interestrateripoff Posted March 27, 2011 Share Posted March 27, 2011 http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/8407278/Alastair-Stewart-Our-mortgage-took-90pc-of-our-income.html Was there ever a time when you were skint or wondered how you were going to make ends meet?When Nigel Lawson was chasing the deutschmark and drove interest rates down to a historic low in the late Eighties, I did our sums and borrowed the largest amount I could, at the lowest possible interest rate, to buy our family home in Hampshire. Within a year Lawson's bubble had burst and my wife and I were spending 90pc of our disposable income on our mortgage payments. I genuinely thought we were going to lose it all. Interest rates hit upwards of 11pc. We cut our expenses right back and hoped interest rates would drop back down to 5pc or 6pc. I remember with clarity how worrying it was. My wife was working as a technician in television and I was about seven years into an ITN career that was going well, so we were both earning good money. We just had to knuckle down and have faith that things would get better. Having studied economics at university, I knew things would right themselves eventually, but it took a good deal longer than I thought it would. Thatcher had caught Lawson out red-handed, but we knew our hard work would keep us from going under. If interest rates move upwards I wonder how many people will find themselves in a similar position. However I bet having 10% of your income left if your on his income won't have been too hard. Only having 10% left of median wage now that would be impossible. Quote Link to comment Share on other sites More sharing options...
200p Posted March 27, 2011 Share Posted March 27, 2011 Having studied economics at university, Hmm you can be a student of economics. But it's clearly a different matter to become a master! Quote Link to comment Share on other sites More sharing options...
South Lorne Posted March 27, 2011 Share Posted March 27, 2011 Having studied economics at university, Hmm you can be a student of economics. But it's clearly a different matter to become a master! ...economics is art not a science....what AS did in the 80's was emulated by many who suffered in the early 90's ...and many lost their homes to the high IRs when base was around 15%.... Quote Link to comment Share on other sites More sharing options...
_w_ Posted March 27, 2011 Share Posted March 27, 2011 http://www.telegraph...our-income.html If interest rates move upwards I wonder how many people will find themselves in a similar position. However I bet having 10% of your income left if your on his income won't have been too hard. Only having 10% left of median wage now that would be impossible. When he borrowed as much as he could base rates weren't at 0.5%. For the benefit of readers should he have mentioned that this time things will not 'right themselves' as IRs can only go up from here? Quote Link to comment Share on other sites More sharing options...
neon tetra Posted March 27, 2011 Share Posted March 27, 2011 ...economics is art not a science....what AS did in the 80's was emulated by many who suffered in the early 90's ...and many lost their homes to the high IRs when base was around 15%.... "It's only when the tide goes out that you see who's been swimming naked..." - Warren Buffet. Quote Link to comment Share on other sites More sharing options...
miko Posted March 27, 2011 Share Posted March 27, 2011 Back then things were very grim , there were many people in dire straights . However it was only for a few years by 1991 IR were on their way down and by 1992 when we withdrew from the ERM they fell very quickly to lows we had not seen for years. Also during that time people got very good pay rises ( i got 10% 1990 and most big firms gave the same ) . Those that could hold on were out of the woods by 1992 , their house might have dropped in price but the repayments against wages had fallen drastically. This time around even with very low IR people are struggling if and when they rise with wages being cut or at best not keeping up with increases in other basic costs it is going to be a very different story. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted March 27, 2011 Share Posted March 27, 2011 economics is art not a science That can't be true- I've seen pictures of Ben Bernanke standing at a blackboard with equations on it- really long ones with lots of brackets and stuff. Don't tell me he just made that sh*t up Quote Link to comment Share on other sites More sharing options...
Kilham Posted March 28, 2011 Share Posted March 28, 2011 That can't be true- I've seen pictures of Ben Bernanke standing at a blackboard with equations on it- really long ones with lots of brackets and stuff. Don't tell me he just made that sh*t up All I've ever seen on Ben's blackboard is 10 Print 20 Goto 10 Quote Link to comment Share on other sites More sharing options...
SNACR Posted March 28, 2011 Share Posted March 28, 2011 That can't be true- I've seen pictures of Ben Bernanke standing at a blackboard with equations on it- really long ones with lots of brackets and stuff. Don't tell me he just made that sh*t up Quote Link to comment Share on other sites More sharing options...
