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

Oh, and my car is 17 years old.

Anyone selling a 2 bedroom flat in the south east is looking at a loss of about 30 to 40k over the last 5 years if needing to sell now. So a few eyelash extensions are okay by me but might be a bit heavy on the eyelids!

karmalady

Just remembering, when it was not at all uncommon for people to have a lodger or for someone to have a room in a house. I remember the time when mil mentioned the lodger, I thought nothing of it.

It has been difficult, many times in past years, for people to make ends meet. People did used to make do. Nowadays it does seem like instant gratification is the norm, hence money disappearing. Having cash in various envelopes got me through some very tough times. Having an app would not have the same mental spending restriction

Do you want to crash the economy too?

ronib

Anyone selling a 2 bedroom flat in the south east is looking at a loss of about 30 to 40k over the last 5 years if needing to sell now. So a few eyelash extensions are okay by me but might be a bit heavy on the eyelids!

I guess people could spend on nail extensions once they're weighed down by eyelashes (or boob enlargements).

Germanshepherdsmum

*Daisy*. Decisions as to whether to buy non-essential items are easy to make if one realises that they are non-essential. People who have mortgages are hardly ‘the least well off’.

Btw I have never boasted about the very difficult time I went through as a single mother. It’s something I will never forget. Non-essential items certainly didn’t feature in my expenditure. To this day I don’t buy ready meals, a takeaway features perhaps two or three times a year, my phone is second hand, I buy probably two items of clothing a year, and I have never had my nails done - and unlike those complaining about their mortgages, I can very easily afford all these things. I’m just waiting to see someone moaning about their mortgage whilst sporting fake nails, lashes, lip filler and hair extensions - coming to your screen any day now.

Have you paid off your mortgage?

Allsorts

Maisie,
If you are interested in inflation please do a little research into the 1978/ 1979 Winter of Discontent under Labour, when the country really was broke, Thatcher got in because Labour gave up, that year interest rates soared to over 17% as Tories were left a sweet note in the treasury, from Labour, the kitties empty hold luck. You can't Norris and not take tge consequences, there isn't really a free lunch.
We have had a Pandemic, the world almost stood still, the boring and very expensive Brexit battle where instead of dealing with the economy we had to battle a load of bad losers worried mostly about their holiday homes. Now instead of getting on with things other little groups are not interest in getting things on track, just to get heard about some perceived slight.

Others have answered you, Allsorts so I don't feel any need to add to their responses, but this discussion has set me thinking about our national recovery.

After WW2 the UK was genuinely completely broke, living on handouts from the USA.

But under Attlee's Labour government there was massive state investment in setting up the NHS and the Welfare state. There was also a huge programme of making good war damage to housing, slum clearance and new building. All of this created jobs and boosted the economy. And, until the 1970s, with the energy price shocks, the domestic economy was doing very well, supported by both parties when in government.

I know it wasn't perfect and there were sectors which can be strongly criticised, but on the whole, life was improving for most of the population. All stemming from the willingness of the state to invest in itself.

You’ll blame the state of the economy on my lack of spending at this rate growstuff. I have never felt obliged to spend money just to keep someone else in work.

Germanshepherdsmum

You’ll blame the state of the economy on my lack of spending at this rate growstuff. I have never felt obliged to spend money just to keep someone else in work.

I don't do blame - result of years of counselling.

Of course I have paid off my mortgage growstuff. I’m 72. I first had a mortgage at the age of 19 so over the years I have seen plenty of interest rate rises.

ronib

Anyone selling a 2 bedroom flat in the south east is looking at a loss of about 30 to 40k over the last 5 years if needing to sell now. So a few eyelash extensions are okay by me but might be a bit heavy on the eyelids!

Just been on Rightmove for my part of the South East, two bedroom flats are going from £350,00 upwards, no downward trend as of yet, no doubt it will come though.

The majority for sale were new builds.

Germanshepherdsmum

Of course I have paid off my mortgage growstuff. I’m 72. I first had a mortgage at the age of 19 so over the years I have seen plenty of interest rate rises.

I had a mortgage when I was 28 - single female. Unfortunately, I fell of the mortgage ladder as a result of ill health and an ex-husband I would rather not describe. The house I was forced to sell following my divorce would be worth nearly a million now. Therefore, I don't have an asset which could cushion me against the current situation. Maybe I see things from a different perspective.

GrannyGravy13

ronib

Anyone selling a 2 bedroom flat in the south east is looking at a loss of about 30 to 40k over the last 5 years if needing to sell now. So a few eyelash extensions are okay by me but might be a bit heavy on the eyelids!

Just been on Rightmove for my part of the South East, two bedroom flats are going from £350,00 upwards, no downward trend as of yet, no doubt it will come though.

The majority for sale were new builds.

Same here.

GG13 if only life were that simple. Flat for sale for 9 months with offers over £350k results in one offer of £310k then uplifted to £325k Bought 5 years ago for £365k . No sale as yet.

Germanshepherdsmum

*Daisy*. Decisions as to whether to buy non-essential items are easy to make if one realises that they are non-essential. People who have mortgages are hardly ‘the least well off’.

Btw I have never boasted about the very difficult time I went through as a single mother. It’s something I will never forget. Non-essential items certainly didn’t feature in my expenditure. To this day I don’t buy ready meals, a takeaway features perhaps two or three times a year, my phone is second hand, I buy probably two items of clothing a year, and I have never had my nails done - and unlike those complaining about their mortgages, I can very easily afford all these things. I’m just waiting to see someone moaning about their mortgage whilst sporting fake nails, lashes, lip filler and hair extensions - coming to your screen any day now.

