Interest Rate up a measly .25%

[tijuana taxi]

I never understood that, sure in my parents era, renting a council house was the thing to do ( mostly)
But these days, apparently, most of Europe are "renters" or so I'm led to believe, with only ( Mainly) the brits having a must buy culture.

This has never made any sense to me, I've never rented, so I can't really compare figures, but as I understand it, there is little difference in price,
and after 25 ( or whatever) years, you are still paying rent, and have nothing to show for it at the end.

Renting post war was much cheaper also had controls in place for the private sector, I grew up in a rented flat as did most of my friends.
Only country I have come across in the world where the economy depends on the price of a house.

 

[MatBin]

That sounds like Harpenden, especially as you threw in the "automatically double the house price" factor of the schools.

Indeed and it's in my profile

 

[Mr Bump]

Buying and Owning houses is very much a UK thing however it is worth noting that is not the case, as below from the guardian.

The UK might have a reputation as a nation of mortgage slaves – interest rates are often reported as if that's the case – but that's not the reality. The ONS figures reveal 9.2 million UK households had property debt in 2008/10 – that's 37.3% of the total

Also worth noting below.

Low interest rates that have allowed borrowers to pay off their home loans quickly, combined with a squeeze on the availability of new mortgages to first-time buyers, have tipped the balance of ownership in England.

 

[tijuana taxi]

I think renters know this, try saving for a deposit on a house when you have no spare income. My wife and I will be in a position to save for a deposit in a couple of years time, but most of our friends who own have been loaned or gifted the money for a deposit by their parents. Neither my Wife or I have that advantage so there isn't much we can do but through money away on rent at the moment.

I doubt it is a choice for 99% of people.

I do have sympathy to some extent, but was shocked when my daughter said one of her friends paid seventy quid a month on a mobile contract.
Being hard up seems to mean something different to when I was a kid, loads of people could save a fortune by giving Starbucks and co a miss

 

[Cobra]

My wife and I will be in a position to save for a deposit in a couple of years time

Excellent

but most of our friends who own have been loaned or gifted the money for a deposit by their parents

And thats the rub isn't it? certainly these days,

doubt it is a choice for 99% of people.

Agreed and that is a real shame, but then again, I do know a couple people that rent through choice,
claiming they can afford to rent a house far superior to the one they could actually afford to buy, and see that a Porsche or two in the drive is more important than owning their own home.
And this goes full circle to " I want it now" culture discussed earlier in the thread.

I grew up in a rented flat as did most of my friends.

Same here, in North London. Parents moved to MK in the late 50's with the "promise of milk and honey"
Of course MK didn't exist at that time, but does now

 

[Cobra]

Being hard up seems to mean something different to when I was a kid,

Nail head hammer

 

[tijuana taxi]

Excellent


And thats the rub isn't it? certainly these days,


Agreed and that is a real shame, but then again, I do know a couple people that rent through choice,
claiming they can afford to rent a house far superior to the one they could actually afford to buy, and see that a Porsche or two in the drive than owning their own home.
And this goes full circle to " I want it now" culture discussed earlier in the thread.



Same here, in North London. Parents moved to MK in the late 50's with the "promise of milk and honey"
Of course MK didn't exist at that time, but does now

Our promised land was Harlow, kept trying tempt us with a house and garden plus job in the cardboard box factory or similar.
Even had free bus trips out there laid on to give it the once over
My old man always resisted and said have a look there in thirty years time, he wasn't far wrong
He stayed put and so did I for many years, finally left in 98, went a bit further up the M11 than Harlow though

 

[Cobra]

went a bit further up the M11 than Harlow though

And a very wise choice you made

edit, and thats a nice area you live in too, I work around there a fair bit

 

[Craigus]

I do have sympathy to some extent, but was shocked when my daughter said one of her friends paid seventy quid a month on a mobile contract.
Being hard up seems to mean something different to when I was a kid, loads of people could save a fortune by giving Starbucks and co a miss

I quite agree there. This is part of the reason our circumstances changed when we recognised this pattern of spending and are now trying to lead a simpler life.

