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

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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    B_Blank wrote: »
    House prices are down 3% in the last year. ANyone with savings probably gets about 2.5% on it. So that makes the house 5.5% more affordable. Not bad.

    Rental costs?
  • robmatic
    robmatic Posts: 1,217 Forumite
    Really2 wrote: »
    Rental costs?

    That's an insignificant detail. Just ask geneer.
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    B_Blank wrote: »
    House prices are down 3% in the last year. ANyone with savings probably gets about 2.5% on it. So that makes the house 5.5% more affordable. Not bad.

    Based on that logic, if we take a £150k property and say the renter has £150k in savings - rent would have to be less than £687/month for you to gain.

    Unlikely.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Blacklight wrote: »
    Based on that logic, if we take a £150k property and say the renter has £150k in savings - rent would have to be less than £687/month for you to gain.

    Unlikely.

    Why unlikely? Under £687 a month for a house valued at 150k should be easily achieveable.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Why unlikely? Under £687 a month for a house valued at 150k should be easily achieveable.

    I think the having £150K and houses costing £150K and not already owning the unlikely bit.

    The point is if prices were 5.5% more affordable you need a hell of a lot of cash not to be worse off when you add rent.
  • Kennyboy66
    Kennyboy66 Posts: 939 Forumite
    Thrugelmir wrote: »
    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................

    They are BoE figures not the BBC's.

    "If peopley don't know by now where to deposit their money for a better return................"

    Icelandic banks perhaps ?
    US housing: it's not a bubble - Moneyweek Dec 12, 2005
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Kennyboy66 wrote: »
    They are BoE figures not the BBC's.

    All the BOE said was that "Banks have paid £51bn less interest" since rates dropped in 2009.

    However there's no reference to whether more or less money was held in retail deposits during that time. Nor whether the total amount of mortgage debt outstanding has increased or decreased.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    My savings rates are 3-4 times higher than my mortgage rate, a winner on both sides :)
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Unfortunately, when you stick all your money into one asset class like a cash savings account you only have yourself to blame for poor returns.

    People should have lumped 1/2 their money into the FTSE when it dipped below 4000 points like me and be quids in.
  • Kennyboy66
    Kennyboy66 Posts: 939 Forumite
    Thrugelmir wrote: »
    All the BOE said was that "Banks have paid £51bn less interest" since rates dropped in 2009.

    However there's no reference to whether more or less money was held in retail deposits during that time. Nor whether the total amount of mortgage debt outstanding has increased or decreased.

    Mortgage debt has barely changed in the last 2 years.

    Savings have increased during this period.

    Great for people like me that interest rates are so low, but I'd be the last to complain that the BBC are highlighting the fact that savers are getting crucified at the moment.
    US housing: it's not a bubble - Moneyweek Dec 12, 2005
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