Everyone else to blame as usual.

[mickd1961]

Watching the news today and Newsnight tonight and hearing everyone b I t c h I n g about mortgage interest rates.

The lack of any awareness and understanding by most of the 30+ age group about a mortgage and the personal responsibility you sign up to.

I’ve still got 4 mortgages and the hikes are hurting like hell but I knew exactly what I was getting into…….should I be shocked that these younger people are shocked?

Also, the Labour Shadow Treasury Minister Abena Oppong-Asare who was on Newsnight was almost incomprehensible and so obviously out of her depth.

I’m fully expecting a Labour government late in 2024 but if this mumbling fool is the best they can offer I can see no hope whatsoever.

Anyway, I digress……READ the small print, your mortgage can increase by a h I t loads to the point where you’re out on the street on your a r s e……if you can’t afford to pay double or more of what you signed up for then be prepared for the worst.

Nobody made you take the loan out.

[soulman101]

Hi Mick,have you watched "The Big Short" on Netflix about 2008 crash.
You would have they would have taught the school kids, who are now living on credit, basic economics.
The young uns in our family, are typical of todays generation they want it now and pay later.
I know of people who are paying for holiday's that they took 3 years ago and then taking loans to pay that off and for their next trip abroad .
Another crash is on the way.

[mickd1961]

Hi Mick,have you watched "The Big Short" on Netflix about 2008 crash.
You would have they would have taught the school kids, who are now living on credit, basic economics.
The young uns in our family, are typical of todays generation they want it now and pay later.
I know of people who are paying for holiday's that they took 3 years ago and then taking loans to pay that off and for their next trip abroad .
Another crash is on the way.

That’s a great film Lloyd, I’ve watched it a couple of times and saw it advertised again the other day and I intend watching it again.

Another really good film of this genre is Margin Call with Kevin Spacey about the financial crash of 2008, I highly recommend it.

I’m no financial genius, I’ve made poor financial decisions as well as some good one’s but I always sign up knowing the risk.

These snowflakes are now expecting a government bail out FFS.

If they think Labour will bail them out in 24-25 they’re going to get a very nasty shock.

[regis80]

There needs some drastic solution to home owning and renting Mick. It’s a very unfair situation for youngsters (and yes they did sign up to it). But what’s the solution?

They could just not buy a house and live with parents? Or rent and pay more in rent than what a mortgage costs? They and all of us are being shafted by these rules and policies our gov and authorities set. Greed is killing is all and that the real cause of all these problems.

[Omegstrat6]

Regarding mortgages, I can see where Mick is coming from and anyone who took one out between around 2007 and 2019 took one out when rates fell to 5% and quickly to under 1% which was quite unprecedented and never sustainable. It doesn't take much effort to research this and see that the reality was that rates would rise again and that they should factor this into their financial plans (though maybe such a steep hike due to Ukraine et c may not have been so easy to predict).

On the other hand I agree with Al in that lack of affordable housing is having a massive impact and much of this is very much down to the government who have done virtually noting since Cameron's failed promises on the matter. A vast percentage of a generation cannot afford to get on the housing ladder whilst there are others who can afford to buy their own holiday home. Not at all saying that the latter are not entitled to do so if they have worked hard to earn it but just pointing out it being an example of one of the growing inequalities in the country.

[WBA123]

Watching the news today and Newsnight tonight and hearing everyone b I t c h I n g about mortgage interest rates.

The lack of any awareness and understanding by most of the 30+ age group about a mortgage and the personal responsibility you sign up to.

I’ve still got 4 mortgages and the hikes are hurting like hell but I knew exactly what I was getting into…….should I be shocked that these younger people are shocked?

Also, the Labour Shadow Treasury Minister Abena Oppong-Asare who was on Newsnight was almost incomprehensible and so obviously out of her depth.

I’m fully expecting a Labour government late in 2024 but if this mumbling fool is the best they can offer I can see no hope whatsoever.

Anyway, I digress……READ the small print, your mortgage can increase by a h I t loads to the point where you’re out on the street on your a r s e……if you can’t afford to pay double or more of what you signed up for then be prepared for the worst.

Nobody made you take the loan out.

