Why do Boomers get so defensive about mortgage interest rates???

[Aztecs27]

Got into a heated discussion in the office this morning, as I alluded to the fact that if interest rates rise by 1% these days, it's crippling to a lot of younger families who are working pay check to pay check struggling to pay their mortgage as it is.

Up pipe the boomers "WELL WE HAD 16% INTEREST RATES, SO WE KNOW HOW HARD IT IS"

Of course, they didn't like it when I pointed out;
- Wage to house price ratio was a lot (A LOT) more favourable 30+ years ago.
- a lot of households could survive on a single income
- there was no (or little) childcare to pay for
- Food prices are a joke
- 16% interest on a 3 bed £100k house is still less than 6% interest on a £350k 3 bed house (not far of the averages based on a quick google search and many houses were MUCH less than £100k)
- Fuel was about 30p a litre.
- energy prices are obscene vs 20+ years ago

At no point did I say the older generation didn't have it hard - I'm sure it was hard, but I will die on the hill of it being much harder, financially, for families today to own and maintain a house, given that house prices have increased exponentially vs wage increases in that time.

Of course they just suggested that there are "cheaper houses available" and "you might not like it, but you have to cut your cloth accordingly when you're starting out"

for context, I'm 42 years old, a fairly decent job with two kids, living in a modest 3 bedroom house in a bang average part of Gloucester...on our 3rd house, so hardly "starting out"....and both my wife and I pretty much work full time and have absolutely no all money that we can save/invest because it literally ALL goes on bills/mortgages When my parents were the same age, both worked full time, with 2 kids, but lived in a very nice 5 bed house (or might have been 4 actually), very comfortably, with enough money to enjoy themselves and save a bit as well.

Boomers just don't seem to understand that it's A LOT harder for most now because inflation vs rising wages is not at all proportionate; and get deeply offended and defensive, suggesting it was just as hard for them, like it's a competition.

Apologies in advance to any boomers I've offended

 

[Arthur Wedge]

What’s a boomer

 

[Aztecs27]

What’s a boomer

 

[Lucifer MorningStar]

Because anyone of an older generation can never admit things got easier for them as they got older. It’s always be a case on “well in my day it was harder because”

My dad was the same always claimed he had it harder until I pointed out they paid less for their 3 bed Semi in a decent part of Kent than they paid for his last car! I’m sure it was hard in their way but nowadays there isn’t any room for a lot of average earning families to have spare cash and afford much more than getting by.

I’m lucky with our housing situation but if I had to buy one and survive off our wages in our local area, there would be no holidays and no chance of a membership to a golf club. House prices where we are, are an absolute fortune even with 2 adults on pretty decent money. To get a house like we have now there’s no chance we’d be lucky to get a 2 bed based on current mortgage lending criteria. Moving out of the area is also not an option due to my work, we’d be worse off with me changing jobs as the outgoings would shoot up.

 

[Lucifer MorningStar]

What’s a boomer

I’m shocked you don’t know that. It’s a hugely common term for anyone born in the post war era. It’s even taught in schools.

 

[Lord Tyrion]

Based on my mum, various aunties of that era, they like the idea of people having to suffer a bit. They see the modern generations of just wanting 'stuff' and wanting it now. No saving up, no making do, no second hand etc. They see an impatient and demanding era.

They ignore the reality of owning now, cost of living etc compared to days gone by.

In reality, there is an element of truth in some of the claims but they are outweighed by the sweeping generalisations.

Basically, they want everyone to suffer a bit more

 

[Orikoru]

I think it's true of all topics that the older you get you just bury your head in the sand a little bit. People don't like change, they like to stick with what they know. Then refuse to accept anything that doesn't fit within their world view, no matter how dated it is. You clearly see that in golf, you see it with people's music tastes, you see it in football (was better in my day etc). It's just one of those things.

For the record, we're in a similar boat to you. Small-ish two-bed house, one child at the moment but want to have a second. This would require moving to a larger house at some point, and the only way we can afford to do that is to move 30 or 40 miles north of where we are now. I've just taken out a 13 grand loan to pay off my credit card debt, and my wife has a similar amount. It's not been big lavish purchases either for the most part, it's just a build-up of years of my monthly wage not being quite enough and having to pay for things in the last week of the month.

 

[Voyager EMH]

I'm 65.

In my 20s and 30s there was no internet to pay for. No smartphones to buy and monthly contracts to maintain.
TV licence and telly and then nothing more to pay.
Those things are a drain on finances now.

