Bank of england maintains bank rate at 0.5 pct

abaxas

whatyadoinsucka wrote: »

Disagreed depending on your career choice your income should go up over time.. i know i do not plan to stay on my current salary long term, and i could easily squeeze another 10-20% by moving jobs.

But that does not apply to everyone. And definitly not for those over 40.

Maybe I should translate.

People's ability to service the debt is decreasing. The valuation of the debt relative to their ability to buy good and services is increasing.

Graham_Devon

whatyadoinsucka wrote: »

you must have been taught a different economics/finance to me..

Inflation means the cost of money loses value so a mortgage today of £100k is worth far less in the future due to inflation..

same as a £10 yesterday may buy you 2 cinema tickets and a popcorn on orange wednesday tomorrow you may only get one ticket and popcorn for a £10

You seem to be working on the assumption that people are getting wage rises alongside this inflation.

They are not. Infact report out today suggests wage rises in the private sector were just 0.5%. In the public sector, you'll be lucky to get anything.

Debt does NOT reduce simply because inflation is high. You'd need inflation busting wage rises for that to be true. As it is, people are getting worse off each month that passes, as we have inflation, but no wage rises.

It's a good job some others were taught different lessons it seems.

Dan:_4

abaxas wrote: »

But that does not apply to everyone. And definitly not for those over 40.

Are you suggesting over 40 year olds cannot be promoted?

abaxas

Dan: wrote: »

Are you suggesting over 40 year olds cannot be promoted?

No, just most promotion happens before then. People tend to hit their earning potential in their late 30s.

lisyloo

Disagreed depending on your career choice your income should go up over time..

It does depend on your career.
In my career (IT) there is a lot of globalisation going on and I would say that salaries for IT people are generally going down in real terms as many of the jobs are off-shored to cheaper countries like India.
This means greater competition here.

Are you suggesting over 40 year olds cannot be promoted?

It's not black and white but it does get harder to advance your career definitely (there may be variances across careers).
In a lot of jobs employers would not want to take on older people due to increased risks of sickness and people being "stuck in their ways".
On an individual basis - of course you can get promoted.
On a general basis - the older the get the harder it becomes.

whatyadoinsucka

Graham_Devon wrote: »

You seem to be working on the assumption that people are getting wage rises alongside this inflation.

They are not. Infact report out today suggests wage rises in the private sector were just 0.5%. In the public sector, you'll be lucky to get anything.

Debt does NOT reduce simply because inflation is high. You'd need inflation busting wage rises for that to be true. As it is, people are getting worse off each month that passes, as we have inflation, but no wage rises.

It's a good job some others were taught different lessons it seems.

graham you are talking on a purely short term basis. long term with booms and bust we will all be earning more in the future. actual worth wise or not.. TV of money et al

My mum always says she can't believe the earnings me and my siblings get (and non off us are on stupid money), compared to my dad who retired 10 years ago after 25 years in a skilled position with a good pension pot.

Mallotum_X

RenovationMan wrote: »

This is great news. Another month of low mortgage rates to look forward to. Many of my house renovations are coming to an end now and I am close to my next 10% mortgage overpayment. Things are going nicely to plan .

I love the way it was your plan to have base rates at 0.5%. Did you prepare the way by planning the credit crunch too

Graham_Devon

whatyadoinsucka wrote: »

graham you are talking on a purely short term basis. long term with booms and bust we will all be earning more in the future. actual worth wise or not.. TV of money et al

Yes, because we are talking about decisions today.

If you are talking about stuff 20 years down the line, then you need to make it a little clearer.

It's of little use today for those paying extra car parking charges to work, extra fuel to work, extra money on food, extra money on clothes etc, if someone comes and says "well in 20 years time you might be ok".

mintedmatty

I have savings and I have a mortgage, If you read my previous posts then you will se my mortgage payments have halved and I'm continuing to over pay by the same amount when I was on a fixed rate of 5.49% (now on 1.5%). I understand inflation is high and petrol,food,everything is costing more but I'm weighing it up against the amount I am actually saving on my mortgage? The savings I make on my mortgage cover quite a few loafs of bread with a 50p mark up.

Dont get me wrong ideally it would be nice for it not to be expensive but thats how it goes! I'd be annoyed if I was a mortgage payer mind and just had savings but even with that I have increased the amount I save as i still fall into that bracket too, made sure I have shopped around for the best rates and generally being savvy.

Ive said it before, batten down the hatches and barr being made redundant we will be stronger for it when we REALLY come out of recession.

pwllbwdr

Unless I'm misunderstanding though, your "overpayments" are actually your only capital repayments. Personally I'd simply call them "payments".