Are interest rates high right now?

davidla

Let's say that for someone who has 15% deposit and can afford 3x multiple the average fixed mortgage rate right now is 5.5-6%.
18 months ago it was around 5%.
How do the present interest rates compare with the last 20 years? Are they still lower than the (rough) average?
I'm just curious as to whether the "higher" rates now are really high or just high compared to the last few years?
Thanks,
David

dulux72

http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

This shows BBR which should give you an idea

davidla

Oh, thanks for that. I had tried googling the info but couldn't get it.
Cheers,
David

sarkin

I believe the long term average is around 7.5%, which is why everyone locked into the 10 year fixes at 4.99% over the last 2 years.

aah

i remember mortgages at 15 - 17% in the late 80's. Enormously expensive. But house prices were a lot lower than now and salaries, although certainly lower, were not proportionately lower; if this makes sense.

So I think borrowing is still cheap, it just doesnt feel that way

Gorgeous_George

I remember paying 16.5% but after MIRAS, it was 11%.

I'd say 6% is low but house prices are barking so low rates are scant compensation for buyers.

GG