It might seem obvious to a lot of the older generation, but this sort of thing is not part of your education when at school. You have to rely on it being taught to you by your parents and also have the will power to not go along with the crowd in getting the latest iPhone and a new Audi on lease, which isn't going to happen when a good portion of the population who have children struggles with those very problems themselves.

This is going a bit off-topic now I suppose.

EDIT: Simpler life, with too much camera gear

 

[MatBin]

So, here's an old farts perspective.
We got engaged and saved up for years, going out once a week and spending very little on that one
evening out, maybe the cinema or the pub for a couple of drinks each, couple of pints for me and
Cinzano and lemonade for her.
We drove battered cars, or in my case a small motorcycle, we had no holiday, we lived at home
giving our parents a contribution for our "keep", we didnt have mobiles or expensive tastes.
We bought a cheap house to do up, or a flat as a first stepping stone, we got married on the cheap,
self catered, uncle Bob took the photos, Dad worked in an off licence so we got the booze (no pay bar then)
on sale or return at trade prices.
We had a cheap honeymoon, maybe a week or two in the Uk or maybe really pushed the boat out and
had 10 days in Spain on a package holiday.
We saved up again by staying in each night and having may be a bar meal or a Bernie steak bar meal once a
fortnight so we could move up the property ladder. We may have bought a new house if we were lucky,
fully fitted kitchens were a luxury then as was central heating.
Eventually we had enough saved to afford a child, with me at that time doing a regular 45/50 hour week.

The younger people these days wont settle for that, and who can blame them, so yes we now have paid
for houses in some cases and maybe some money in the bank to top up the state pension but please dont
tell me we had it easy by comparison to todays youngsters, certainly we had it easy by comparison to
our parents, who in a lot of cases were bombed out of their houses etc.

I truly wish the young people today could have it all, I'm not jealous or envious of their lifestyles
but real spending power hasnt increased that much and if you want "toys" and/or holidays etc then
something has to give way.

 

[Cobra]

and also have the will power to not go along with the crowd in getting the latest iPhone and a new Audi on lease,

He comes the old fart bit ...
I tell my son ( who is about to move out this month to his own ( rented) place with his new wife btw)
and have told my son for years, but the younger generation, think they know better, ( and I'm sure I had the same lecture from my dad too )
Peer pressure and all that...

 

[Craigus]

snip

This is sage advise, but I think it is often shrugged off by the younger generation as the way it comes across is "things were better in my day" or "the way we did it was better" which gets the response of "Okay, Grandpa, go back to watching Poiro". Admittedly, it's probably right in many ways, but young people don't want to hear it.

That may come across as rude, but that isn't my intention!!

 

[tijuana taxi]

And a very wise choice you made

edit, and thats a nice area you live in too, I work around there a fair bit

Its ok, not a bad place to raise a family, but the locals are a tight and miserable lot
Pop in for a cuppa, I'm retired now so round and about a fair bit during the day

Of course MK didn't exist at that time, but does now

My missus comes from Stoke Newington and one of her lot moved to Bletchley in the 50's, believe that was the early MK

 

[cambsno]

When we bought our two bed semi (in Kent) in the early nineties, it was 2.75 times my salary. Judging by today's valuations (Other houses sold in the past year), the house would be 10.4 times my current salary.

I remember NOT buying a studio flat for £29k in 1994 as I thought it was overpriced (last time I looked it was well over £100k) in Hatfield - Basic then was 12k so around 2.5 times salary (although I got bonus on top). First house was 3 bed detached new build (2.5 beds in reality) for £65k and that was on joint income of around £27k so around 2.4 x joint. Next was £100k on a joint of around £40k so again 2.5, with current house over 10 years ago being around 3x joint. How people buy now is beyond me!

 

[Cobra]

So, here's an old farts perspective.

Great minds think alike, I was typing when you posted

And your lifestyle is pretty much a mirror of my own
(Apart from moving, I never have, I still live in the same house that we "bought" when we got married.)
TBH I never saw the need to move, I like the house and the area, and yet I have a couple of friends that if they didn't move every couple of years, they
felt as they had failed.

That was a few years ago now, I don't know if they still do this, as I have lost touch with them..

 

[Cobra]

but the locals are a tight and miserable lot

I also work a lot in Norfolk, but *we* don't talk about them

Pop in for a cuppa, I'm retired now so round and about a fair bit during the day

Thanks I'm generally on a mission, but occasionally I get an easy day, with time to play

Bletchley in the 50's, believe that was the early MK

Bletchley had the first estate built specifically for the GLC over-spill, that would have been about '67-'68 MK started to grow well snowball actually from there, and its still expanding.
We don't talk about all the green field sites that are now under concrete, or how that actually happened
But I do know ( personally) one farmer that was paid £1 million / per acre for 5 acres, and that would have been late '90's.
All he said was .. "thats my kids set"

 

[stupar]

I dont understand this need to move houses every two to three years.
Why cant people just find a really nice house in the first place and settle.

We are 6 years into a 25 year mortgage and have no intentions of moving.
We are both jappy with our family home and the best bet is the mortgage will be paid off before we both retire which has always been a personal goal for me.

I dont want to be in my 60-70s and still paying off the last of a mortgage.

 

[Uneducated_Rick]

So, here's an old farts perspective.
We got engaged and saved up for years, going out once a week and spending very little on that one
evening out, maybe the cinema or the pub for a couple of drinks each, couple of pints for me and
Cinzano and lemonade for her.
We drove battered cars, or in my case a small motorcycle, we had no holiday, we lived at home
giving our parents a contribution for our "keep", we didnt have mobiles or expensive tastes.
We bought a cheap house to do up, or a flat as a first stepping stone, we got married on the cheap,
self catered, uncle Bob took the photos, Dad worked in an off licence so we got the booze (no pay bar then)
on sale or return at trade prices.
We had a cheap honeymoon, maybe a week or two in the Uk or maybe really pushed the boat out and
had 10 days in Spain on a package holiday.
We saved up again by staying in each night and having may be a bar meal or a Bernie steak bar meal once a
fortnight so we could move up the property ladder. We may have bought a new house if we were lucky,
fully fitted kitchens were a luxury then as was central heating.
Eventually we had enough saved to afford a child, with me at that time doing a regular 45/50 hour week.

The younger people these days wont settle for that, and who can blame them, so yes we now have paid
for houses in some cases and maybe some money in the bank to top up the state pension but please dont
tell me we had it easy by comparison to todays youngsters, certainly we had it easy by comparison to
our parents, who in a lot of cases were bombed out of their houses etc.

I truly wish the young people today could have it all, I'm not jealous or envious of their lifestyles
but real spending power hasnt increased that much and if you want "toys" and/or holidays etc then
something has to give way.

Here's a younger persepctive.

Me and the wife met at Uni where we racked up massive debt - no free education for us!

We got jobs that required a degree and multiple years experience but barely paid above minimum wage (per hour) because we were expected to do overtime 'when needed' which was most of the time.

We don't go out at all and dont go on holidays, we only visit friends and family around the UK.

We moved into a tiny 1 bed flat, through a housing association, where we managed to put aside a whole £100 a month each from our wages despite running 1 old car between us.

We couldn't afford a cheap house to do up and sell on for profit because old people had already done that. Or they'd bought places and done them up and then rented them to the poeple who should have been buying.

Our savings added up and with interest we thought about buying a house, but our money was growing slower than house prices were going up - by saving we were moving away from being able to afford to buy. Average prices on a 1 bed flat in the town we lived in were more than 6 times our combined income - no one would lend to us.

