What is the highest interest rate?

onomatopoeia99

Most I've paid over the 22 years I've had mortgages has been a shade over 8%.

I remember Norman Lamont trying to keep us in the ERM and the base rate going to 15% (for a few hours though), also remember back in the early 1980s when rates were at a similar level, though on both occasions there was MIRAS that mitigated it to an extent.

I'd budget for "can just about squeak by at a rate of 10%" when taking out a mortgage now, but I'm quite cautious.

System

Well the mortgage repayment calculator I tried would only allow me to enter up to 10% and I can get by if a mortgage I took out went up to that. Hopefully it never will but better to know just in case!

Thrugelmir

When I bought my first property interest rates were a variable 10%. Three months later they rose 1%. Continuing to rise by 1% for the next 3 consecutive months to peak at 14%. Needless to say money was tight. Used to walk around Sainsburys with a calculator to add the cost of the shopping up as I was putting it in the basket. No resorting to credit back then. If you didn't have the money you bought something cheaper.

Later on remember taking a 5 year fix at 8.75%.

While the interest rates were higher.The amount borrowed was far lower. A 3% rise on a £100k plus of mortgage debt will squeeze many peoples budgets.

parking_question_chap

I think the housing market would collapse if rates ever got to 10%. I doubt the government would let that happen.