• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Bank of England Base rate & other news"

Collapse

  • Martin@AS Financial
    replied
    Today, the Monetary Policy Committee voted by a majority of 8-1 to maintain the base rate at 5.25%.

    Full report here:

    https://www.bankofengland.co.uk/mone...024/march-2024

    Leave a comment:


  • Martin@AS Financial
    replied
    With most mortgages, you can overpay by 10% of the outstanding balance per year. As interest tends to be calculated on a daily basis, any overpayment you make means you should receive the benefit as of the next day. For example, if you have a £500,000 mortgage and overpay it by £50,000, as of the next day you are paying interest on the £450,000.

    The price of mortgage rates are calculated according to risk so the lower loan to value (ie the more equity you have in your home), the lower your interest rate will be. Whilst it may not be possible to clear the entire mortgage, you may find you are able to achieve a lower rate by paying it down to get into the next bracket of products.

    As long as the money isn't ear marked for anything else and the war chest remains healthy, I would always recommend trying to clear your mortgage as quickly as possible.

    Leave a comment:


  • vetran
    replied
    Originally posted by Martin@AS Financial View Post
    An interesting report from the Bank Of England which collects data from around 340 mortgage lenders:

    https://www.bankofengland.co.uk/stat...s/2023/2023-q4

    One of the key points that jumped out at me straight away is that the value of all residential mortgages have decreased by 0.1% from the previous quarter.

    As interest rates remain bumpy, many clients that I am speaking to (who are in a fortunate enough position to do so) are making lump sum over payments off their mortgages.
    Sadly only possible if you don't have an early termination penalty because you had the luck to set it 4 years ago, its gone in a yearish!!! currently its still cheap money!



    Its going to get nasty out there very soon sadly.

    Leave a comment:


  • I am tired TIRED
    replied
    Originally posted by Martin@AS Financial View Post
    An interesting report from the Bank Of England which collects data from around 340 mortgage lenders:

    https://www.bankofengland.co.uk/stat...s/2023/2023-q4

    One of the key points that jumped out at me straight away is that the value of all residential mortgages have decreased by 0.1% from the previous quarter.

    As interest rates remain bumpy, many clients that I am speaking to (who are in a fortunate enough position to do so) are making lump sum over payments off their mortgages.
    All depending on ones's age I think. If near 55, topping up one's pension instead is still a viable option

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Martin@AS Financial View Post
    An interesting report from the Bank Of England which collects data from around 340 mortgage lenders:

    https://www.bankofengland.co.uk/stat...s/2023/2023-q4

    One of the key points that jumped out at me straight away is that the value of all residential mortgages have decreased by 0.1% from the previous quarter.

    As interest rates remain bumpy, many clients that I am speaking to (who are in a fortunate enough position to do so) are making lump sum over payments off their mortgages.
    Madness not to with the hikes that some people will be facing when they have to swap products.

    Leave a comment:


  • Martin@AS Financial
    replied
    An interesting report from the Bank Of England which collects data from around 340 mortgage lenders:

    https://www.bankofengland.co.uk/stat...s/2023/2023-q4

    One of the key points that jumped out at me straight away is that the value of all residential mortgages have decreased by 0.1% from the previous quarter.

    As interest rates remain bumpy, many clients that I am speaking to (who are in a fortunate enough position to do so) are making lump sum over payments off their mortgages.

    Leave a comment:


  • DoctorStrangelove
    replied
    Originally posted by Paddy View Post

    Despite what the gov and BoE say, interest rates are not about controlling inflation. Recent inflation was caused by "printing" too much money but it's much easier to blame Joe public spending on extravagant items such a water, electricity and food.
    Damn uppity peasants wanting to eat & keep warm.

    Are there no prisons?

    Are there no workhouses?

    Bah! Humbug!

    Leave a comment:


  • Smoggy
    replied
    There's more than one factor, for sure. Wars, pandemics, interest rates, money creation, crop yields, sentiment will all be having an effect. I don't think many people actually are blaming the public for high inflation anyway?

