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Historic mortgage interest rates

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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50Twuncle50Twuncle Forumite
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
Does anyone know of a website that shows the interest rates payable by Woolwich mortgage customers in years gone by ?
I recall paying close to 20% on my mortgage in the late 80's ....
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  • ThrugelmirThrugelmir Forumite
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    If you look at BOE base rate and add 2% on that'll be fairly close to rates at the time.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • kingstreetkingstreet Forumite
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    1989 building societies were charging 15.4% which was lower than the BoE base rate as they were absorbing some of the costs of Nigel Lawson's "blunt instrument" treatment of the inflation he created eighteen months or more earlier.

    Other lenders without the retail deposit base charged more...

    My financial services memory doesn't really start until about 1986 when I was 20, working for Sun Alliance.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ThrugelmirThrugelmir Forumite
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    kingstreet wrote: »
    1989 building societies were charging 15.4% which was lower than the BoE base rate

    Highest base rate reached in 1989 was 13.75%.

    Historically Building Societies used to track close to BOE base +2% when setting SVR. All changed when building societies demutualised and became banks. Changing their models to relying on wholesale rather than retail funding to expand their lending books.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • Fizzy11Fizzy11 Forumite
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    These youngsters moan about 3.5% they haven't a clue what we put up with. Seemed like the rate went up month after month after month. Mortgage or food? Definitely mortgage & 1000 ways with mince.
  • 50Twuncle50Twuncle Forumite
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    kingstreet wrote: »
    1989 building societies were charging 15.4% which was lower than the BoE base rate as they were absorbing some of the costs of Nigel Lawson's "blunt instrument" treatment of the inflation he created eighteen months or more earlier.

    Other lenders without the retail deposit base charged more...

    My financial services memory doesn't really start until about 1986 when I was 20, working for Sun Alliance.



    My endowment was with Sun Alliance - they sold themselves out to Phoenix who did appalling things with MY money !!
  • kingstreetkingstreet Forumite
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    FWIW Phoenix Assurance was taken over by Sun Alliance in 1985 and the group became Sun Alliance & Phoenix.

    The firm which set itself up to "manage" old with-profit funds and legacy policies of firms no longer writing life business purchased the back book from by then Royal & Sun Alliance and decided to name it Phoenix, presumably as it somehow matched what it thought it was doing and because it had purchased the rights to use the name.

    BTW I was a broker consultant who dealt only through intermediaries and I left in January 1989.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • getmore4lessgetmore4less Forumite
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    You can't use base + 2%.

    Most lenders were doing base+<1% for quite some time, some even went base -0.x%
  • getmore4lessgetmore4less Forumite
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    Fizzy11 wrote: »
    These youngsters moan about 3.5% they haven't a clue what we put up with. Seemed like the rate went up month after month after month. Mortgage or food? Definitely mortgage & 1000 ways with mince.


    We were getting 3-4 wage increases a year in the times of high inflation, came out the other side with inflation reduced debt.
  • kingstreetkingstreet Forumite
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    Thrugelmir wrote: »
    Highest base rate reached in 1989 was 13.75%.

    Historically Building Societies used to track close to BOE base +2% when setting SVR. All changed when building societies demutualised and became banks. Changing their models to relying on wholesale rather than retail funding to expand their lending books.
    I've just been having a gander. It made 14.875% in October 1989.

    http://www.bankofengland.co.uk/boeapps/iadb/repo.asp

    I think the BS movement absorbed some of the increase by only charging 15.4% mortgage rate when others couldn't do that and mortgage rates would normally have been higher.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • 50Twuncle50Twuncle Forumite
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    kingstreet wrote: »
    I've just been having a gander. It made 14.875% in October 1989.

    http://www.bankofengland.co.uk/boeapps/iadb/repo.asp

    I think the BS movement absorbed some of the increase by only charging 15.4% mortgage rate when others couldn't do that and mortgage rates would normally have been higher.



    That makes interesting reading
    They haven't even bothered updating it since 2009 !
    I am sure that I was paying 17.5% on a fixed rate around 1988 though !!
    (I will have to check back through my records)
    !
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