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Topic: Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England
Posted by: Colin Jordan
Date/Time: 22/07/15 07:56:00

I agree that there needs to be much more emphasis on house-building to alleviate the current shortage of accommodation, and the rental industry needs to have a lot more control exerted on it. However, I query Teja's assertion that 'For most of the 70ís inflation was higher than mortgage interest rates. So inflation paid off (or at least reduced) your mortgage faster than the cost of borrowing (i.e. interest).†  The more you borrowed, the more you benefitted from inflation.† That generation got rich on inflation. And of course house prices increased even faster than general inflation.' This is precisely the sort of statistical juggling that ignores the reality of life as most people lived it. The plain fact is that if you had a mortgage at the time when the mortgage rate went up to 16 or 17%, your monthly payments took a bloody great chunk out of your salary, whatever economists said about the 'benefits' of inflation on your mortgage. Many people, in fact, ended up putting the keys through the letter-box and abandoning the homes they could no longer afford to pay for. So please, no more glib talk like 'That generation got rich on inflation'. We struggled then just as younger people do today, and by the way, everyone didn't expect to buy a house by the time they reached the age of 25.


Entire Thread
TopicDate PostedPosted By
Warning from the Bank of England15/07/15 16:42:00 Andy Pease
   Re:Warning from the Bank of England15/07/15 16:56:00 Dan Murphy
   Re:Warning from the Bank of England15/07/15 17:15:00 Loraine Pemberton
      Re:Re:Warning from the Bank of England15/07/15 17:30:00 Nick Barton
         Re:Re:Re:Warning from the Bank of England15/07/15 17:36:00 Alison Neary
         Re:Re:Re:Warning from the Bank of England15/07/15 17:48:00 Adrian Irving
            Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:03:00 Nick Barton
               Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:09:00 Claire Moran
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:24:00 Adrian Irving
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 20:46:00 Claire Moran
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 21:14:00 Carl Wynne
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 09:55:00 Adrian Irving
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 12:49:00 Claire Moran
               Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:13:00 Alison Neary
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:21:00 Nick Barton
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:26:00 Adrian Irving
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 18:38:00 Keith Iddon
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 19:16:00 Nick Barton
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England15/07/15 22:44:00 Keith Iddon
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 06:59:00 David Marles
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 07:22:00 Nick Barton
   Re:Warning from the Bank of England16/07/15 07:55:00 Gerry Tan
      Re:Re:Warning from the Bank of England16/07/15 11:02:00 Cllr Sam Hearn
         Re:Re:Re:Warning from the Bank of England16/07/15 12:04:00 Nick Barton
      Re:Re:Warning from the Bank of England16/07/15 11:39:00 Andy Pease
         Re:Re:Re:Warning from the Bank of England16/07/15 11:54:00 Adrian Irving
            Re:Re:Re:Re:Warning from the Bank of England16/07/15 12:01:00 Huw Burford-Taylor
               Re:Re:Re:Re:Re:Warning from the Bank of England16/07/15 13:34:00 Cllr Sam Hearn
         Re:Re:Re:Warning from the Bank of England18/07/15 22:53:00 Teja P Howell
            Re:Re:Re:Re:Warning from the Bank of England19/07/15 16:02:00 Joe Conneely
               Re:Re:Re:Re:Re:Warning from the Bank of England21/07/15 14:35:00 Cllr Sam Hearn
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England21/07/15 15:03:00 Adrian Irving
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England21/07/15 15:46:00 Michael Robinson
                        Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 05:10:00 Joe Conneely
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 07:56:00 Colin Jordan
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 09:10:00 Andy Pease
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 09:23:00 Joe Conneely
                  Re:Re:Re:Re:Re:Re:Warning from the Bank of England22/07/15 16:13:00 T P Howell
                     Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England26/07/15 14:58:00 Joe Conneely

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