I found the 1980s to be very tough for many people. Highest unemployment ever. Wages stagnated. Low income families hit by the poll-tax.
Life was actually quite grim financially for many.

Similar times right now for those in their 20s and 30s I think.
Improvement in the lot of the middle and lower income households will not happen overnight. Current situation will take at least 10 years to turn around.

 

[D-S]

I think people also forget that we had a few house price crashes back then too. This was beneficial to some but very bad for others so not everyone had the same experience. These were proper crashes not slight pauses in the continual house price inflation that we have had for the past 20 years or so. Many friends and colleagues had houses repossessed or were trapped in negative equity for long periods of time. It was not just high interest rates that caused misery for some.

 

[Bazz]

I'm almost the same age as you and have had this conversation many times with family. My uncle couldn't understand why we were selling our last house when we moved into this one, because we need the equity for the deposit mate. Wanted us to just rent it out and start again.

 

[PaulMdj]

I think it's true of all topics that the older you get you just bury your head in the sand a little bit. People don't like change, they like to stick with what they know. Then refuse to accept anything that doesn't fit within their world view, no matter how dated it is. You clearly see that in golf, you see it with people's music tastes, you see it in football (was better in my day etc). It's just one of those things.

For the record, we're in a similar boat to you. Small-ish two-bed house, one child at the moment but want to have a second. This would require moving to a larger house at some point, and the only way we can afford to do that is to move 30 or 40 miles north of where we are now. I've just taken out a 13 grand loan to pay off my credit card debt, and my wife has a similar amount. It's not been big lavish purchases either for the most part, it's just a build-up of years of my monthly wage not being quite enough and having to pay for things in the last week of the month.

I’ve heard of the term “Boomer” but didn’t know until today as I was born in 1964 I am one.

I joined the Army in 1980 at 16, all the old boys would tell us we had it easy compared to them, if you ask guys who joined in the 90’s they had easier than us, the guys who joined in the 2000’s had it easier than those in the 90’s etc etc, you get the drift.

I don’t think it’s a case of people burying their head in the sand, it’s more been there and done that relevant to when you were born.

Owning your own house or even considering it in your early 20’s at my age was just simply never crossed my mind, Council house if you were lucky and that was it, house ownership was just something for “rich” people.

To me it is levels of expectation that today blow my mind, the pressure on young people to drive a car, own a house, have all the latest mod cons, to go on foreign holidays is unreal.

But that also doesn’t mean we had it easy, we just faced different pressures relative to our year of birth.

If you think you’ve got it difficult, just imagine how difficult it’s going to be for those behind you.

 

[Aztecs27]

I'm almost the same age as you and have had this conversation many times with family. My uncle couldn't understand why we were selling our last house when we moved into this one, because we need the equity for the deposit mate. Wanted us to just rent it out and start again.

FFS mate. JUST BUILD A PORTFOLIO OF HOUSES. IT'S SIMPLE!

 

[RichA]

When I was in my 20s with my first house and mortgage I looked at my parents and thought I’d never be able to replicate what they did in terms of acquiring equity.
They got quite defensive at the time about how they had scrimped and saved, holidayed modestly and not bought new stuff just because their friends did.
30 years of scrimping and saving, holidaying modestly and avoiding buying new stuff just because my friends have I’m now in a similar position to theirs back when I thought I had no hope of achieving it.
And so the circle will hopefully continue.
Not a boomer, by the way. Gen X.

 

[Bazz]

FFS mate. JUST BUILD A PORTFOLIO OF HOUSES. IT'S SIMPLE!

Joke's on him...he ain't got any kids sooooo.....

 

[Aztecs27]

I’ve heard of the term “Boomer” but didn’t know until today as I was born in 1964 I am one.

I joined the Army in 1980 at 16, all the old boys would tell us we had it easy compared to them, if you ask guys who joined in the 90’s they had easier than us, the guys who joined in the 2000’s had it easier than those in the 90’s etc etc, you get the drift.

I don’t think it’s a case of people burying their head in the sand, it’s more been there and done that relevant to when you were born.

Owning your own house or even considering it in your early 20’s at my age was just simply never crossed my mind, Council house if you were lucky and that was it, house ownership was just something for “rich” people.

To me it is levels of expectation that today blow my mind, the pressure on young people to drive a car, own a house, have all the latest mod cons, to go on foreign holidays is unreal.

