Increasing the interest rate to 5%, is this really the fairest way to slow inflation?

GrannyGravy13

growstuff one of the reasons we delayed getting married was whilst we were single despite living together and a joint mortgage we both were able to claim miras

I didn't realise that. Maybe if I had, we would have delayed getting married.

Germanshepherdsmum

Everyone did growstuff, whilst it was in place. It wasn’t optional. I expect you did too.

Yep! We both accepted government support, so I was wondering why you denied it.

Trurider1

Lots of Comment about the Governement BUT the Bank of England is Independent of the Government which many choose to ignore. Now lets be REAL. The Price of FOOD has risen due tothe massive WORLDWIDE drought that occured last year. You cannot grow food without water. The Common Rules of Supply and demand apply. The same applies to Fuel Costs. Now these are coming down and that wil be reflected in the June and July figures for Inflation. Now I lived through of 17% in the 1980's and It didn't finsih me off BUT then I was not a person that believed in a 2 to 3 % Mortgage rate for 25/30 years. Thise that have have only themselves to blame. Live in the REAL World.

The government does have a provision to overrule the Bank of England.

I agree with GrannyGravy.

Additionally, I'm not sure what kind of essential work you're thinking of Katie59, but I assume care work would be included. Would you really want to be cared for by somebody who really didn't want to do the job and wasn't very good at it?

Shouldn't the "plebs" have some choice in the work they do and be allowed to do something they're suited for?

Katie59 do you not think people should be able to choose their profession?

Beauticians, nail technicians, hairdressers who specialise in extensions and eyelash technicians all have to train, have to pass exams, have to have liability insurance.

The beauty industry is big in the U.K. I do not wish to see it wiped out because people think they are irrelevant.

growstuff

Germanshepherdsmum

I agree Katie. There is much that could be cut back on, as you have already said. People have to choose between keeping a roof over their heads and having the latest phone, takeaways and ready meals. I’m sure we have all had to make choices to pay the bills.

So what happens to all the people who produce and sell the goods/services you deem non-essential?

We bring in less overseas workers, it’s as simple as that, maybe we do prefer to work flipping burgers, delivering pizzas, or varnishing nails but it’s not essential there is plenty of essential work to be done.

Lots of Comment about the Governement BUT the Bank of England is Independent of the Government which many choose to ignore. Now lets be REAL. The Price of FOOD has risen due tothe massive WORLDWIDE drought that occured last year. You cannot grow food without water. The Common Rules of Supply and demand apply. The same applies to Fuel Costs. Now these are coming down and that wil be reflected in the June and July figures for Inflation. Now I lived through of 17% in the 1980's and It didn't finsih me off BUT then I was not a person that believed in a 2 to 3 % Mortgage rate for 25/30 years. Thise that have have only themselves to blame. Live in the REAL World.

Indeed ronib. Typical.

Not Nora’s but miras

Gordon Brown put a stop to Nora’s arguing it was only benefitting middle class couples. Typical!

Everyone did growstuff, whilst it was in place. It wasn’t optional. I expect you did too.

growstuff one of the reasons we delayed getting married was whilst we were single despite living together and a joint mortgage we both were able to claim miras

Germanshepherdsmum

In those days people didn’t expect the government to help them with everything 4allweknow. We took it on the chin and economised as necessary.

Didn't you accept your MIRAS?

Excuse my musings if the banks put up interest rates on savings accounts and ISA’s more people would lock their money away for a 1/2/3 or even a 5 year period which would take money out of circulation which under normal circumstances would help bring down inflation.

Unfortunately inflation is being driven by more external factors than supply and demand, but every action would help.

I too see no purpose in the govt “helping out” any further I do think perhaps the things banking have suggested today might help in the short term - no repossessions for 12 months (assuming this means 12 months of shortfalls in payments), short term moves to interest only and extending the term of the mortgage thus lowering repayments. I think it’s a little naive simply to suggest “things will work themselves out” I remember back in the 80’s people losing their homes and would hate to see this happen again. Also “grocery” inflation is apparently running at around 25% - an area quite hard to cut down on too much. I feel so sorry for people finding themselves in these situations

We’re mortgage free and are looking forward to receiving a better rate of interest on our savings accounts rather than the miserable rates over the past ten or so years.

