Wednesday, Aug 08, 2007
Size of loans make rate rise worse
smh: This will be tipping point for a lot of borrowers," he said. "It will be like hitting a panic button."
Property prices have gone up so much in the past two decades that mortgage repayments now soak up 9.5 per cent of all disposable household income compared with 6 per cent in 1989. As a community we are now forking out a much bigger proportion of our incomes to pay the interest on our mortgages than when rates were an eye-popping 17 per cent.
Posted by chris :-)) @ 06:31 PM (164 views) Add Comment
3 Comments
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1. Orwell said...
So Chris,
Who do you suspect will be next?
One of ours?
I'll give you one of ours if you give us one of yours...
2. dohousescrashinthewoods said...
9.5%, crazy. No, really, I'm SO underwhelmed.
Don't we have a shedload of people here paying more than 40% or even 50%?
Are we Brits mad? Yes, it seems we are.
3. Maddison said...
The Aussies are in a very similar position to the Brits actually so it is well worth watching closely. The interest rates just went up yesterday