BOE MPC raises interest rates by 0.25% to 0.50%

HPC_Ghuol_Hunter

This rate rise isn't really an issue for homeowners as, by their own definition, they are much more financially savvy than rent forever losers so will have priced in any rate rises.

Herzlos

HPC_Ghuol_Hunter wrote: »

This rate rise isn't really an issue for homeowners as, by their own definition, they are much more financially savvy than rent forever losers so will have priced in any rate rises.

Plenty of home owners are overstretched and plenty of renters are comfortable.

Thrugelmir

HPC_Ghuol_Hunter wrote: »

This rate rise isn't really an issue for homeowners as, by their own definition, they are much more financially savvy than rent forever losers so will have priced in any rate rises.

Estimated that around 16 million people have less than £100 in net cash savings. A fine line is being walked.

Jack_Johnson_the_acorn

Thrugelmir wrote: »

Estimated that around 16 million people have less than £100 in net cash savings. A fine line is being walked.

We've just spent all our savings developing our house, we also have taken out a loan.

No fine line being walked here, we have over £1500pcm to spend frivolously each month after all our monthly commitments.

Stats are meaningless without context.

Thrugelmir

Jack_Johnson_the_acorn wrote: »

Stats are meaningless without context.

No job. No pay cheque. Slippery slope.

As basic as that.

HPC_Ghuol_Hunter

Thrugelmir wrote: »

Estimated that around 16 million people have less than £100 in net cash savings. A fine line is being walked.

I'd wager that the vast majority of those are renters. Homeowners at least have equity in their property portfolio. Renters have very little assets to their names.

Jack_Johnson_the_acorn

Thrugelmir wrote: »

No job. No pay cheque. Slippery slope.

As basic as that.

Not really, 6 months full pay for sick absence & a further 6 months half pay, nice big payout if released through sickness.

about £35k if made redundant

We could reduce our outgoings easily. Meaning even without my wage we'd have about £600 a month to spend frivolously.

£350 saved on childcare. Sell 1 of the cars for a lump sum and save petrol (£150) tax (£20) and insurance (£60), cancel gym (£30) and TV (£60) Hardly the end of the world.

chucknorris

Jack_Johnson_the_acorn wrote: »

We've just spent all our savings developing our house, we also have taken out a loan.

No fine line being walked here, we have over £1500pcm to spend frivolously each month after all our monthly commitments.

Stats are meaningless without context.

I reckon that you are smart enough to be putting some of that £1,500/month into ISA's and pensions, or it might be that £1,500 is available after investing in them?

chucknorris

HPC_Ghuol_Hunter wrote: »

I'd wager that the vast majority of those are renters. Homeowners at least have equity in their property portfolio. Renters have very little assets to their names.

I know a couple that are struggling with cash flow, but they have approx £750k equity, they stretched themselves at the right time (about 18 years ago), I know because at that time I lent them part of their deposit.

ukcarper

As someone who has struggled with increasing interest rates in the past, what most people seem to ignore is the fact that most people have scope to cut spending else where and to prevent losing thier home they do. They might complain and if asked say they can't make savings but they will.