As Regis points out, what can young people who have ambitions to own their own home do without a mortgage? There is no choice but to get one.

And to be fair two disastrous pieces of economic policy, created by others (mostly the over 50s actually) have severely stung young people. That was Brexit and the Truss/Kwarteng mini budget. So yes, in this instance I think it is fair to blame others for our current economic situation if I was 30 or under and had a mortgage that was about to hit extremely high levels.

[mickd1961]

As Regis points out, what can young people who have ambitions to own their own home do without a mortgage? There is no choice but to get one.

And to be fair two disastrous pieces of economic policy, created by others (mostly the over 50s actually) have severely stung young people. That was Brexit and the Truss/Kwarteng mini budget. So yes, in this instance I think it is fair to blame others for our current economic situation if I was 30 or under and had a mortgage that was about to hit extremely high levels.

You have to be realistic in life and I don’t think a lot of 20’s to 40 odd year olds are 123.

We’ve talked about the situation my generation faced in the 80’s with interest rates at 18%+ which is where mine was.

Our lives were incredibly basic.

No foreign holidays, no new cars on the drive and I for example went three years without buying any new clothing.

I’ll wager that almost everyone complaining at the moment has a very expensive mobile phone and other electrical devices, large TV’s etc, etc.

The number of people who now lease expensive cars is huge, a lot of people are paying £500 to £1000+ per month to rent a BMW, Audi, Jag or Porsche……a car they will never own that isn’t an asset.

I either bury a car outright or don’t have a new one and make the old one last longer but in tough times, I do what I did a decade ago and sold my dream car and had a ten year old run around for a few months until cash flow improved.

Today people want everything now, they don’t seem to possess the patience to save and to wait.

The one thing I will say about the mortgage market is that although I wouldn’t call it miss selling over the past 14 years, I’m not sure as to how stark the pre sign up warnings are for borrowers?

Maybe there should be a standard warning letter that every lender has to ensure that the borrower reads in their presence that shows what each extra .25% does to repayments and very clear warnings that you need to factor in 5% as the median base rate and anything lower is a bonus but also show what a 10% base rate will mean for them.

But I go back to my earlier point, I think that the vast majority who are facing these issues will still be complaining for months and years to come whilst still looming out on their fairly new top branded lease car whilst perusing the iPhone 14s as they plan their two week holiday in Aruba or wherever.

At some point every 10 to 15 years life becomes miserable for a period, it was ever thus…..people need to be educated more to this fact and they need to learn to say “no” to themselves.

There’s a big difference between “want” and “need”……..too many people of all age groups are in the “want” camp these days.

[WBA123]

You have to be realistic in life and I don’t think a lot of 20’s to 40 odd year olds are 123.

We’ve talked about the situation my generation faced in the 80’s with interest rates at 18%+ which is where mine was.

Our lives were incredibly basic.

No foreign holidays, no new cars on the drive and I for example went three years without buying any new clothing.

I’ll wager that almost everyone complaining at the moment has a very expensive mobile phone and other electrical devices, large TV’s etc, etc.

The number of people who now lease expensive cars is huge, a lot of people are paying £500 to £1000+ per month to rent a BMW, Audi, Jag or Porsche……a car they will never own that isn’t an asset.

I either bury a car outright or don’t have a new one and make the old one last longer but in tough times, I do what I did a decade ago and sold my dream car and had a ten year old run around for a few months until cash flow improved.

Today people want everything now, they don’t seem to possess the patience to save and to wait.

The one thing I will say about the mortgage market is that although I wouldn’t call it miss selling over the past 14 years, I’m not sure as to how stark the pre sign up warnings are for borrowers?

Maybe there should be a standard warning letter that every lender has to ensure that the borrower reads in their presence that shows what each extra .25% does to repayments and very clear warnings that you need to factor in 5% as the median base rate and anything lower is a bonus but also show what a 10% base rate will mean for them.

But I go back to my earlier point, I think that the vast majority who are facing these issues will still be complaining for months and years to come whilst still looming out on their fairly new top branded lease car whilst perusing the iPhone 14s as they plan their two week holiday in Aruba or wherever.

