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Stock Market 2021

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Ponty said:
This is the wonderful ‘fintech’ sector at work. Normally a loan for £1 makes no sense but with the technology set up and running it for them, kerching! Just look at Klarna. Everything is being financialised to the max.
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I see chats full of people asking why they can't get a second "Quid Loan" the day after they've got their first.

It's an "entry drug" to full Debt addiction
 
Kids really need to be properly educated about this stuff. A bit like the Grange Hill ‘just say no’ campaign.
 
I agree that kids, not to mention adults, need to understand personal finances, but if you pay back the quid within a week isn't it free? There's your teaching moment right there.

Joe
 
Joe P said:
I agree that kids, not to mention adults, need to understand personal finances, but if you pay back the quid within a week isn't it free? There's your teaching moment right there.

Joe
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Yes, but I'd love to see the stats on what percentage pay on time though...
 
Just like everyone who pays their credit card off in full every month. They’re not the problem. The seeds are being sown from a very young age with this. It’s only 25p, they’ll say.
 
Ponty said:
Just like everyone who pays their credit card off in full every month. They’re not the problem. The seeds are being sown from a very young age with this. It’s only 25p, they’ll say.
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As I understand it, you just ring a number and a computer does the rest. How they check age is beyond me?

If there wasn't money to be made, they wouldn't bother offering it.

I love the sales pitch: https://www.o2.co.uk/myo2/top-up/lend-us-a-quid
"You know how it is. You're just about to run out of credit and you really need to send a text saying you're going to be late. Or perhaps you need to make an urgent call about tonight's party. That's why..."
 
Ponty said:
Just like everyone who pays their credit card off in full every month. They’re not the problem. The seeds are being sown from a very young age with this. It’s only 25p, they’ll say.
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They are a problem for the finance industry who would love to see more and more of us in hock. My lines of credit would exceed my very modest annual income if I wished to use them; the problem for the banks is that I keep paying off my cards each month.
 
Snufkin said:
They are a problem for the finance industry who would love to see more and more of us in hock. My lines of credit would exceed my very modest annual income if I wished to use them; the problem for the banks is that I keep paying off my cards each month.
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They still make the merchants fees on the transactions so are not too worried.
 
Just had the latest residential property research update from Savills. A few points jumped out (below). How much more air can be forced in before she blows?! As an anecdote, a friend nearby had his house on the market last year, didn’t sell. Recently listed at 17% higher price and sold.

  • One of the key reasons why we have seen house prices rise so rapidly in the last 15 months has been the low cost of debt.
  • In what has become a very competitive mortgage market, we have seen the costs of much higher loan-to -value mortgages fall even more significantly over the first six months of the year. The average quoted rate for a 2-year 85% LTV fixed mortgage has fallen from 3.02% to 1.99% over this period, with the costs of 90% LTV mortgage moving from 3.75% to 2.47%.
  • However, for many, it will be the ability to lock in low longer-term costs of money that draws greatest interest. In this respect, the cost of a 5-year 75% LTV fixed rate mortgage stood at new low of 1.40% at the end of August, down from 2.04% at the beginning of 2021.
 
Ponty said:
Just had the latest residential property research update from Savills. A few points jumped out (below). How much more air can be forced in before she blows?! As an anecdote, a friend nearby had his house on the market last year, didn’t sell. Recently listed at 17% higher price and sold.

  • One of the key reasons why we have seen house prices rise so rapidly in the last 15 months has been the low cost of debt.
  • In what has become a very competitive mortgage market, we have seen the costs of much higher loan-to -value mortgages fall even more significantly over the first six months of the year. The average quoted rate for a 2-year 85% LTV fixed mortgage has fallen from 3.02% to 1.99% over this period, with the costs of 90% LTV mortgage moving from 3.75% to 2.47%.
  • However, for many, it will be the ability to lock in low longer-term costs of money that draws greatest interest. In this respect, the cost of a 5-year 75% LTV fixed rate mortgage stood at new low of 1.40% at the end of August, down from 2.04% at the beginning of 2021.
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So what happens after year 5?
 
Snufkin said:
the problem for the banks is that I keep paying off my cards each month.
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No problem as if the card companies weren't profiting nicely, they'd fold. Where would we be without this wonderful pay of paying. 50+ days before you need to cough up with the readies, all your transactions in one statemented basket and Nectar points on top (for me, anyway). It's a win-win for anybody with a grasp of money, budgeting and bookkeeping. Those Nectar points are really sweet, and are the bee's knees in accruing a small nest egg.:)
 
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