Todays budget

[Mice!]

I watched some of Question time last night, the Chairman of Cobra made a lot of sense, the funny thing was he was applauded for pointing out that what gov had done needed doing and should have been done earlier,  while others were on just to stir the pot it seemed.

They also said Germany had put £200 BILLION  into its economy.

The big issue from the audience was the mortgage rates going up, but as the Cobra fella said, we have had zero growth for far to long with interest rates at practically 0%

Interest rates normally go up and down but it seems people were just expecting them to stay low forever?

[Jaymo]

22 minutes ago, oldypigeonpopper said:

Hello, I think millions of UK citizens will be more worried on tomorrow's energy price rise than the tax cut, 1 penny 🤔

But without the Government’s intervention, it would be many times more of an increase. 
We choose live and use energy which isn’t a Government ‘utility’, but private enterprises and are subject to costs themselves.

Whats next, saying the Government should intervene because Gregg’s has increased the price of sausage rolls, when it had too as it’s key ingredients and overheads have gone up! 

 

Edited September 30, 2022 by Jaymo

[oldypigeonpopper]

23 minutes ago, Jaymo said:

But without the Government’s intervention, it would be many times more of an increase. 
We choose live and use energy which isn’t a Government ‘utility’, but private enterprises and are subject to costs themselves.

Whats next, saying the Government should intervene because Gregg’s has increased the price of sausage rolls, when it had too as it’s key ingredients and overheads have gone up! 

 

Hello, I agree, the governments £400 will help millions in the UK , and the over 65s payments will do for many pensioners, , and I hope the business energy payments will be enough to stave off many closing down, but it is only 2022/23 , what can we expect in winter 2023/24 🤔, as for Gregg's sausage rolls it won't affect me as when I do buy any the Cornish shop I use are far nicer to eat🤔👍

[discobob]

35 minutes ago, Jaymo said:

Gregg’s has increased the price of sausage rolls

busy writing a letter to my MP now - this is outrageous 😂

[Scully]

1 hour ago, udderlyoffroad said:

Please can all those losing their minds on PW & elsewhere re-read that sentence, take 5 minutes to give their heads a wobble & crack on.

It would be funny (if it weren’t so tragic) how the biggest enthusiasts for the economic ruination that is lockdown, are also the ones crying the loudest about a money market wobble over a minor tax cut.  Again, both on PW and in real life.

👍

[ditchman]

it is my sad duty to imform everybody ...that due to the current situation...myself and Melb3 have had to put up the base uncut cost of Ginger

all i can do is to apologise

[Scully]

2 hours ago, ditchman said:

it is my sad duty to imform everybody ...that due to the current situation...myself and Melb3 have had to put up the base uncut cost of Ginger

all i can do is to apologise

Harry Markle will be chuffed; he’s been selling himself short for some time. 

[Jaymo]

3 hours ago, discobob said:

busy writing a letter to my MP now - this is outrageous 😂

They can put the price up of the vegan ones for all I care!!!!!

Just reading about an audience member on question time last night who had her 4.5% mortgage offer pulled and that another lender agreed to one at 10.5%.
She is claiming the Government is responsible and needs to step in to help her secure a mortgage at a lower rate.

Once again, if you choose a mortgage. You’re deciding which lender to go to and are under no obligation to take the rate given. 
At the same time, the lenders are within their rights to apply whatever rate that they wish- it’s their money they are lending. They are in the business of lending for a ‘return’. 
 

As bad as it is for her to not gain this particular mortgage. It’s your responsibility to be able to afford the loan. If you can’t afford then I’m afraid you can’t have. 
Our mortgage lender carries out due diligence and applied various stress tests to see if we could afford our mortgage, should these sort of rates come about. Had we not fulfilled this criteria then we would just have had to look for a cheaper house! 

The spectre of cheap and easy credit is once again at the fore, but this time we’re seeing tantrums if when people are unable to take advantage of cheap monies. 
Always someone else’s fault ( applies to so much in today’s society).

[Mice!]

2 minutes ago, Jaymo said:

They can put the price up of the vegan ones for all I care!!!!!

Just reading about an audience member on question time last night who had her 4.5% mortgage offer pulled and that another lender agreed to one at 10.5%.
She is claiming the Government is responsible and needs to step in to help her secure a mortgage at a lower rate.

Once again, if you choose a mortgage. You’re deciding which lender to go to and are under no obligation to take the rate given. 
At the same time, the lenders are within their rights to apply whatever rate that they wish- it’s their money they are lending. They are in the business of lending for a ‘return’. 
 

As bad as it is for her to not gain this particular mortgage. It’s your responsibility to be able to afford the loan. If you can’t afford then I’m afraid you can’t have. 
Our mortgage lender carries out due diligence and applied various stress tests to see if we could afford our mortgage, should these sort of rates come about. Had we not fulfilled this criteria then we would just have had to look for a cheaper house! 

