Savers 'lose' £43bn, Mortgagees 'gain' £51bn.

Graham_Devon

Savers have lost out on £43bn but mortgage borrowers have gained £51bn owing to low interest rates.

The Bank rate is widely expected to remain at 0.5% when the Bank of England's Monetary Policy Committee makes its latest statement at 1200 BST.

The fortunes of savers and borrowers have been in stark contrast owing to low rates, figures obtained by the BBC from the Bank of England show.

This is revealed by the incomes of savers and the payments of borrowers.

Discuss

ruggedtoast

The comparison is disingenuous imo. Sometimes rates are low, sometimes they are high.

It is unfortunate for people who were relying on putting their accumulated wealth into a zero risk bank account (up to FSA protected levels of course) while drawing a monthly income from it, and now arent getting much back. But that isnt really any different from someone taking out a mortgage without being able to absorb rate increases.

ess0two

Its pays to be in debt.

Heyman_2

Savers are good and Mortgage borrowers are bad!

It's just not fair!

B_Blank

Please source your quote OP.

Graham_Devon

B_Blank wrote: »

Please source your quote OP.

http://www.bbc.co.uk/news/business-14835870

ruggedtoast

I must say I cared about this more when I had savings rather than a mortgage.

Now I realise that borrowers are people too and deserve a break. Preferable a long one that extends well beyond the expiry of my fixed rate.

B_Blank

And yes, the fact savers are getting shafted is a joke. I am glad the government did that ns and i inflation thing, but to limit it to £15k was too low. There are ways of combatting inflation with your savings but it is difficult.

In short, the current system is grossly unfair to savers, whilst those mortgaged up to their eye balls (who caused the crisis) are benefitting. Its just awful.

JonnyBravo

Graham_Devon wrote: »

Discuss

Hooray!!!!

I love being bailed out! Rescue me from my profligacy please. :rotfl:

WestonDave

Trouble is life is never clear cut. Mortgage holders aren't just one amorphous mass - there are those that have struggled hard to get on the ladder, and have seen their jobs pulled from under them by the outcome of the credit crunch (e.g. the 10% cut in pay I had to take) and there are those that have played fast and loose with their borrowings (MEWing, 125% loans etc). Similarly savers - there are those young people desperately trying to pull together some funds to buy a house or those who have rented all their lives on low incomes and are now trying to use their meagre savings to add a bit of sparkle to retirement - but also those who have sat pretty, enjoyed the massive explosion in house prices, good wage inflation, good employer pension schemes and are moaning because the cash they drew down from their pensions isn't affording them a 3rd cruise of the year. On that basis its hard to say borrowing bad, saving good or vice versa. Add to that life being cyclical - mortgage holders getting good rates now will probably get clobbered in the future or have been clobbered when rates were massively high not so many years back.

Thrugelmir

Same poor BBC journalism. Considering they have Martin on at least one programme every week. If peopley don't know by now where to deposit their money for a better return................