Dave Spart Posted March 28, 2011 Share Posted March 28, 2011 (edited) When Nigel Lawson was chasing the deutschmark Yesterday morning about 11:30, stood at some traffic lights in Singapore, I looked up and saw a dragon in the sky. For real. Well, one formed by clouds anyway. I was so staggered at what I saw I took a photo and have shown it to colleagues at worked all whom were shocked by the likeness. When I saw this extraordinary site I wanted to get a better picture so, yep, you guessed it, I went chasing the dragon, if you'll forgive the pun. I'll post the photo later just to show you this wasn't some BS attention-seeking hallucination. Sometimes things are just weird. Edited March 28, 2011 by Dave Spart Quote Link to comment Share on other sites More sharing options...
luigi Posted March 28, 2011 Share Posted March 28, 2011 there were many people in dire straights Money for nothing...and your chicks for free??? But seriously, I remember my dad was pretty much wiped out by double-digit IRs in the early 90s, the experience has made me want to fix ever since I've had a mortgage!! Quote Link to comment Share on other sites More sharing options...
mikthe20 Posted March 28, 2011 Share Posted March 28, 2011 That can't be true- I've seen pictures of Ben Bernanke standing at a blackboard with equations on it- really long ones with lots of brackets and stuff. Don't tell me he just made that sh*t up No, he couldn't have. He even used those brackets that look like tits from the side: { } Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted March 28, 2011 Share Posted March 28, 2011 when base was around 15%.... For all of, what, one afternoon? Quote Link to comment Share on other sites More sharing options...
exiges Posted March 28, 2011 Share Posted March 28, 2011 The other 10% went on booze http://www.telegraph.co.uk/news/uknews/1434592/Alastair-Stewart-gets-drink-driving-ban.html Quote Link to comment Share on other sites More sharing options...
Thunderbird 900 Posted March 28, 2011 Share Posted March 28, 2011 Lets all feel sorry for Alistair Stewart. When not fronting ITN News he used to present Police Stop...now repeating on ITV 4. That was until 2007 when it finally dawned on the idiot producers of this show that a TWICE convicted drunk driver was probably not the right person to wag his finger at the viewer and patronisingly lecture us on safe driving. 2nd July 2003 Alastair Stewart, the newsreader and presenter of Police, Camera, Action, was banned from the road and fined £2,000 yesterday after his second conviction for drink-driving. Magistrates were told that Stewart, who was almost three times over the drink-drive limit when arrested last month, had been dropped from the ITV programme, which features video footage of criminal activity on the roads http://www.telegraph.co.uk/news/uknews/1434592/Alastair-Stewart-gets-drink-driving-ban.html I await with anticipation for when Ronnie Biggs is invited to present Crimewatch. Quote Link to comment Share on other sites More sharing options...
mrtickle Posted March 30, 2011 Share Posted March 30, 2011 Lets all feel sorry for Alistair Stewart. When not fronting ITN News he used to present Police Stop...now repeating on ITV 4. That was until 2007 when it finally dawned on the idiot producers of this show that a TWICE convicted drunk driver was probably not the right person to wag his finger at the viewer and patronisingly lecture us on safe driving. Exactly - the fact that he wasn't sacked after the FIRST conviction is what I find the most galling. So please, I always try to use his full name - "the disgraced Alistair Stewart". (And rumoured to be one of the inspirations for Alan Partridge). Yet he bizarrely is held in such high regard by ITV that he was the moderator of the ITV General Election leader's debate last year. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted March 30, 2011 Share Posted March 30, 2011 Exactly - the fact that he wasn't sacked after the FIRST conviction is what I find the most galling. So please, I always try to use his full name - "the disgraced Alistair Stewart". (And rumoured to be one of the inspirations for Alan Partridge). Yet he bizarrely is held in such high regard by ITV that he was the moderator of the ITV General Election leader's debate last year. ...yeh ..yeh...we are not here to judge peoples ailments and the holier than thou brigade may live in glass houses...stick to the thread subject ...it enlightens how many people pushed the boat out to buy in the days gone by ....but the problem for today is inflation in the old days included wages / salaries...not the case today ....HPI was pretty well guaranteed in the past....not today.....more like HPC guarantee.... therefore this is the time not to buy at all and certainly no pushing boats out........ Quote Link to comment Share on other sites More sharing options...
Cinzano Bianco Posted March 31, 2011 Share Posted March 31, 2011 (edited) http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/8407278/Alastair-Stewart-Our-mortgage-took-90pc-of-our-income.html If interest rates move upwards I wonder how many people will find themselves in a similar position. However I bet having 10% of your income left if your on his income won't have been too hard. Only having 10% left of median wage now that would be impossible. I wonder what the point of this headline is... Is it to inform the mouthbreathers that paying crazy amounts for your mortgage is fine? Edited March 31, 2011 by the.ciscokid Quote Link to comment Share on other sites More sharing options...
nice tuna sandwich Posted March 31, 2011 Share Posted March 31, 2011 http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/8407278/Alastair-Stewart-Our-mortgage-took-90pc-of-our-income.html "there was simply nothing left for orthodontics" Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted March 31, 2011 Share Posted March 31, 2011 What an @rsehole. Quote Link to comment Share on other sites More sharing options...
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