The spectre of cheap and easy credit is once again at the fore, but this time we’re seeing tantrums if when people are unable to take advantage of cheap monies. 
Always someone else’s fault ( applies to so much in today’s society).

The entire audience gasped, Fiona Bruce asked her about it again probably thinking she had miss heard her, as you say no one is forcing her to take that rate.

Another chap was saying despite him saving he now wouldn't be able to afford to buy?? So you save for longer or buy something cheaper to get on the ladder.

I don't understand how people expect everything to stay at low prices,  it never has done, ever.

 

[Scully]

12 minutes ago, Jaymo said:

They can put the price up of the vegan ones for all I care!!!!!

Just reading about an audience member on question time last night who had her 4.5% mortgage offer pulled and that another lender agreed to one at 10.5%.
She is claiming the Government is responsible and needs to step in to help her secure a mortgage at a lower rate.

Once again, if you choose a mortgage. You’re deciding which lender to go to and are under no obligation to take the rate given. 
At the same time, the lenders are within their rights to apply whatever rate that they wish- it’s their money they are lending. They are in the business of lending for a ‘return’. 
 

As bad as it is for her to not gain this particular mortgage. It’s your responsibility to be able to afford the loan. If you can’t afford then I’m afraid you can’t have. 
Our mortgage lender carries out due diligence and applied various stress tests to see if we could afford our mortgage, should these sort of rates come about. Had we not fulfilled this criteria then we would just have had to look for a cheaper house! 

The spectre of cheap and easy credit is once again at the fore, but this time we’re seeing tantrums if when people are unable to take advantage of cheap monies. 
Always someone else’s fault ( applies to so much in today’s society).

Excellent post. 

[oowee]

Why was the OBR not asked to review the impact of the mini budget? They offered to do it, could have done it in time and to standard but were not asked. 

Even now the report that will be done is to be suppressed until the end of Nov. Can't see that happening. 

General election early next year?

 

[Jaymo]

17 minutes ago, oowee said:

Why was the OBR not asked to review the impact of the mini budget? They offered to do it, could have done it in time and to standard but were not asked. 

Even now the report that will be done is to be suppressed until the end of Nov. Can't see that happening. 

General election early next year?

 

Why would they call an early Election. Better to ride it out and hope for a tremendous turnaround, to then go head to head with a chance to win. 
Only losers give up when the going gets tough! 

Edited September 30, 2022 by Jaymo

[JohnfromUK]

44 minutes ago, Jaymo said:

As bad as it is for her to not gain this particular mortgage. It’s your responsibility to be able to afford the loan. If you can’t afford then I’m afraid you can’t have.

/\  This.

Lets not forget that those who have taken out mortgages in the last few years have enjoyed the benefits of some of the lowest interest rates EVER.  Things (as has always been warned they would) are now moving back to more normal historical rates.  Typically, Bank of England interest rates sit slightly above (or occasionally below) the current inflation rate.  Mortgage rates historically sit a little above the BofE rate to cover costs, risks and ensure a rate of return at which savers are willing to lend the money.

Historic rates shown below.

[12gauge82]

51 minutes ago, JohnfromUK said:

/\  This.

Lets not forget that those who have taken out mortgages in the last few years have enjoyed the benefits of some of the lowest interest rates EVER.  Things (as has always been warned they would) are now moving back to more normal historical rates.  Typically, Bank of England interest rates sit slightly above (or occasionally below) the current inflation rate.  Mortgage rates historically sit a little above the BofE rate to cover costs, risks and ensure a rate of return at which savers are willing to lend the money.

Historic rates shown below.

True but don't forget either that house prices are at a historic high, especially when compared to average wages earnt. 

Although I can see this was a necessary step, I do feel very sorry for the young and am glad I'm not trying to get on the ladder. 

[JohnfromUK]

Just now, 12gauge82 said:

I do feel very sorry for the young and am glad I'm not trying to get on the ladder. 

I completely agree, but those who have bought houses in the recent times of VERY low interest rates were warned that they would not stay low for ever and should budget accordingly.  Some took big risks that will sadly now come back and bite them. 

Conversely - savers have had a dreadful time - and that continues as savings rates (which were near zero when inflation was low) have hardly risen and now lag inflation by maybe 8 to 10 percent.

The interest rate thing as well as inflation is (in these globalised times) largely global and at least part of the reason the pound has been so weak against the dollar is that the Americans have increased their interest rates faster and more than the BofE - hence money moves from pounds into dollars to get the better interest.

[Vince Green]

Because I was doing a lot of driving I listened to a lot of the speeches at the Labour Party Conference.

Absolutely vacuous, nothing but cliche after cliche with no substance 

Ed Millibands was spectacularly bad he just waffled about having "more integrated policies " and other meaningless gobbledegook.

