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How high could interest rates go?

I know that is a question nobody can answer but what rate do you think it is reasonable to use as a worse case scenario when looking at a mortgage. I have used 10% previously but obviously it has gone much higher than this in the past. Hopefully this will never happen again but I guess it could. Obviously everyone on a variable rate could find themselves unable to pay if it the rate shot up but what do people think is a sensible figure to base you budgeting on?

As I said above I used 10% previously and made sure I could carry on almost as normal, then sometimes look at 12% and see if that would be ok if I started living on tins of beans!

Comments

  • LeeSouthEast
    LeeSouthEast Posts: 3,822 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    15% is my own personal 'worst case scenario'. If the Tories get in, they'll want this to reduce the effective cost of our national debt.
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
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