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Educating The Masses On Interest Rates


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http://www.mumsnet.com/Talk/property/1134040-Should-we-max-out-our-mortgage/AllOnOnePage

Should there be a national ad campaign to educate people on interest rates? I am always astouned how many people don't grasp the simple basics.

Mumsy A Question:

"Our total take home income is about £2200 a month a £190k mortgage would be about £1000 a month is this affordable with having to pay all the moving debt as well."

Mumsy B Answer:

"I wouuld go for the forever house now. In 5 years time that payment won't seem do much and you are still leaving yourself a bit of breathing room each month."

5 years time? We test people to make sure they can drive a car, yet we leave these people take out massive mortgages?

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http://www.mumsnet.com/Talk/property/1134040-Should-we-max-out-our-mortgage/AllOnOnePage

Should there be a national ad campaign to educate people on interest rates? I am always astouned how many people don't grasp the simple basics.

Mumsy A Question:

"Our total take home income is about £2200 a month a £190k mortgage would be about £1000 a month is this affordable with having to pay all the moving debt as well."

A 25 year repayment mortgage at 5% total to repay £333, 216.00

Interest only mortgage total to repay £427,500.00

If the interest rate went up to 7% repayment over 25 years £402,864.00 Interest only £522,500.

Compounded interest costs money. ;)

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A 160k mortgage is about 1000 a month on a 5 year fixed.

In 5 years time the 1000 won't be as much as it will be partially inflated away, even with a higher variable rate it probably willl still be manageable,

Inflated away by what? It may be less compared to the cost of essential items but that just makes the debt less manageable. I doubt we will get the rampant wage inflation needed for your scenario to have any basis.

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In 5 years time £1000 may well not be worth as much - it will probably still be just as hard to earn though.

Exactly......debt is still debt until it is paid for....and the less you can borrow and the quicker you can pay it back the less you will pay.....repaid debt is worth more to you than a pay rise. ;)

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In 5 years time £1000 may well not be worth as much - it will probably still be just as hard to earn though.

In 2 years time £1000 will buy a loaf of bread.

In 3 years time £1000 will buy a penny sweet.

In 5 years time £10 and £20 notes will be discarded like 1p and 2p coins that you can find all over the place. 20 trillion pounds may buy you a loaf of bread. UK notes will be made much bigger to accomodate all the zeroes. TV adverts will also be much longer.

Adverts for instance that say this or that product only two hundred pounds.

The advert will run and run and run one trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion pounds. For a loaf of bread.

The government has a printing press and they aren't afraid of using it. The bond vigilantes have NO power as the government will merely print and buy their own bonds.

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Inflated away by what? It may be less compared to the cost of essential items but that just makes the debt less manageable. I doubt we will get the rampant wage inflation needed for your scenario to have any basis.

+1

Inflation without wage inflation just makes housing less affordable and therefore prices have to drop.

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Inflated away by what? It may be less compared to the cost of essential items but that just makes the debt less manageable. I doubt we will get the rampant wage inflation needed for your scenario to have any basis.

It will be infaleted away by inflation. Let me explain....... A loaf of bread today costs £1, in 5 years it will cost £10,000, so a £160k mortgage will be the same as £1.60p in todays money,

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In 2 years time £1000 will buy a loaf of bread.

In 3 years time £1000 will buy a penny sweet.

In 5 years time £10 and £20 notes will be discarded like 1p and 2p coins that you can find all over the place. 20 trillion pounds may buy you a loaf of bread. UK notes will be made much bigger to accomodate all the zeroes. TV adverts will also be much longer.

Adverts for instance that say this or that product only two hundred pounds.

The advert will run and run and run one trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion trillion pounds. For a loaf of bread.

The government has a printing press and they aren't afraid of using it. The bond vigilantes have NO power as the government will merely print and buy their own bonds.

bloody deflationists.

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It will be infaleted away by inflation. Let me explain....... A loaf of bread today costs £1, in 5 years it will cost £10,000, so a £160k mortgage will be the same as £1.60p in todays money,

You sure are optimistic.... I'd stick a few zeroes on the end of that if I were you, just put a couple pound coins on the 0 button and come back after an hour or so.

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+1

Inflation without wage inflation just makes housing less affordable and therefore prices have to drop.

The state can't afford the pay increases or more benefit increases, even with increased taxes....the banks will have to recapitalise and become more competitive...so housing costs will have to come down....imported costs can't be controlled without rate rises so home grown costs will have to come down to compensate. ;)

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The state can't afford the pay increases or more benefit increases, even with increased taxes....the banks will have to recapitalise and become more competitive...so housing costs will have to come down....imported costs can't be controlled without rate rises so home grown costs will have to come down to compensate. ;)

Your lack of faith in the printing press is disturbing.

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It will be infaleted away by inflation. Let me explain....... A loaf of bread today costs £1, in 5 years it will cost £10,000, so a £160k mortgage will be the same as £1.60p in todays money,

Let's reduce the numbers somewhat to make it easier to visualise.

If a load of bread costs £1 today, and £2 in 5 years' time, how much will an office administrator earning £20k today get paid?

I suggest that it will not be anything like £40k.

Edited by thecrashingisles
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Let's reduce the numbers somwhat to make it easier to visualise.

If a load of bread costs £1 today, and £2 in 5 years' timw, how much will an office administrator earning £20k today get paid?

I suggest that it will not be anything like £40k.

The office administrator will be paid £0 as a computer a robot or an outsourcing organisation will have taken his or her job.

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When the press is turned on it will have to be the world printing together.......we are all in this together. ;)

Ah but this is cartel type behaviour and there is always an incentive to cheat... so the whole world decides to print a low estimate of say 1000000 trillion dollars.

If everybody plays by the rules then no problem but in such a cartel situation everybody will be incentivised to cheat. Thus instead of printing 1000000 trillion dollars divied up between 10 nations EACH nation will print 100000000 trillion dollars.

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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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