Millenials are rightly angry at our situation

• We can't afford to buy - houses are beyond our means
  
• We can't afford not to buy - we spend 3x as much (in real terms so adjusted for inflation) than 2 generations ago for worse standard (no council minimum spec, private acommodation can be terrible)
  
• Our careers have little to prospects of advancement
• If we have a job that pays hourly we're more likely to be on 0 hour contract
  
• We have to commute further and longer than previous generations - this also has health implications
  
• We do more unpaid overtime than previous generations

We are the first generation to be worse off than the one before - and that has been proven worlwide in many different studies.

However we aren't the first generation to be told that we're worse than the one before - that can be traced back to 1843 (and probably earlier)

 

[MatBin]

Here's a younger persepctive.


We are the first generation to be worse off than the one before - and that has been proven worlwide in many different studies.

However we aren't the first generation to be told that we're worse than the one before - that can be traced back to 1843 (and probably earlier)

I really do feel your pain, if it's any consolation you will with luck inherit, albeit a way off. Basically Britain isnt earning enough, isnt making enough and your generation is suffering because of it.
No parent wants to see their children worse off, we arent gloating and we arent happy with where you are, we want you to have a better life, better prospects, better housing etc

 

[andya700]

I dont understand this need to move houses every two to three years.
Why cant people just find a really nice house in the first place and settle.

We are 6 years into a 25 year mortgage and have no intentions of moving.
We are both jappy with our family home and the best bet is the mortgage will be paid off before we both retire which has always been a personal goal for me.

I dont want to be in my 60-70s and still paying off the last of a mortgage.

I totally agree. We have been living in this, our first house for twenty five years. We are mortgage free (a few months ago), and still have no intention of moving. My Dad and sister however (she never bothered to leave home - cuckoo) have moved four times in the last twenty years, losing money each time, putting themselves through the hassle of all the packing and legal costs, constantly moaning about it, then had the cheek to say to me - "We can't understand anyone living in the same place all their lives", to which I replied - "It's quite easy really, you just have to make the right choice".
Back on topic though, moving around a lot and remortgaging is one surefire way of building up negative equity, and leaving your self open to huge financial problems when interest rates start to rise.

 

[tijuana taxi]

Here's a younger persepctive.

Me and the wife met at Uni where we racked up massive debt - no free education for us!

We got jobs that required a degree and multiple years experience but barely paid above minimum wage (per hour) because we were expected to do overtime 'when needed' which was most of the time.

We don't go out at all and dont go on holidays, we only visit friends and family around the UK.

We moved into a tiny 1 bed flat, through a housing association, where we managed to put aside a whole £100 a month each from our wages despite running 1 old car between us.

We couldn't afford a cheap house to do up and sell on for profit because old people had already done that. Or they'd bought places and done them up and then rented them to the poeple who should have been buying.

Our savings added up and with interest we thought about buying a house, but our money was growing slower than house prices were going up - by saving we were moving away from being able to afford to buy. Average prices on a 1 bed flat in the town we lived in were more than 6 times our combined income - no one would lend to us.

Millenials are rightly angry at our situation

• We can't afford to buy - houses are beyond our means
  
• We can't afford not to buy - we spend 3x as much (in real terms so adjusted for inflation) than 2 generations ago for worse standard (no council minimum spec, private acommodation can be terrible)
  
• Our careers have little to prospects of advancement
• If we have a job that pays hourly we're more likely to be on 0 hour contract
  
• We have to commute further and longer than previous generations - this also has health implications
  
• We do more unpaid overtime than previous generations

We are the first generation to be worse off than the one before - and that has been proven worlwide in many different studies.

However we aren't the first generation to be told that we're worse than the one before - that can be traced back to 1843 (and probably earlier)

We might have had free education, but didn't know anyone who went to university, it was get a job or be skint
Benefits the poorer having the chance to get student loans, loads more working class kids getting degrees now.

My daughter went to uni, paid her dues and after working hard is now an Optometrist, unheard of anyone doing that when I was a school leaver.
Be nice to hear from some of the younger lot who are doing quite nicely, my recent neighbours for instance.

