Inflation

[JudyJudyJudy]

1 hour ago, manaliveits105 said:

After yesterdays rate rise Bank of England forecast UK inflation to fall to 4.9 % in Winter and 2.8% by the Summer 

Great news for calmer waters towards 2025 GE and keeping the Labour scums gas at a peep 

Onwards and upwards comrades 

 

Why aren’t they usual suspects cheering this good economic news ? Surely it will help those being impacted by the Toarie? What a puzzle 🧩 

[Dusk_Till_Dawn]

2 minutes ago, JudyJudyJudy said:

Better watch you’ll be getting called a 

“ capitalist, Toarie scum bag “ from the guardinsta champagne socialists on this  😂 if you have it , they. Want it . Politics of envy and all . 

Why should I give a **** about folk having low, easy interest rates? Not my problem.

[JudyJudyJudy]

5 minutes ago, Dusk_Till_Dawn said:

Why should I give a **** about folk having low, easy interest rates? Not my problem.

👍

[manaliveits105]

52 minutes ago, JudyJudyJudy said:

Why aren’t they usual suspects cheering this good economic news ? Surely it will help those being impacted by the Toarie? What a puzzle 🧩 

To quote Rabbie Burns - They are nursing their wrath to keep it warm 

[Jeffros Furios]

[dtgj]

On 03/08/2023 at 15:53, hughesie27 said:

I assume overpaying at my rate of 1.62% till March 2027 would be a sensible choice?

 

It depends. I'd say there's a few things to think about:

1) whether you have an early repayment charge. This could be triggered if you overpay by more than a set amount in your mortgage deed. The early repayment charge would result in you paying a fee to the mortgage provider and that fee might outweigh any benefit from overpaying. 

2) that's a very low rate of interest. You could probably get a higher rate of interest on some savings accounts. In theory you'd be slightly better off putting money away and earning interest at a higher rate then using that money to pay off a chunk of the mortgage at the end of your deal before you renew onto a new fixed rate. For example, in a simple example if you had a savings account that paid 3% interest you'd be better off by 1.38% (3-1.62) multiplied by the amount you save multiplied by the number of years you save for. It might not be a big enough number for it to be worth the hassle though. 

[JudyJudyJudy]

55 minutes ago, manaliveits105 said:

To quote Rabbie Burns - They are nursing their wrath to keep it warm 

👍👍

[hughesie27]

56 minutes ago, dtgj said:

 

It depends. I'd say there's a few things to think about:

1) whether you have an early repayment charge. This could be triggered if you overpay by more than a set amount in your mortgage deed. The early repayment charge would result in you paying a fee to the mortgage provider and that fee might outweigh any benefit from overpaying. 

2) that's a very low rate of interest. You could probably get a higher rate of interest on some savings accounts. In theory you'd be slightly better off putting money away and earning interest at a higher rate then using that money to pay off a chunk of the mortgage at the end of your deal before you renew onto a new fixed rate. For example, in a simple example if you had a savings account that paid 3% interest you'd be better off by 1.38% (3-1.62) multiplied by the amount you save multiplied by the number of years you save for. It might not be a big enough number for it to be worth the hassle though. 

Cheers, that does make sense. I have a savings account of 4% so will likely do as you say and pay off a chunk (below the 10% overpayment allowance) near the end of my term. Cheers!

[That thing you do]

On 03/08/2023 at 13:47, Malinga the Swinga said:

Yep, pay as much as you can as early as you can. Quicker you repay mortgage, quicker your monthly outgoings will reduce so there is no downside to this.

 

True but the counter argument is overpaying reduces cash to invest in other ways 

 

Chances are youd get a higher return investing it then using that at a later date.

 

I do that. And so far ive been better off with the investments to the point I could pay the house off now rather than just reduce the mortgage.

 

Especially if the rate is under 2% 

[Malinga the Swinga]

9 hours ago, That thing you do said:

True but the counter argument is overpaying reduces cash to invest in other ways 

 

Chances are youd get a higher return investing it then using that at a later date.

 

I do that. And so far ive been better off with the investments to the point I could pay the house off now rather than just reduce the mortgage.

 

Especially if the rate is under 2% 

But it isn't and won't be for foreseeable future. You need your investment to almost guarantee that it will pay more than mortgage and that investment return has to be after tax (unless you have quality accountant who can use loopholes which most don't).

You would be a brave man to invest in stocks atm as they are volatile and subject to tax so you are restricted in options.

