The economy and whether it has affected you

[Gert_8]

Well, the Bank of England announces it managed to hit its inflation target of 2%, yesterday, which means they won’t have to make changes to the interest rates.

However, as the Chancellor's economic plan seems to be going in the right direction (they claim) I thought it would be interesting to see how the last 5-6 years have affected us.

From what I can see, the restaurants are busy and so are the shops, but the cost of living, ie utilities, groceries etc are on the up and firms are still closing with the loss of jobs.

The poll is anonymous, but if you wish to leave a comment, feel free.

[Rtaylor2208]

Other than being pumped every month for the last 5 years on a 7% mortgage it made no real difference to us. Got tied into a 5 year fixed deal as it was the only way to get a 85% mortgage after it all went pete tong.

The Mrs works for the Scottish NHS as a PA so pay rises were shit at 1% per year. But my wages jumped 40% in the last 5 years working my arse off, getting a few promotions and changing employeer.

Definetly see a difference outside the citities though, Ayr is a mid sized town and what used to be very busy Wednesday, Thursday and Friday with student aged folk in the town is now totally dead. Saturdays are a lot quieter as well.

[pnd]

I have had a big real terms wage cut inflation has been running at around 3% since 2008 so in order for wages to keep up you would have needed a 15% wage increase I have had 1%.
Also low inflation indicates very tight squeezes on profits not good for business.
However the big one is housing if you own your own house this government and the last one have been protecting you from the recession by freakishly low interest rates at the expense of savers. Of course long term this encourages people to borrow more to fund an improved lifestyle not allowed by sluggish wages and before you know it it's 2008 redux. In short anyone who thinks the British economy is out of the woods long term is a fool.

[Rtaylor2208]

I have had a big real terms wage cut inflation has been running at around 3% since 2008 so in order for wages to keep up you would have needed a 15% wage increase I have had 1%.
Also low inflation indicates very tight squeezes on profits not good for business.
However the big one is housing if you own your own house this government and the last one have been protecting you from the recession by freakishly low interest rates at the expense of savers. Of course long term this encourages people to borrow more to fund an improved lifestyle not allowed by sluggish wages and before you know it it's 2008 redux. In short anyone who thinks the British economy is out of the woods long term is a fool.

As my situation reflects that home owners have not been protected, only those with a low LTV value have prospered.

Fine for those that were lucky enough to have tracker mortages pre crash that were 1% below base rate, or those with 60% or less LTV.

First time buyers have had to save for massive deposits, people that bought in the 2-3 years before the crash are more than likely in negative equity and as such stuck on SVR mortgages which alothough are usually between 3% and 5% it's not the 0.5% that the base rate sits at.

And those like us that had less than the 20% deposit required back in 2009 - 2011 got fucked on massive rates.

[Gert_8]

7%, Rtaylor?!

Other matters aside for the moment, the housing market is confusing. Prices are on the up and houses (correctly priced, without being too greedy) are selling. I know this is a result of the low interest rates, but these aren't going to be 0.5% over base for ever. At some point the interest rates will rise - what happens then?

I heared a 0.5 interest rate increase on the current rate would have dire consequences for half a million householders... I don't get it.

[Rtaylor2208]

I must admit I dont get how even a 0.5% raise in the rate would have dire consequences. We first bought in 2003% when the average rate was 4.5 - 5.5% on a 100% mortgage.

We factored in what we could afford based on the rate going up or less likely at that time down 2% and bought what we could afford.

I know that some people are mortgaged up to their eyeballs, but for me that wouldn't be a risk I would take.

Name and shame time as well 7% with what was HBOS at the time. Even their new mortgages for lending at 90%+ are at just over 7%, shower of robbing bastards but at the time we had little other choice and could afford the payments. Can't wait till April though when it drops down to 3.6%.

[Gert_8]

perhaps the 0.5% increase would hit owners in areas such as London, where prices are unreal?

I can appreciate a hit of 5-6+% doing some damage, but 0.5% doing so is amazing. Imagine what it would be like if it went mad like it did in the 80's, hitting 14-17%

I don't know how youngsters these days can afford to get on the property ladder with requests for a minimum of 30% deposit, without help from the parents. I also can't accept the housing market is fuelled by inheritance cash, but money seems to be available...

[ross_jsy]

Lost my job as a result of it. Stagnant building industry means no place for young, inexperienced site managers.

It seemed to have a delayed impact on Jersey, things got really bad last year especially. There were genuine concerns that we wouldn't have a high street after several large UK companies pulled out and scores of local shops shut down in the space of a couple of months.

Things seem to be improving though, building industry is still on it's arse and there are concerns over our finance industry folding. My father for one thinks there won't be a finance industry within the next 5 years unless there is a major shake up and he is extremely well versed in the matter.

[Gert_8]

Having lost your income, how are you, and others of your age managing, Rossy?

[bab-91]

Overtime is non existant and the hospitals future is looking bleak!