At some point every 10 to 15 years life becomes miserable for a period, it was ever thus…..people need to be educated more to this fact and they need to learn to say “no” to themselves.

There’s a big difference between “want” and “need”……..too many people of all age groups are in the “want” camp these days.

I think that's a big generalisation. There are no doubt 20-40 year olds who are reckless with money. But there are some really frugal 20-40 year olds out there too, who will be equally struggling against these new interest rates.

The other thing to consider is that 6% interest rates today is probably similar to the 16% interest rates from 30 years ago, simply because of the leverage used today compared to then. I read somewhere that the average house price in 1990 was 3.5x average salary, whereas today its 11x. Therefore yes the interest rate itself is lower but the amount being borrowed is far higher, because of the growth in house prices. We are facing a crisis, no doubt about it and potentially a lot of evictions.

I think when someone's mortgage jumps up by 50%, they're entitled to ask questions as to why this is. Because all it will do is lower living standards in this country. Surely we want our 20-40 year olds to have the best things in life, and not get by on basic needs? I know I want the next generation to be more prosperous than I was. But I don't see the same mindset from the current over 60s who think people shouldn't have the latest phones or a nice holiday (Maybe now I'm generalising). Why shouldn't they? There's nothing wrong with young people having ambitious goals or wanting nice things. What we really should want as a population is wages to rise and the country's wealth to grow.

Also, I notice Martin Lewis came out today and praised Labour's approach to the mortgage crisis, such as no credit score impact on mortgage interest rates, and trying to stop banks from margin boosting. There won't be any quick and easy answer to this. Unfortunately, we are in a position where our current Government, after 13 years in power, have really tanked the economy and global market forces are compounding it.

[Leicesterbaggie]

[QUOTE=WBA123;40302737]As Regis points out, what can young people who have ambitions to own their own home do without a mortgage? There is no choice but to get one.

And to be fair two disastrous pieces of economic policy, created by others (mostly the over 50s actually) have severely stung young people. That was Brexit and the Truss/Kwarteng mini budget. So yes, in this instance I think it is fair to blame others for our current economic situation if I was 30 or under and had a mortgage that was about to hit extremely high levels.[/QUOTE

I don’t understand what has occurred here but I didn’t write this post!!

[Leicesterbaggie]

You have to be realistic in life and I don’t think a lot of 20’s to 40 odd year olds are 123.

We’ve talked about the situation my generation faced in the 80’s with interest rates at 18%+ which is where mine was.

Our lives were incredibly basic.

No foreign holidays, no new cars on the drive and I for example went three years without buying any new clothing.

I’ll wager that almost everyone complaining at the moment has a very expensive mobile phone and other electrical devices, large TV’s etc, etc.

The number of people who now lease expensive cars is huge, a lot of people are paying £500 to £1000+ per month to rent a BMW, Audi, Jag or Porsche……a car they will never own that isn’t an asset.

I either bury a car outright or don’t have a new one and make the old one last longer but in tough times, I do what I did a decade ago and sold my dream car and had a ten year old run around for a few months until cash flow improved.

Today people want everything now, they don’t seem to possess the patience to save and to wait.

The one thing I will say about the mortgage market is that although I wouldn’t call it miss selling over the past 14 years, I’m not sure as to how stark the pre sign up warnings are for borrowers?

Maybe there should be a standard warning letter that every lender has to ensure that the borrower reads in their presence that shows what each extra .25% does to repayments and very clear warnings that you need to factor in 5% as the median base rate and anything lower is a bonus but also show what a 10% base rate will mean for them.

But I go back to my earlier point, I think that the vast majority who are facing these issues will still be complaining for months and years to come whilst still looming out on their fairly new top branded lease car whilst perusing the iPhone 14s as they plan their two week holiday in Aruba or wherever.

At some point every 10 to 15 years life becomes miserable for a period, it was ever thus…..people need to be educated more to this fact and they need to learn to say “no” to themselves.

There’s a big difference between “want” and “need”……..too many people of all age groups are in the “want” camp these days.

I read this post to my wife and she recommended that you forward it to some media outlet. It sums up our ‘have today and pay tomorrow’ society. Whether they would publish or report on it is another matter.