keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 3, 2022 14:05:21 GMT
Obviously a young person doing the report as he sounded surprised that BOE interest rates are going to 0.5% " and could go as high as 1%"
some of us remember the norm being 6% or more
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agent69
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Post by agent69 on Feb 3, 2022 14:16:21 GMT
Obviously a young person doing the report as he sounded surprised that BOE interest rates are going to 0.5% " and could go as high as 1%" some of us remember the norm being 6% or more
I bought my house in the late 80's when interest rates were about 7.5%. Within 18 months the rate had gone up to 15%.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 3, 2022 14:19:33 GMT
I remember that too
I can also remember buying a house for £23000 with a £4000 deposit and being told by colleagues that on my £8000 salary I'd go broke within a year.
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james100
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Post by james100 on Feb 3, 2022 14:38:36 GMT
My 1st year of Uni (1990/1) coincided with the first year of Student Loans. These were offered on a "preferential rate" of 9.6% and we were all "very lucky" to get that. I took the max available for all 3 years and worked quite a bit too. Still remember sitting on the bus home almost in tears worrying how I could *ever* pay off my debts if I didn't get a job in the milk round process  |
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Post by captainconfident on Feb 3, 2022 17:56:25 GMT
The inflation damping effects of these paultry .25% rises will be negligable. The whole thing is still based on the wish that this inflationary burst will be temporary. If they are wrong, and wage increases start chasing the inflation rate, it's going to be a mess. We all remember when the interest rate was used to damp inflation, and it involves whole percentage rises to obtain that effect.
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registerme
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Post by registerme on Feb 3, 2022 18:00:43 GMT
The inflation damping effects of these paultry .25% rises will be negligable. The whole thing is still based on the wish that this inflationary burst will be temporary. If they are wrong, and wage increases start chasing the inflation rate, it's going to be a mess. We all remember when the interest rate was used to damp inflation, and it involves whole percentage rises to obtain that effect. Not to mention an 18 month to two year time lag.
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Post by gramsky on Feb 3, 2022 18:16:04 GMT
Obviously a young person doing the report as he sounded surprised that BOE interest rates are going to 0.5% " and could go as high as 1%" some of us remember the norm being 6% or more
I bought my house in the late 80's when interest rates were about 7.5%. Within 18 months the rate had gone up to 15%.
Arrrrr the good old days! When I bought my first property in 1980 for £21,000 with a £7000 deposit (made from trading silver which trebled in price during the 1979 Iranian revolution). Mortgage interest rates were 10.5% and at one point increased to 15.5%. But I was getting 7% in a cash ISA. Now I have no mortgage but lots of cash and having to resort to P2P lending. How I wish those days back.
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michaelc
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Post by michaelc on Feb 3, 2022 19:53:44 GMT
My 1st year of Uni (1990/1) coincided with the first year of Student Loans. These were offered on a "preferential rate" of 9.6% and we were all "very lucky" to get that. I took the max available for all 3 years and worked quite a bit too. Still remember sitting on the bus home almost in tears worrying how I could *ever* pay off my debts if I didn't get a job in the milk round process  Same year as me and I also took the max. I thought I was hard done by compared to by older brother. Little did I know how lucky I was..... Still I seem to recall the loans were given at inflation or prevailing interest rates at the time?
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james100
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Post by james100 on Feb 3, 2022 23:53:11 GMT
My 1st year of Uni (1990/1) coincided with the first year of Student Loans. These were offered on a "preferential rate" of 9.6% and we were all "very lucky" to get that. I took the max available for all 3 years and worked quite a bit too. Still remember sitting on the bus home almost in tears worrying how I could *ever* pay off my debts if I didn't get a job in the milk round process Same year as me and I also took the max. I thought I was hard done by compared to by older brother. Little did I know how lucky I was..... Still I seem to recall the loans were given at inflation or prevailing interest rates at the time? Historical BoE data shows base rates when taken approx 08 Oct 90 = 13.88%! www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
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