[Gert_8]

I think having a full time job with a single employer is going to be an exception to the rule. Full time work may involve having 2 jobs.

[ross_jsy]

Having lost your income, how are you, and others of your age managing, Rossy?

I managed to get a job at a builders merchant putting together timber framed houses. Within 3 days the MD offered me a job as an estimator due to my experience in the building trade but I had to decline as I wanted to go to college so I'm perhaps not the best person to ask. Bar a few months bumming around I was earning a decent wage up until September.

Now I'm at college I work Thursdays and half a day on Saturday, netting me about £150 a week pocket money so I'm finding life pretty toasty really. I could also claim an allowance from the states for being a student, however I don't want to waste tax payers money as I don't need it.

Honestly, I feel if you are young and willing to work over here it's easy enough to find a job, just lower your expectations and be prepared to work hard. The people I know who are jobless tend to be by choice. You get £90 from social a week over here and if you are living with your parents that's more than enough to have a comfortable life. Only know a couple of people who are unemployed and they are both at it, filling in bogus job applications on the job seekers allowance forms etc.

I imagine if I was from a more working class background things would be different but life is fine for me.

[Motorhole]

What recession?

More luck than anything, but it's all been timed with paying off student loan and loan on my daily driver. Lower interest rates on the mortgage too. My salary has risen about 7% over the past 3 years.

[Rtaylor2208]

Its the inexperienced I feel for, there is so many youngsters comming out of uni \ college \ school with absolutly hee haw chance of finding a job. Even where I work its a struggle to convince the managment team to take on juniors.

Although we did take 3 graduates this year, but considering there is 5000 people working for the company globally is pitiful.

On the trades front i can't understand why time served tradesmen havn't got work. Almost anytime I try and get a roofer, plumber, electrician etc etc you either have to wait for weeks or they just never turn up so it can't be too slow up here at least.

[hennared323i]

TBH I haven't really been affected by the recession bar buying a house at precisely the wrong time with a 90% mortgage and then having to spend the thick end of 30K fixing problems the survey never uncovered

What I have noticed is how much the price of basic foodstuffs has risen in the past couple of years

[darkchild]

I've been lucky and have remained employed from 2002 onwards so am very grateful for that. Minimal pay rises though mean living standards have been squeezed. I commute to work by train and the frequent 6% price increases are hard to stomach. We ran two cars for 6 years but simply couldn't justify the expenditure any longer so I sold my E46 and paid off a healthy chunk of our mortgage. I've only got the E30 now but not having to pay two lots of insurance; tax etc is a blessing. One of my better decisions. We used to holiday abroad every year but now put any left over money to paying off the mortgage early. Boring I know but I wish I thought like this 10 years ago as I'd have been mortgage free by now! Our fixed rate deal ended last month so we've now got an extra £125 a month left over under the new rate.

No complaints from me though, times are harder but life is good. I've never been one for buying things on credit hence why I drive a 25 year old more door sh!tter!

[Gert_8]

Best bit of advice is to run down the mortgage when the rates are so low!

[e30topless]

The recession hasn't really affected me, I had foook all before it and I still have foook all now

The last 3-4 years have been very tough, a lot tougher than the other 20 years I have spent in the building trade... surely it can only get better ?
I hope !

[Duke137]

I have found that I am doing two blokes workload for a sub standard salary, the boss knows I'm worth more but assures me there is no money in the system to give handsome reward.

I am just thankful I have a job but with a 2 year old, one more on the way and house with an ongoing repair scheme (woe) then the fact all the bills are sky high leaves me missing my spare time and disposable income badly.

It has been tough but I have managed, the future still worries me a bit as I can't see any wage rise coming my way and I am sick of paying all the bills and not having anything much to treat myself with especially with how hard I work

[kieran325]

I haven't noticed anything as such as I work on the railway and its kind of protected with pay rises and overtime is plentiful.

There's 5 years left on the mortgage and we're hoping to have kids this year so it works out that I've worked hard for the last few years so I can spend good quality time with the wife and kids without working rest days to pay things off.

I have friends who don't work on the job and the stories I hear over pay rises at 1% and going out on strike for it are scandalous and sad to hear.

[spook]

The recession hasn't really affected me, I had foook all before it and I still have foook all now

The last 3-4 years have been very tough, a lot tougher than the other 20 years I have spent in the building trade... surely it can only get better ?
I hope !

Same as mate, but the building trade is kicking right off down here

I have 2nd fixes coming out of my arse.

[gooner1]

I can only echo Kierans post.
Just wish some of the lazy, moaning coonts, mostly ex BR, realised how bloody
fortunate we are. I have been with NR for the last eleven years, previously in and out
of the same industry but as a contractor, agency worker, different ballgame then.

[miniblob]

I took a redundancy package from my full time shift work 2+ years ago - to be fair, I wanted out of there for some time, also had my own business up and running and also got offered a very strong package to go - paid off my debts and some!!!

