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Interest Rates set to keep rising?
Comments
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Iwantmorecash wrote:Most Mortgagaes Now Are 90%plus In Te Eightys Thsy Were Alot Less
Not sure where that one came from, you only had a lower %age if you had a bigger deposit. Most FTB in the 80's had a 90 or 95% mortgage, we had to pay an indemnity to get 95% on our £8500 mortgage, the interest rate was 10% and the highest ours went was 15%.
Having said that we got MIRAS for a while until it was scrapped so that brought the payment down.0 -
nearlyrich wrote:Not sure where that one came from, you only had a lower %age if you had a bigger deposit. Most FTB in the 80's had a 90 or 95% mortgage, we had to pay an indemnity to get 95% on our £8500 mortgage, the interest rate was 10% and the highest ours went was 15%.
Having said that we got MIRAS for a while until it was scrapped so that brought the payment down.
Yes, but what myself and the other poster is saying is, a percentage hike on £8500 (although wages were a lot lower) is not quite the same as a percentage hike on say £160,000.
Wages as we all know have NOT risen in line with everything else, in fact they are falling behind year after year while everything goes up more than your pay, especially if your on a lower wage to start with.0 -
Graham_Devon wrote:Yes and for that reason, even though they were extremely tough times in the 80's I don't think it will ever get that high again. They would be creating too much bad debt for themselves, people would be going bankrupt left right and centre.
Then you choose the road of the seventies. Where an unwillingness to bite the bullet leads to rather a nice demand for candles.
Well, that's assuming the choice can be made. History has caught up with us I fear."Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
"We were born and raised in a summer haze." Adele 'Someone like you.'
"Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky." OMD 'Julia's Song'0 -
I was a first time buyer in 1992 - I had only had my house a few months (on a fixed rate thankfully) when interest rates went from 10% to 15% in a day! :eek: I remember at work people wandered round in a daze saying they were going to lose their homes. In the end they reversed the 15% rise (it ended up at 12% I think) but it makes 4.75% still seem like a good deal - though it is scary how much that will add to the mortgage!Highest Debt (July 06): £55117.79 Debt now: £52895.44 Debt Free Date: June 20100
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On the threads on the other forums about the % rise there was this link which apparently is reasonably good:
http://members.cox.net/dmrc/InterestRates/UK_Rates.htmStill wish I could buy a TARDIS instead of a house!0
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