Search results

Is spending reducing? I have no idea if it is or it isn't, but whilst so many people are still on their low fixed rate mortgages and are yet to remortgage then it will take some time before these interest rises will work more effectively. Something else needs to be done as well.

It would increase inflation if spending stays the same. The idea is to decrease spending. Raising interest rates isn't doing that at the moment. You would not raise the VAT rate on essentials by the way.

Is vehicle leasing affected by changes in interest rates?

There is some logic to increasing taxation (VAT) as you can target it and the exchequer will get more money which could be used for more targeted support, especially as loads of people are on fixed rate mortgages which have not been affected yet. Raising interest rates was the traditional way...

Agree re point 5. As I was out of the country for 12 years my credit score disappeared, so when I came back and needed a small car loan, the buggers charged me 17% interest when the base rate was .01% or whatever it was. Once that was paid off and the car fell to pieces, I needed a larger car...

Ah ok, Martin Lewis makes it sound like they are being more accommodating than they were. Perhaps they aren't.

An interesting suggestion I have heard is to temporarily raise VAT to try to stop people spending, rather than keep raising interest rates, as that will effect more people.

Numbers 1 and 2 were discussed by Jeremy Hunt, Martin Lewis and the mortgage lenders and agreed by the mortgage lenders back in December 2022. https://www.gov.uk/government/news/mortgage-lenders-commitments-to-borrowers Martin Lewis has consistently told people to speak to their mortgage lenders...

These 5 points? 1. Borrowers will be able to switch to interest-only 2. Borrowers will be able to increase mortgage length 3. Borrowers can undo No.s 1&2 4. Six months before lender can start a repossession 5. FCA to advise credit ratings should be unaffected.

Which were?

Have you watched Martin Lewis tonight? He suggests speaking to your Mortgage supplier to see if there are any "forbearance measures" that they may offer (payment holiday, increasing length of the term, going interest only for a while etc). Worth a try and see what they say.

There are lots of lovely places to live up here at a fraction of the cost of down south. Not sure that you have listed any though :)

With regards to long term fixes, I heard Martin Lewis on the radio the other day basically saying any predictions about future interest rates is guesswork, whilst the IMF have said that they expect interest rates to go back to pre pandemic levels eventually they have not put a timeframe on it...

One slight cause for optimism is energy prices - mine are going down from 1st July. Electricity by about 10.5% and Gas by 28%. That's price per unit. Standing charge staying the same

I like that idea. That would mean a free house for me :thumbsup: