Reply to: Get ready for the fun to begin

[BlackenedBiker]

Hyper-Inflation anyone?

You know when the banks are offering low cost variable rate deals that you really should fix...


http://news.bbc.co.uk/1/hi/business/8470302.stm

[Sysman]

dividends

income

[Lumiere]

Obviously you have to hope your salary increases

dividends

[BlackenedBiker]

well if you have high inflation and low interest you want debt, but if they stick the interest rates way up you wanna be a saver.

Agreed: but interest rates are glued to inflation these days. There is no long term benefit to debt.

[BlasterBates]

well if you have high inflation and low interest you want debt, but if they stick the interest rates way up you wanna be a saver.

[BlackenedBiker]

yup you need a who huge stonking great mortgage.....three priorities

1. debt
2. debt
3. and more debt

I was trying to suggest that if one has money and a mortgage then ummmmm, pay it off.....

[BlasterBates]

yup you need a who huge stonking great mortgage.....three priorities

1. debt
2. debt
3. and more debt

[DiscoStu]

It's a temporary blip. The Jan 1st VAT increase and total lack of demand after Xmas will mean it's soon falling again.

[BlackenedBiker]

Say you have a £100K mortgage: In times of high inflation you could expect that to become seriously devalued in real terms making it significantly easier to pay off early. Obviously you have to hope your salary increases and interest rates aren't too bad but 5 years of 10% inflation effectively halves your mortgage for you. Sort of.

I see you argument, I am just not sure how much reality is being added to it...

[Doggy Styles]

My dad's first mortgage was for £1,600 in 1960. If he were alive today he'd be turning in his grave.

[Lockhouse]

Explain??

Say you have a £100K mortgage: In times of high inflation you could expect that to become seriously devalued in real terms making it significantly easier to pay off early. Obviously you have to hope your salary increases and interest rates aren't too bad but 5 years of 10% inflation effectively halves your mortgage for you. Sort of.

[Mich the Tester]

Berlin property. A little birdy tells me that Berlin is preparing a low tax regime to lure financial firms there

Berlin’s broke and full of brainy people. In the 1970s New York was broke and full of brainy people. For once you might be right.

[sasguru]

Berlin property. A little birdy tells me that Berlin is preparing a low tax regime to lure financial firms there

[Mich the Tester]

Have you got a mortgage??????

I've got one. An old fashioned repayment mortgage with interest fixed for 20 years. Inflation? Bring it on!

[TimberWolf]

Have you got a mortgage??????

Nope, renting now. My entire meagre wealth is currently sitting in a bank earning -2.9% interests, at most

Handy that the inflation figure came in at 2.9% isn't it, just below the threshold where stuff has to be done. It might approach 2.99999% next month.