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UK Politics: Picking Your Career


mormont
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I just had to renew my deal, on a fixed rate for three years. That was before this rise, but my mortgage went up 25%. Now, as it happens, I can manage that, but a lot of people will not be able to and repossessions will happen. Be very clear: when we talk about getting inflation down by increasing interest rates, that's what we mean. A big part of that is making people poorer, through mortgage increases, reduced spending, and reduced investment. That's a policy choice. 

ETA - I want to clarify, though, that I'm absolutely not in favour of mortgage relief. We're acquiring a valuable asset. We shouldn't be given public money to help. If public cash is available, spend it on supporting people on fixed incomes. 

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9 minutes ago, mormont said:

I just had to renew my deal, on a fixed rate for three years. That was before this rise, but my mortgage went up 25%. Now, as it happens, I can manage that, but a lot of people will not be able to and repossessions will happen. Be very clear: when we talk about getting inflation down by increasing interest rates, that's what we mean. A big part of that is making people poorer, through mortgage increases, reduced spending, and reduced investment. That's a policy choice. 

Our 5 year fixed rate deal expires this summer, so we had to get a new one. 2 year fixed, an extra £250 or so. We were on 2.99% so our increase isn’t as bad as those who fixed their rate in 2020/21. Luckily our daughter finishes nursery in August for school, so that should balance it.

And it’s not just home owners who suffer. Landlords will raise rents to cover the increase.

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the problem is the infaltion is being caused by supply side issues and not over spending.  People need food and energy and housing.  making housing more expensive does nothing to make food or energy needs less.  people are not spending on discretional optional stuff.

this needs government intervention to help bring down those costs.  and is beyond what the BOE can do.

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25 minutes ago, Derfel Cadarn said:

Luckily our daughter finishes nursery in August for school, so that should balance it.

And it’s not just home owners who suffer. Landlords will raise rents to cover the increase.

I can't wait for my youngest to start school. The loss of fees and my wife going back to work full time will massively change our curcumstances. 

There is going to be almost no rental properties in a few years. It was already borderline being worthwhile, a mortgage hike will wipe out profits for anyone who doesn't own property outright. 

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9 minutes ago, BigFatCoward said:

I can't wait for my youngest to start school. The loss of fees and my wife going back to work full time will massively change our curcumstances. 

There is going to be almost no rental properties in a few years. It was already borderline being worthwhile, a mortgage hike will wipe out profits for anyone who doesn't own property outright. 

That won't happen. The demand is still going to be there, since a huge percentage of the population will be unable to afford a mortgage and there is no social housing supply to speak of. What will happen is that the ownership pattern of private rented accommodation will change and rents will go up. You'll see a lot more offshore companies as landlords. Again, we've made a policy choice here, decades ago, which we're seeing the consequences of now: effectively eviscerating council housing has led to handing profits to private companies. 

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1 hour ago, Pebble thats Stubby said:

the problem is the infaltion is being caused by supply side issues and not over spending.  People need food and energy and housing.  making housing more expensive does nothing to make food or energy needs less.  people are not spending on discretional optional stuff.

this needs government intervention to help bring down those costs.  and is beyond what the BOE can do.

Exactly this. Corporate greed is is driving inflation, not plebs buying esentials.

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Housing is an essential and houses prices should never have been allowed to inflate to the point where they can a dozen times the salary of an average person. House building is part of this but a return of council housing could help drive shitty private landlords the fuck into hell where they belong and be a step towards discouraging the people/organisations who see housing as a reliable investment to sink their wealth in to (though I think there should also be much more legislation / increasingly heavy taxes to penalise multiple residential property ownership both for individuals and corporations).

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Copy/pasted from elsewhere

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As someone who works in the market, may I take a moment to rant that reactions to the current mortgage crisis are baffling. Utterly baffling.

