Drops of only 19% predicted on spreadfair

StevieJ

Jumping_Bean wrote: »

So people can afford to service the loans.

So the fact that interest rates could be 3% or 6% or 15% is completely irrelevant.

Jumping_Bean

StevieJ wrote: »

So the fact that interest rates could be 3% or 6% or 15% is completely irrelevant.

No it's very, very relevant. Hence why 3.5 times salary is sensible.

WTF?_2

Generali wrote: »

I'm not sure why that calculation should hold true. Why should the average person be able to afford the average house? Should the average housebuyer should be able to afford the average house.

True enough - but the average earner (25k a year) should at least be able to afford a decent FTB type place.

If the average price of a house is running at over 8x the average salary though, it doesn't say much for FTB affordability, unless of course lots of people are living in mansions and skewing the average price figures up.

WTF?_2

StevieJ wrote: »

So the fact that interest rates could be 3% or 6% or 15% is completely irrelevant.

It's relevant if you are only able to afford to service the loan because interest rates are currently exceptionally low. Unless of course you can get a fixed long term loan as at least one poster here said they got.

People often short sightedly make a decision to purchase based on the calculation of being able to afford the immediate monthly repayment, without much regard to the longer term outlook.

Hence, people were borrowing bonkers amounts of cash because they were able to get a very competitive 2-year fix (at a time when interest rates were rock bottom) and the monthly repayments were just about manageable. That's all very well but if rates are currently at an all time low, it means they are going to go much higher. And with the contraction of credit it made attractive rates for a remortgage harder to find still. So, rates go up, the fix runs out and the SVR is unmanageable. A new deal is hard to find, prices are falling and you are in trouble.


If OTOH you borrow less at a time when interest rates are high (hence cheaper house prices) and end up paying about the same monthly outgoing as someone who borrowed a lot more when rates were low, you at least have the likelihood that rates will fall considerably (probably sooner rather than later) over the 20/25 year term of your mortgage.

Once they fall, refinance with a long term low rate deal. You'll save tens of thousands worth of interest payments and/or knock years off your mortgage.

Gorgeous_George

Interest rates are not exceptionally low.

GG

WTF?_2

Gorgeous_George wrote: »

Interest rates are not exceptionally low.

GG

I wasn't trying to say they were. I'm comparing the situation when the bubble was bubbling, interest rate deals were really low and thus prices were high with a likely future scenario of low prices and high rates.

Overall, you're better off buying when prices are low and rates are high.


Mind you, rates are still on the low side. They will almost certainly go (quite a bit) higher over the medium to long term if historical trends hold. They'll probably fall a bit before then as the economy really derails and there is a desperate bid to 'do something'.

Generali

!!!!!!? wrote: »

True enough - but the average earner (25k a year) should at least be able to afford a decent FTB type place.

If the average price of a house is running at over 8x the average salary though, it doesn't say much for FTB affordability, unless of course lots of people are living in mansions and skewing the average price figures up.

Absolutely. When my parents bought their first place (late 60s) they were on the equivalent of say £45kpa between them. They bought a 3 bed end of terrace in a slightly grubby North London suburb which was perfectly good enough until we started school and they started looking at secondary education in the area!

£135k might just get you a studio flat in a North London hell hole.

brit1234

StevieJ wrote: »

Do you guys completely ignore the fact that most house purchases are based on two wages/salaries.

Not at all, infact I dispute this in a large percentage of homes. For example the one bed flat is oftern bought by a single person. This is based on the vast majority of friends 20-35. Yes there are a few who bought as couples but they are a minority in my social cirlces.

It may be different higher up the market but there will always be those who start families and are dependant on one wage.

Gorgeous_George wrote: »

Interest rates are not exceptionally low.
GG

I don't mean to be so confronational but on this fact I have to be. Interest rates are very low. Just take any average using what ever method you want over the last 30 years and you will see that. The Offical BOE figures are below.

