Haha, true but, what relevance has this statement got to our current economy. Very little if any. The last time rates were significantly higher than this was 30 years ago. A generation ago.You may wish to look up the definition of the word ‘historically’ as it’s cheap compared to historical rates, which is exactly what I said.
It’s still below the mean average rate from 1900-2008:
View attachment 88824
We’ll have to agree to disagree then buddy. I’ve spent a lifetime studying this stuff and it’s shit I know and it’s a hand grenade is a hostage situation, but literally the only way to reduce inflation is for people to stop fucking spending so that companies stop raising prices.I still think it's bullshit, for me it does more harm, especially for the average Joe Bloggs
I’m well aware of what they’re saying matey and I agree with some of their reasoning although Bluemoon won’t for a second. I still think they raised rates this time when they didn’t have to although I understand (though don’t necessarily agree) with the theory behind it.More reasoning …
"If you have wages go up by 7.7% a year, then it's rather difficult to see how you can have price inflation of only 2% a year," he says.
"Unemployment is not quite at a record low, but it's a historically low figure and that's one of the factors pushing up on wage growth,"
UK Finance said arrears and possessions are at low levels and the number of households behind on their payments this year is expected to stay at below 1% of outstanding mortgages.
Not sure why you posted that. I’ve already posted the graph where as you posted data points from year end which is like posting my graph, just with less info and making it harder to read and see the patterns."The 15% interest rate was only done momentarily to protect Sterling same as selling all the foreign reserves in 1992, it was 15% for real though at the start of that decade."
Exactly what I said. It was on its way down in 1992 and the 15% shown is 1989/90.
Bank of England base rate 1979-2017
Bank rate at year end (%)* 1979 17 1980 14 1981 14.375 1982 10 1983 9.0625 1984 9.5 1985 11.375 1986 10.875 1987 8.375 1988 12.875 1989 14.875 1990 13.875 1991 10.375 1992 6.875 1993 5.375 1994 6.125 1995 6.375 1996 5.9375 1997 7.25 1998 6.25 1999 5.5 2000 6 2001 4 2002 4 2003 3.75 2004 4.75 2005 4.5 2006 5 2007 5.5 2008 2 2009 0.5 2010 0.5 2011 0.5 2012 0.5 2013 0.5 2014 0.5 2015 0.5 2016 0.25 2017 0.5 2018 0.75 2020 0.25 2020 0.10 2021 0.25 2022 0.5 2022 0.75
It’s at the same level it was 19 years ago and it has the same relevance now that it’s always had.Haha, true but, what relevance has this statement got to our current economy. Very little if any. The last time rates were significantly higher than this was 30 years ago. A generation ago.
People got used to low interest rates and forgot this point. Those long enough in the tooth will remember the ERM shitshow in the 1990's - where mortgage rates were c.17%!!!The problem is that you think debt at 5.75% is expensive when it’s actually historically very cheap. You thought sub 2% interest would last forever (rather than it being the absolute exception that it was).
Given recent posts above I think that’s a decent deal. I am a FOC and remember fixing at 7% for 5 years thinking I’d got a great deal. Peace of mind is worth a lot.I've fixed 10 years at 4.5%
the 2 years and 5 years would have meant extra £600-700 a month
so it forced my hand.
I assumed you had misread the graph.Not sure why you posted that. I’ve already posted the graph where as you posted data points from year end which is like posting my graph, just with less info and making it harder to read and see the patterns.