Paying off house is endgame and if you can do that, then I'd go for it but that's investments for you, they always come with risks attached.

[Der Kaiser]

Got my 6 month mortgage notification from Barclays my 5yr fixed deal ends end of Jan 2014.

 

Fixed then at 2.25%

 

 

 

 

 

[Unknown user]

48 minutes ago, Der Kaiser said:

Got my 6 month mortgage notification from Barclays my 5yr fixed deal ends end of Jan 2014.

 

Fixed then at 2.25%

 

 

 

 

 

Eesh good luck

[Jambof3tornado]

1 hour ago, Der Kaiser said:

Got my 6 month mortgage notification from Barclays my 5yr fixed deal ends end of Jan 2014.

 

Fixed then at 2.25%

 

 

 

 

 

Ouchie!!!

[ri Alban]

House building coming to a stand still. Feck you very much.

 

 

 

[mrmarkus1981_1]

Halifax haven't even bothered writing to me, deal due to end 31 Jan. 2024.

 

Current rate is 1.62%  

[Americana]

6 minutes ago, mrmarkus1981_1 said:

Halifax haven't even bothered writing to me, deal due to end 31 Jan. 2024.

 

Current rate is 1.62%  

 

I had 2% went up to 5.1 . 250 quid increase was heartbreaking. opted for a two year deal in hope things may ease off.

[mrmarkus1981_1]

20 minutes ago, Americana said:

 

I had 2% went up to 5.1 . 250 quid increase was heartbreaking. opted for a two year deal in hope things may ease off.

I reckon i'm looking more like £500 p/m 🫣

[Jambof3tornado]

Still cant get better than 6% fixed rate savings. Tandem now offering 5% easy access.

 

Mainstream banks still ripping the pash with savings rates!!

[BlueRiver]

5 hours ago, Jambof3tornado said:

Still cant get better than 6% fixed rate savings. Tandem now offering 5% easy access.

 

Mainstream banks still ripping the pash with savings rates!!

 

Agreed. 

 

 

[Morgan]

Standard Bank and Skipton offer superb rates.

 

Just a wee heads up there.  👍

[Bindy Badgy]

On 03/08/2023 at 16:53, hughesie27 said:

I assume overpaying at my rate of 1.62% till March 2027 would be a sensible choice?

 

You can get more than 1.62% interest on a savings account so sticking the amount you want to overpay into a savings account and paying off a lump sum at the end of the term might be better. This would depend on how disciplined your saving is. Don't do this if you think there is a chance that you'll dip into the savings to buy an XBox and other assorted crap that you want but, don't need.

 

To be clear, I don't fully understand how mortgages work so you should speak to someone qualified to give a definited answer on whether this would save money in the long run.

[Thunder and Lightning]

On 04/08/2023 at 11:33, Mikey1874 said:

 

 

But But, we took back control, didn't we?

[Harry Potter]

On 08/08/2023 at 10:09, mrmarkus1981_1 said:

Halifax haven't even bothered writing to me, deal due to end 31 Jan. 2024.

 

Current rate is 1.62%  

They wont need to contact me next year, i will make sure to contact them.

No doubt be a zoom meeting, 

[That thing you do]

On 03/08/2023 at 08:53, hughesie27 said:

I assume overpaying at my rate of 1.62% till March 2027 would be a sensible choice?

Depends. If you can make more than 1.62% investing it then I would do that (and I do). Paying off a mortgage early makes sense at 5.6% but at 1.3% its cheap liquidity to use in other investments. As long as the money goes to sensible investments youll do much better letting the mortgage run.

[Malinga the Swinga]

For those interested, I believe Halifax will be announcing cuts to fixed mortgage deals tomorrow. Larger rate drop for 5 years of about .7% while shorter term deals will reduce by less.

[Ribble]

On 08/08/2023 at 10:09, mrmarkus1981_1 said:

Halifax haven't even bothered writing to me, deal due to end 31 Jan. 2024.

 

Current rate is 1.62%  

 

Most lenders won't let you do anything until 90 days or less remaining on your current deal, they'll send a letter then no doubt

[Ribble]

1 hour ago, Malinga the Swinga said:

For those interested, I believe Halifax will be announcing cuts to fixed mortgage deals tomorrow. Larger rate drop for 5 years of about .7% while shorter term deals will reduce by less.