Statistical Interactive Database - Official Bank Rate history
Current official Bank Rate 5%
Date Changed Rate
Thu, 10 Apr 2008 5.00
Thu, 07 Feb 2008 5.25
Thu, 06 Dec 2007 5.50
Thu, 05 Jul 2007 5.75
Thu, 10 May 2007 5.50
Thu, 11 Jan 2007 5.25
Thu, 09 Nov 2006 5.00
Thu, 03 Aug 2006 4.75
Thu, 04 Aug 2005 4.50
Thu, 05 Aug 2004 4.75
Thu, 10 Jun 2004 4.50
Thu, 06 May 2004 4.25
Thu, 05 Feb 2004 4.00
Thu, 06 Nov 2003 3.75
Thu, 10 Jul 2003 3.50
Thu, 06 Feb 2003 3.75
Thu, 08 Nov 2001 4.00
Thu, 04 Oct 2001 4.50
Tue, 18 Sep 2001 4.75
Thu, 02 Aug 2001 5.00
Thu, 10 May 2001 5.25
Thu, 05 Apr 2001 5.50
Thu, 08 Feb 2001 5.75
Thu, 10 Feb 2000 6.00
Thu, 13 Jan 2000 5.75
Thu, 04 Nov 1999 5.50
Wed, 08 Sep 1999 5.25
Thu, 10 Jun 1999 5.00
Thu, 08 Apr 1999 5.25
Thu, 04 Feb 1999 5.50
Thu, 07 Jan 1999 6.00
Thu, 10 Dec 1998 6.25
Thu, 05 Nov 1998 6.75
Thu, 08 Oct 1998 7.25
Thu, 04 Jun 1998 7.50
Thu, 06 Nov 1997 7.25
Thu, 07 Aug 1997 7.00
Thu, 10 Jul 1997 6.75
Fri, 06 Jun 1997 6.50
Tue, 06 May 1997 6.25
Wed, 30 Oct 1996 5.94
Thu, 06 Jun 1996 5.69
Fri, 08 Mar 1996 5.94
Thu, 18 Jan 1996 6.13
Wed, 13 Dec 1995 6.38
Thu, 02 Feb 1995 6.63
Wed, 07 Dec 1994 6.13
Mon, 12 Sep 1994 5.63
Tue, 08 Feb 1994 5.13
Tue, 23 Nov 1993 5.38
Tue, 26 Jan 1993 5.88
Fri, 13 Nov 1992 6.88
Fri, 16 Oct 1992 7.88
Tue, 22 Sep 1992 8.88
Tue, 05 May 1992 9.88
Wed, 04 Sep 1991 10.38
Fri, 12 Jul 1991 10.88
Fri, 24 May 1991 11.38
Fri, 12 Apr 1991 11.88
Fri, 22 Mar 1991 12.38
Wed, 27 Feb 1991 12.88
Wed, 13 Feb 1991 13.38
Mon, 08 Oct 1990 13.88
Fri, 06 Oct 1989 14.88
Fri, 08 Sep 1989 13.75
Mon, 04 Sep 1989 13.88
Thu, 31 Aug 1989 13.84
Thu, 25 May 1989 13.75
Fri, 25 Nov 1988 12.88
Thu, 25 Aug 1988 11.88
Mon, 08 Aug 1988 10.88
Thu, 21 Jul 1988 10.38
Thu, 07 Jul 1988 9.88
Fri, 24 Jun 1988 8.88
Fri, 10 Jun 1988 8.38
Fri, 03 Jun 1988 7.88
Tue, 17 May 1988 7.38
Fri, 08 Apr 1988 7.88
Thu, 17 Mar 1988 8.38
Mon, 01 Feb 1988 8.88
Thu, 03 Dec 1987 8.38
Wed, 04 Nov 1987 8.88
Fri, 23 Oct 1987 9.38
Thu, 06 Aug 1987 9.88
Fri, 08 May 1987 8.88
Tue, 28 Apr 1987 9.38
Wed, 18 Mar 1987 9.88
Mon, 09 Mar 1987 10.38
Wed, 15 Oct 1986 10.88
Fri, 23 May 1986 9.88
Fri, 18 Apr 1986 10.38
Fri, 11 Apr 1986 10.88
Wed, 19 Mar 1986 11.38
Wed, 15 Jan 1986 12.38
Fri, 26 Jul 1985 11.38
Thu, 11 Jul 1985 11.88
Fri, 19 Apr 1985 12.38
Thu, 28 Mar 1985 12.88
Wed, 20 Mar 1985 13.38
Mon, 28 Jan 1985 13.88
Mon, 14 Jan 1985 11.88
Fri, 23 Nov 1984 9.50
Mon, 19 Nov 1984 9.75
Mon, 05 Nov 1984 10.00
Fri, 17 Aug 1984 10.50
Thu, 16 Aug 1984 10.75
Thu, 09 Aug 1984 11.00
Wed, 08 Aug 1984 11.50
Wed, 11 Jul 1984 12.00
Fri, 06 Jul 1984 10.00
Fri, 29 Jun 1984 8.88
Thu, 10 May 1984 9.06
Thu, 22 Mar 1984 8.56
