When George Soros Broke the British Pound (2014)

Re:When George Soros Broke the British Pound (2014) by mc3 on Tuesday November 05, 2019 @05:28PM (#21457454)

Ah those poor boomers! Paying 15% interest on their £40,000 mortgage. These millennials don't know how easy they have it, paying 3% on their £200,000 mortgage.

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Re:When George Soros Broke the British Pound (2014) by user5994461 on Tuesday November 05, 2019 @06:05PM (#21457777)

At 15% the boomer could fully pay and own the property within 5-10 years. Then save or go on to buy a new one.

At 3% the millennial will still not be owning their property after 30 years.

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Re:When George Soros Broke the British Pound (2014) by timthorn on Tuesday November 05, 2019 @06:20PM (#21457927)

Typical mortgage duration was and is ~25 years. The scenario in the 80s that gave homeowners relief was that the costs got inflated away (and MIRAS allowed the interest on a mortgage to be deducted from taxation)

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Re:When George Soros Broke the British Pound (2014) by onion2k on Wednesday November 06, 2019 @04:21AM (#21460912)

Typical mortgage duration was and is ~25 years.

The number of 35 year mortgages has risen from 2.7% in 2006 to 15.75% now - https://www.theguardian.com/money/2017/jul/29/goodbye-25-yea... - and 40 year mortgages are becoming more common.

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Re:When George Soros Broke the British Pound (2014) by hydraxis on Wednesday November 06, 2019 @03:08AM (#21460593)

I don't have this information for the UK, but for France parent is right. Mortgage duration for a typical income and a typical house in the 70s was 10 years, compared to 25 years today.

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Re:When George Soros Broke the British Pound (2014) by hoseja on Wednesday November 06, 2019 @02:55AM (#21460547)

Yes, that is the joke.

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Re:When George Soros Broke the British Pound (2014) by d1r1g1bl3 on Tuesday November 05, 2019 @07:53PM (#21458663)

In 1923, avg wage was £260, avg house was £350, a whopping 1.3 times avg wage. Only idiots would breed to support the establishment and continue to vote for their puppets.

The UK is also on a different economic cycle to Eu, noted by the EU recession that unfolded after the Euro went live. People in Northen Ireland went south to take advantage of recession prices and vice versa. IMO the real reason for Brexit is the Good Friday agreement has failed, the gloss of Buy To Let has tarnished so some of the IRA are looking to get back to their old ways. Making Northern Ireland a gateway into Europe is similar to what the British did with Hong Kong being a gateway into communist China when it cut itself off to the world. Northern Ireland has if the current agreed Brexit deal goes through, so make NI a new Hong Kong which will force all parties to keep voting for it every 4years and keeps them all around the table something the GFA has failed at considering theres been no assembly at Stormount for a few years now. Thing is the political class don't want to give away the above info because then everyone will pile into NI property and make a packet, forcing out the ruling class who benefit from this insider knowledge.

So do you vote for Brexit knowing what you know now or not?

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Re:When George Soros Broke the British Pound (2014) by tomatocracy on Tuesday November 05, 2019 @06:51PM (#21458220)

Rates going from 10% to 15% means an average monthly payment on a repayment mortgage with 15 years left to run would have increased by nearly 30% overnight (assuming mortgages at 2% above base rate). This was announced in the jaws of the early 90s recession.

To put that in context - today the GBP bank rate is 0.75% and the average mortgage rate is probably c.1% above that. The base rate would have to rise to more than 5% to get the same size effect on the monthly cost of a repayment mortgage with c.15 years left to run.

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Re:When George Soros Broke the British Pound (2014) by amiga_500 on Tuesday November 05, 2019 @06:59PM (#21458292)

And the wage inflation eroded the debt in a very short time. Far better than paying 50% of your wages now and for decades.

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Re:When George Soros Broke the British Pound (2014) by turtlecloud on Tuesday November 05, 2019 @05:47PM (#21457610)

the boomer can always refinance to the 3% - not sure what you are getting at here.

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Re:When George Soros Broke the British Pound (2014) by aloknnikhil on Tuesday November 05, 2019 @06:09PM (#21457811)

The OP is being sarcastic.

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Re:When George Soros Broke the British Pound (2014) by mc3 on Tuesday November 05, 2019 @09:09PM (#21459042)

Yes I am parodying the old avocado toast argument.

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Re:When George Soros Broke the British Pound (2014) by jonplackett on Tuesday November 05, 2019 @06:58PM (#21458285)

Problem was it divided people into the ones who could afford the hike in interest and the ones who couldn’t. Either you could keep up and were rewarded by a house going up in value massively, or you went bankrupt.

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Re:When George Soros Broke the British Pound (2014) by aaronblohowiak on Tuesday November 05, 2019 @07:21PM (#21458473)

They didn’t have fixed rate debt?

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Re:When George Soros Broke the British Pound (2014) by mc3 on Tuesday November 05, 2019 @11:17PM (#21459670)

In the UK typically people only fix for a short period, say 2 years, if at all. The premium for fixing for 25 years is quite high.

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