Wage inflation

[lilelvis2000]

My impression is that the disparity between the BOE base rate of 0.5% and the typical mortgage rate of ~4 to 5% is so the banks can recover from the fiasco they created without needing loads more QE which further devalues sterling.

The banks are also currently benefitting from fleecing the savers as well as the mortgagees, with savings rates barely keeping track of official inflation never mind real inflation.

If BOE rates went up I expect the banks would have to swallow that increase until the disparity got back to the more normal BOE rate + 2%. Especially if the gen pop is complaining of high prices elsewhere (fuel, food, etc).

I thought it was to recover all the cash they lost from the investment banks falling over. Nothing to do with QE - that was to get the economy moving. No idea if that has worked - we might not know for a few years.

I really doubt the banks would be so kind to us to swallow anything as they honestly don't care tulip about the general public. They still charge quite hight fees..and those fees have increased significantly. My wife and I wanted to go on a cheaper mortgage product and the bank wanted £700 for something that was £300 previously - even at £300 it was a rip off. I have heard cases of people paying over £1000 for this "mortgage arrangement fee".

That's kinda like me charging a client a contract arrangement fee when I build a website for them. But if you can get away with it, why not eh?

[AtW]

What I recall is that you were an employee until you got your UK passport, the minute you got the passport you resingned and signed on benefits... that's what you told eveyone here and bragged about some years ago.

I did resign as soon as I got permanent residence (that's not the same as nationality/passport) and setup my current company thus becoming company director.

I never signed on benefits (as in unemployment etc - the only discounts I ever had were single occupancy 25% in council tax (still use it but I do not believe it is classed as "benefit")).

I never bragged on about it (since it never happened in the first place).

There were a couple of people on here who claimed I did so as a joke - it wasn't me.

Are we clear now as to benefits situation?

[AtW]

Well if as you say the 'typical mortgage rate of ~4 to 5%' and inflation is at least 5% (and the rest) I don't see how banks are fleecing mortgage payers.

Inflation has nothing to do with it - banks lend at as much as they can get away with, sometimes even they can't beat inflation.

[AtW]

WHS. I spend over £300.mth on petrol just to get to work and back. On top of that I pay around £150/mth for leccy & gas. Then I pay £140 council tax.

There's just shy of £600/mth without housing or food. Thank God I'm a contractor, I really do feel for people on average incomes...

A lot of people live on far less than £30k that they can only dream of.

[SueEllen]

A lot of people live on far less than £30k that they can only dream of.

Average (median) income is about 24K

There is a table of figures some where for average income per region.