Mortgage struggles

[D-S]

It is difficult to tell the state of ‘average’ spending power and whether it has dropped significantly for a few or many yet.
Obviously age category and the activity involved makes a great difference, as we have seen zero reduction in Golf club membership but this is no bellwether for the general population.
Hotels seem to be pretty busy though as we found out trying to book a couple of weeks ago in Devon and pubs and restaurants around here seem busier than ever. However personal anecdotes and viewpoints can’t give a reasonable picture of the whole.

 

[cliveb]

I'm a bit late to this, but from what I can see round here people are in masshooosive new cars. Affording petrol to feed them at a price I thought I'd never see. Not seen a reduction of people in the local coffee shops or local restaurants and food pubs. And don't get me going on mobile phones the size of tellys and one each for every member of the family. Nope, no sympathy here until I see a reduction in these things.

Perhaps these are the people who aren't struggling. Just because they exist doesn't mean there aren't plenty of others who are having a really hard time.

 

[Deleted member 18121]

Perhaps these are the people who aren't struggling. Just because they exist doesn't mean there aren't plenty of others who are having a really hard time.

I also think we need to be aware of what "struggling" is to some people.... I've heard people complaining that they are only going away once this year.

I think also that many people don't actually know what a "struggle" is. I was talking to my mum recently and was told stories of when they moved into their house when us kids were young that they couldn't afford to to put carpet on the floors.

I'm not saying there aren't people out there who genuinely can't make their wages cover their bills.... But I wonder how many people moan because they're inconvenienced.

 

[Reemul]

Yep the base line for struggling is definitely different than it used to be. But you get that when you increase the overall standard of living

 

[PJ87]

Yep the base line for struggling is definitely different than it used to be. But you get that when you increase the overall standard of living

How many are having the rug pulled from under them aswell

In the space of 18 months you have had the following

Energy bills triple in price
Fuel for cars go up
Food prices increases by a fair bit

That's prob wiped out anyone's wiggle room for mortgage increases

Then add a good £200 pcm increase in mortgage and people reach breaking point

 

[Fade and Die]

It was mentioned earlier in the thread that this High Inflation was not typical and raising the interest rates might not work, this article explains perfectly what the problem is, no surprises it’s Corporate Greed. And the financial institutions are part of it, all raking in big profits whilst a lot of normal people are struggling…

‘Global greedflation’: big firms ‘driving shopping bills to record highs’ | Inflation | The Guardian

Analysis by UK union shows large corporations have improved profits with price rises in cost of living crisis

amp.theguardian.com

 

[road2ruin]

How many are having the rug pulled from under them aswell

In the space of 18 months you have had the following

Energy bills triple in price
Fuel for cars go up
Food prices increases by a fair bit

That's prob wiped out anyone's wiggle room for mortgage increases

Then add a good £200 pcm increase in mortgage and people reach breaking point

Which I think a lot of who compare the struggles they had in the 80/90’s forget. In isolation an increase in interest rates can be dealt with (although the speed of these raises would have caught many out and are completely unnecessary imo) but when coupled with the cost of everything else it’s just going to be a massive issue to many who have been pretty sensible.

 

[cliveb]

It was mentioned earlier in the thread that this High Inflation was not typical and raising the interest rates might not work, this article explains perfectly what the problem is, no surprises it’s Corporate Greed. And the financial institutions are part of it, all raking in big profits whilst a lot of normal people are struggling…

‘Global greedflation’: big firms ‘driving shopping bills to record highs’ | Inflation | The Guardian

Analysis by UK union shows large corporations have improved profits with price rises in cost of living crisis

amp.theguardian.com

I'm not saying that big companies haven't taken advantage of the situation (eg. some food items have more than doubled in price), BUT...

The Guardian is about as impartial as the Daily Mail; they just occupy the opposite end of the spectrum. Every article they publish has a left wing agenda.

 

[PJ87]

I'm not saying that big companies haven't taken advantage of the situation (eg. some food items have more than doubled in price), BUT...

The Guardian is about as impartial as the Daily Mail; they just occupy the opposite end of the spectrum. Every article they publish has a left wing agenda.

