Interest rates

[Amarillo]

From Barclays FaQ


Is there a limit on the amount of mortgage overpayments I can make each year?

Most of our mortgages let you make additional payments of up to 10% of your mortgage balance in every 12-month period.

Please check your mortgage offer conditions, which we sent to you when you took out your loan, for your overpayment allowance.

7 year fixed rate only allows 3%; 10 year fixed rate allows 5%.

However, repaying a penny less than three times the normal repayment goes through a different system and will usually allow considerably more than 5%.

EXAMPLE

I had £76,945 outstanding on 29/3/22 with repayments of £1138.

5% = £3847 max without penalty

But I could (and did) overpay monthly by £2275.99.

Total over the year would have been £27,312 or 35.5%.

This method reduces the length of the term but does not reduce the monthly minimum payment.

 

[Amarillo]

Possibly crossed wires, but that falls under the ERC column.
You can still pay up to 10% per year off any current balance.

e.g.
You owe £300k at year one and decide to overpay 10% - £30k
Year two the balance will be reduced and again you can make another 10% payment to reduce the total.

Yes, I see where you are coming from. That column shows the penalty for repaying more than the maximum allowed is 5%. It is not showing the maximum you can repay each year.

The terms of your mortgage might be different from mine which only allows 5% of the balance to be repaid by that method per year.

My BTL mortgages allow 10%.

 

[Lambeth Cali]

The Trussterf#%k mini budget seems to be developing. She now says the 45% cut was a "decision that the chancellor made".

With that starting to appear to be the thing they may reverse, with Gove saying he won’t vote for it, surely she’s now likely to sack Kwasi!? Seems to be laying the ground. With the Times claiming the city boys have started to refer to him as the “useful idiot”.

 

[The Tall Luthier]

The Trussterf#%k mini budget seems to be developing. She now says the 45% cut was a "decision that the chancellor made".

With that starting to appear to be the thing they may reverse, with Gove saying he won’t vote for it, surely she’s now likely to sack Kwasi!? Seems to be laying the ground. With the Times claiming the city boys have started to refer to him as the “useful idiot”.

And now significant chatter of changing the rules of electing leaders, bypassing member votes, in order to install a new pm by Easter.

This Tory party have moved so far to the right that they do not represent the views of good, moderate conservative Voters.

A failed UKIP joke

 

[Corradobrit]

The Trussterf#%k mini budget seems to be developing. She now says the 45% cut was a "decision that the chancellor made".

With that starting to appear to be the thing they may reverse, with Gove saying he won’t vote for it, surely she’s now likely to sack Kwasi!? Seems to be laying the ground. With the Times claiming the city boys have started to refer to him as the “useful idiot”.

Hardly an 'idiot', more like a "useful zealot"

 

[Amarillo]

The plan to abolish the top rate of tax has been scrapped.

 

[Corradobrit]

The plan to abolish the top rate of tax has been scrapped.

Finally a realisation that the optics matter.

 

[The Tall Luthier]

The plan to abolish the top rate of tax has been scrapped.

So have our public services. £18bn of effective cuts.

Kwarteng confirms further cuts of up to £18bn for public services

Budgets will not be topped up to take account of soaring inflation, chancellor says

www.independent.co.uk

 

[66tim99]

The calculation is that the money spent on HS2 will create a greater economic boost than the Swansea Project.

I can’t comment on whether that calculation is right or wrong. But I wouldn’t be surprised if Kwarsi-Truss now cancel HS2 to pay for the 11.1%* cut in taxes for the most wealthy.

*A reduction from 45% tax to 40% tax is an 11.1% slash in the tax rate, not a 5% cut as widely misreported.

Good to hear the Chancellor has U-turned, even though the PM was promoting this policy yesterday.
She said the 45p tax ‘doesn’t raise much anyway’. I was surprised Kuenssberg didn’t ask for the figures. I wonder how much is raised annually via the 45p band.

 

[Velma's Dad]

Good to hear the Chancellor has U-turned, even though the PM was promoting this policy yesterday.
She said the 45p tax ‘doesn’t raise much anyway’. I was surprised Kuenssberg didn’t ask for the figures. I wonder how much is raised annually via the 45p band.

I think it's around £2bn, so only a small part of the £45bn "unfunded" tax cuts. Which is why the pound recovered slightly this morning, but not that much.

And the political damage is done. When Nadine Dorries is calling for a general election, you know the party is in a dark place. Meanwhile the party faithful are screaming to have Boris back. God help us.

 

[GrannyJen]

I think it's around £2bn, so only a small part of the £45bn "unfunded" tax cuts. Which is why the pound recovered slightly this morning, but not that much.

And the political damage is done. When Nadine Dorries is calling for a general election, you know the party is in a dark place. Meanwhile the party faithful are screaming to have Boris back. God help us.

At least Boris could Lie and waffle with a smile.

Kamikwasi and thick lizzie both had faces like a slapped ar*e this morning.