Sorry about the sting!

It seems counterproductive to me. But then Labour want people to think they have some magic wand.

Jeremy Hunt is meeting mortgage lenders this afternoon, which sounds like a more sensible than a ‘rescue plan’.

Apologies for this being a bit vague (just been stung by a wasp 🐝 on my finger, could have been worse as I was in the loo 🤣)

I heard an interview I think it was Rachel
Reeves announcing that the Labour Party would have a rescue plan for those who’s mortgages had increased.

Surely this would be anti productive, regards to the reason rates have increased (take money out of general circulation) wouldn’t it be better all round to put pressure on the B of E to reduce the base rate?

Norah

Casdon

4allweknow

There were no cries for help in 1992 when rates reached 15%. Before the buts, yes prices were lower but so were wages.

The percentage of their income families committed to the their mortgages was much less in the past. If you were lucky it was 3 times chief earner and 1 times second salary maximum loan. Now it’s is 4.5-6 times joint income. That makes a big difference.

Perhaps bank regulations should lower percentages as before?

Perhaps people should wait to buy?

People who don't buy are normally paying exorbitant rents (curtailing the saving for a house for which the prices are shooting up faster than they can save and savings with very low interest rates) but even worse, there is no guarantee of continued tenure. If you have a child with special needs or your children attend school, you have no guarantee you will be able to stay within the catchment area.

DaisyAnneReturns

Listening to someone talking about this the other day, he mentioned that in the US they quite commonly have mortgages where the interest is agreed, at the beginning, for the whole term. I imagine that might make it more expensive to start with but would bring great piece of mind throughout the length of the mortgage.

The US banks do have fixed interest start to finish, if one selects. We had a holiday home in the US, recently sold, rates fixed for 15 years. Brilliant.

Casdon

Norah

Casdon

4allweknow

There were no cries for help in 1992 when rates reached 15%. Before the buts, yes prices were lower but so were wages.

The percentage of their income families committed to the their mortgages was much less in the past. If you were lucky it was 3 times chief earner and 1 times second salary maximum loan. Now it’s is 4.5-6 times joint income. That makes a big difference.

Perhaps bank regulations should lower percentages as before?

Perhaps people should wait to buy?

Maybe, but it’s too late for people who already have mortgages. I can’t imagine a worse case scenario financially than having your house repossessed or being made bankrupt because you can’t pay off your debts.

Agreed.

Re-introducing cautious regulations may not help those who have already over extended. I've no idea, as we had no 15-17% mortgage (ours was a 5% mortgage), what happened in those years as to bankruptcy?

Listening to someone talking about this the other day, he mentioned that in the US they quite commonly have mortgages where the interest is agreed, at the beginning, for the whole term. I imagine that might make it more expensive to start with but would bring great piece of mind throughout the length of the mortgage.

Norah

Casdon

4allweknow

There were no cries for help in 1992 when rates reached 15%. Before the buts, yes prices were lower but so were wages.

The percentage of their income families committed to the their mortgages was much less in the past. If you were lucky it was 3 times chief earner and 1 times second salary maximum loan. Now it’s is 4.5-6 times joint income. That makes a big difference.

Perhaps bank regulations should lower percentages as before?

Perhaps people should wait to buy?

Maybe, but it’s too late for people who already have mortgages. I can’t imagine a worse case scenario financially than having your house repossessed or being made bankrupt because you can’t pay off your debts.

MaizieD

GrannyGravy13

It is possible to complain about interests rate increases whilst being able to afford the more expensive mortgage and unessentials

They are not mutually exclusive.

You are always the voice of reason, GG13.

I just get cross 👿

Thanks from me too GrannyGravy.

Casdon

4allweknow

There were no cries for help in 1992 when rates reached 15%. Before the buts, yes prices were lower but so were wages.

The percentage of their income families committed to the their mortgages was much less in the past. If you were lucky it was 3 times chief earner and 1 times second salary maximum loan. Now it’s is 4.5-6 times joint income. That makes a big difference.

Perhaps bank regulations should lower percentages as before?

Perhaps people should wait to buy?