So the Bank of England has cut rates to 1%. Many savers will now get nothing for their money as some banks will not pay any interest at all. There is so much turmoil in banking right now, that I will be waiting until next year before I reassess my bank accounts and start to move some money around.
The interest rates on mortgages has been cut too, and I've just realised that a lot of buy to let mortgage holders will probably be OK, as they will not have to pay back so much money. The government is propping things up for the time being. Also, buy-to-let income is dependent on rent. Depending on the deal the landlord did to get the property, they could be far better off than just having cash in the bank. Property is an investment vehicle which, if planned correctly, you can create your own income, independent of bank rates.
In this recession, everyone has lost money, but the rich people are still significantly better off than the poor people. When the recession ends, the rich will continue to stay ahead. Even with the current low interest rates, it's still better to be rich than to be poor.
The interest rates on mortgages has been cut too, and I've just realised that a lot of buy to let mortgage holders will probably be OK, as they will not have to pay back so much money. The government is propping things up for the time being. Also, buy-to-let income is dependent on rent. Depending on the deal the landlord did to get the property, they could be far better off than just having cash in the bank. Property is an investment vehicle which, if planned correctly, you can create your own income, independent of bank rates.
In this recession, everyone has lost money, but the rich people are still significantly better off than the poor people. When the recession ends, the rich will continue to stay ahead. Even with the current low interest rates, it's still better to be rich than to be poor.
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