miko Posted February 20, 2011 Share Posted February 20, 2011 Talking on the 90's recession thread I said that mortgage interest rates hit 15% between October 1989 and October 1990 . Another poster dissputes this saying the most they hit was 10% . He maintains that they only ever hit 15% for half a day in 1992 when we pulled out of the ERM . I have checked on the net today ( but computer will not let me pull a link through ) . They were 15% . Can anyone else on here that remembers that time confirm this please. Quote Link to comment Share on other sites More sharing options...
caparn Posted February 20, 2011 Share Posted February 20, 2011 Are you talking about black Wednesday in 1992 when George Soros was shorting the pound and the Norman Lamont was attempting (badly) to prop it up? http://en.wikipedia.org/wiki/Black_Wednesday Quote Link to comment Share on other sites More sharing options...
tim123 Posted February 20, 2011 Share Posted February 20, 2011 Talking on the 90's recession thread I said that mortgage interest rates hit 15% between October 1989 and October 1990 . Another poster dissputes this saying the most they hit was 10% . He maintains that they only ever hit 15% for half a day in 1992 when we pulled out of the ERM . I have checked on the net today ( but computer will not let me pull a link through ) . They were 15% . Can anyone else on here that remembers that time confirm this please. No they didn't. It's a urban myth. The Base rate did got to 15% but it was for such a short period that no bank got around to adjusting their mortgage rate before it went back down again. Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted February 20, 2011 Share Posted February 20, 2011 I am certain that they did from memory the mortgage SVR was about 14.75% for three months. The bank base rate was lower though so you should clarify this as well. Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted February 20, 2011 Share Posted February 20, 2011 http://www.thehanley.co.uk/standard-variable-interest-rate-history_297.html Here is the Hanley BS SVR and they were 15.15% in March 1990 Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted February 20, 2011 Share Posted February 20, 2011 The maximum bank rate was 14.25% . Quote Link to comment Share on other sites More sharing options...
miko Posted February 20, 2011 Author Share Posted February 20, 2011 Are you talking about black Wednesday in 1992 when George Soros was shorting the pound and the Norman Lamont was attempting (badly) to prop it up? http://en.wikipedia.org/wiki/Black_Wednesday No 1989-1990 Quote Link to comment Share on other sites More sharing options...
miko Posted February 20, 2011 Author Share Posted February 20, 2011 http://www.thehanley.co.uk/standard-variable-interest-rate-history_297.html Here is the Hanley BS SVR and they were 15.15% in March 1990 Thanks and proof to go with it. Quote Link to comment Share on other sites More sharing options...
miko Posted February 20, 2011 Author Share Posted February 20, 2011 No they didn't. It's a urban myth. The Base rate did got to 15% but it was for such a short period that no bank got around to adjusting their mortgage rate before it went back down again. No thats 1992 your talking about . Im talking about 1989-1990. Quote Link to comment Share on other sites More sharing options...
SleepyHead Posted February 20, 2011 Share Posted February 20, 2011 (edited) Interest Rates were raised to 10% then 12% on Black Wednesday, they then in panic stated IRs would be raised to 15%. But it was all over before that. Good clip of Marr on Major, Hurd, Lamont, Heseltine, Clarke etc................ and Cameron in the background. Edited February 20, 2011 by worst time buyer Quote Link to comment Share on other sites More sharing options...
