Problem is if the market crashes then the equity could be wiped out for a few years. If you sell and move on then it’s ok, but if you were just going to get a new deal for the current properly it’s probably not worth it to lock in at 3.5-4% now if you’re on a good deal if you work out exit fees etc. My fix ends Dec 23, I am debating overpaying from the start of next year in anticipation of a nasty surprise :lol: what we really need is Putin to end his tyrade!

 

Yeh that’s what we want to do if we are allowed to with affordability checks etc and if the right house is still available!

IMF have put out a damning statement - not sure how this ends? Don't think they will backtrack but they are completely fuked at this point.

WHY ARE YOU ALL BEING SO POLITE?!

 

THIS IS S DUCKING DISGUSTING BESST OF A QUASI DICTATORSHIP GOVERNMENT AND IT SHOULD GTF OUT OF OFFICE!!!! CILE VIÑE VILE!!! THID PARTY DESERVES NO f***ING RESPECT AND THE TORY MPS ARE f***ING VILE!!!!!!! MOST EVIL CORRUPT GOVERNMENT OF ALL f***ING TIME!!!!!!!!! AND A DIGRACE MAD MAY AND BLOJO GOT IN WITH THEIR EVIL HENCHMEN OVER TRUE TRIED AND TESTED POLITICS FOR THE BENEFIT OF EVERYONE!!!!! EVIL!!!!!!!

https://www.nationwide-intermediary.co.uk/n...,R1B977,WV5V4,1

 

Nationwide have released their new mortgage rates.. not good. Bare in mind less than 12 months ago you could get 1.5% quite easily as a FTB and sizeable deposit. We are truly screwed without a serious change of policy.

@1575128310740389889

 

Jesus. Chaos.

No wonder she’s in hiding. Imagine causing a run on pension funds and a total collapse of the country’s fiscal position in a f***ing afternoon.

The funny thing is their entire Party conference is going to be dominated by this topic - be interesting to see how the members react to it.

We moved into our house in February and got a 3 year fixed rate at 1.39% with Nationwide. Fortunately we've still got 2 and a half years left but don't particularly want to see them jump up to what that link was showing Rooney. Hopefully it'll have calmed down slightly by 2025. :unsure:

@1579908537974595584

 

This is... not good?

@1579908537974595584

 

This is... not good?

 

Sounds very much like we are paying a game of chicken. Maybe the Tories don't want anyone to retire so we can work even more.

Suddenly feeling less secure about having two private pensions sat in the UK. Gov borrowing cost is already almost as high as it was at the peak of the aftermath of the disaster budget. Could wake up on Monday at this rate to Sterling Euro parity and the Sterling being under the Dollar for the first time ever.

 

 

Striking is that this is a complete and utterly self-inflicted disaster of the scale economic case studies will be written about and then studied in economics courses for decades to come across the globe. Hopefully as the final evidence that trickle down economics is the biggest con

I'm only 4 1/2 years from my current state retirement age of 66 1/2 but don't feel confident that it won't change.

Suddenly feeling less secure about having two private pensions sat in the UK. Gov borrowing cost is already almost as high as it was at the peak of the aftermath of the disaster budget. Could wake up on Monday at this rate to Sterling Euro parity and the Sterling being under the Dollar for the first time ever.

Striking is that this is a complete and utterly self-inflicted disaster of the scale economic case studies will be written about and then studied in economics courses for decades to come across the globe. Hopefully as the final evidence that trickle down economics is the biggest con

 

News looks like the Government might blink with their tax cuts. Guessing those new hires they got in to the Treasury have done the maths and realised how f***ed we are. Won't be too long until the Government have joined the anti-growth coalition themselves.

 

Looks like they might be delivering windfall taxes as well. Can't make this shit up :rofl:

UK faces tougher austerity era - ex-Bank chief

 

The UK faces a "more difficult" era of austerity than the one following the financial crisis in order to stabilise the economy, a former governor of the Bank of England has warned.

 

Lord Mervyn King said the average person could face "significantly higher taxes" to fund public spending.

 

Chancellor Jeremy Hunt is scheduled to set out his economic plans on 31 October...

 

https://www.bbc.co.uk/news/business-63364240

 

I really am losing hope with the ongoing situation regarding the government and economy. :( Austerity 2.0 will hurt so many.

There's not much more we can do without raising taxes though (which btw, I am all for..). Austerity will hurt, but if we borrow money we don't have millions of people end up paying ridiculous mortage fees and you crash the housing market or make it even harder for new people to get on. Not an easy task but we need higher taxes, at least for the next 3-5 years imo. Otherwise it is going to be a torrid time.

There's not much more we can do without raising taxes though (which btw, I am all for..). Austerity will hurt, but if we borrow money we don't have millions of people end up paying ridiculous mortage fees and you crash the housing market or make it even harder for new people to get on. Not an easy task but we need higher taxes, at least for the next 3-5 years imo. Otherwise it is going to be a torrid time.

 

There are a lot of things that can be done that the conservative party will refuse to do. Raising taxes is fine if done in a fair way. The energy companies are going to be making billions in excess profits but the government refuse to do a large windfall tax on the profits to help people. Instead they will borrow huge amounts of money to pay energy companies so they can keep making their massive profits...

 

Then there's the change in stamp duty which isn't needed - such as raising the minimum threshold for paying it.

 

There's also the issue of public spending. Public services have been completely gutted over the last 12 years. One of the best ways to help the economy grow is by putting money back into the economy through normal people. Increasing public expenditure, benefits etc is a positive thing as all that money goes back into the economy and some back into the treasury via taxation. Helping the econonmy to grow whilst increasing people's standard of living.