My lifestyle hasn't changed that much, though I def have less spare cash floating around and only one motor to insure/run at the mo (always had at least 2 on the go before)!!!

We are working harder to keep the same income/turnover in my business though!!!
And working for ourselves means I'm on a much lower tax bracket - albeit also on a much, much lower wage on paper!!!

Only problem it gives me is getting a mortage!!! Saving ok, aiming for a couple of years if things stay stable, but will have to take some kind of employment then, if not before, as my wages on paper as self employed will be nowhere near suitable/acceptable for that!!!

I also think there is far, far worse to come, economy wise. This country is about done.
Is our debt at twice what Greece's was when that went tit's up (percentage wise)??? Something like that!!!

[pac1982]

What recession - I've never had it so good (lights cigar) got my vote

If you have your head screwed on you can make this so called recession work in your favour

[capri_rob]

Lost the best job I'm ever likely to have when it all started to go wrong in March 2008 - scraped a living working for myself until April 2012 when I'd really had enough of barely covering the bills every month and gone from having about 10k in savings when I lost my job to 10k of credit card debt during my self employed period just to keep afloat.

Last couple of years have been much better - but I have given up on any sort of career progression and earning pre credit crunch money again - I'm just absolutely focused on doing the best job I can to keep the job I have now.
Jobs with big money and perks are all well and good - but the pressure that goes with it and the feeling when the rug gets pulled from under you for no fault of your own isnt something I want to experience ever again.

My PAYE earnings are now about 3k less than I was earning 10 Years ago - but I have adjusted my lifestyle to live within my means - and working less than 10 minutes from home normal office hours and no weekends is something you cant put a price on.

[Gert_8]

It's a pretty even split so far across all four options. That's surprised me!

[Jesus325iTouring]

Just a quick answer for now, started my own business 4 years ago, am fully booked and don't have too actively look or advertise for work for this year and most of next year

[gooner1]

Gert, it may be a fairly even split on this Forum but I'm not
convinced that's a true reflection of the reality of most people.

For a start, I wonder what percentage of people here own more than 1 E3O,
how many of us use them as daily drivers and not just playthings.
What I'm getting at is for a fair few on here our cars are more a luxury than a
necessity.

[Gert_8]

^^. True and I see your point, but the zone does have quite a broad range of zoners, which proved by the results being so even?

[hennared323i]

7%, Rtaylor?!
I heared a 0.5 interest rate increase on the current rate would have dire consequences for half a million householders... I don't get it.

I suspect many peoples are absolutely maxed out right now. For me 0.5% means about £60 per month extra. I have some slack but certainly not 2-3%

[e30topless]

The recession hasn't really affected me, I had foook all before it and I still have foook all now

The last 3-4 years have been very tough, a lot tougher than the other 20 years I have spent in the building trade... surely it can only get better ?
I hope !

Same as mate, but the building trade is kicking right off down here

I have 2nd fixes coming out of my arse.

it is picking up even in the north Chris, the work is there sadly the money isn't !

I probably earn less now than what i did back in 2001, but times were good back then.. luckily i was shrewd and bought property, 2 of them are almost paid for and the biggest house almost 60% paid for..
I have assets but no spare cash, it's tough paying the bills but i always find it through determination and working 6-7 days a week,

What i really feel sorry for are the young guns, they simply don't have a chance to get a foot on the ladder in the current climate, I would hate to be starting out in these times if i was 20+ years old, the poor foookers don't have a chance

[Duke137]

Well said Steve, that is the convo I had with a customer today! He said he was stacked out with work but it was all rock bottom price and he would be lucky to earn minimum wage weekly at the moment. He is a joinery manufacturer. It is a case of do it and have a little money at the end because if he quoted more the work would go to the next guy.

Living to your means is the key and not wasting money like when times were good! I've saved most money on the food bill, only buying what we actually need and not any extra along with a zero takeaway and pub lunch rule. Swapped the gas guzzling BMW 323i for a HDi shitroen saved £80 a month on fuel etc etc only problem with that is it is boring as foooooook especially when I work my bollocks off every day

I also think this is it for good now and the good old days are gone.

[Grrrmachine]

I set up my own company and went freelance in Jan 2009, just as we saw the incoming tsunami of the crisis. I was working as a language teacher in the Business sector, and one by one the banks, traders and service providers that I worked with started falling like dominoes.

I managed to hop from client to client as they collapsed, retraining people for interviews, CV writing etc, so I did rather well out of the crisis. But I had a mortgage in Swiss francs, and since taking it in 2006 the exchange rate has shifted by 30%, so that's how much my monthly repayments have gone up by.

It's only since the end of 2013 that I've seen the work dry up. The last big firm did another round of cost-cutting that saw my services cancelled, so I'm now working a 3-day week until I can find other clients to fill the gaps. But I don't think that'll take too long.

[spook]

Today was a good day, i got a 60 quid rise on the price of a 3 bed unit and a free apprentice with the surname Saville

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