Wednesday, August 8, 2007
Size of loans make rate rise worse
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 (426 views)
3 thoughts on “Size of loans make rate rise worse”
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Orwell says:
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…
dohousescrashinthewoods says:
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.
Maddison says:
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