 

Austerity didn't work the first time and just caused massive wealth inequality. There shouldn't be more of the same this time and a much more balanced approach should be taken. But the government won't do that and will cut as much as they can whilst keeping those better off happy.

 

Regarding borrowing and increased mortgage fees - it's pretty much a sure thing interest rates are going to climb back to a more normal level of 4-5% in the coming 6-12 months. The pain of those interest rates is being felt at the worst possible time. It's technically still due to the fallout of the last financial crisis. Instead of raising interest rates slowly over the last decade to more normal levels (let's say ~0.25% a year), they were kept low and caused massive asset inflation alongside quantitive easing. Now because of the failure of central banks to slowly adjust back to normal interest rate levels they now have to sharply increase interest rates at a time when mortages and house prices are massive.

There are a lot of things that can be done that the conservative party will refuse to do. Raising taxes is fine if done in a fair way. The energy companies are going to be making billions in excess profits but the government refuse to do a large windfall tax on the profits to help people. Instead they will borrow huge amounts of money to pay energy companies so they can keep making their massive profits...

 

Then there's the change in stamp duty which isn't needed - such as raising the minimum threshold for paying it.

 

There's also the issue of public spending. Public services have been completely gutted over the last 12 years. One of the best ways to help the economy grow is by putting money back into the economy through normal people. Increasing public expenditure, benefits etc is a positive thing as all that money goes back into the economy and some back into the treasury via taxation. Helping the econonmy to grow whilst increasing people's standard of living.

 

Austerity didn't work the first time and just caused massive wealth inequality. There shouldn't be more of the same this time and a much more balanced approach should be taken. But the government won't do that and will cut as much as they can whilst keeping those better off happy.

 

Regarding borrowing and increased mortgage fees - it's pretty much a sure thing interest rates are going to climb back to a more normal level of 4-5% in the coming 6-12 months. The pain of those interest rates is being felt at the worst possible time. It's technically still due to the fallout of the last financial crisis. Instead of raising interest rates slowly over the last decade to more normal levels (let's say ~0.25% a year), they were kept low and caused massive asset inflation alongside quantitive easing. Now because of the failure of central banks to slowly adjust back to normal interest rate levels they now have to sharply increase interest rates at a time when mortages and house prices are massive.

 

Don't disagree with a lot of that, but just doing windfall taxes isn't the solution longer term. Sorts out a short term problem but I don't really think they can do windfall taxes every few months and one of the whole reasons the Energy Guarantee System has now been scrapped (because it was a good idea, but wrongly funded). Judging from the markets and the lack of a forecast I don't think we have any money left and stuff lime stamp duty cut don't make that much of a difference.

 

I'm not saying austerity is a good thing or that it works, but there needs to be a more radical tax solution otherwise the solution is cuts. It's a rubbish situation as we've already borrowed too much money and borrowing more without investing it is not going to go any way to sorting the markets out.

I think there was some hope that the debt burden caused from Covid could have been inflated away somewhat to ease pressure on the deficit and interest payments, however borrowing costs are rising after being historically low for well over a decade so that becomes difficult.

 

The problem for the economy is that inflation has made what is already a dire situation far worse. I'd argue that drivers for inflation wasn't just as a result of energy price changes but a whole mix of things which unfortunately have all come at around the same time and have been in play for over a year now. Interest rates are rising to try and control inflation but that's putting even more pressure because of the housing crisis and the fact that most working age people end up spending up to half of their take home on shelter (rent/mortgage).. going too far on that risks causing a huge recession as people's disposable income falls away to zero.

 

I don't think there are any easy or good options, however borrowing to invest in things that would benefit society (better home insulation, mass council home building projects, infrastructure projects, green energy etc.) seems like a really sensible option, these are tangible things that could quite easily grow the economy. How much does the Government spend on Housing Benefit? This is just money given to the landlords for zero productive economic activity- far better to spend that money on building homes and then renting at affordable levels from the state IMO.

 

In terms of raising taxes, there are many options available - removing the Non Dom status would raise a few billion (small fry I guess), raising corporation tax- Corbyn wanted to raise it to 26%, well Sunak is nearly there at 25% :clap: Taking the current top 45% rate of tax to £80K/year and adding a new 50% rate above £123K/year would raise another 5 billion or so. I think a land value tax needs to be seriously considered too.

 

There is enough money.

Hunt pissing off a lot of right wingers with some sensible policies announced today- greater windfall taxes on energy companies, making people over £125K salary pay more tax, reducing dividend allowances . Shame so much of it took so long to implement and barely make a dent in Truss/Kwarteng's colossal screw up of the economy.

Well this budget has been one of the most depressing ever. I think the worst aspect is the further increases in energy costs from April, on top of tax rises for most (freezes to income thresholds are effectively a cut). This comes at a time when food prices and mortgages have risen substantially and council tax also looks set to increase significantly from April as many LA’s just simply are running out of money. While this year, most people will have received some form of help towards their energy bills in the form of a council tax rebate and 6 monthly instalments via their energy bills, it looks like unless you are on benefits or a pensioner then you won’t be eligible for any further help from April. I’m not saying everyone should be receiving help but even people on average incomes will be severely affected by further energy price increases. That means for most people the cost of energy has effectively risen from around £2 to £3k (if you take off the average rebate people got). For many people, this will be unaffordable and I cannot see any long term plan or credible solutions being offered by this abysmal government.

Edited November 17, 20222 yr by neill2407