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Cost of Living

Elephant Pyjamas said:
Variable rate is about 0.5% lower.

Its a gamble, but might things settle in 12 months or so?

I guess in reality no one knows, and with an Election not that far away the banks will factor in that risk too.
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I think we'll be looking at 6% by the end of the year, and 4% by the end of 2024.

I know the government are saying a hard no to mortgage support, but I don't think they'll have any choice if they want to avoid mass repossessions.

House prices are still increasing despite the massive extra borrowing costs. Really, the market needs to burst and a reset, the increases over the last 10 years have been insane - 73% increase since January 2013, or 207% since the turn of the century.
 
Our house value has gone up 60% in under 3 years! Staggering.
 
Kenny said:
Our house value has gone up 60% in under 3 years! Staggering.
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wife was looking at this, with the neighbours house for sale, and nosiness. We bought 9 years ago. In that time the valuation has added 150k to the fucker. How the fuck has that happened?

Of course, it isn't real money, and it is meaningless anyway, as we only want the house for living in, it isn't a measure of anything else to us.

Reading other posters circs regarding the approaching end of their fixed rates is filling me with dread.
 
Was talking to an agent just this afternoon about the state of play with property - landlords offloading (the S21 affect) and the impact of decreasing mortgage availability coupled with increasing rates on those requiring finance.

His take was the market is fuelled by investment cash buyers - individuals, companies and landlords who are not vulnerable to interest rate fluctuations and are offsetting the risks of S21 removal against increased yield through ever increasing rents. With interest rates squeezing potential owner-occupiers into submission the cash buyers are smelling blood and mopping up, keeping the market buoyant and driving prices higher but at the cost to the very people who need help and advantage to the very people who don’t.

A few people are going to do very nicely out of this but for everyone else it’s going to spell misery. So much for opportunity and a more even distribution of wealth, it’s the complete fucking opposite and rubbed in by the fact it was all predictable and avoidable.
 
EpsomWolf said:
Was talking to an agent just this afternoon about the state of play with property - landlords offloading (the S21 affect) and the impact of decreasing mortgage availability coupled with increasing rates on those requiring finance.

His take was the market is fuelled by investment cash buyers - individuals, companies and landlords who are not vulnerable to interest rate fluctuations and are offsetting the risks of S21 removal against increased yield through ever increasing rents. With interest rates squeezing potential owner-occupiers into submission the cash buyers are smelling blood and mopping up, keeping the market buoyant and driving prices higher but at the cost to the very people who need help and advantage to the very people who don’t.

A few people are going to do very nicely out of this but for everyone else it’s going to spell misery. So much for opportunity and a more even distribution of wealth, it’s the complete fucking opposite and rubbed in by the fact it was all predictable and avoidable.
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It was avoidable, the fact it was avoidable suggests to me that it was actually intentional.
 
Elephant Pyjamas said:
It was avoidable, the fact it was avoidable suggests to me that it was actually intentional.
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I’m not sure, I think it’s more likely sheer incompetence but certainly wouldn’t put it past intent.

The S21 removal has very good intentions and to be honest is a very un-Tory like policy. The way it was implemented is just an utter disaster though and not seeing the consequences of that is unforgivable. The stamp duty increases for additional properties and phased reduction in annual CGT allowances are also very un-Tory so (reluctantly) will give credit where deserved because they’ve been effective and implemented in a structured way as to maintain stability as much as is reasonably possible.

That said, there is clearly no desire to go for the really big players here - foreign investors and property hoarders. That just doesn’t stack up to me. But, perhaps taxing the small private landlord into submission whilst making platitudes to renters that will actually see them worse off, all done whilst driving property into the hands of cash rich investors and overseas hoarders is about the most Tory thing that could be done after all.

Intentional or not it’s two different cheeks of the same backside. Fucking useless the lot of them.
 
Base rate will probably go up 0.25%/0.5% tomorrow so even worse remortgage rates
 
Elephant Pyjamas said:
It was avoidable, the fact it was avoidable suggests to me that it was actually intentional.
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Absolutely intentional. Lloyds Bank has even said it's deliberate. BlackRock is another that is buying up homes.

This is where government needs to step in and ban this practise. Force banks to sell and put rent controls on investment owner properties.

These parasites need squashing quickly.
 
I am so relieved we don’t have a mortgage anymore. I now worry for my daughter and her boyfriend who paid well over the odds for a property this time last year. They are not worried at the moment because they have a fixed deal, but when that ends…..
 
How many times can the fuel duty calculator be wheeled out as a reason why the government are on our side?

Fuel at 1.20 per litre is 20p VAT
Fuel at 1.50 per litre is 25p VAT
A 5p duty cut is just giving you the extra VAT they are getting back. (they would also be getting higher fuel duty anyway).

As for not increasing it each year as Labour would have done is just for the fairies.
 
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70/80's renters were in council houses - Rents didn't go up with interest rates so no inflationary pressures.
2020's - Renters with private landlords - Interest rates go up, landlords pass on these costs and it all feeds into inflation.

A section of society have paid off their mortgages and or have retired. Income for pensioners increased by 10%. How do you stop those without mortgages or rent bills from stopping spending? I'm not advocating cutting pensions but there are sections of society who are immune from the interest rises or actually benefit from them. Finding a way of curbing their spending also needs to be looked at rather than squeezing those who are just trying to get by and manage. A tapering off of personal allowances for higher rate tax paying pensioners could be a start although I have no clue as to how much money it could save.
 
@Sniffer is hitting a really good point. nowadays, these interest rate rises actually result in increasing inflation (or the risk of it at least). Rising interest rates result in businesses having to increase prices. Private landlords pass on interest rate rises, another inflationary pressure.

Most people likely to be affected by this have spent the past 6 months looking to limit their expenditure.

There is also the fact that so much of this current inflation is hitting all our essential purchases - food, fuel and so on. It isn't stuff we can go without really.

& as identified above, there is a really large section of the population being protected from this.
 
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