Interest Rates

martinman3

I have edited my post as the first line was ambiguous when I read it back.:o

Yes, I understand but you must understand too that the real villains of this are the lenders for offering mortgages to those who could only afford them if interest rates fell further before the end of their introductory rate.

Any attack on the quite sensible opinion of a saver that he wants a better return on his money considering that cash is now in short supply is unfair.

If the OP wants to complain about IR falling and him losing out then he must shut up when it comes to IRs rates falling and borrowers moan, would you agree?

As inter-bank lending has virtually dried up the savers who are currently funding mortgages may move their money elsewhere because of todays decision.

marshall2k

So have you NEVER been in a position where you NEEDED to lend money?

That's what he does as a saver. Sorry to be a pedant but the difference between lending and borrowing is quite important

Lokolo

martinman3 wrote: »

I have edited my post as the first line was ambiguous when I read it back.:o

Oh irony

martinman3 wrote: »

Yes, I understand but you must understand too that the real villains of this are the lenders for offering mortgages to those who could only afford them if interest rates fell further before the end of their introductory rate.

Any attack on the quite sensible opinion of a saver that he wants a better return on his money considering that cash is now in short supply is unfair.


As inter-bank lending has virtually dried up the savers who are currently funding mortgages may move their money elsewhere because of todays decision.

Hey I agree, I have savings but the fact is he is complaining because its his own income it not 'quite sensible'. He doesn't decide the IR's so why complain? The BoE are trying their best to stop the country going into recession later on this year following the US. He took the risk to live off savings thats his fault.

Yes the media have been stating the facts about the economy which may/may not have, effected the economy, you can't know this for sure.

But I do think its unfair that he attacked borrowers who have had to overpay due to house prices rising so much. How is someone young without a deposit going to get onto the housing ladder? Thats taking a risk! Thats just what he is doing by living off his savings! So I personally don't think its right in what he's saying.

shandypants5

marshall2k wrote: »

That's what he does as a saver. Sorry to be a pedant but the difference between lending and borrowing is quite important

Standing corrected, my mistake.
But My point still stands.
Lots of people these days HAVE to take financial risks if they want to live somewhere decent.
The OP is very fortunate and sounds like he is financialy secure now.
Many of us are not, and struggle from day to day to pay bills.
There are many reasons why someone could now be struggling to pay a mortgage, job loss/change, illness, interest rate changes.

I really think calling less well off people "plonkers" is uncalled for and unfair, he is not a better person than me because he has cash in the bank.

My point to the OP was.. Did he consider himself a plonker during those times that he needed to "borrow" money from someone better off than himself ?

nilrem_2

Lokolo wrote: »

No-one should say they are being worse off because of rate cuts because when its the other way round they are benfitting whilst borrowers are losing out.

I have savings but the fact is he is complaining because its his own income it not 'quite sensible'. He doesn't decide the IR's so why complain?

Why should he/we not complain? I always complain and have a moan when the rates go down and my income is cut the same as I complain when I get a puncture on my bike! I am also pleased when the rate increases and I get a modest income boost. Surely it's just human nature?

Lokolo

nilrem wrote: »

Why should he/we not complain? I always complain and have a moan when the rates go down and my income is cut the same as I complain when I get a puncture on my bike! I am also pleased when the rate increases and I get a modest income boost. Surely it's just human nature?

Indeed so wheres the need to create a thread to complain? If the rate changes every month there would be a lot of pointless threads eh

nilrem_2

shandypants5 wrote: »

I really think calling less well off people "plonkers" is uncalled for and unfair, he is not a better person than me because he has cash in the bank.

As pointed out by another poster the original op did not refer to less well off people he said

plonker mortgage payers that have themselves to blame by over extending themselves

which is not quite the same thing? Very well off people often get into big trouble by over extending themselves!

bristolleedsfan

shandypants5 wrote: »

Lots of people these days HAVE to take financial risks if they want to live somewhere decent.
The OP is very fortunate and sounds like he is financialy secure now.
Many of us are not, and struggle from day to day to pay bills.
There are many reasons why someone could now be struggling to pay a mortgage, job loss/change, illness, interest rate changes.

I really think calling less well off people "plonkers" is uncalled for and unfair, he is not a better person than me because he has cash in the bank.

My point to the OP was.. Did he consider himself a plonker during those times that he needed to "borrow" money from someone better off than himself ?

Sadly those who were able to get 100% + morgages took no financial risks and were willing to pay anything for a house due to apparent fact they werent putting anything down on it. ( no risk)

Apart from those who inherit wealth those with their morgages paid off + have savings are not "fortunate" they worked to be in the situation they are now, Many had no holidays and little luxuries when they had their morgages.

Are u saying that im "fortunate" to be living morgage free with savings after I took out a morgage when I was 18, didnt go out drinking, worked numerous hours over the top, had no holidays and little social life. :huh: ( and btw I have a 25 year endownment policy maturing in 2009 i guess due to me being "fortunate" to keep paying into it despite having no morgage.

Struggling to pay a morgage due to "interest rates" you say, many of us didnt have morgage rates less than 10.25% with the highest being 15% +.

The "plonkers" are those who seemed to believe that just because they were "fortunate" to get loss leading fixed rates for a few years that they had some god given right to get loss leading fixed rates all through their morgaging life.

The whole idea of the loss leading short term fixed morgage rates was that once "sucked in" they would have to pay higher morgage rates later in their morgaging life.

nilrem_2

Lokolo wrote: »

Indeed so wheres the need to create a thread to complain? If the rate changes every month there would be a lot of pointless threads eh

There are lot's of pointless threads here anyway such as the continual ones trying to scare people away from the Icelandic banks, I really don't see the need to stop posters complaining about loss of income!

IMHO there is nowt wrong with the thread, it's had lot's of interest which is a good thing in a discussion forum.

bristolleedsfan

Lokolo wrote: »

Indeed so wheres the need to create a thread to complain? If the rate changes every month there would be a lot of pointless threads eh

U saying that their isnt a lot of pointless threads.