Bought a smaller house, one a teacher the other a solicitor, both seemingly did quite well from a working class background.
One car and appear to live a reasonably decent life, so not all doom and gloom

 

[munch]

Here's a younger persepctive.

Me and the wife met at Uni where we racked up massive debt - no free education for us!

We got jobs that required a degree and multiple years experience but barely paid above minimum wage (per hour) because we were expected to do overtime 'when needed' which was most of the time.

We don't go out at all and dont go on holidays, we only visit friends and family around the UK.

We moved into a tiny 1 bed flat, through a housing association, where we managed to put aside a whole £100 a month each from our wages despite running 1 old car between us.

We couldn't afford a cheap house to do up and sell on for profit because old people had already done that. Or they'd bought places and done them up and then rented them to the poeple who should have been buying.

Our savings added up and with interest we thought about buying a house, but our money was growing slower than house prices were going up - by saving we were moving away from being able to afford to buy. Average prices on a 1 bed flat in the town we lived in were more than 6 times our combined income - no one would lend to us.

Millenials are rightly angry at our situation

• We can't afford to buy - houses are beyond our means
  
• We can't afford not to buy - we spend 3x as much (in real terms so adjusted for inflation) than 2 generations ago for worse standard (no council minimum spec, private acommodation can be terrible)
  
• Our careers have little to prospects of advancement
• If we have a job that pays hourly we're more likely to be on 0 hour contract
  
• We have to commute further and longer than previous generations - this also has health implications
  
• We do more unpaid overtime than previous generations

We are the first generation to be worse off than the one before - and that has been proven worlwide in many different studies.

However we aren't the first generation to be told that we're worse than the one before - that can be traced back to 1843 (and probably earlier)

I do fully understand where you are coming from, my daughter and her partner moved in to their house just over a year ago. The deposit was paid for by my daughter and her partner saving hard and money from my parents will. I know they are the lucky ones.

The only exception I take to your statement is the bit about Student Debt. It is not a millstone, if you don't earn much you don't pay back much or if less than £21000 you don't pay any of it.

 

[Cobra]

We are the first generation to be worse off than the one before - and that has been proven worlwide in many different studies.

I see where you are coming from on this, and I agree up to a point, but my son, late 20's earns more than I do ( mostly)
Yes he has a degree, but now works in a totally unrelated field where it is no use to him whatsoever.
So is he really worse off than me?
However, of course "essentials" if you can call it that are far more expensive pro rata than "in my day"
Houses, cars, etc

My Dad and sister however (she never bothered to leave home - cuckoo) have moved four times in the last twenty years, losing money each time,

Weird that, I don't think I've ever heard of anyone losing money on a property deal, apart from the negative equity era, but then people still rushed to sell. Had they waited it out, of course they would have been quids in a few years later.

My daughter went to uni, paid her dues and after working hard is now an Optometrist, unheard of anyone doing that when I was a school leaver.

Same here!

 

[Uneducated_Rick]

We might have had free education, but didn't know anyone who went to university, it was get a job or be skint
Benefits the poorer having the chance to get student loans, loads more working class kids getting degrees now.

I think the loans to cover cost of accomodation / living are fab - this is the main bit that helps people form poorer backgrounds.

It's the £9,000 a year tuition that's crippling - luckily for me I went to Uni when it was only £4kish a year for fees. Not unheard of at the moment for a young couple to have £100k debt between them from 3 year degrees.

Bought a smaller house, one a teacher the other a solicitor, both seemingly did quite well from a working class background.
One car and appear to live a reasonably decent life, so not all doom and gloom

I have friends who are solicitors, they hate their jobs (hopefully your neighbour doesn't feel the same), neither work in London nor in particularly agressive firms but they both do 70-80 hour weeks, with no prospect of being made junior partners despite 10 years at the same firm. The partners don't understand why the youngsters aren't happy killing themselves but with the knowledge that one day when they make partner they'll be better off. These are the same people who were junior partner after 5 years, senior within 10 and then set up their own firms.

