When the base rate starts to rise...

Rikki

ILW wrote: »

Thats just when I took out my forst mortgage, was a real struggle and the values dropped 25%. Most people coming into the market now cannot believe it could ever happen.

Me too.

At least the rate was high when we started so we were already budgeting for those sort of monthly out goings. I can't imagine many people able to cope with such an interest rate now. Too many have borrowed beyond their comfort zone.

My mortgage even at the rate of 15% was just over a third of my monthly income. That's why we had a low salary to lending rate and I wasn't able to get a 100% mortgage.

kborom

Rikki wrote: »

That's why we had a low salary to lending rate

Fairly simple equation isn't it. Funny how the master of prudence and the conqueror of boom and bust could not understand it.

I got my first mortgage in 85 and saw the rate rocket but could still afford the repayments as we borrowed to 2 times our joint salary, rather than the 6/7 as reported in the last few years.

michaels

I'll put money that all the SVRs that haven't followed the base rate down will follow it up...(HSBC being my particular favourite for passing on the rate cut to savers but not borrowers)

cbrpaul

HSBC are struggling abit i think , they are to lay off 1200 workers !!!

Im with First Direct a sister company of HSBC , neither have lowered their SVR,s , yet FD is still fairly low @ 3.69%