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Debate House Prices


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if rates went up to 12%........

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Comments

  • beecher
    beecher Posts: 2,497 Forumite
    I'd have to find an extra £130/month, and that's on a mortgage of only £40,000 so a lot of people would have to find a lot more. Could do it, but wouldn't be able to save anything so unexpected bills would be a problem.

    I thought that interest rates only hit 15% for part of a day? Making sure you can cope with rates of 10% seems sensible, and isn't it strange that it doesn't seem out of the realms of possibility that it may happen, only 5 years after rates were 3.5%!
  • penguin83
    penguin83 Posts: 4,817 Forumite
    Part of the Furniture Combo Breaker
    Using the BBC Calculator our mortgage would rise from 931.00 a month to about £1550.00 a month. We could manage this rise but only if our income was to stay at the level it is now. I am a Manager in the Civil Service but OH is a self employed taxi driver and presumbly if everyone is hit by these rises people wont be spending their money on taxis! I bought my house in 2004 when I was 20 and dont remember the housing problems first time round but my parents do and were horrified at the thought that people were taking on 100% plus mortgages. We have a 90% mortgage and with overpayments early on now have a LTV of 74% (obv depends on how far house prices fall!) x x Sobering stuff
    Pay Debt by Xmas 16 - 0/12000
    There is something about the outside of a horse that is good for the inside of a man.
  • wolvoman
    wolvoman Posts: 1,183 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    m00m00 wrote: »
    I'm in the same situation, I'd personally be very okay

    but I'm altruistic enough to see the 'bigger picture'

    unlike the worst of the hpi 'junkies' who call for ever higher house prices

    Do you have a job?

    I ask because I cannot imagine anyone in gainful employment would personally benefit from interest rates at 12%.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    wolvoman wrote: »
    Do you have a job?

    I ask because I cannot imagine anyone in gainful employment would personally benefit from interest rates at 12%.

    Lots of people. Judges. Balliffs. Receivers. Insolvency practicioners.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • space_rider
    space_rider Posts: 1,741 Forumite
    I`ve checked and my payments would go up by about £400. Luckily I don`t have any other debt and I do earn more than I pay out. I`ve already begun to tighten my belt in anticipation of higher rates.
  • m00m00
    m00m00 Posts: 1,755 Forumite
    wolvoman wrote: »
    Do you have a job?

    I ask because I cannot imagine anyone in gainful employment would personally benefit from interest rates at 12%.


    nope, and I don't particularly need one.
    It's a health benefit ...
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    In seems almost heinous to admit that the global economic problems are keeping my DH's job very secure. He is busy, busy busy, and is likely to remain so. Not that we see it as desirable but its certainly a relief in this climate.
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