MSE News: Petrol prices set to reach record high

SHIPSHAPE

Derivative wrote: »

I have no mortgage. A base rate rise would mean an increase in my student loan interest rate, however that would be more than made up for by a rate increase on my savings.

Of course, because I don't have a £200k mortgage and mouths to feed, I suspect I'm not 'ordinary folk' by your definition.

I tend to read "ordinary folk" or anything similar such as "average joe", or my personal favourite "people in the real world" as simply "people who made the same decisions as me". Why not simply state the truth?

Low interest rates benefit the majority, from homeowners to businesses, the only way you would benefit is due to your savings, of which you are a minority in comparison.

Some ordinary folk may well welcome rate rises, however, most ordinary folk would not.

Try looking at it without a selfish tint of me, me, me and you may grasp the notion.

Derivative

SHIPSHAPE wrote: »

Low interest rates benefit the majority, from homeowners to businesses, the only way you would benefit is due to your savings, of which you are a minority in comparison.

Some ordinary folk may well welcome rate rises, however, most ordinary folk would not.

Try looking at it without a selfish tint of me, me, me and you may grasp the notion.

No selfish tint here. It hardly affects me either way, we're talking at max a couple hundred quid a year.

It is nonsensical to define 'ordinary folk' based on your own experience and nothing else.

Homeownership is at about 60-70% in the UK. Of which a decent amount will be owned outright. So you are looking at 50% of 'folk' with large mortgages as an absolute maximum.

Hardly "the majority" now is it? If absolutely every one of those people had a huge mortgage outstanding and no savings, then yes, but that's clearly a misrepresentation of the truth.

For a lot of people base rate changes are almost completely neutral - council tenants for example.

I am not saying that 'ordinary folk' aren't hit by base rate rises. I am saying that some win and others lose - a point seemingly completely lost on you.

SHIPSHAPE

Derivative wrote: »

As posted above, you are defining "ordinary folk" as "people with a mortgage". And people with a large mortgage outstanding, at that.

Why?

If you had read this thread through properly you would have seen I was specifically talking about people with mortgages, those same people who also contend with ever increasing fuel rises.

That is why.

SHIPSHAPE

Derivative wrote: »

No selfish tint here. It hardly affects me either way, we're talking at max a couple hundred quid a year.

It is nonsensical to define 'ordinary folk' based on your own experience and nothing else.

What are you babbling on about?

Again, this thread is about rising fuel prices, I pointed out that just this week it looks like the beginning of interest rate rises too.

And these rate rises could potentially pale into insignificance the fuel rises, judging by the last tory shower of the early 90's.

More people would be concerned about this double whammy than by earning a few quid via their savings. Fact.

And I am not defining my own experience to ordinary folk.

I do not have a large mortgage and interest rates would need to reach 5.5% before my rate could even be raised by my mortgagee.

Your posts are quite baffling.

Derivative

SHIPSHAPE wrote: »

More people would be concerned about this double whammy than by earning a few quid via their savings. Fact.

If you look at the group of people that have both a mortgage and have to commute significant distances, then yes, I would not dispute that - very few people with mortgages have savings that are larger than the outstanding balance.

What I am disputing is that you seem to think those with large mortgages and cars are in the majority.

A quick search grabs me these statistics from the Guardian for 2009/10:

31.3% of homes owned outright
34.4% of homes mortgaged

The rest belong to private/council landlords and are being rented.

So straight away we're at 34.4% of people who have a mortgage.

From here on out I am speculating a little, but I would say it's a reasonable assumption to make that there will be a nice 'curve' there - a third will have 0-33% paid off, another third 33%-66%, and another third 66%-100%.

So we're looking at as a maximum, 15-20% of UK households with large outstanding mortgages.

To me, that means that the average person will not struggle too much with a base rate rise. Fully 80% of people are either renting or have their homes paid off / close to paid off.

So the numbers of people struggling with this 'double whammy' are not as large as you might think.

(I have to admit, it does surprise me that 35% of homes are owned outright!)

vanpopple

Labour have ruined britain, immigration is the biggest killer on our economy.
As for the post about riots why wasnt the family of m duggan arrested and charged with inciting the riots because we all know thats why it happened, then stupid teen yobs saw a way of easy money and 2 fingers up to society..

Why isnt the criminal law changed to 3 strikes, do 3 similar crimes and you get 25 years to life.
But as we know because of the stupid EU, you have to give them tvs and ps3s in prison??
Give them nothing a cell a bed and thats it, punish them and they will soon learn..
If that happens the economy will help itself out of this awful mess, as for petrol in the op, its good news for the uk that iran has stopped supplying us with oil as that will create a gap, thatmany other coutries will try to fill, and hopefully it will drive the prices down..

Derivative

vanpopple wrote: »

its good news for the uk that iran has stopped supplying us with oil as that will create a gap, thatmany other coutries will try to fill, and hopefully it will drive the prices down..

:rotfl:
Oh my.

worried_jim

vanpopple wrote: »

Labour have ruined britain, immigration is the biggest killer on our economy.
As for the post about riots why wasnt the family of m duggan arrested and charged with inciting the riots because we all know thats why it happened, then stupid teen yobs saw a way of easy money and 2 fingers up to society..

Why isnt the criminal law changed to 3 strikes, do 3 similar crimes and you get 25 years to life.
But as we know because of the stupid EU, you have to give them tvs and ps3s in prison??
Give them nothing a cell a bed and thats it, punish them and they will soon learn..
If that happens the economy will help itself out of this awful mess, as for petrol in the op, its good news for the uk that iran has stopped supplying us with oil as that will create a gap, thatmany other coutries will try to fill, and hopefully it will drive the prices down..

Jesus !!!!!!.

Crabman

vanpopple wrote: »

Labour have ruined britain, immigration is the biggest killer on our economy.

Yes, all those immigrants working the jobs that we don't want to/can't do, paying their taxes (unlike certain multi-national firms), buying local goods, supporting the economy. Terrible, isn't it?

Hint: Put down the tabloid and buy a proper paper. "The i" only costs 20p on a weekday (less than most tabloids) how about giving it a go

whatmichaelsays

SHIPSHAPE wrote: »

Yes I know, I stated so in an earlier post of mine on this thread.

I was perplexed as to what member whatmichaelsays posted, ie essentially, people will be happy to pay more for their motrgage as interest rates rise.

I've never met anyone who is happy to pay more for something today than they were paying yesterday.

Takes all sorts I guess.

No homeowner should assume that the BOE will remain so artificially low.

I would more than welcome an increase in the BOE. I'm fed up of losing out in savings interest to effectively bail out those who took out mortgages that they could barely afford.