 

Perfect timing, i'm speaking with my mortgage guy tomorrow to look at my options for november

[kila]

https://www.bbc.co.uk/news/business-66459129

 

Hopefully see the 2 year fixed rates drop closer to 6% or below in the next couple of weeks. Unlikely though as it'll be the 5 year ones, but would hope rates in 2 years time would be between 3.5% - 4.5% so I'd gamble on that with a slightly higher 2 year rate in the short term.

 

[Ribble]

21 hours ago, kila said:

https://www.bbc.co.uk/news/business-66459129

 

Hopefully see the 2 year fixed rates drop closer to 6% or below in the next couple of weeks. Unlikely though as it'll be the 5 year ones, but would hope rates in 2 years time would be between 3.5% - 4.5% so I'd gamble on that with a slightly higher 2 year rate in the short term.

 

 

Just off the blower to my mortgage guy, 5 year fix rates were coming in around 5.6/5.7%, 2 year fix at around 6.1/6.2% but looking like we'll be going with Nationwides 2 year tracker currently 5.54% (0.29% above the base rate) with no exit or change fee's so if we see the BoE base rate rising again then can switch to a fixed rate

Edited August 11, 2023 by Ribble

[Diadora Van Basten]

On 11/08/2023 at 11:49, Ribble said:

 

Just off the blower to my mortgage guy, 5 year fix rates were coming in around 5.6/5.7%, 2 year fix at around 6.1/6.2% but looking like we'll be going with Nationwides 2 year tracker currently 5.54% (0.29% above the base rate) with no exit or change fee's so if we see the BoE base rate rising again then can switch to a fixed rate

That sounds like a good deal. The tracker rates I have seen are about 1.25% above the BOE base rate and have high arrangement fees.

[Ribble]

12 hours ago, Diadora Van Basten said:

That sounds like a good deal. The tracker rates I have seen are about 1.25% above the BOE base rate and have high arrangement fees.

 

Current provider (Accord) were offering .55% on a tracker but had a product fee of about £1500 and 1% exit penalty year one, 0.5% year two, Nationwide is 0.29% above BoE, £999 product fee but £500 cashback takes that to £499 and no penalties

[Greedy Jambo]

I wouldn't be feart to put the kettle on by the way, my boiler packed in and i've been using the kettle to wash the dishes for a month. 

The bill came in £5 cheaper than the previous month. 

[manaliveits105]

Down to 6.8%

onwards and upwards 

light at the end of the tunnel 

[Footballfirst]

1 hour ago, manaliveits105 said:

Down to 6.8%

onwards and upwards 

light at the end of the tunnel 

We can see the tunnel - but light at the end may be a way off

Faisal Islam

Economics editor

 

• Core inflation - a measure which looks at price rises without factoring in volatile food and energy - remained unchanged, the ONS said

[GBJambo]

3 hours ago, manaliveits105 said:

Down to 6.8%

onwards and upwards 

light at the end of the tunnel 

And food inflation? 🤔🙄

[Tazio]

9 minutes ago, GBJambo said:

And food inflation? 🤔🙄

It’s almost funny how the price increases in certain foods are so huge.  I bought a tin of Heinz soup a few days ago from the corner shop near my work. £1.99!! Very recently Baxter’s seemed expensive at £1.09. 

[GBJambo]

4 minutes ago, Tazio said:

It’s almost funny how the price increases in certain foods are so huge.  I bought a tin of Heinz soup a few days ago from the corner shop near my work. £1.99!! Very recently Baxter’s seemed expensive at £1.09. 

Yep absolutely shocking prices. People can’t afford to eat due to the governments inability to get a grip of food inflation. 

Victorian Britain. 
“Please sir can I have more “

[JudyJudyJudy]

16 minutes ago, Tazio said:

It’s almost funny how the price increases in certain foods are so huge.  I bought a tin of Heinz soup a few days ago from the corner shop near my work. £1.99!! Very recently Baxter’s seemed expensive at £1.09. 

Couldn't believe the price of Baxter soup in " sainsbury"..Nearly £2

[JudyJudyJudy]

Its cheese and eggs which have really shot up. Although " James " brand of eggs is still not too bad price but the quality is rank compared to the free range etc.  

[Footballfirst]

So we are supposed to be grateful that inflation is now ONLY 6.8%.

 

Just go back two years to July 21 when inflation was running at the BOE target rate of 2%. 

 

A year later in July 22 the inflation rate was 10.1%, so £100 of goods bought in July 21 had increased in price to £110.10

 

Compound a further year at 6.8% and the £100 worth of goods now costs £117.59.