    Leave a comment:


  • Paddy
    replied
    Originally posted by Smoggy View Post
    The CPI index is at the same level it was 7 months ago meaning inflation of 0% over this period. Unless something dramatic happens the BoE will easily undershoot the 2% year on year target in the coming months.
    Despite what the gov and BoE say, interest rates are not about controlling inflation. Recent inflation was caused by "printing" too much money but it's much easier to blame Joe public spending on extravagant items such a water, electricity and food.

    Leave a comment:


  • Smoggy
    replied
    The CPI index is at the same level it was 7 months ago meaning inflation of 0% over this period. Unless something dramatic happens the BoE will easily undershoot the 2% year on year target in the coming months.

    Leave a comment:


  • Martin@AS Financial
    replied
    UK inflation holds steady at 4% in January

    Hopefully this is a sign that things are gradually improving although still a fair way to go to get the government set target of 2%

    Full story here:

    https://www.financialreporter.co.uk/...n-january.html

    Leave a comment:


  • Fraidycat
    replied
    Originally posted by dsc View Post

    60k is 3.7k take home, for a single that might allow you to live fairly comfortably, but you'd be mad to call yourself wealthy at that point. We are talking 10% of the entire work force, "best earners" in the country, that is imho very depressing how tulip wages have been in the UK over the last 10 years.

    I just googled top 10% income in the USA, it came back with $173K. And the top states like California are way more than that.
    And the tax rates over there are way lower as well for someone earning that kind of money.

    We have almost created equal pay for all workers communism here in the uk. Over 70% of the full time workforce earn after tax somewhere between £1600 and £2600 a month. If you earn £60K, top 10% you take home after tax just a bit more than double what a full time cleaner on minimum wage does. If you earn 100K you take home around 3.4 times what a cleaner does.
    Last edited by Fraidycat; 1 February 2024, 13:37.

    Leave a comment:


  • Martin@AS Financial
    replied
    Bank rate maintained at 5.25% - February 2024

    Full report here:

    https://www.bankofengland.co.uk/mone.../february-2024

    Leave a comment:


  • dsc
    replied
    We are talking average values, not extremes one way or the other. You can be earning 60k, but have a trillion pound debt, or come up with whatever different scenario you want, but we all know that when we talk wealthy we mean having a tulip ton of cash to do whatever you like, go on holidays, don't need to budget for anything etc. You can be earning 10k a year and have 55 rental properties, but I'm sure that then you would actually call yourself wealthy. If you flip this scenario and have people on 60k who are not calling themselves wealthy, I really doubt they have a number of rental properties and six sport cars. They will be your AVERAGE person / family, just like the salary number is an average.

    The bottom line is that people on 60k a year minimum, that form the 10% of best earners in the country (so more than 60 million others) are saying they don't have a tulip ton of stuff, no need to come up with definitions for every possible word related to wealth...Objectively speaking 60k a year isn't a ton, so for that to be a threshold for the 10% best earners just shows how tulip the wages in the UK are.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by dsc View Post
    60k is 3.7k take home, for a single that might allow you to live fairly comfortably, but you'd be mad to call yourself wealthy at that point. .
    They two are completely different. A wage is income, wealth is 'an abundance of valuable possessions or money.'

    You can have been rinsed in a divorce and have nothing but earn 60k and you are far from wealthy.. in fact rather poor. Or you can earn 10k a year but you've a paid off 1 million pound house in which case you are wealthy. Neither compare and neither can singularly cover both aspects.

    You then throw in rich.. I'm healthy, got a good lady that puts up with me, got my pup and all that so I'm rich beyond my wildest dreams. Rich doesn't even always equate to physical stuff.

    You can be rich, good income and poor with no readies to hand. You can be not be rich, be on the dole but have a million in the bank yadda yadda
    Last edited by northernladuk; 31 January 2024, 14:35.

    Leave a comment:

Working...
X