Everything posted by peter
January 1978 rates 6.5% May 1988 rates 7.4% February 1979 rates 14.0% October 1989 rates 14.9% 57% in 4 years is still small compared to 100% in 1 year. And the BoE is certainly not aiming to crash the market, just squeeze it a little which it is probably managing to do.
Now that is interesting. If it is still cheaper than renting then the Landlord can still make a profit and there is no bubble. The 50 year mortgage is interesting because it is unlikely ever to be paid off so you have to pay "rent" in retirement. But not so much! There is no bubble, and if there is a crash it will be for other reasons.
I'm not an economist but read with interest what they say -- and with some confusion, for after a more or less reasoned argument there is often a sudden jump, a leap of faith, to a conclusion that makes me dizzy! So maybe someone here can help ... I understand that people when taking on debt consider mostly the monthly repayments and whether they can afford them. Are mortgages affordable on this criterion, and if they are how much more can prices rise with them still being afordable? I was looking at the interest rate data Jason kindly posted. Ok, in Jan '78 rates were 6.5%. In Feb '79 they w