The Bank of England, when faced with inflation that was mostly caused by supply-side shocks (plus greedy companies taking the opportunity to massage profits while everyone's resigned to price rises happening), has decided that, while the last 11 times it's raised rates since the start of 2022 have done bog all, the 12th time will be the charm, especially if they do a really big one this time. This is not inflation that is caused by excessive demand in the economy at all, yet the BoE is determined to crush any hint of growth beneath its heels because it needs to be seen to be *doing something*, it's got no other levers, and nobody else is doing anything so they apparently have to.

The Government? They're hoping that either the Bank of England plan will magically work on the 12th time of asking, or that the Invisible Hand of the Free Market will miraculously deal with the problem, and that they won't have to do anything. They're also hoping that no-one pays attention to the fact that they have fed this crisis every step of the way. The average house in the UK cost £170k in 2010, it now costs £290k. Not only did they ignore that creeping increase with all their might, they *fed* it with every bit of intervention thye put in: Help to Buy, Interest-free equity loans, encouraging lenders to provide 95% mortgages, throttling back on social housing, allowing builders to camp on land because the profit'll be higher if they build later, because heavens forfend there even be the possibility that house prices not rise month on month - there's buy to let landlord who expect their returns, don't you know?

And the Opposition? Jesus wept. They've just come out very stridently saying that they have a plan to help the poor beleaguered homeowners and, if they were in Government, they'd be *doing* things in comparison to the Government's equivocating. It's *great* politics. Top theatre - looks very decisive. But let's take into account that the Bank of England is apparently just going to keep raising interest rates until demand is crushed enough that people stop buying luxuries like food, the economy crashes, and inflation is brought down to 2%. Their whole plan is to make people have less disposable money so they spend less - isn't it counterproductive to make policy that will allow people to have more disposable money?! All that's going to do is result in the same problem 6 months down the line because the BoE have raised the rate 6 more times because they haven't been able to squeeze people enough yet!

And let's not ignore the fact that their "solutions" are specious at best. Allowing mortgagers to extend their term or move onto interest only is great for providing an immediate influx of monthly budget for homeowners, but that means they're reducing their payments by paying less (or none) off their balance each month. What happens when these people hit 70 and they've still got £100k+ of mortgage left because they were allowed to defer it? That's just adding "Banks repossessing family homes from pensioners" to the looming pension crisis (and that's a whole other thing that politicians are pretending is invisible while they wank about with culture war bullshit). It's not a solution - it's kicking the can down the road in a fashion that our Brexit negotiators would be proud of.

It's just woeful. Woeful. There's going to be a horrible recession and we're all properly, properly fucked.

Puja

 

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It's hard to know what is going on. Today, the Guardian alone had about 5 different contradictory pieces regarding how the Brit populace at large, and the supporters back then of Brexit, feel about Brexit now.

Guardian -- we expect more coherence from you!

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What I don't get about clamping on a double yellow line is, the whole point of the double yellow line is to keep the roadway clear for traffic, but clamping locks the illegally parked vehicle in place until the fine is paid, which means the vehicle remains to impede traffic for longer than it would otherwise. Just ticket and move on, and on a third ticket for the same offense impound the vehicle for one month.

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15 hours ago, Spockydog said:

Eek. Bloke on the right has serious rage management issues. 

 

Meh. Maybe, but fury is a perfectly justifiable response to being commanded by a police officer to treat them differently just coz they are police, and being able to let that out knowing he's in your area of authority must be bloody cathartic. 

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10 hours ago, The Anti-Targ said:

What I don't get about clamping on a double yellow line is, the whole point of the double yellow line is to keep the roadway clear for traffic, but clamping locks the illegally parked vehicle in place until the fine is paid, which means the vehicle remains to impede traffic for longer than it would otherwise. Just ticket and move on, and on a third ticket for the same offense impound the vehicle for one month.

In London, getting clamped on a double yellow is usually swiftly followed by your car being lifted off the road and taken to the pound.

 

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Sounds like the govt are gearing up to totally ignore big pay rises (though probably not even keeping up with inflation) for public sector workers. 

Prepare for a fuck ton more strikes incoming. Absolute fucking cunts. 

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