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Mistermeaner

Generally, and of course there will be exceptions but that is what generally implies, generally it's best to follow the majority as the government is unlikely to let the majority come a cropper in any significant way - and also as we are all in competition in various ways with each other if eg house prices fell it would on average happen to all of us so all things being approximately equal you could sell your house at reduced price and buy another (up or down size) house at equivalently reduced value. Tricky if your still mortgaged but I would expect the banks would find a way to transfer negative equity loans from one property to another so people keep moving (providing you can meet the payments which is generally a matter independent of the value of your house)

The same doesn't hold true for anyone running a property portfolio as a business who is looking to cash out of course but this is about rent or buy decisions for one's own home.

Another thought as well but a huge crash is also likely to see people just sit it out and not sell - even in probate etc. Psychologically once people think their house is worth x they are unlikely to accept less even if the market tells them to so people just don't move meaning buying opportunities are limited.

As others have pointed out I made one brief foray into the world of hpc and found a very sad and strange set of people......

chucknorris

Generali wrote: »

It was announced for the following day I believe and then as the UK pulled out of the ERM later that evening was never enacted.

I had the feeling that the base rate never did actually reach 15%, but others have told me since, that it did. So I thought perhaps that my memory was letting me down.

chucknorris

Mistermeaner wrote: »

As others have pointed out I made one brief foray into the world of hpc and found a very sad and strange set of people......

I signed up, but then quickly realised that it was a very strange place (Bear City), so I never actually posted anything or re-visited again (apart from very briefly via links from this forum).

Mistermeaner

We're a much more rounded sensible considered and polite set of people.

Generali

chucknorris wrote: »

I had the feeling that the base rate never did actually reach 15%, but others have told me since, that it did. So I thought perhaps that my memory was letting me down.

I think that it reached 14.75% at some point shortly before hand to bring down inflation to get inflation under control. I CBA to look it up but the base rate under its various guises since the C17th is available on the BoE website.

ukcarper

14.85% in October 1989

chucknorris

ukcarper wrote: »

14.85% in October 1989

We weren't talking about the highest base rate, we (or at least I) was talking about the evening that we left the ERM, which was a particularly worrying time.

A lot of younger posters tend to not appreciate when they look at historical house prices, that it was much more expensive to pay mortgage interest back in those days (as you no doubt already know).

purch

ukcarper wrote: »

14.85% in October 1989

The Base Rate was never something point 85.

It was 14 7/8 (14.875)

purch

chucknorris wrote: »

The worst part was that I was so busy at work, and I had to work late, I remember hurrying home, switching the tv on and was relieved to hear on newsnight that we had just pulled out of the ERM.

Hurrying home.....you were lucky mate.

I got a phone call at 2AM on the Monday of that week, and came into work and didn't go home until Friday afternoon. :eek:


By the way, according to the Bank of England's official rate history, the highest base rate on White Wednesday was only 12%, as all the other changes to the rate were announced after close of business, and then wiped from history when Shuffly Shoes Lamont waved the white flag and surrendered on the steps of the Treasury that evening.

chucknorris

purch wrote: »

Hurrying home.....you were lucky mate.

I got a phone call at 2AM on the Monday of that week, and came into work and didn't go home until Friday afternoon. :eek:

Sorry purch but I don't believe anyone can work that long, maybe you had some sleep time in between. My longest time at work (working continuously) was from 9 am Thursday until 6 pm Friday, and I do mean working continuously, apart from a lunch break on both days and a 30 min walk in London at about 3 am, when I just needed a break.