Land Of Hope And Glory.

[gulliver1]

Britain is now sitting back watching the Tory Party render itself unelectable for at least a generation.....And good riddance. ...Liz Truss has arrived in office without any significant poll bounce. Which makes her unique in polling history. When Liz's Chancellor delivered his budget Speech he said "The money markets will react to my speech , and they did, they sank the pound and sent borrowing rates sky high .Meanwhile Liz promised more tax cuts for the super rich Here ends the arrogance and self regard of the Tory Party.

[JimF]

I'm no fan of TTT's politics, but personal jibes at someone's physical appearance really do nothing but to reinforce the general consensus of opinion. Empty vessels, and all that...

[douglas9401]

It could just be right-on lefty 5c-ers trying to fight fire with fire, Jim.

[New Judge]

//And the UK is heading for the highest interest rates ever recorded in Britain//

You need to swot up a bit.

Most analysts are forecasting rates peaking at about 6% to 7%. The Bank Rate It was 7% or higher from August 1997 to October 1998. It was in double figures between July 1988 and May 1992 and from January 1985 to May 1986. Between June 1978 and October 1982 it remained over 10%, peaking at 17.0% November 1979. There’s an interesting graph in this article illustrating some of this:

https://www.bbc.co.uk/news/business-57764601

That article also explains that many other countries are experiencing similar problems and are taking similar action. There is a long way to go before the UK experiences “the highest interest rates ever recorded.” But I’m fairly sure you know that.

[Untitled]

but mortgages were much smaller in the 1970s and 1980s than they are now

[bobbinwales]

True.... but so were wages

[New Judge]

//but mortgages were much smaller in the 1970s and 1980s than they are now//

//True.... but so were wages//

Indeed. But more than that, high interest rates have an adverse effect a considerable range of things other than mortgages. Not the least of these is the cost of servicing government debt.

[pimplyteen]

Yes the government debt. Billions creamed off during covid, never to be seen again.

[bobbinwales]

Billions . Your still referring to Hancock and test and trace TC

[bobbinwales]

Heres the missing ??'s

[Untitled]

property values now have climbed far far higher than wages have in that time...

[davebro]

^^^^ and that's a big problem.

House "values" have doubled in the past 10 years & doubled in the 10 year before that. A doubling every 10 years is unsustainable and a serious correction is needed.

[bobbinwales]

Yes but that's people's choices as to how much they pay and borrow. Interest rates have been v low so prices rose alot. A correction will happen. If it don't then it shows there's the money floating around

[dave50]

In the seventies, mortgage applications took into account I think 3 times the salary of one wage earner, therefore nobody could get a relatively big mortgage. Now two earners can be counted therefore bigger mortgages driving up house prices to unsustainable levels. Eventually there's bound to be a correction.

[Khandro]

and your question is ?

[New Judge]

When Mrs NJ and I bought our house we paid a deposit of 20%. We could not obtain a mortgage and had to pay a broker to secure one (along with an expensive endowment policy to cover the capital repayment). We overstretched our mortgage a little and for the first few years money was very tight. We also suffered the double digit interest rates throughout the 70s and 80s which I mentioned in my earlier post and at some points the whole of Mrs NJ's salary was insufficient for our mortgage repayments. As a result we had few holidays, rarely ate out and ran a car that was usually 10 to 12 years old. But we just got on with it, taking on more work where we could.

The problems for us were just as great (albeit slightly different in nature) as they are for people buying property today and I would hazard a guess that we had far less disposable income (in real terms) than house buyers have today. It's called "life". You cannot rely on things remaining the same forever and you just have to get on with whatever is thrown at you.

[mushroom25]

// even god can't help the UK slipping into being a third world country. //

pardon?

the definition of "3rd world" stems from the cold war.
1st world - NATO
2nd world - Soviet Bloc
3rd world - everywhere else.

it has - or rather had - little to do with how much of a *** hole the particular country was. the UK is still a member of NATO, and is still 1st world.

[gulliver1]

I never thought that Liz truss could form a goverment actually worse than Boris Johnson did . But she has.

[bobbinwales]

Yes not going well for Truss...but I trust your keeping quiet about the stuff you posted about record interest rates because you realise it was .. made up rubbish

[gulliver1]

17.21 Bobbinwales. Doesn't bother me how high interest rates rise but I feel for the people with mortgages and families to feed. I really do.