.
The guardian is a respected newspaper with a moral compass
The mail is level with the sun

The two aren't comparable

Maybe the telegraph.. because at least that's a respected paper with a right bias

 

[PJ87]

Which I think a lot of who compare the struggles they had in the 80/90’s forget. In isolation an increase in interest rates can be dealt with (although the speed of these raises would have caught many out and are completely unnecessary imo) but when coupled with the cost of everything else it’s just going to be a massive issue to many who have been pretty sensible.

Exactly, the bank stress tested everyone for a while for a rise to 7% wasn't it? But that money's taken up with food costs, energy costs and such

 

[road2ruin]

Exactly, the bank stress tested everyone for a while for a rise to 7% wasn't it? But that money's taken up with food costs, energy costs and such

My monthly bills have increased by about £350 per month but that’s an increase in existing payments e.g. food, energy, council tax rather than a new bill that we decided to take on. Our mortgage is up by £450 per month and we count ourselves lucky as it could have been a whole lot worse. When the banks did their tests it was before the initial increase in costs and that is what will have screwed a lot over imo.

 

[D-S]

Do we know how many people are in negative equity now?

 

[Fade and Die]

I'm not saying that big companies haven't taken advantage of the situation (eg. some food items have more than doubled in price), BUT...

The Guardian is about as impartial as the Daily Mail; they just occupy the opposite end of the spectrum. Every article they publish has a left wing agenda.

I’m aware of that, and I’m also aware that the research was done by the Unite Union, but I think the figure are pretty damning.

 

[cliveb]

.
The guardian is a respected newspaper with a moral compass
The mail is level with the sun

The two aren't comparable

Maybe the telegraph.. because at least that's a respected paper with a right bias

If you really think The Guardian doesn't have an axe to grind, you are deluded.

 

[cliveb]

I’m aware of that, and I’m also aware that the research was done by the Unite Union, but I think the figure are pretty damning.

If a right wing think tank came up with figures that showed the opposite, would you believe it?
Why should Unite be any more trustworthy?

Everyone has a point to make, and they will cherry pick data to back up their position. It's far too easy to believe reports that confirm one's own prejudices.

I'm not saying the report is necessarily wrong, just that given its origin and the channel that published it, you need to take it with a large pinch of salt.

 

[BrianM]

One things for sure, Unite aren't trustworthy and I'm talking from first hand experience.

 

[PJ87]

If you really think The Guardian doesn't have an axe to grind, you are deluded.

The guardian will have an "axe to grind" with the Tories in power

Just watch the telegraph have an axe to grind after the next election

Ofc a paper who's views are the other dynamic from those in power will be against trends

 

[sunshine]

It was mentioned earlier in the thread that this High Inflation was not typical and raising the interest rates might not work, this article explains perfectly what the problem is, no surprises it’s Corporate Greed. And the financial institutions are part of it, all raking in big profits whilst a lot of normal people are struggling…

‘Global greedflation’: big firms ‘driving shopping bills to record highs’ | Inflation | The Guardian

Analysis by UK union shows large corporations have improved profits with price rises in cost of living crisis

amp.theguardian.com

This is a very naive article written by Union reps looking to justify their demands for pay rises. The analysis is only looking at gross margin i.e. revenue less cost of sales, however businesses need more margin because the costs below that like overheads and funding have also increased

With the increase in interest rates, businesses need to make a higher margin to service their increased cost of debt. Even the dividends they return to shareholders need to be higher to reflect the risk that investors are taking - they need to pay out more than an ISA.

I'm sure there has been profiteering going on but that looks to be mainly at the start of the value chain and every company after that is just passing on increased costs. I don't know much about insurance but that seems to be an area where companies are jumping on the inflation bandwagon without good justification.

 

[PNWokingham]

This is a very naive article written by Union reps looking to justify their demands for pay rises. The analysis is only looking at gross margin i.e. revenue less cost of sales, however businesses need more margin because the costs below that like overheads and funding have also increased

With the increase in interest rates, businesses need to make a higher margin to service their increased cost of debt. Even the dividends they return to shareholders need to be higher to reflect the risk that investors are taking - they need to pay out more than an ISA.

I'm sure there has been profiteering going on but that looks to be mainly at the start of the value chain and every company after that is just passing on increased costs. I don't know much about insurance but that seems to be an area where companies are jumping on the inflation bandwagon without good justification.

good points, although probably wasted on Guardian readers

 

[Whereditgo]

and once again a decent thread descends to name calling and petty squabbles - grow up guys