What would you do if Interest Rates were 18%

lil'H

I'd be screwed! Single parent, so obviously the only wage earnerand I simply wonuln't be able to do it. Praying that in 2012 when my fixed will end they haven't gone up to high so that I can fix for a long long long long time!

Rochdale_Pioneers

Back when according to the Tories the country's finance was perfect we had Interest Rates steady at between 10-14%, with mortgage rates several percent above that. For year after year after year.

Now that according to the Tories the economy is broken and bankrupt, we have had interest rates below 5% for years and years, now dropping to probably 1% tomorrow.

So how would we cope? I dunno - I need to ask my Dad how he managed.

ad9898_3

I'd be pretty happy, my savings would earn a decent amount and just before the country imploded, I would change them all to Australian $ (which would have a very favourable exchange rate by then:D), get on a plane and emigrate. I owe the UK nothing, I've paid my taxes here every month since I left school, most of which have been flushed down the toilet on the scroungers and bailing out dumbasses who borrowed too much. (Nice one Gordon:rolleyes:)

As I'm planning this in the not to distant future anyway, bring it on, in fact, lets make a nice round 20%.:D

mewbie_2

As there are far more savers in the country than borrowers, yes I know its hard to believe, I suspect more people would be happy than unhappy. With the rate of interest I am getting now on a variety of savings I might as well withdraw the paper cash and use it to heat my house.

Deep_In_Debt

I actually remember when I took my mortgage out, interest rates were around that mark - I'm not that old btw, just took my mortgage out at a young age.

I couldn't afford to save as I wasn't earning a huge salary. As I'm on my own now paying the mortgage, would rather the rates stay low.

Rikki

Struggle like I did last time the rates when the rates were at 15% in the early 90's.

Edit:
Mind you then you only borrowed 2.5 times your income and and it was rare to be paying more than a third of your income on your mortgage.

Swipe

I'd open lots of savings accounts

[Deleted User]

Lets see.. my mortgage would go stratospheric, up by £2000. I certainly couldn't afford that. I'd probably sell, most likely loosing money on the house, accept the burden of a bunch of extra debt. Then i'd probably go live at my parents/grandparents.

Pretty disastrous really

abaxas

Rochdale_Pioneers wrote: »

Back when according to the Tories the country's finance was perfect we had Interest Rates steady at between 10-14%, with mortgage rates several percent above that. For year after year after year.

Now that according to the Tories the economy is broken and bankrupt, we have had interest rates below 5% for years and years, now dropping to probably 1% tomorrow.

So how would we cope? I dunno - I need to ask my Dad how he managed.

He coped with wage inflation. Ie his wages increased but the debt stayed the same.

I'd much rather pay off a loan at 10% with 10% wage inflation than the current situation is negligible increases in wages.

maninthestreet

Offset mortgage with savings the same as my outstanding mortgage - so it wouldn't bother me.