Wed, 21 Mar 1984 8.05
Wed, 14 Mar 1984 8.56
Wed, 07 Mar 1984 8.81
Mon, 03 Oct 1983 9.06
Wed, 10 Aug 1983 9.56
Tue, 09 Aug 1983 9.44
Tue, 14 Jun 1983 9.56
Mon, 13 Jun 1983 9.81
Thu, 14 Apr 1983 10.06
Wed, 13 Apr 1983 10.31
Tue, 15 Mar 1983 10.56
Wed, 12 Jan 1983 11.00
Fri, 26 Nov 1982 10.00
Tue, 02 Nov 1982 9.13
Mon, 01 Nov 1982 9.38
Tue, 12 Oct 1982 9.63
Thu, 30 Sep 1982 10.13
Wed, 29 Sep 1982 10.25
Tue, 28 Sep 1982 10.38
Mon, 27 Sep 1982 10.50
Fri, 27 Aug 1982 10.63
Thu, 26 Aug 1982 10.88
Wed, 25 Aug 1982 11.00
Tue, 24 Aug 1982 11.13
Tue, 17 Aug 1982 11.25
Mon, 16 Aug 1982 11.38
Wed, 04 Aug 1982 11.50
Mon, 02 Aug 1982 11.56
Fri, 30 Jul 1982 11.63
Thu, 29 Jul 1982 11.75
Wed, 28 Jul 1982 11.81
Mon, 26 Jul 1982 11.94
Wed, 21 Jul 1982 12.06
Tue, 13 Jul 1982 12.13
Mon, 12 Jul 1982 12.25
Fri, 09 Jul 1982 12.50
Tue, 08 Jun 1982 12.63
Tue, 20 Apr 1982 13.13
Mon, 19 Apr 1982 13.00
Fri, 16 Apr 1982 13.13
Wed, 10 Mar 1982 13.25
Thu, 25 Feb 1982 13.63
Mon, 22 Feb 1982 13.81
Fri, 22 Jan 1982 13.88
Thu, 21 Jan 1982 14.00
Wed, 20 Jan 1982 14.13
Tue, 19 Jan 1982 14.25
Mon, 18 Jan 1982 14.31
Fri, 04 Dec 1981 14.38
Wed, 25 Nov 1981 14.56
Mon, 09 Nov 1981 14.63
Fri, 06 Nov 1981 15.06
Wed, 28 Oct 1981 15.13
Mon, 12 Oct 1981 15.00
Tue, 15 Sep 1981 14.00
Tue, 25 Aug 1981 12.69
Wed, 11 Mar 1981 12.00
Tue, 25 Nov 1980 14.00
Thu, 03 Jul 1980 16.00
Thu, 15 Nov 1979 17.00
Wed, 13 Jun 1979 14.00
Thu, 05 Apr 1979 12.00
Thu, 01 Mar 1979 13.00
Thu, 08 Feb 1979 14.00
Thu, 09 Nov 1978 12.50
Thu, 08 Jun 1978 10.00
Mon, 15 May 1978 9.00
Mon, 08 May 1978 8.75
Wed, 12 Apr 1978 7.50
Mon, 09 Jan 1978 6.50
Mon, 28 Nov 1977 7.00
Mon, 17 Oct 1977 5.00
Mon, 10 Oct 1977 5.50
Mon, 19 Sep 1977 6.00
Mon, 12 Sep 1977 6.50
Mon, 15 Aug 1977 7.00
Mon, 08 Aug 1977 7.50
Mon, 16 May 1977 8.00
Mon, 02 May 1977 8.25
Mon, 25 Apr 1977 8.75
Mon, 18 Apr 1977 9.00
Tue, 12 Apr 1977 9.25
Thu, 31 Mar 1977 9.50
Mon, 21 Mar 1977 10.50
Thu, 10 Mar 1977 11.00
Thu, 03 Feb 1977 12.00
Mon, 31 Jan 1977 12.25
Mon, 24 Jan 1977 13.25
Mon, 10 Jan 1977 14.00
Wed, 29 Dec 1976 14.25
Mon, 20 Dec 1976 14.50
Mon, 22 Nov 1976 14.75
Thu, 07 Oct 1976 15.00
Mon, 13 Sep 1976 13.00
Mon, 24 May 1976 11.50
Mon, 26 Apr 1976 10.50
Mon, 08 Mar 1976 9.00
Mon, 01 Mar 1976 9.25
Mon, 09 Feb 1976 9.50
Mon, 02 Feb 1976 10.00
Mon, 26 Jan 1976 10.50
Mon, 19 Jan 1976 10.75
Mon, 05 Jan 1976 11.00
Mon, 29 Dec 1975 11.25
Mon, 01 Dec 1975 11.50
Mon, 17 Nov 1975 11.75
Mon, 06 Oct 1975 12.00
Mon, 28 Jul 1975 11.00
Mon, 05 May 1975 10.00
Mon, 21 Apr 1975 9.75
Mon, 24 Mar 1975 10.00
Mon, 10 Mar 1975 10.25
Mon, 17 Feb 1975 10.50
Mon, 10 Feb 1975 10.75
Mon, 27 Jan 1975 11.00
Mon, 20 Jan 1975 11.25