juvenal Posted February 20, 2011 Share Posted February 20, 2011 (edited) Talking on the 90's recession thread I said that mortgage interest rates hit 15% between October 1989 and October 1990 . Another poster dissputes this saying the most they hit was 10% . He maintains that they only ever hit 15% for half a day in 1992 when we pulled out of the ERM . I have checked on the net today ( but computer will not let me pull a link through ) . They were 15% . Can anyone else on here that remembers that time confirm this please. You are correct, unless my addition is at fault... Mortgage rates movements on a mortgage over that period: Mortgage loans made by Leamington Spa Building Soc, later absorbed by Bradford and Bingley. March 1978 bought house in Leamington Spa. Three bed unmodernised Victorian terrace in quiet street, 5mins from town centre for £6500, obtained £5000 mortgage at 9.25% Rate increased in June 78 by 1.25% Rate increased in November 1978 by .75% Rate increased in Jan 1979 by 2% Rate increased in Jan 1980 by 2.5% 1980 December sold improved house for £17,750 1980 December bought replacement house , three miles outside Warwick. One of a pair of derelict three bed , cottages in open countryside, with decent-sized garden and outbuilding. Cost £22,000 with a mortgage of £10,300 at 14.75% Jan 1981 rate reduced by 1% Mar 1981 rate reduced by 1% Nov 1981 rate increased by 2% Apr 1982 rate reduced by 1.50% December 1982 rate reduced by 2% July 1983 rate increased by 1.5% April 1984 rate reduced by 1% August 1984 rate increased by 2.25% Oct 1984 rate increased by 0.5% Jan 1985 rate reduced by 1% Feb 1985 rate increased by 1% April 1985 rate increased by 1% Sept 1985 rate reduced by 1.25% May 1986 rate reduced by 0.75% July 1986 rate reduced by 1% Nov 1986 rate increased by 1.25% May 1987 rate reduced by 1% Aug 1988 rate increased by 1.5% Sept 1988 rate increased by 1.25% Jan 1989 rate increased by 0.70% Nov 1989 rate increased by 1% Mar 1990 rate increased by 0.90% Nov 1990 rate reduced by 0.90% Apr 1991 rate reduced by 0.75% May 1991 rate reduced by 0.80% July 1991 rate reduced by 0.50% Sept 1991 rate reduced by 0.50% Oct 1991 rate reduced by 0.40% Jan 1993 a rate reduction to 9.25% Sept 1993 house sold for £85,000, much improved and extended I have documents for all these figures. Edited February 20, 2011 by juvenal Quote Link to comment Share on other sites More sharing options...
South Lorne Posted February 20, 2011 Share Posted February 20, 2011 ...went to a base rate of 17% in 1979....!..... Mon, 09 Nov 1981 14.63 Fri, 06 Nov 1981 15.06 Wed, 28 Oct 1981 15.13 Mon, 12 Oct 1981 15.00 Tue, 15 Sep 1981 14.00 Tue, 25 Aug 1981 12.69 Wed, 11 Mar 1981 12.00 Tue, 25 Nov 1980 14.00 Thu, 03 Jul 1980 16.00 Thu, 15 Nov 1979 17.00 Wed, 13 Jun 1979 14.00 Thu, 05 Apr 1979 12.00 Thu, 01 Mar 1979 13.00 http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp Quote Link to comment Share on other sites More sharing options...
tahoma Posted February 20, 2011 Share Posted February 20, 2011 I would rather be paying 15% on £40K than 7% on £200K. Maybe it's just me. The sheer, mono-iterative stupidity of the bulk of people staggers me. By mono-iterative I mean people who quickly reach a stupid conclusion and refuse to think further, to analyse their initial result and maybe reconsider their initial assumptions. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted February 20, 2011 Share Posted February 20, 2011 I would rather be paying 15% on £40K than 7% on £200K. Maybe it's just me. The sheer, mono-iterative stupidity of the bulk of people staggers me. By mono-iterative I mean people who quickly reach a stupid conclusion and refuse to think further, to analyse their initial result and maybe reconsider their initial assumptions. ...if interest rates were 15% today...maybe that house would be £40,000.... Quote Link to comment Share on other sites More sharing options...
miko Posted February 20, 2011 Author Share Posted February 20, 2011 (edited) I would rather be paying 15% on £40K than 7% on £200K. Maybe it's just me. Similar to the coversations I have had with people on house prices and interest rates . Have been told many times by people that mortgage rates are only 5% so even if they go up it will not be a lot and I try and point out that a mortgage rate going from 5 -6% is an increase in interest costs of 20%. I try and explain that that is the same as them going from something like 12% to 15% in the last crash minus miras that we had back then , the extra cost put about 20% on the mortgage which threw the market . I also try and explain that back then people had only borrowed 2.5 - 3x salary not the 5+x people have today . It often falls on deaf ears and they repeat INTEREST RATES ARE LOW. Edited February 20, 2011 by miko Quote Link to comment Share on other sites More sharing options...
miko Posted February 20, 2011 Author Share Posted February 20, 2011 http://www.housepricecrash.co.uk/forum/index.php?showtopic=159289&st=15&p=2890537entry2890537 hotairmail got these mortgage rate figures for me Thankyou. Confirmed Quote Link to comment Share on other sites More sharing options...