Starmer was just as bad. "The time is now" as if he was saying just smile and nod, pretend you know what's going on

What a shower of phoney politicians, they haven't got a clue. However bad we may think the Conservatives are Labour would be worse.

Edited September 30, 2022 by Vince Green

[JohnfromUK]

31 minutes ago, Vince Green said:

Absolutely vacuous, nothing but cliche after cliche with no substance

To be fair, that is what party conferences are about - rally the troops, but say as little as possible (because you just might regret it later)

 

33 minutes ago, Vince Green said:

Ed Millibands was spectacularly bad he just waffled

That's his style. 

33 minutes ago, Vince Green said:

Starmer was just as bad. "The time is now" as if he was saying just smile and nod

Again, won't commit.  You don't whjen in opposition because you don't have to.  Starmer is a speaker who is 'naturally boring' anyway - it is his style.

 

35 minutes ago, Vince Green said:

What a shower of phoney politicians, they haven't got a clue. However bad we may think the Conservatives are Labour would be worse.

They are all pretty dire.  Boris (and Farage) are good and gifted speakers; Boris is without doubt all hot air and dishonest, Farage has some (character?) weakness that makes him unable to form a functioning effective team/party - and that makes him unfit to govern.

Comments on how I see it and not meant to be 'pulling your post apart'!

[oowee]

23 minutes ago, JohnfromUK said:

To be fair, that is what party conferences are about - rally the troops, but say as little as possible (because you just might regret it later)

 

That's his style. 

Again, won't commit.  You don't whjen in opposition because you don't have to.  Starmer is a speaker who is 'naturally boring' anyway - it is his style.

 

They are all pretty dire.  Boris (and Farage) are good and gifted speakers; Boris is without doubt all hot air and dishonest, Farage has some (character?) weakness that makes him unable to form a functioning effective team/party - and that makes him unfit to govern.

Comments on how I see it and not meant to be 'pulling your post apart'!

^^^^ I am with this. There is some substance now from Labour. The Green bank, privatising the railways and windfall tax. You may not agree with them but thats three proposals more than the tories have on the table. Lizzie has yet to explain to anyone OBR included how the mini budget is proposed to work let alone how we are to balance the books. 

All parties should be required to produce a manifesto that sets out not just what they want to do but how they will do it and how it will be funded. At least give us something more solid to chew on. 

The OBR is independent why is the report going to be withheld?  Sounds more like Russia than UK. 

[TIGHTCHOKE]

GORDON BENNETT!

Some of you really are beyond belief.   😲

[JohnfromUK]

12 minutes ago, TIGHTCHOKE said:

Some of you really are beyond belief

Just at the moment, Starmer and crew only have to be boring, do nothing, say nothing and keep the loony left out of the press. 

Truss and Co and being their own opposition - mainly through plain incompetence.

Edited September 30, 2022 by JohnfromUK

[12gauge82]

6 hours ago, JohnfromUK said:

I completely agree, but those who have bought houses in the recent times of VERY low interest rates were warned that they would not stay low for ever and should budget accordingly.  Some took big risks that will sadly now come back and bite them. 

Conversely - savers have had a dreadful time - and that continues as savings rates (which were near zero when inflation was low) have hardly risen and now lag inflation by maybe 8 to 10 percent.

The interest rate thing as well as inflation is (in these globalised times) largely global and at least part of the reason the pound has been so weak against the dollar is that the Americans have increased their interest rates faster and more than the BofE - hence money moves from pounds into dollars to get the better interest.

Agreed, although if your a saver there were many other options open to you to invest your money that would give you a decent return, I know as I'm one of them. 

If your a young first time buyer you simply don't have that option, wait to buy while you save and the propertys you want to buy will increase in value faster than you can save, or buy in and hope interest rates hold. 

Like I said, I understand why government has done what it's done, but I'm glad I'm in the position I am and not a youngster trying to make my way in life. 

[Mice!]

9 hours ago, 12gauge82 said:

Like I said, I understand why government has done what it's done, but I'm glad I'm in the position I am and not a youngster trying to make my way in life. 

Which is what people already on the property ladder with savings have been saying forever. 

[12gauge82]

4 hours ago, Mice! said:

Which is what people already on the property ladder with savings have been saying forever. 

True, but it's now even worse. 

[Jaymo]

38 minutes ago, 12gauge82 said:

True, but it's now even worse. 

Check the graph above, it’s been a lot worse on many occasions. 
People have very short memories 

[12gauge82]

5 hours ago, Jaymo said:

Check the graph above, it’s been a lot worse on many occasions. 
People have very short memories 

Has it? Although interest rates have been much higher, the average wage vs house value has never been so steep, a 7 or 8% mortgage today would probably be more unaffordable for a first time buyer than a 17% one several decades ago.