 

[Velma's Dad]

At least Boris could Lie and waffle with a smile.

Kamikwasi and thick lizzie both had faces like a slapped ar*e this morning.

Tragically, they have a potential "off ramp" from the whole Trussterf*ck and it will come if Putin starts using tactical nuclear as the Kherson front collapses as now seems likely. Liz will then jet off to look stern and resolute alongside the Americans at Nato emergency summits, it will be her Margaret Thatcher Falklands moment. I now think it's a significant possibility not a remote one, as Putin is building himself a commitment trap with the annexation declarations. Paying for the NHS this winter will then be the least of our worries. Sorry to be bleak.

 

[Amarillo]

The image of the richest 1% being showered with £2,000,000,000 of tax cuts while the poorest 99% are tossed a penny is one that will stick in the public’s mind for years to come. The U turn doesn’t change much. It is what the current PM and chancellor wanted to do.

 

[GrannyJen]

Tragically, they have a potential "off ramp" from the whole Trussterf*ck and it will come if Putin starts using tactical nuclear as the Kherson front collapses as now seems likely. Liz will then jet off to look stern and resolute alongside the Americans at Nato emergency summits, it will be her Margaret Thatcher Falklands moment. I now think it's a significant possibility not a remote one, as Putin is building himself a commitment trap with the annexation declarations. Paying for the NHS this winter will then be the least of our worries. Sorry to be bleak.

Yes. A bleak forecast. Assumes of course that those with the finger physically on the button will press it and his Chinese buddies will row along with it.

 

[66tim99]

The image of the richest 1% being showered with £2,000,000,000 of tax cuts while the poorest 99% are tossed a penny is one that will stick in the public’s mind for years to come. The U turn doesn’t change much. It is what the current PM and chancellor wanted to do.

And still undoubtedly want to do. It had just "become a huge distraction".
I presume a huge distraction from the 'popular' policy of limiting energy bills to double what they were...
I always wonder where the economists are when we need them. I hear the Conservative view that cutting tax for the wealthy encourages investment, but what is the likelihood of that 45% cut resulting in >£2bn worth of additional tax receipts, and in what timeframe?
Not easy questions, and I realise economics isn't an exact science, but I must be tuned into the wrong channels because I never hear intelligent analysis from professional economists commenting on these sorts of proposals.

 

[sidepod]

All part of the continuous rolling S**t storm that is UK governance.

On the plus side, in your lifetime there have been several changes of government but, have any of them really affected your life in any great way? You just roll with it and carry on doing what you do.
The only time I ever sat up and took note was when Corbin was threatening a garden tax on top of the council tax based on size.

 

[The Tall Luthier]

And still undoubtedly want to do. It had just "become a huge distraction".
I presume a huge distraction from the 'popular' policy of limiting energy bills to double what they were...
I always wonder where the economists are when we need them. I hear the Conservative view that cutting tax for the wealthy encourages investment, but what is the likelihood of that 45% cut resulting in >£2bn worth of additional tax receipts, and in what timeframe?
Not easy questions, and I realise economics isn't an exact science, but I must be tuned into the wrong channels because I never hear intelligent analysis from professional economists commenting on these sorts of proposals.

The news agents podcasts are turning out to be quite something if you haven’t heard them yet. Maitlis, Sopel and Goodall rounding up the important events of the day.

They don’t do opposing views for balance, they do complementary views for nuance I think.

The News Agents

Daily News Podcast · 663 Episodes · Updated daily

podcasts.apple.com

 

[Velma's Dad]

And still undoubtedly want to do. It had just "become a huge distraction".
I presume a huge distraction from the 'popular' policy of limiting energy bills to double what they were...
I always wonder where the economists are when we need them. I hear the Conservative view that cutting tax for the wealthy encourages investment, but what is the likelihood of that 45% cut resulting in >£2bn worth of additional tax receipts, and in what timeframe?
Not easy questions, and I realise economics isn't an exact science, but I must be tuned into the wrong channels because I never hear intelligent analysis from professional economists commenting on these sorts of proposals.

I was just listening to the Chancellor on the radio in the car. Banging on repeatedly about growth, but at such a facile level just about worthy of a sixth form debate.

The truth is that Britain has indeed been falling further and further behind with productivity, and the decrease in productivity growth after 2007 is unprecedented in British economic history since the Industrial Revolution.

Economists differ on the causes of this and therefore the remedies. For example, what is the relative importance of being able to build infrastructure and business property - eg I gather there's a huge shortage of lab space along the Oxford/Cambridge science axis, due to the problem of getting permission to build anyway... and yet, a Tory article of faith is local planning control - ie NIMBYism or even BANANA (Build Nothing At All Near Anywhere).

Low employee skills are almost certainly a big factor, so where are the radical policies on that?

Supply-wide remedies including reducing taxes so people have more to spend are unlikely to make any real difference to output per worker. It just gives people more money in the short term to spend on stuff that we can't make or trade, and we know where that leads.

