I bought in 1990 I think that the rate peaked at about the same time, something like 13.5 percent. The good news was that it started falling immediately after we bought. Not quite finished the mortgage but close enough that the rates don't make a lot of difference.
Finknottle Dead right. If one ever want's to find who actually own's something, stop paying for it. Instant identification.
As a savings holder with nil debt; I will be quids in. Switching off my selfish head for a moment, I realise it will be tough for the stretched to the limit home "owners". I do feel a bit sorry for them. Fair enough, they have mortgaged beyond their true means just to afford somewhere but the Building Societies have been only too keen to encourage it. In turn, though, that is a factor that's driven up prices: a self feeding debt storm.
Do bear in mind that the increase in interest rates is coming about from high inflation, which translates into wage inflation, which means that whilst the payments on a mortgage will go up, in general terms wages will go up as well. If inflation stays, a fixed debt (e.g. a mortgage) becomes easier and easier to pay off as the years go by (c.f. the seventies).
Fixed rate is the way to go that way you will be able to project6 your spend for whatever period you take it over. last fixed rate i took oout was for 4.7% and over 7 years. now looking good with the interest rate rising. only 5 years to go till mortgage is paid off, bit like serving time in the mob really!!!!!