 

My pensions over the same two year period have gone up by a total of 9.71%, so my income relative to inflation has fallen and I am 7.88% poorer than I was two years ago.

 

I will only be grateful when the current bunch of shysters is evicted from Westminster. 

[Cade]

Supermarkets and Energy companies continue to post record profits.

Greedflation is the problem here.

Everybody knows it.

The Government refuses to do anything about it.

No price caps, no windfall taxes; no action.

Other, of course, than borrowing billions on the international market to give consumers "grants" which go straight back into the pockets of big business. Which you then repay via the highest tax burden since WW2. 

The Government is actively subsidising corporate greed FFS.
It's been doing that for donkey's years anyways, with housing benefit being nothing but a Government subsidy for Landlords.

And "help to buy" being nothing but a Government subsidy for house builders like Persimmon (who generate vast profits).

And many other examples also. Borrowing billions on the open market to shovel into the pockets of greedy corporations and forcing the people to pay for it via taxes spread out over 50+years.

It's mental and they've been allowed to get away with it for far too long.

 

Inflation falling from 11% to 6.8% is like someone who was kicking you in the genitals with steel toe-cap boots changing their footwear to trainers but still hoofing you in the baws.

 

The UK is in a shite state and there is no light at the end of the tunnel. In fact, the end of the tunnel looks like it's suffered a landslide.

 

[Pans Jambo]

8 minutes ago, Cade said:

Supermarkets and Energy companies continue to post record profits.

Greedflation is the problem here.

EXACTLY THIS!!!

 

I didn't study economics at Oxford and even I can see that's the issue here!

 

Fuel just went up 5pence/litre in the last few days as well FFS!

 

"PUTIN, PUTIN, PUTIN" !!!! GTF wi that shite!!! The energy costs were going through the roof before a single shot was fired in Ukraine! 

[Jambof3tornado]

So come September there will be another drop in cpi,this is the figure thats used for the triple lock for pensions(including my RAF one),cynically I think the rate will increase after September.

[il Duce McTarkin]

23 minutes ago, Footballfirst said:

 

I will only be grateful when the current bunch of shysters are hoist with their own petard.

 

 

 

[theshed]

Well I just put petrol in and it’s shot up again…..so much for it coming down in price and staying down 

[The Mighty Thor]

1 hour ago, Footballfirst said:

I will only be grateful when the current bunch of shysters is evicted from Westminster. 

 

One way day trip to Blair Drummond

[joondalupjambo]

2 hours ago, JudyJudyJudy said:

Couldn't believe the price of Baxter soup in " sainsbury"..Nearly £2

Not nearly it is two quid in the one near me.

 

Beat them at their own game.  Only buy what you need, go shopping with a list, walk more drive less, do not snack and only have four pints instead of six on a match day👍

Edited August 16, 2023 by joondalupjambo

[hmfcbilly]

2 hours ago, Cade said:

 

Inflation falling from 11% to 6.8% is like someone who was kicking you in the genitals with steel toe-cap boots changing their footwear to trainers but still hoofing you in the baws.

Great analogy👍. I put the TV on this morning to see the yellow breaking news bar on sky news flash up about the new, lower rate of inflation. Means nothing to me as energy prices still sky high (over £25 a month in standing charges alone!), fuel for my car has crept back up nearly 10p a litre past 3 weeks and, my weekly shopping bill for groceries is still about £20 more than it was 2 years ago. Not sure where this reduced inflation figure comes from but its not reduced the cost of the necessities that I need on a weekly basis!

[Gizmo]

3 hours ago, Tazio said:

It’s almost funny how the price increases in certain foods are so huge.  I bought a tin of Heinz soup a few days ago from the corner shop near my work. £1.99!! Very recently Baxter’s seemed expensive at £1.09. 

 

£1.90 for Baxters lentil & bacon. 😡

[The Real Maroonblood]

7 minutes ago, hmfcbilly said:

Great analogy👍. I put the TV on this morning to see the yellow breaking news bar on sky news flash up about the new, lower rate of inflation. Means nothing to me as energy prices still sky high (over £25 a month in standing charges alone!), fuel for my car has crept back up nearly 10p a litre past 3 weeks and, my weekly shopping bill for groceries is still about £20 more than it was 2 years ago. Not sure where this reduced inflation figure comes from but its not reduced the cost of the necessities that I need on a weekly basis!

It’s all a f*****g sham.

Yet the Village Idiot continues to troll these threads as if it’s one big laugh.