Trussonomics, ie borrowing to fund tax cuts as a sure fire way to improve productivity and so achieve growth is economics flat-earther stuff.

 

[Cali Phillip]

The news agents podcasts are turning out to be quite something if you haven’t heard them yet. Maitlis, Sopel and Goodall rounding up the important events of the day.

They don’t do opposing views for balance, they do complementary views for nuance I think.

The News Agents

Daily News Podcast · 663 Episodes · Updated daily

podcasts.apple.com

Rest is politics too, and Mark Steeles podcast "what the F " for some light relief.

 

[Amarillo]

And still undoubtedly want to do. It had just "become a huge distraction".
I presume a huge distraction from the 'popular' policy of limiting energy bills to double what they were...
I always wonder where the economists are when we need them. I hear the Conservative view that cutting tax for the wealthy encourages investment, but what is the likelihood of that 45% cut resulting in >£2bn worth of additional tax receipts, and in what timeframe?

Billionaires in Monaco or the Cayman Islands or wherever could relocate to the UK quite quickly if the incentive to do so was sufficient. We’ve got a great big hole where all those sanctioned Russian oligarchs once filled. How much did the best known, Abramovich, contribute to the British treasury on his own before he fled to Turkey?

Guesstimate:
Net worth £8.6bn
Annual income £860m
45% tax £387m

Not easy questions, and I realise economics isn't an exact science, but I must be tuned into the wrong channels because I never hear intelligent analysis from professional economists commenting on these sorts of proposals.

 

[The Tall Luthier]

I was just listening to the Chancellor on the radio in the car. Banging on repeatedly about growth, but at such a facile level just about worthy of a sixth form debate.

The truth is that Britain has indeed been falling further and further behind with productivity, and the decrease in productivity growth after 2007 is unprecedented in British economic history since the Industrial Revolution.

Economists differ on the causes of this and therefore the remedies. For example, what is the relative importance of being able to build infrastructure and business property - eg I gather there's a huge shortage of lab space along the Oxford/Cambridge science axis, due to the problem of getting permission to build anyway... and yet, a Tory article of faith is local planning control - ie NIMBYism or even BANANA (Build Nothing At All Near Anywhere).

Low employee skills are almost certainly a big factor, so where are the radical policies on that?

Supply-wide remedies including reducing taxes so people have more to spend are unlikely to make any real difference to output per worker. It just gives people more money in the short term to spend on stuff that we can't make or trade, and we know where that leads.

Trussonomics, ie borrowing to fund tax cuts as a sure fire way to improve productivity and so achieve growth is economics flat-earther stuff.

Agree

Business has had it hard since the banker’s financial meltdown.
2010- Austerity gave them a further five years of not being able to benefit from government spending in most sectors
2016 -Brexit gave them uncertainty and a drop in demand from foreign buyers and a weakening of the pound.
2020- Covid
2021- leaving the eu meant led to a drop in the number of exporters by one third.

6 years, 4 prime ministers created an atmosphere of uncertainty.

The nation’s stereotype of a Tory is ‘Good for business’ The last twelve years have shown us it’s just not true.

 

[willwander]

All part of the continuous rolling S**t storm that is UK governance.

The nine most terrifying words in the English language are
‘I’m from the government and I’m here to help’.

 

[RodCouncil]

The nine most terrifying words in the English language are
‘I’m from the government and I’m here to help’.

Let me correct that for you : I'm from the Conservatives and we're here to hurt

 

[westfalia]

I feel sorry for the UK population, ruled by a load of bumbling idiots.

At least we in Germany have one good thing on our side ' German Efficiency '
Yes, our politicians are so efficient that they had already put plans into place to
make sure we have no energy at all.
Many people harp on about the good old days, well we're heading back to the 1920s

Olaf trousered millions with the Cum-Ex scandal ( of which he cannot recall )
He even stood next to POTUS in Feb listening to him saying he will put
Nordstream2 out of action, and went along with it.

We have a Green Foreign minister turned War minister sending ammo
to that guy with the dirty t-shirt in Ukraine
and a Health minister who prays for another wave of the rona.

Beat that.

 

[66tim99]

Billionaires in Monaco or the Cayman Islands or wherever could relocate to the UK quite quickly if the incentive to do so was sufficient. We’ve got a great big hole where all those sanctioned Russian oligarchs once filled. How much did the best known, Abramovich, contribute to the British treasury on his own before he fled to Turkey?

Guesstimate:
Net worth £8.6bn
Annual income £860m
45% tax £387m

Sure, but does a 5% tax cut really entice sufficiently to offset the lost revenue? I’ve never heard anyone having a stab at that, which is amazing given how many conservative chancellors I’ve heard banging on over the years. Is it just ideology - “reward the ‘hard workers’” (because nurses don’t work hard) - or is there evidence that cutting the 45p rate would actually result in higher tax revenue?