South Lorne Posted February 20, 2011 Share Posted February 20, 2011 They were at 15.4% in 1990 ...that may have been a mortgage rate ...but not base rate.... Wed, 27 Feb 1991 12.88 Wed, 13 Feb 1991 13.38 Mon, 08 Oct 1990 13.88 Fri, 06 Oct 1989 14.88 Fri, 08 Sep 1989 13.75 Mon, 04 Sep 1989 13.88 Thu, 31 Aug 1989 13.84 Quote Link to comment Share on other sites More sharing options...
miko Posted February 20, 2011 Author Share Posted February 20, 2011 ...that may have been a mortgage rate ...but not base rate.... Wed, 27 Feb 1991 12.88 Wed, 13 Feb 1991 13.38 Mon, 08 Oct 1990 13.88 Fri, 06 Oct 1989 14.88 Fri, 08 Sep 1989 13.75 Mon, 04 Sep 1989 13.88 Thu, 31 Aug 1989 13.84 Well by the figures you have given you must have checked the same place as me and the base rate was 14.88% 15% give or take a 0.1 odd . The general SVR for mortgages was very close to the base rate and as another poster confirmed was 15.4% . which was 1989-1990 and not just for the day in 1992 which the poster and myself were dissputing in the other thread , thanks for your help . I did think at one point that my recall of working in the Halifax back then might have been playing tricks on me. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted February 20, 2011 Share Posted February 20, 2011 Well by the figures you have given you must have checked the same place as me and the base rate was 14.88% 15% give or take a 0.1 odd . The general SVR for mortgages was very close to the base rate and as another poster confirmed was 15.4% . which was 1989-1990 and not just for the day in 1992 which the poster and myself were dissputing in the other thread , thanks for your help . I did think at one point that my recall of working in the Halifax back then might have been playing tricks on me. ...it would be the same place ...the Bank of England.....I quoted the link in my last but one post on this thread... ...repeated .. http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp Quote Link to comment Share on other sites More sharing options...
tallguy Posted February 20, 2011 Share Posted February 20, 2011 (edited) Talking on the 90's recession thread I said that mortgage interest rates hit 15% between October 1989 and October 1990 . Another poster dissputes this saying the most they hit was 10% . He maintains that they only ever hit 15% for half a day in 1992 when we pulled out of the ERM . I have checked on the net today ( but computer will not let me pull a link through ) . They were 15% . Can anyone else on here that remembers that time confirm this please. I remember them hitting 17 percent very briefly. But maybe that was mortgage rate as opposed to base rate Edited February 20, 2011 by tallguy Quote Link to comment Share on other sites More sharing options...
South Lorne Posted February 20, 2011 Share Posted February 20, 2011 I remember them hitting 17 percent very briefly. But maybe that was mortgage rate as opposed to base rate ...1979...see my previous post ... Quote Link to comment Share on other sites More sharing options...
tahoma Posted February 20, 2011 Share Posted February 20, 2011 It often falls on deaf ears and they repeat INTEREST RATES ARE LOW. I can't hear those words in my head without them being spoken with the voice of Gordon Brown - the horrible, horrible f*cking b*stard. Quote Link to comment Share on other sites More sharing options...
nickincash Posted February 21, 2011 Share Posted February 21, 2011 I was paying a mortgage rate of 15% at around that time. On a mortgage of £25k it wasn't a problem. Quote Link to comment Share on other sites More sharing options...
PopGun Posted February 21, 2011 Share Posted February 21, 2011 I would rather be paying 15% on £40K than 7% on £200K. Maybe it's just me. What do you think a ponzi looks like exactly?!? Quote Link to comment Share on other sites More sharing options...
winkie Posted February 21, 2011 Share Posted February 21, 2011 here is a comparison of base rate and mortgage rate http://www.moneyextra.com/dictionary/interest-rate-history-003455.html ....the margins were 1% to 2%, the difference between the two rates......very different today more like 3% or 4%. So who is benefiting from 0.5% interest rates? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.