Past Recessions - what were your experiences?

Generali

Coolfonz wrote: »

In no way were miners greedy. You had face workers on pittances. She started 30 years of insane political ideology masquerading as economics, carried on by Labour. And this is what weve got...

Which businesses do you think should be propped up by the taxpayer other than mining? All the Tories did was remove the subsidy.

NewHouse_3

Could I ask those who have been through a recession (or more than 1), what the intrest rates went up to at it's worst?

I am too young to have lived through a recession and I thought my job was safe as I, unfortunately, work for the government but even that isn't guaranteed any more with a programme of office closures and centralising work. I have now taken out ASU insurance as things are getting a bit too close to home for my liking.

[Deleted User]

I think it was 16% and it happened so fast, it was killing. We ate only veg and beans then to survive

NewHouse_3

I imagine that would be absolutely crippling for most households. How quickly did the rates rise again? Months, a year? And why did they rise? I see the BOE are presumably trying to control inflation and encourage spending/borrowing by lowering the base rate just now, so by default rising mortgage intrest rates would discourage this? Was it the BOE that increased in the last recession or just mortgage rates?

115K

I am on a fixed rate at the moment but if in a few years time the interest rates were really high then what would be the best type of mortgage to get in that situation? Variable rate?

(Happy Christmas for those who celebrate it!)

themanbearpig

115K wrote: »

I am on a fixed rate at the moment but if in a few years time the interest rates were really high then what would be the best type of mortgage to get in that situation? Variable rate?

(Happy Christmas for those who celebrate it!)

NO! you want a fixed rate if IRs are high. Which means you have to secure one soon, or lose out, because they won't be available when IRs start to rise. You might have a slightly worse rate than variable at the moment, but at least your future will be more secure.

meeeeerry xmas

[Deleted User]

Get a fixed when you think interest rates are at their lowest, go for variable when you think they're at their highest.. I think i'll be looking for a fixie in about 6 months time.

Keep an eye on the interest rates of the central banks in the US and europe, we usually lag behind them a little.

HenryWeston

PasturesNew wrote: »

We started getting some hideous liquid Camp coffee, with chicory .

I used to like that :beer: can you still get it ?

115K

My interest rate doesn't run out until Summer 2011 and we got a fixed rate one back in 2006 and it was pretty low back then. I'm worrying about renewing it now in advance because of this site although I am grateful that I read on here that this recession was coming as we paid off our catalogue and credit card debts. Now we just need some savings methinks!

beaujolais-nouveau

kittie wrote: »

I think it was 16% and it happened so fast, it was killing. We ate only veg and beans then to survive

Here you are, inside six months the bank rate went from 12% to 17%.

"After taking office in May 1979, Margaret Thatcher’s government raised interest rates from 12% to 14%. But it failed to stop inflation rising and the money supply ballooning out of control. On November 15, 1979 Bank rate was raised by three points to 17%."
http://business.timesonline.co.uk/tol/business/economics/article5113717.ece

I got my first mortgage in January 1980, with an interest rate of about 15% (it had been arranged two months earlier). Luckily, I had a job in the university sector, so although it was very hard I was in no danger of defaulting.

I HAVE to find a way of paying off most or all of the rest of my current 10-year mortgage before the fixed rate runs out next August. I am currently paying interest at 5.14% - I have no idea where I would find the money if the bank rate went up to 17% or 20%. Or if I was still stuck on a mortgage tied to LIBOR.