http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp?Travel=NIxIRx


:exclamatiTo base your affordability levels on todays interest rates is extremely reckless. You have seen the massive rise in repossesions which have occured in the last year with small increases.:exclamati

sabretoothtigger

Just some figures on nr I saw, sounds better then I thought tbh

[NR] took one in five mortgages in the first six months of 2007.

Northern Rock has seen a sharp rise in new mortgage arrears in recent months, however. Latest filings submitted to US regulators for its Granite securitisation vehicle in June show that mortgages in arrears by more than a month are running at 4.16 per cent. Mortgages that are three or more months in arrears were at 1.27 per cent.

StevieJ

brit1234 wrote: »

Not at all, infact I dispute this in a large percentage of homes. For example the one bed flat is oftern bought by a single person. This is based on the vast majority of friends 20-35. Yes there are a few who bought as couples but they are a minority in my social cirlces.

It may be different higher up the market but there will always be those who start families and are dependant on one wage.



I don't mean to be so confronational but on this fact I have to be. Interest rates are very low. Just take any average using what ever method you want over the last 30 years and you will see that. The Offical BOE figures are below.

Statistical Interactive Database - Official Bank Rate history
Current official Bank Rate 5%
Date Changed Rate
Thu, 10 Apr 2008 5.00
Thu, 07 Feb 2008 5.25
Thu, 06 Dec 2007 5.50
Thu, 05 Jul 2007 5.75
Thu, 10 May 2007 5.50
Thu, 11 Jan 2007 5.25
Thu, 09 Nov 2006 5.00
Thu, 03 Aug 2006 4.75
Thu, 04 Aug 2005 4.50
Thu, 05 Aug 2004 4.75
Thu, 10 Jun 2004 4.50
Thu, 06 May 2004 4.25
Thu, 05 Feb 2004 4.00
Thu, 06 Nov 2003 3.75
Thu, 10 Jul 2003 3.50
Thu, 06 Feb 2003 3.75
Thu, 08 Nov 2001 4.00
Thu, 04 Oct 2001 4.50
Tue, 18 Sep 2001 4.75
Thu, 02 Aug 2001 5.00
Thu, 10 May 2001 5.25
Thu, 05 Apr 2001 5.50
Thu, 08 Feb 2001 5.75
Thu, 10 Feb 2000 6.00
Thu, 13 Jan 2000 5.75
Thu, 04 Nov 1999 5.50
Wed, 08 Sep 1999 5.25
Thu, 10 Jun 1999 5.00
Thu, 08 Apr 1999 5.25
Thu, 04 Feb 1999 5.50
Thu, 07 Jan 1999 6.00
Thu, 10 Dec 1998 6.25
Thu, 05 Nov 1998 6.75
Thu, 08 Oct 1998 7.25
Thu, 04 Jun 1998 7.50
Thu, 06 Nov 1997 7.25
Thu, 07 Aug 1997 7.00
Thu, 10 Jul 1997 6.75
Fri, 06 Jun 1997 6.50
Tue, 06 May 1997 6.25
Wed, 30 Oct 1996 5.94
Thu, 06 Jun 1996 5.69