But that also doesn’t mean we had it easy, we just faced different pressures relative to our year of birth.

If you think you’ve got it difficult, just imagine how difficult it’s going to be for those behind you.

Yea absolutely, I get that. My main point was the defensiveness when I mentioned a 1% interest increase would absolutely cripple us and force us to sell and god knows where we'd live....and their response was "WELL BE GLAD IT'S NOT 16% THAT WAS REAL STRUGGLE!!" 16% of £50k is a lot less than 6% of £300k for the same basic house (I know the maths is more nuanced than that but they couldn't get their heads around it.

As for your last point, I fear for my kids future. We have had to use all of the savings we'd manage to save for our kids (which wasn't a a lot but a couple of grand, which we would have hoped to have increased over the next 10 years, but now can't pay anything in) - so now we can't (currently) even help them out with a leg up when they'll need it...

 

[Aztecs27]

When I was in my 20s with my first house and mortgage I looked at my parents and thought I’d never be able to replicate what they did in terms of acquiring equity.
They got quite defensive at the time about how they had scrimped and saved, holidayed modestly and not bought new stuff just because their friends did.
30 years of scrimping and saving, holidaying modestly and avoiding buying new stuff just because my friends have I’m now in a similar position to theirs back when I thought I had no hope of achieving it.
And so the circle will hopefully continue.
Not a boomer, by the way. Gen X.

good for you mate! glad you've managed it - hopefully we'll get to that point - but currently every single penny we earn is spent on bills, mortgage, childcare, food and fuel every month. We don't really go out, we don't really drink, neither of us smoke, and don't have any expensive hobbies - so there isn't much we can cut back on, unfortunately.

EDIT: the first part isn't meant to sound condescending or anything btw - I was being genuine!

 

[Orikoru]

Yea absolutely, I get that. My main point was the defensiveness when I mentioned a 1% interest increase would absolutely cripple us and force us to sell and god knows where we'd live....and their response was "WELL BE GLAD IT'S NOT 16% THAT WAS REAL STRUGGLE!!" 16% of £50k is a lot less than 6% of £300k for the same basic house (I know the maths is more nuanced than that but they couldn't get their heads around it.

As for your last point, I fear for my kids future. We have had to use all of the savings we'd manage to save for our kids (which wasn't a a lot but a couple of grand, which we would have hoped to have increased over the next 10 years, but now can't pay anything in) - so now we can't (currently) even help them out with a leg up when they'll need it...

Yeah, that is pretty worrying. My wife and I have had help when needed from our parents over the years. It's hard to imagine ourselves ever having the means to be able to do that for our offspring.

 

[PaulMdj]

Yea absolutely, I get that. My main point was the defensiveness when I mentioned a 1% interest increase would absolutely cripple us and force us to sell and god knows where we'd live....and their response was "WELL BE GLAD IT'S NOT 16% THAT WAS REAL STRUGGLE!!" 16% of £50k is a lot less than 6% of £300k for the same basic house (I know the maths is more nuanced than that but they couldn't get their heads around it.

As for your last point, I fear for my kids future. We have had to use all of the savings we'd manage to save for our kids (which wasn't a a lot but a couple of grand, which we would have hoped to have increased over the next 10 years, but now can't pay anything in) - so now we can't (currently) even help them out with a leg up when they'll need it...

I/we bought our first and only house in 2005 after being married for 18 years, luckily housing came as part of being married when serving.

I have no idea how people cope with the uncertainty of interest rates or, without overstepping the line, how some people believe they can afford a house and kids.

I’m not being flippant or rude, but part of the issue is the ridiculous rise in house prices.

I honestly believe if I lived down south and could move up north to a decent job I would seriously consider it, house prices down south are just stupid.

 

[RichA]

good for you mate! glad you've managed it - hopefully we'll get to that point - but currently every single penny we earn is spent on bills, mortgage, childcare, food and fuel every month. We don't really go out, we don't really drink, neither of us smoke, and don't have any expensive hobbies - so there isn't much we can cut back on, unfortunately.

EDIT: the first part isn't meant to sound condescending or anything btw - I was being genuine!

I didn’t imagine it was condescending - until now.
I wasn’t aiming for smug myself; most of my pals are 20 years younger than me so I just like to try to reassure them that it’s possible.

 

[BubbaP]

Recall as a child the parents & friends playing trivial pursuit boomer edition.

This paraody account can be quite amusing, especially the comments not realising it is as such ...