You seem to believe that you are the icon of how to make the world work, or at least this country. I, on the other hand, think that whether others have their nails done or not is none of my business.

We are all different and those differences make a better world. Rather than cloning those who continually voice their disdain and even contempt for those who don't fit their little boxes, I look forward to us all being able to thrive and contribute our own individuality to society. Obviously, this may mean you and I have a little less in the bank, but that is the price we pay for a thriving society of which we are all a part.

I don't think any great leap forward has ever been carried out by little old people standing about and pulling apart neighbours, about whom they have no actual knowledge.

So we should have a little less in the bank in order to enable people to buy their non-essential ‘essentials’ and contribute ‘individuality’ to society? I don’t think so …
Fortunately the whingers are not my neighbours. You and I inhabit very different worlds I think Daisy.

Germanshepherdsmum

So we should have a little less in the bank in order to enable people to buy their non-essential ‘essentials’ and contribute ‘individuality’ to society? I don’t think so …
Fortunately the whingers are not my neighbours. You and I inhabit very different worlds I think Daisy.

Well, GSM, you've bought into the capitalist consumer dependent society, from which, by your accounts, you've done very well and now you are condemning others who have bought into it too because their lifestyle is different from yours.

General economic prosperity depends on people spending money, not on acquiring money from other people and then locking it away and rendering it valueless.

There is nothing about a frugal lifestyle that is inherently more virtuous than one which keeps money circulating in the economy.

Agreed. People could cut out non-essentials.

I don't think comparing 7% mortgage interest (if that is indeed correct) to 17% interest is helpful - 5-8% seems rather normal.

Relieved to have the neighbours I do. There but for the grace of God ...

Katie59

It matters to the buyer of those services, personally I don’t care if they don’t do take aways, the waste that goes past me on the checkout you would not believe.
For example bought sandwiches for a child’s lunch £3.50, 2 slices of bread some salad and mayo, barmy.

I agree with you Katie and back in the 70s and 80s many of these things were not, or were barely available. But those that were available, such as take aways for example, we simply didn’t buy because the first priority was to pay the mortgage and keep a roof over our heads.
And as growstuff points out, the mortgage payment increase was much less in those days, but perhaps forgetting that wages were tiny in comparison to today’s wages. The increase in mortgages in those days hit us just as hard as it’s doing today. I can’t speak for others but it certainly did us!

Norah

Agreed. People could cut out non-essentials.

I don't think comparing 7% mortgage interest (if that is indeed correct) to 17% interest is helpful - 5-8% seems rather normal.

I couldn't cut out non-essentials because I don't spend on them in the first place ... and I'm not the only one! (Just returned from FoodShare.)

Germanshepherdsmum

Oh, and my car is 17 years old.

Good point GMS but today the younger people get new cars every three years or so on the loan payment schemes. They prefer to drive newer cars. I would never do this as it’s basically a car rental scheme, but if having a shiny, new car is important to some, that’s the way they go.

maddyone

Katie59

It matters to the buyer of those services, personally I don’t care if they don’t do take aways, the waste that goes past me on the checkout you would not believe.
For example bought sandwiches for a child’s lunch £3.50, 2 slices of bread some salad and mayo, barmy.

I agree with you Katie and back in the 70s and 80s many of these things were not, or were barely available. But those that were available, such as take aways for example, we simply didn’t buy because the first priority was to pay the mortgage and keep a roof over our heads.
And as growstuff points out, the mortgage payment increase was much less in those days, but perhaps forgetting that wages were tiny in comparison to today’s wages. The increase in mortgages in those days hit us just as hard as it’s doing today. I can’t speak for others but it certainly did us!

maddyone I've seen the calculations (if I can retrieve one I'll post it on here). Today's increase to 6% will have a much greater effect than even the temporary increase to 16% in the 1980s.

What’s FoodShare?

maddyone

Germanshepherdsmum

Oh, and my car is 17 years old.

Good point GMS but today the younger people get new cars every three years or so on the loan payment schemes. They prefer to drive newer cars. I would never do this as it’s basically a car rental scheme, but if having a shiny, new car is important to some, that’s the way they go.

No, they don't all!!! Maybe they do in your world but not in the real world.

Germanshepherdsmum

So we should have a little less in the bank in order to enable people to buy their non-essential ‘essentials’ and contribute ‘individuality’ to society? I don’t think so …
Fortunately the whingers are not my neighbours. You and I inhabit very different worlds I think Daisy.

No, GSM, that is not what I said, but I do think it is something you are strongly determined to believe, whatever I say. It suits you to put "other" people in boxes and blame them for all the ills in the world. I don't suppose that will ever change.

I even doubt it will change if you are eventually put in the "old people who are to blame for everything that has gone wrong since the war" box. If everything you have is taken away from you in reparation and you are despised just for being a certain age you will still be blaming others in your group.

While in fact, it is the attitude to others, who you do not know and whose lives you have not lived, that creates this possibility. This attitude is teaching a large slice of the population that it is okay to both dehumanise entire groups and then punish them for what others believe they have done.

No GSM, we do not live in different worlds. The "whingers" are not your neighbours. They are not that far away. We all have to live, survive and share the only world we have.