Renting vs mortgage

Angela_D_3

jimbog said:

theartfullodger said:

Buying is usually better then renting until interest rates shoot up.

One option to consider is a fixed rate mortgage

Interest rates i am certain never hit 17%.  14% for a couple of days before they got them under control and this was in the days where banks leant a maximum of 1/3 of your salary allowing you a cushion 

macman

I think the peak was during 1990, when they hit 15.4%.

Grumpy_chap

Angela_D_3 said:

jimbog said:

theartfullodger said:

Buying is usually better then renting until interest rates shoot up.

One option to consider is a fixed rate mortgage

Interest rates i am certain never hit 17%.  14% for a couple of days before they got them under control and this was in the days where banks leant a maximum of 1/3 of your salary allowing you a cushion 

From base rate of 14 or 15%, commercial consumer rate of 17% is plausible.

I think banks would lend 3 times salary then, not 1/3.

While the high interest rates were difficult, there was accompanying high inflation so the value of the debt reduced rapidly.

getmore4less

Grumpy_chap said:

Angela_D_3 said:

jimbog said:

theartfullodger said:

Buying is usually better then renting until interest rates shoot up.

One option to consider is a fixed rate mortgage

Interest rates i am certain never hit 17%.  14% for a couple of days before they got them under control and this was in the days where banks leant a maximum of 1/3 of your salary allowing you a cushion 

From base rate of 14 or 15%, commercial consumer rate of 17% is plausible.

I think banks would lend 3 times salary then, not 1/3.

While the high interest rates were difficult, there was accompanying high inflation so the value of the debt reduced rapidly.

While that mortgage cost went up but got inflated away with 2/3 pay rises a year..
Rents went up without that benefit.


Base rates hit 17% for over 7 months and were 14% or more for 20months