For now my friends are lucky that they're in a relatively cheap place between the cities in which they work. If they were both in the same city I don't thbink they'd be able to afford to live much closer anyway.

I see where you are coming from on this, and I agree up to a point, but my son, late 20's earns more than I do ( mostly)
Yes he has a degree, but now works in a totally unrelated field where it is no use to him whatsoever.
So is he really worse off than me?
However, of course "essentials" if you can call it that are far more expensive pro rata than "in my day"
Houses, cars, etc

He earns more than you in absolute terms, but is he in a position to raise & pay a mortgage and build equity? It's not just about income, but more about net worth.

No point earning more if he's paying more in rent etc. and not building equity/ownership.

Is his degree genuinely completely unrelated and no transferable skills? The only reason I ask is on the surface my degree (Marine Science) & career seems unrelated but without my knowledge of statistics (biology modules) and data modeling (physics modules) I wouldn't be anywhere near where I am today.

And before anyone points out my degree was never likely to lead to a career in that field I know - my original route was going to be academia but I couldn't stand my Masters, far too much red tape and beaurocracy.

 

[Gremlin]

I was in the lucky situation of being left a large sum of money by a relative and buying the house I was renting at a discounted price,
helped by the the fact that a local airfield was testing low flying noisy fighter jets the day the valuer visited
!5 years later sold the house for 3x what we bought it for, had to split the money with my then ex, but found a nice
flat, close to work, shops etc that I could afford with cash left over.
That was 5 years ago, an identical place on the estate has just come on the market for almost double what I paid, and within a week is under offer

One could say I have been lucky to have never needed a mortgage

 

[Cobra]

He earns more than you in absolute terms, but is he in a position to raise & pay a mortgage and build equity? It's not just about income, but more about net worth. No point earning more if he's paying more in rent etc. and not building equity/ownership.

That was the point I was making too
Yes he is money rich, but property / assets poor ... At the moment, at least.
Now he's recently married, I'm hoping that he'll settle down and not "waste" huge chunks of money on the latest "Must have thing" that his generation seem to do

Is his degree genuinely completely unrelated and no transferable skills?

You tell me
Biology / Animal behaviour degree from Cambridge, now works as a trainee site agent ( and gofer) for one of the large house builders.
Mind you some of the brickies he's responsible for could be classed as animals at times ( His words not mine )
Oh and even with his 20% discount, off new houses, he still can't raise a mortgage .... just yet.

 

[bl0at3r]

I’m in the middle, age wise, at 43 and we’ve been extremely lucky to have paid off our mortgage last year. Took advantage of the low rates and overpaid like mad, before paying off the remaining lump sump at the end.

I agree with the point about the education from the parents - mine always worked on the basis of saving to buy something and, as someone else said, if you can’t afford it you can’t have it. This set me in the right direction and we have followed those same principles.

We bought in ‘99 and had a 25 year mortgage of £68,400 - we could have borrowed slightly more but didn’t want to stretch ourselves.

We’ve no kids, have never got in debt in order to acquire fancy cars or luxuries, didn’t splash out on a wedding designed to impress others (a simple registry office and modest honeymoon) and put us in debt for years after the big day. Neither did we go to university and incur debt that way.

We have also lived in the same place for 18 years and have no intention of moving - unless the old dear next door pops off and the new neighbours through the wall turn out to be noisy, inconsiderate scrotes.

At the point now where surplus income is being saved with a view to downsizing jobs and getting more time together at home.

I really wouldn’t want to be back trying to get on the property ladder now and feel for the younger generations.

Maybe it’s time to shake up our approach and look closely at basic housing (and food/hygiene) for everyone to ensure the homeless issues don’t spiral further out of control?

