Interest Rates

aardvaak

It makes me sick that we have come round to the time of the month that the news presenters think it's clever to try and convince the BOE to reduce interest rates.

They seem to want to pander to the plonker mortgage payers that have themselves to blame by over extending themselves.

Just as our rates are showing signs of giving us a reasonable return some people are trying to kick us in the teeth.

Interest is my only form of income and the action of these people causes me real hardship.

There are more savers than borrowers when are they going to understand this?

Lokolo

Because majority of the country borrows for a mortgage....?

And I should think there is more money in lending than saving to be honest.

aardvaak

Lokolo wrote: »

Because majority of the country borrows for a mortgage....?

And I should think there is more money in lending than saving to be honest.

It has been said before by others not only me that there are more savers than borrowers!

Lokolo

I didn't say the number of people saving against borrowing, I said the amount of money involved in borrowing is most probably more than saving.

nilrem_2

aardvaak wrote: »

Interest is my only form of income and the action of these people causes me real hardship.

There are more savers than borrowers when are they going to understand this?

I am in the same 'boat' myself and I do understand what you are saying' the media are normally obsessed with rate reductions and 'go on' about how brilliant they are but they rarely consider savers many of whom are retired and depend on savings interest, they also seem to forget that it is savers who make much of the money given to people with mortgages possible!

IMHO I don't see the point of a BOE cut ATM, with inflation and costs going up and with mortgages becoming more difficult to obtain is there any guarantee that mortgage rates will actually reduce in line with a BOE cut, it's more likely that the institutions will leave mortgage rates as they are but reduce the rates to savers thereby increasing their coffers!

shandypants5

aardvaak wrote: »

It makes me sick that we have come round to the time of the month that the news presenters think it's clever to try and convince the BOE to reduce interest rates.

They seem to want to pander to the plonker mortgage payers that have themselves to blame by over extending themselves.

Just as our rates are showing signs of giving us a reasonable return some people are trying to kick us in the teeth.

Interest is my only form of income and the action of these people causes me real hardship.

There are more savers than borrowers when are they going to understand this?

I am a "plonker" mortgage payer that HAD to slightly over extend myself a few years back, just to be able to get myself on the property ladder.
Things are a little better for me now and I am not struggling quite so much, but still I could do without my monthly payments rising suddenly.

I am Terribly sorry that my lending at a decent rate is causing you "hardship" ,and I wish I could find a way to help you sit at home and earn more for being fortunate enough have savings.

If interest is your ONLY form of income maybee you should find another?
why not become a loan shark?
Then you could really reap the rewards from all us Plonkers...

Aegis

aardvaak wrote: »

It makes me sick that we have come round to the time of the month that the news presenters think it's clever to try and convince the BOE to reduce interest rates.

They seem to want to pander to the plonker mortgage payers that have themselves to blame by over extending themselves.

Gee, thanks. Generalise the situation to make anyone borrowing for a home seem like an idiot.

Just as our rates are showing signs of giving us a reasonable return some people are trying to kick us in the teeth.

Well, don't be too offended if I don't cry too much. Seems like you'd be quite happy to receive a little more return on your capital and watch people really struggle to keep up their mortgage payments because of the, what, 5 interest rate increases over the last couple of years? With only 2 decreases following that so far, you're still much better off than you were a couple of years back.

Interest is my only form of income and the action of these people causes me real hardship.

There are more savers than borrowers when are they going to understand this?

It has very little to do with the ratio of savers to borrowers. With interest rates high, the economy stagnates. When they're lower, the economy can grow more easily, though the cost is rising inflation. Setting the base rate is an attempt to balance the forces of inflation and economic growth to best serve the long term prospects of the country. At the moment the reason a lot of experts want a rate cut is to try and stimulate the economy after the losses suffered at the start of the year due to the credit crunch.

If interest is your only source of income, try investing some of your money. That way you'll end up with a part cash, part equity portfolio that takes advantage of high AND low interest rates, and you won't have to go on to a forum and complain that the government is out to get you on behalf of "plonker" homeowners.

dwileflunker

aardvaak wrote: »

They seem to want to pander to the plonker mortgage payers that have themselves to blame by over extending themselves.

Just as our rates are showing signs of giving us a reasonable return some people are trying to kick us in the teeth.

Interest is my only form of income and the action of these people causes me real hardship.

There are more savers than borrowers when are they going to understand this?

For me too interest is my only form of income until I reach state pensionable age but unlike aardvaak I don't resent the fact that younger people are having to extend themselves to put a roof over their head. I, like many many others, did the same thing 30/40 years ago to put a roof over my family's head and it was just as difficult then as it is now. Perhaps aardvaak was never in the position to do that or perhaps he is just more interested in himself than the future of the next generations. If I can't manage on my interest I'll get a job to make up the difference, if you really want to, or need to, you'll do it. Alternatively you can sit and moan about it.

tradetime

Having a fair amount of money in savings accounts, I am aware of what you're saying as it impacts on me also, though it is not a source of income for me. I do however think your viewpoint is somewhat narrow. Given the current economic envoironment raising interest rates at this juncture would cause a very lot of people great hardship, many through no fault of their own.
For my own savings position I have moved the bulk of my money into 1 and 2 year fixed rate deposits over the last few months taking advantage of the many offers around. So I won't worry too much what they do for the next year or two.
Whilst venting on the "plonker mortgage payers" perhaps you'd spare a thought for all the "plonker workers" who will be laid off if we descend into a recession.
I'm sorry that savings interest is all you have for income, but life is a little more complicated than just bunging up interest rates to keep us savers happy.

Sapphire

Aegis wrote: »

If interest is your only source of income, try investing some of your money. That way you'll end up with a part cash, part equity portfolio that taxes advantage of high AND low interest rates, and you won't have to go on to a forum and complain that the government is out to get you on behalf of "plonker" homeowners.

People who have over-extended themselves through borrowing beyond their means are 'plonkers' (that is putting it mildly) who have not only put themselves at risks, but also helped to support the giant pack of cards that is about to fall – to the detriment of all.

Not surprising, really, that someone like this now suggests 'investing' money in shares (i.e. gambling with your money), despite the increasingly pessimistic predictions about the economy. :cool:

Lokolo

Sapphire wrote: »

People who have over-extended themselves through borrowing beyond their means are 'plonkers' (that is putting it mildly) who have not only put themselves at risks, but also helped to support the giant pack of cards that is about to fall – to the detriment of all.

Not surprising, really, that someone like this now suggests 'investing' money in shares (i.e. gambling with your money), despite the increasingly pessimistic predictions about the economy. :cool:

Are you going to suggest anything then?