Redwurzel
Well-known member
In 1988 the house/income price ratio nationally rose to 5 - houses were not cheap, but not the 9 they are now - on Teesside the ratio will be about 6 to 7. Mortgage interest rates were 11.5% MIRAS was around in 1988 but I think it ended in 1995. Stamp Duty was paid on the full value of a property if it cost £30k or more.
Bottom was it just as tough in the late 1980s as it is now to pay the mortgage. I get the impression a lot of young people get family help now, while in the late 1980s it was much rarer to get family help.
Ref should I fix at say 5.6% - I would say yes for 2 years.
I expect B of E rates to rise to at least 5.5% and mortgages to around 7% by mid 2023.
How can inflation of 10% come down if interest rates don't rise by a significant amount.
Bottom was it just as tough in the late 1980s as it is now to pay the mortgage. I get the impression a lot of young people get family help now, while in the late 1980s it was much rarer to get family help.
Ref should I fix at say 5.6% - I would say yes for 2 years.
I expect B of E rates to rise to at least 5.5% and mortgages to around 7% by mid 2023.
How can inflation of 10% come down if interest rates don't rise by a significant amount.