Could you afford your mortgage under a Corbyn government?

vmp

I'm currently midway through a 5 year fixed rate mortgage and with the possibility of Corbyn rising to power I'm thinking about what could happen.


If we disregard Blair and Brown (generally regarded as centrist, with Thatcher describing Blair as her "greatest achievement"), the most recent Labour government was James Callaghan between 1976-1979.


During this time, the Bank of England base rate peaked at 15%.


My mortgage payments are currently about £1,400 a month.


If interest rates were at 15%, they would increase to about £3,900 a month according to the MSE mortgage rate calculator: https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator#results


Frankly, I can see no other outcome to this than my house being repossessed.


How would everyone else get along?

Thrugelmir

vmp wrote: »

I'm currently midway through a 5 year fixed rate mortgage and with the possibility of Corbyn rising to power I'm thinking about what could happen.

Is there going to be a General Election soon? Must have missed the news.

E&G

As a newcomer here I hadn't realised this board doubled up as the comments section on the Daily Mail.

If you foresee rates rising rapidly then save as much as you can to pay in at the end of your fix.

For what it's worth interest rates peaked under Thatcher and but for a short period in 87-88 didn't go below 10% until Black Wednesday in late '92. So probably a bit silly taking out a mortgage under a Tory-led government...

newatc

I think Corbyn is going to write off all mortgages as soon as he written off the tuition fees,

sandsy

Base rates tend go up when inflation is high. And when inflation is high, people demand higher pay rises. So you would generally have a higher salary to cover your increased costs.

And apart from that, the amount owing on your mortgage will reduce in real terms and your property may well increase in value.

bigstevex

No general election due

It's all relative as mentioned

Corbyn won't win he's to far left

Close thread

Crashy_Time

Trump won`t win, he`s a nutter!


Brexit won`t happen, some people in the know in Islington say it won`t!


Don`t close mind

gardner1

Comrade Corbyn.........tried and failed,yes he'll try and gloss it up that he nearly toppled TM but he still lost.Next time he will lose by a much bigger gap.....to many Tories didn't bother voting and a few voted Labour because of Brexit.
Corbyn had his chance and still blew it......he won't get a 2nd,mind you I won a fair bit on the outcome from a deluded Jezza supporter

csgohan4

if he gets rid of RTB maybe I might vote for him

bigstevex

gardner1 wrote: »

Comrade Corbyn.........tried and failed,yes he'll try and gloss it up that he nearly toppled TM but he still lost.Next time he will lose by a much bigger gap.....to many Tories didn't bother voting and a few voted Labour because of Brexit.
Corbyn had his chance and still blew it......he won't get a 2nd,mind you I won a fair bit on the outcome from a deluded Jezza supporter

Comrade Corbyn :rotfl::rotfl:

bertiewhite

If Steptoe gets into government, your home will be repossessed and re-let to a collective under his 1st 5 year plan