves they would fix the amount.

Just to add that hard working people can also be on a low wage. Less money doesn't mean they do nothing much.

Also I thought benefits were for those who were poor? 45k isn't poor.

I don't know if I'm classed middle income (41k, but single parent so only income) or not but I am not so terrified about losing CB/ CTC as I am about the interest rates going up. Have stupid mortgage (125% in the good old Northern Rock heyday) which I'm stuck with Northern Rock with for now as no other bank will touch me. 4.79% for now, which is doable, but am screwed if they go up. My own fault for buying at peak of housing boom and now I can't afford to move as nobody will take me on and also my (autistic) son would totally lose it as he loves the house. So what do I economise on? Luxuries and social life...erm, I don't have them! Expensive SN childcare - well, then I'd have no job and would sit at home while son was at school, so no purpose served.

My mortgage is 65% of my income so that's the bit I'm scared of as it's unpredictable. Got fixed rate initially but now nobody will give me one. Could live with losing CB and CTC as I get a pathetic amount anyway and probably don't need it BUT I would if interest rates rise much. bloody money. I may be on a good salary but I will really suffer if rates go up, as will a lot of people. Your lifestyle adjusts to what you earn, I guess, but for me it's the house that is the problem, nothing else.

"I am really confused as to why the government want to remove childcare tax credits, 3 year old free places and childcare vouchers."

Peppapig - can you point us to the Government's proposals for these things please? Some of those were Labour policies and the others don't exist to my knowledge.

Don't exist as policies I mean.

I'm getting a bit fed up of all the hearsay. They'll do this, they'll do that. Most of its bollocks that they've never even mentioned.
Is there a more in depth list than this one does anyone know?

We have a pretty hefty income. This is pretty much taken up with our pretty hefty mortgage for our pretty ordinanry 3 bed semi.

We don't get any ctc.

We could probably do with a period of high inflation as we has piss all disposable income anyway.

Yes we could move/sell the semi and rent one...I always think about this...but it is our childrens' home, and we are committed to that