OECD says UK interest rates must rise to 3.5% by 2011

abaxas

treliac wrote: »

But that was when mortgage credit was readily available. And before it became apparent that people were surviving by getting deeper and deeper into debt.... debt that large numbers of them would never be able to service unless interest rates were at rock bottom.

The industry term is 'churn'. Ie people where resold product in a year to 2 years cycle, with ever increasing debt.

If HPI is 10%+ there is no risk to the lender, all they wanted was another arrangement fee. While all the mortgage 'advisor' wanted was another comission cheque.

There is no 'churn' now.

ILW

If anyone has taken on a mortgage where a 3% rise in base is going to get them in trouble, they probably need their heads examining. Won't stop them moaning though.

stonethrower

looks as if they might rise faster than we taught


http://uk.news.yahoo.com/22/20100527/tuk-uk-britain-cameron-fa6b408.html

purch

I don't remember rates going up in the 90's

They did go from 10-12-15 and back down to 8% in one 36 hour period in 1992 :eek:

Amazing how 1 1/2 hot September days can shape peoples view of a whole decade !!!