Interest rate rise.

[Crazy Harry]

If referring to my comment I didn't say the middle 80% of the country would feel squeezed

I agree. You rightly (in my view) identify three groups if I understand correctly. I suggest that the top 5% haven't been touched by the recession other than borrowing has become cheaper. The 15% at the bottom are at rock bottom and for many of them sinking fast.

The remaining 80% whilst not having the best of times are managing to keep their heads above the water. I took it that those with mortgages interviewed for the news tonight were concerned about the £10 a week possible increase - just perhaps because all their income is committed; haven knows we've had enough pointers in the 'buy or lease' threads about people being willing to pay so much a month with out considering the total payments. Next thing you know they'll have to take coffee to work in a flask rather than stopping at Costa or alike every morning.

[buzyg]

Next thing you know they will be taking Spa brand Tea bags to work.

[mr wilks]

If referring to my comment I didn't say the middle 80% of the country would feel squeezed

Next thing you know they'll have to take coffee to work in a flask rather than stopping at Costa or alike every morning.

Haha , that so sum's up a society that will lease car's they can't afford to buy & drive round with the fuel light on till payday
We must be similar age as i too can remember tough times 20 yrs ago , 2nd child born , just moved house & interest rates up & times were tough if i worked 5 days we had £25 spare each week so i worked 7 days & just got on with it .
My biggest concern for society today is that the 20 & 30 yr olds now ( & probably some 40,s) have little financial responsibility & nor do they appear to want to graft & save to achieve
I actually believe the low interest rates have simply masked difficult times for many & further increases will bring those to the surface

[Crazy Harry]

I think that in the 80's and 90's when rates were changing frequently we got used it. We were happy when they reduced and we had a bit of extra money which we never committed to spending long term. In fact we saved it because we knew it wouldn't be too long before the rates went back up.

[Sky-drive]

Fixed rates just above 2% aren’t that much higher than the 1.5% you are paying now. Probably only those on a 5/10 year fixed that will be paying higher rates and maybe losing out. But as said young folk starting out want stability which is where fixed rates definitely have there use.

Just got approved for a 5 year fixed rate mortgage this morning at 1.84% so there's certainly still cheap deals at less than 2% out there to be had.

[MrPT]

It is significant because it’s an inflection point. That and the fact that it reminds us of the weird relationship between the government and the Bank of England when it comes to fiscal controls.

It isn’t significant because it’s going to make a net material difference to most people. Lots of nonsense in the mainstream press, who shy away from some big economic issues (e.g. employment and productivity going in opposite directions for years) because it doesn’t sell papers.

I remember the good old days when forgetting to top up your ISA literally meant pissing money out of your arse.

[Steely]

For the ever growing number of people who have little to no expendable cash, any additional outgoing can be a burden, think yourself lucky that for you it’s just a few quid a month!

[Crazy Harry]

Too right.

Perhaps my generation was lucky not to have had social pressures driving our spending to the extent we see now. No mobile phone or other tech to keep up with; shops only open five and a half days a week. No petrol available on Sundays (life was hard in the 'sticks'). No social media so you could see what friends were doing or had. You got lunch from your butty box and flask - or if you were in a big firm a subsidised canteen serving a 'school dinners' type menu. No impulse buying and credit very hard to get - I think the only credit I could get was from the bank/building society or from our Co-op for coal deliveries.

If you did get a house you had to fill it with furniture your relatives were throwing out until you could work round and afford new furniture room by room. It didn't matter because we were all the same. Something happened to the way we spend during the last twenty years with manufacturers convincing us we need to keep changing/renewing and even building in obsolescence by using glues that stop being sticky after a given period.

The prolonged interest rates have convinced people that the world is stable and its not. I do feel for people in that bottom 15% because I can't see a way out for them. For the rest of us we made decisions about how to spent and what our priorities were/are. If you want to see the next crash coming start reading about 'sub prime' car loans and the default rate (particularly in the US as with mortgages). These loans have been bundled and sold as investments - when they start to snatch back cars the market will be flooded and this will damage car manufactures; banks who purchased the bundles not to mention the loan defaulters.

I can only hope I've had more influence on my kids than social media and at least they will consider the consequences before spending.

[firebobby]

No mortgage now, but we had it hard in the 80's 90's with mega high interest rates. Been there and got the Tee shirt. I find a lot of people these days have to have new cars on the drive and new furniture in the house, must have holidays abroad too. We only had a mortgage loan, no credit cards, £10 Sun holidays if we were lucky and worked bloody hard... 5 jobs between us. If we couldn't afford something, we went without. Yes money is to easy to borrow these days, but no one makes you borrow

[Taz]

will I now make millions more on my savings?

[85genius]

will I now make millions more on my savings?

millions and millions

[PerryGunn]

will I now make millions more on my savings?

millions and millions

of Iranian Rials...

[buzyg]

will I now make millions more on my savings?

millions and millions

of Iranian Rials...

Had to check... 0.000022 British Pounds to the Rial today.

[ric19]

Dispatches did a programme a few months ago saying that this PCP lark was a bubble waiting to burst..the premise was that if interest rates go up and it's a choice of paying the mortgage or the car loan it will be the car going back..and the dealers will be left with a load of nearly new cars on the forecourt they can't shift.. this article says the same

http://uk.businessinsider.com/statistic ... ebt-2017-7

[Gaffa22]

My fixed rate was up next month so I signed up a 5 year fixed rate a couple of weeks ago so I'm laughing all the way to the bank