 

[OldCarlos]

Mrs Stupar and I have nothing on HP

Same here. If we want summat, we wait & save.
My old Dad drilled into us the philosophy of spending less than you earn & not trying to `keep up with the Jones's`.

I never understood that, sure in my parents era, renting a council house was the thing to do ( mostly)
But these days, apparently, most of Europe are "renters" or so I'm led to believe, with only ( Mainly) the brits having a must buy culture.

This has never made any sense to me, I've never rented, so I can't really compare figures, but as I understand it, there is little difference in price,
and after 25 ( or whatever) years, you are still paying rent, and have nothing to show for it at the end.

That is very true, but you don't have the worry & cost of maintenance, which you can save ........ or enjoy.

We've been in our present house for 10 yrs & spent over £40k on refurb & maintenance.
We actually considered going into rented when we've sold, but I couldn't do with the uncertainty of rent prices & unsecured tenancy when retired.

I do have sympathy to some extent, but was shocked when my daughter said one of her friends paid seventy quid a month on a mobile contract.
Being hard up seems to mean something different to when I was a kid, loads of people could save a fortune by giving Starbucks and co a miss

About 6 yrs ago one of my Niece's was spending stupidly on a mobile contract until her Mum sorted her out. She got a cheap phone & contract, which left her enough to get & run, a new Citroen C1 (on finance) for the same money she was previously spending.

 

[Cobra]

That is very true, but you don't have the worry & cost of maintenance, which you can save ........ or enjoy.

There is that I suppose, but again it depends on how much you want to to put into a house.

We've been in our present house for 10 yrs & spent over £40k on refurb & maintenance.

Ouch!
Worst I did was a side extension, bedroom, kitchen, garage, new windows, new heating & rads mid '80's did well on that one, I thought.
£16,000 for the extension and about another £4K on "incidentals".

 

[Swissy]

I dont understand this need to move houses every two to three years.
Why cant people just find a really nice house in the first place and settle.

We are 6 years into a 25 year mortgage and have no intentions of moving.
We are both jappy with our family home and the best bet is the mortgage will be paid off before we both retire which has always been a personal goal for me.

I dont want to be in my 60-70s and still paying off the last of a mortgage.

Exactly this.

When me and my ex bought our first house we were extremely happy it was a good sized property and could have lasted all our lives, instead we decided after a few years there that we needed something bigger and better, and when we bought a new house after a few years we needed something bigger and better etc.

What we didn't realise was bigger and better meant more bills, more pressure to pay the mortgage etc and which in the end was to much pressure and the marriage ended.

I believe if we had stayed at our original house we would still be together, happy and mortgage free now.

 

[cambsno]

Exactly this.

When me and my ex bought our first house we were extremely happy it was a good sized property and could have lasted all our lives, instead we decided after a few years there that we needed something bigger and better, and when we bought a new house after a few years we needed something bigger and better etc.

What we didn't realise was bigger and better meant more bills, more pressure to pay the mortgage etc and which in the end was to much pressure and the marriage ended.

I believe if we had stayed at our original house we would still be together, happy and mortgage free now.

Trouble is these days (unless you are like our next door couple whose Dad bought the house for them) you cannot buy the perfect home early on. On a new development near us the cheapest 3 bed house is £350k.

 

[rick448]

To much cheap money around at the moment encouraging to many people to build up debt especially credit cards.

So increasing interest rates will solve everything by people going bankrupt and having their houses repossessed. Granted 0.25% shouldn’t break the bank but a more substantial rise would no doubt push some people over the edge.

 

[Mr Bump]

So increasing interest rates will solve everything by people going bankrupt and having their houses repossessed. Granted 0.25% shouldn’t break the bank but a more substantial rise would no doubt push some people over the edge.

It's not about putting people in risk it is also about a balanced approach which includes savers and the retired.

 

[nilagin]

It's not about putting people in risk it is also about a balanced approach which includes savers and the retired.

