Just reminded me

Loughton_Monkey

TheBlueHorse wrote: »

Yes but this post just says it took the lender a while to get the funds. What does this tell us? Things were less efficient and didn't move as quickly in the 70's as they do now?

What do we learn from this?

Less efficient?

That's not what I hear. According to Toastie, the efficiency with which we stitched up the younger generation in, or about, the 70's was none other than superb!

ukcarper

Looking at Nationwide the larges HP1 was 1972 with an annual increase of 42% by the end of 1973 it had fallen to 24%. RPI in 1972 was 7.2% rising to 9.2% in 1973.

Pobby

The point I was making was more about the way moneney was lent. The lender had to have the funds to do it with. That made the process of course slower.

Very true about inflation also. However that was relieved by wage increases which of course helped with mortgage responsibilities.

Loughton_Monkey

Pobby wrote: »

The point I was making was more about the way moneney was lent. The lender had to have the funds to do it with. That made the process of course slower.

Very true about inflation also. However that was relieved by wage increases which of course helped with mortgage responsibilities.

The general inflation was extremely nasty and sinister for most people. Wages didn't go up quite as fast (although, as usual, I expect the statistics say they did but only because of increments and promotion rises).

In the late 70's, I was on my 3rd house - quite a decent detached one - but I felt sorry for my neighbour. Occupational Pensions in those days were not all RPI linked. He was retired and over just a few years turned from an affluent middle class retired accountant into a relatively 'poor' person with nothing like a middle class income.

But I must say that for us house owners, it was brilliant because our mortgages inflated away to nothing. I kept moving job location every two or three years and was able to double/treble my mortgage each time without it becoming a burden, until interest rates went ballistic.

Having half your income going straight out on the mortgage was common for years. People gripe about that for rents these days.

So since the early 70's, I've experienced very harsh, harsh, OK, good, and very good economic circumstances. They come. They go. Clever people adapt to them, and thrive. The difference today is that some younger people who have only experienced one 'cycle' [a bad one perhaps] whinge about it and refuse to adapt (buy a pig pen at least to get on the ladder like I did) and/or believe the world will always be that harsh when, in truth, they have probably got brilliant economic times ahead.