MSE News: Fixed mortgage rates rising as inflation higher than expected

michaels

weddingringman said:

Strummer22 said:

ItisHappening said:

It doesn't look good as mortgage rates are only going one way. Great for savers though as they are now getting a decent return on their savings after 15 years of hardly nothing.

BOE base rate could go to 8% in 2024.

What's that 8% based on though? The energy price shock is already dropping out of the annual inflation figures, and the food and commodity price shock will drop out around Q2 2024. Barring further shocks (which of course is speculation), interest rate rises would be needed to counter inflation due to wage growth and consumer product price rises. Would 8% really be necessary to do that, when the full effect of the rate rises already implemented has not yet been felt?  

Also, savers are still getting stuffed, I don't think there are any savings accounts giving above-inflation returns. Savers are worse off than when savings rates were 0.15% and inflation 1.5%. Yes the amount of money in the bank has gone up a bit, but you can't buy as much with it. 

With respect I think you’re letting the mainstream media and government taint the real costs of inflation that are frankly engulfing the UK.

Days out with my kids (tickets/food) have literally doubled in cost over the last 2-3 years. Food is easily up 50% in a similar time frame. Look at utilises including streaming services, broadband, insurance etc. All up far more than 8%. 

Need to carry out some home repairs? Some materials have increased 2 or 3 fold. Getting folk in to do the work equally now far more costly. 

Rising costs are everywhere. 

And yet I shop around and now pay less in pound terms for mobile, broadband, insurance etc than I did 1 and 2 years ago.

I definitely agree that under the cover of inflation businesses have got much better at taking money off those who don't bother to shop around.

weddingringman

Broadband is the sickener in Scotland. 

Virgin Media effectively have a monopoly on fibre across the country. 2-3 years ago I was paying about £25 per month, but the prices have ramped right up. Friends and family paying £40 for slower speeds now, like for like has doubled in price.

I just find that nothing is inexpensive anymore. Any time I need to buy something it ends up costing £5 or £10 where previously it felt like pocket change. The hinge for the built-in washing machine snapped a few weeks ago. Cheapest I could find was £18!!!! I mean I swear I paid £6 the last time it happened?!

Check your Amazon purchases from 2-3 years ago, click on the same links and look how much the stuff is now…