Wednesday, March 04, 2009

The Forgotten "Fixed Interest Rater's"

I am getting really fed up with those economists who regularly pontificate about the current recession and keep saying that with the reduction in interest rates on mortgages people are more well off with loads more to spend which should help to kick start the economy.
Oh yeah ! Are we forgetting something ? There are loads and loads of us on fixed rate mortgages who are still paying our original payments and have zilch extra to spend !
Personally, I am about £500 per month worse off than someone else with the same mortgage arrangement but who is on a tracker mortgage for instance.
Oh, and are my friends who have sufficient funds going out and spending the extra ? Of course not . . . most are increasing their mortgage payments to decrease the number of years on their mortgage.
Yep, we are the forgotten "fixed rater's". I wonder how many of the increased number of repossessions are on a fixed rate mortgage. It would be an interesting statistic to know.

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