Martin Lewis has a warning for mortgage holders as inflation soars

Speaking at the Founders Foundation to Mariella Frostrup, Martin Lewis has stated that he doesn't see how the interest rate rising will help the economic issues.

"I struggled to see how an interest rate rise helps in a supply-led economic problem, which is what the cost of living is."

IT'S ALL THE BANKS CAN DO

"I wonder if the reason the Bank of England is putting interest rates up is because that is literally the only tool it has in its arsenal, its job is to control inflation. It only has one tool to deal with."

ON INDEPENDENT BANKS

"I like the independence of the Bank of England. I'm not suggesting we don't change it. But you do have to wonder if we didn't have an independent Bank of England, so that it was the government controlling everything. Could you actually have a more rounded solution be brought forward? I don't know."

ON GOVERNMENT'S POWER TO MAKE A DIFFERENCE

"We have an adversarial political system. Can you imagine a company that had one team that people set up to operate it and another team that people pay to oppose whatever they're doing? I don't think it's a particularly productive way to run anything."

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[memofromessex]

I don't know why Martin Lewis hasn't got a knighthood or made a lord. Theres thousands who have achieved less, but got more honours.

Also, he's very right about supply led inflation. Increasing interest rates at the moment is a pretty blunt and dumb thing to do.

[wedsonolivia]

I realized that the secret to making a million is making better investment. I always tell myself you don't need that new Car or that vacation just yet and that mindset helps me make more money investing. For example last year I invested 70k in blue chip stocks and crypto, with the help of my advisor and made about 380k, but guess what? I put it back and traded with her again and now I'm rounding up close to a million. Delayed gratification always pays off

[slartibartfast]

Those most suited to lead are often those with the skills but also reluctant to do so. Mainly because the halls of power are populated by “leaders” lining their own pockets.

[ep]

I've heard certain councils are gearing up for "warm banks" - public heated buildings for people who can't afford to run their heating this winter.

[davidkonyn]

Raising rates takes money out of the system which reduces demand. Lower demand puts less pressure on supply...these are linked at a very fundamental level. Furthermore, giving interest rate authority to government will inevitably to a short term focus that would be very detrimental!

[noahmadlaina]

*Access to good information is what we investors need to progress financially and generally in **life.here** is a good one and am grateful.*

[vrvaughn]

Are mortgage interest rates not fixed for the duration of the mortgage in England? When the fixed mortgage ends, isn’t the mortgage paid?

[iandougall]

Did I mishear or did he suggest that giving the government direct control over interest rates might be a good idea?!

[monealiza]

great. my 5-year fixed ends this year. Ugh.

[michaelohwtf]

A professional opposition is key is not key to an effective government, but is key for a more effective democracy. It creates balance in a system that could easily be overrun with tyrannical powers. We are never a full majority when it comes to political vote and public opinion. By in large its 50/50 so having a system that creates an effective government will only ever please 50% of the population, while oppressing the other 50%.

[alexandermichael]

Never take advice, from a guy with more money than you, you will at the end, pay more, and weep more.

[chosenone]

Boom and bust its how the UK rolls always has and always will seen it all before

[Andygb]

Mortgage prisoners. Probably better than being in a real prison.

[paakowhenry]

Solution is to print more money! Distribute it among the population and all will be fine!