Fri, 08 Mar 1996 5.94
Thu, 18 Jan 1996 6.13
Wed, 13 Dec 1995 6.38
Thu, 02 Feb 1995 6.63
Wed, 07 Dec 1994 6.13
Mon, 12 Sep 1994 5.63
Tue, 08 Feb 1994 5.13
Tue, 23 Nov 1993 5.38
Tue, 26 Jan 1993 5.88
Fri, 13 Nov 1992 6.88
Fri, 16 Oct 1992 7.88
Tue, 22 Sep 1992 8.88
Tue, 05 May 1992 9.88
Wed, 04 Sep 1991 10.38
Fri, 12 Jul 1991 10.88
Fri, 24 May 1991 11.38
Fri, 12 Apr 1991 11.88
Fri, 22 Mar 1991 12.38
Wed, 27 Feb 1991 12.88
Wed, 13 Feb 1991 13.38
Mon, 08 Oct 1990 13.88
Fri, 06 Oct 1989 14.88
Fri, 08 Sep 1989 13.75
Mon, 04 Sep 1989 13.88
Thu, 31 Aug 1989 13.84
Thu, 25 May 1989 13.75
Fri, 25 Nov 1988 12.88
Thu, 25 Aug 1988 11.88
Mon, 08 Aug 1988 10.88
Thu, 21 Jul 1988 10.38
Thu, 07 Jul 1988 9.88
Fri, 24 Jun 1988 8.88
Fri, 10 Jun 1988 8.38
Fri, 03 Jun 1988 7.88
Tue, 17 May 1988 7.38
Fri, 08 Apr 1988 7.88
Thu, 17 Mar 1988 8.38
Mon, 01 Feb 1988 8.88
Thu, 03 Dec 1987 8.38
Wed, 04 Nov 1987 8.88
Fri, 23 Oct 1987 9.38
Thu, 06 Aug 1987 9.88
Fri, 08 May 1987 8.88
Tue, 28 Apr 1987 9.38
Wed, 18 Mar 1987 9.88
Mon, 09 Mar 1987 10.38
Wed, 15 Oct 1986 10.88
Fri, 23 May 1986 9.88
Fri, 18 Apr 1986 10.38
Fri, 11 Apr 1986 10.88
Wed, 19 Mar 1986 11.38
Wed, 15 Jan 1986 12.38
Fri, 26 Jul 1985 11.38
Thu, 11 Jul 1985 11.88
Fri, 19 Apr 1985 12.38
Thu, 28 Mar 1985 12.88
Wed, 20 Mar 1985 13.38
Mon, 28 Jan 1985 13.88
Mon, 14 Jan 1985 11.88
Fri, 23 Nov 1984 9.50
Mon, 19 Nov 1984 9.75
Mon, 05 Nov 1984 10.00
Fri, 17 Aug 1984 10.50
Thu, 16 Aug 1984 10.75
Thu, 09 Aug 1984 11.00
Wed, 08 Aug 1984 11.50
Wed, 11 Jul 1984 12.00
Fri, 06 Jul 1984 10.00
Fri, 29 Jun 1984 8.88
Thu, 10 May 1984 9.06
Thu, 22 Mar 1984 8.56
Wed, 21 Mar 1984 8.05
Wed, 14 Mar 1984 8.56
Wed, 07 Mar 1984 8.81
Mon, 03 Oct 1983 9.06
Wed, 10 Aug 1983 9.56
Tue, 09 Aug 1983 9.44
Tue, 14 Jun 1983 9.56
Mon, 13 Jun 1983 9.81
Thu, 14 Apr 1983 10.06
Wed, 13 Apr 1983 10.31
Tue, 15 Mar 1983 10.56
Wed, 12 Jan 1983 11.00
Fri, 26 Nov 1982 10.00
Tue, 02 Nov 1982 9.13
Mon, 01 Nov 1982 9.38
Tue, 12 Oct 1982 9.63
Thu, 30 Sep 1982 10.13
Wed, 29 Sep 1982 10.25
Tue, 28 Sep 1982 10.38
Mon, 27 Sep 1982 10.50
Fri, 27 Aug 1982 10.63
Thu, 26 Aug 1982 10.88
Wed, 25 Aug 1982 11.00
Tue, 24 Aug 1982 11.13
Tue, 17 Aug 1982 11.25
Mon, 16 Aug 1982 11.38
Wed, 04 Aug 1982 11.50
Mon, 02 Aug 1982 11.56
Fri, 30 Jul 1982 11.63
Thu, 29 Jul 1982 11.75
Wed, 28 Jul 1982 11.81
Mon, 26 Jul 1982 11.94
Wed, 21 Jul 1982 12.06
Tue, 13 Jul 1982 12.13
Mon, 12 Jul 1982 12.25
Fri, 09 Jul 1982 12.50
Tue, 08 Jun 1982 12.63