But what is the balanced approach. Apparently many of the big banks have no intention of increasing savings interest rates. But aside from that increasing rates can only take money away from those who have already borrowed. Where as not increasing interest rates isn't really hurting those that have retired as you aren't taking away something they already had.
I could retire now if I wished to and get my works pension but I won't because I have a great work life balance. Monthly pay is in excess of outgoings and the odd bit of overtime here and there improves the excess still further. Any excess I don't spend goes into savings. It may not earn much interest but I can add more each month regardless and I certainly am not concerned about low interest rates. Keeping them low does more people a favour than if they were increased. When I do plan to retire I should hopefully have a nice sum ( unless Ford bring out another RS I take a fancy to) to add to my pension pot plus my monthly pension.

 

[tijuana taxi]

But what is the balanced approach. Apparently many of the big banks have no intention of increasing savings interest rates. But aside from that increasing rates can only take money away from those who have already borrowed. Where as not increasing interest rates isn't really hurting those that have retired as you aren't taking away something they already had.
I could retire now if I wished to and get my works pension but I won't because I have a great work life balance. Monthly pay is in excess of outgoings and the odd bit of overtime here and there improves the excess still further. Any excess I don't spend goes into savings. It may not earn much interest but I can add more each month regardless and I certainly am not concerned about low interest rates. Keeping them low does more people a favour than if they were increased. When I do plan to retire I should hopefully have a nice sum ( unless Ford bring out another RS I take a fancy to) to add to my pension pot plus my monthly pension.

So basically you are ok then, did you not consider some people may have expected a small return on their savings come retirement time?

 

[nilagin]

So basically you are ok then, did you not consider some people may have expected a small return on their savings come retirement time?

Is that not any more foolhardy than over extending yourself and hoping interest rates don't rise? Many have already said about not buying things unless you can pay for them. The same goes for retirement. Put money away into savings as well as a pension. You will know exactly how much money you will have. Relying on interest rates which can't be guaranteed is just daft.

 

[tijuana taxi]

Is that not any more foolhardy than over extending yourself and hoping interest rates don't rise? Many have already said about not buying things unless you can pay for them. The same goes for retirement. Put money away into savings as well as a pension. You will know exactly how much money you will have. Relying on interest rates which can't be guaranteed is just daft.

Certain types of pensions are dependant on interest rates along with the price of shares and property.
So are you saying bung it in the mattress so you know what you have got?

Lots of pensions available now do not have a guaranteed payout figure, you are generalising using your own circumstances as a constant.

 

[nilagin]

Certain types of pensions are dependant on interest rates along with the price of shares and property.
So are you saying bung it in the mattress so you know what you have got?

Lots of pensions available now do not have a guaranteed payout figure, you are generalising using your own circumstances as a constant.

Did I say bung it under the mattress? No I said stick it in a savings account and keep adding to it. You will know exactly how much you have. Any interest it earns is a bonus, nothing more. Add your savings to your state pension and that is your guaranteed expenditure. Don't budget in what you may or may not get through interest rates.

 

[tijuana taxi]

Did I say bung it under the mattress? No I said stick it in a savings account and keep adding to it. You will know exactly how much you have. Any interest it earns is a bonus, nothing more. Add your savings to your state pension and that is your guaranteed expenditure. Don't budget in what you may or may not get through interest rates.

Anyone starting work thirty or forty years ago, maybe even twenty would have had a reasonable expectation of some return on their savings.
Nobody ever dreamed of interest rates this low and yes people do plan based on historical and current financial conditions.

 

[nilagin]

Anyone starting work thirty or forty years ago, maybe even twenty would have had a reasonable expectation of some return on their savings.
Nobody ever dreamed of interest rates this low and yes people do plan based on historical and current financial conditions.

And they will likely be wanting compensation for being mis sold a product that may not deliver.
I started work a little over 39yrs ago and I have never expected any return on savings. If I have had savings that I knew I wouldn't have to touch I have put them into a long-term savings account with a guaranteed return. But certainly never relied upon it. It's just a bonus that you may get. Nothing more.