Tue, 20 Apr 1982 13.13
Mon, 19 Apr 1982 13.00
Fri, 16 Apr 1982 13.13
Wed, 10 Mar 1982 13.25
Thu, 25 Feb 1982 13.63
Mon, 22 Feb 1982 13.81
Fri, 22 Jan 1982 13.88
Thu, 21 Jan 1982 14.00
Wed, 20 Jan 1982 14.13
Tue, 19 Jan 1982 14.25
Mon, 18 Jan 1982 14.31
Fri, 04 Dec 1981 14.38
Wed, 25 Nov 1981 14.56
Mon, 09 Nov 1981 14.63
Fri, 06 Nov 1981 15.06
Wed, 28 Oct 1981 15.13
Mon, 12 Oct 1981 15.00
Tue, 15 Sep 1981 14.00
Tue, 25 Aug 1981 12.69
Wed, 11 Mar 1981 12.00
Tue, 25 Nov 1980 14.00
Thu, 03 Jul 1980 16.00
Thu, 15 Nov 1979 17.00
Wed, 13 Jun 1979 14.00
Thu, 05 Apr 1979 12.00
Thu, 01 Mar 1979 13.00
Thu, 08 Feb 1979 14.00
Thu, 09 Nov 1978 12.50
Thu, 08 Jun 1978 10.00
Mon, 15 May 1978 9.00
Mon, 08 May 1978 8.75
Wed, 12 Apr 1978 7.50
Mon, 09 Jan 1978 6.50
Mon, 28 Nov 1977 7.00
Mon, 17 Oct 1977 5.00
Mon, 10 Oct 1977 5.50
Mon, 19 Sep 1977 6.00
Mon, 12 Sep 1977 6.50
Mon, 15 Aug 1977 7.00
Mon, 08 Aug 1977 7.50
Mon, 16 May 1977 8.00
Mon, 02 May 1977 8.25
Mon, 25 Apr 1977 8.75
Mon, 18 Apr 1977 9.00
Tue, 12 Apr 1977 9.25
Thu, 31 Mar 1977 9.50
Mon, 21 Mar 1977 10.50
Thu, 10 Mar 1977 11.00
Thu, 03 Feb 1977 12.00
Mon, 31 Jan 1977 12.25
Mon, 24 Jan 1977 13.25
Mon, 10 Jan 1977 14.00
Wed, 29 Dec 1976 14.25
Mon, 20 Dec 1976 14.50
Mon, 22 Nov 1976 14.75
Thu, 07 Oct 1976 15.00
Mon, 13 Sep 1976 13.00
Mon, 24 May 1976 11.50
Mon, 26 Apr 1976 10.50
Mon, 08 Mar 1976 9.00
Mon, 01 Mar 1976 9.25
Mon, 09 Feb 1976 9.50
Mon, 02 Feb 1976 10.00
Mon, 26 Jan 1976 10.50
Mon, 19 Jan 1976 10.75
Mon, 05 Jan 1976 11.00
Mon, 29 Dec 1975 11.25
Mon, 01 Dec 1975 11.50
Mon, 17 Nov 1975 11.75
Mon, 06 Oct 1975 12.00
Mon, 28 Jul 1975 11.00
Mon, 05 May 1975 10.00
Mon, 21 Apr 1975 9.75
Mon, 24 Mar 1975 10.00
Mon, 10 Mar 1975 10.25
Mon, 17 Feb 1975 10.50
Mon, 10 Feb 1975 10.75
Mon, 27 Jan 1975 11.00
Mon, 20 Jan 1975 11.25

http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp?Travel=NIxIRx


:exclamatiTo base your affordability levels on todays interest rates is extremely reckless. You have seen the massive rise in repossesions which have occured in the last year with small increases.:exclamati

Yes, you can clearly see that post ERM the UK inflation and interest rates have reset at a lower level creating a one off jump in house prices. I think many people see 5% as the neutral interest rate ( above this = tightening and below loosening) whereas in previous generations it was a great deal higher.
Also single households increase demand and prices at the lower end.