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Original poster

To wonder how we managed our mortgage when interest rates were 13.6%

331 replies

BlueBloodedBlue · 28/09/2022 18:52

We bought our flat in 1990 with a mortgage rate of 13.6%

I know house prices were much lower but so were wages.

I'm obviously not minimising the current nightmare situation so many people are facing, I just don't really understand the economics so would be grateful if anyone is able to explain in simple terms please?

OP posts:
FunnysInLaJardin · 28/09/2022 23:16

VestaTilley · 28/09/2022 22:56

Please can we stop acting like it’s much harder for us now than it was in the 1980s/90s. Wages were far lower, most people had very little spare money.

Repossessions were really high then- it traumatised a generation.

It’s actually far harder nowadays for banks to repossess a house. And if millions of people can’t afford their mortgages all of a sudden they won’t make half the population homeless. Many will probably agree to holidays/adding on more years to the term, or simply recognising this is an extraordinary situation.

The situation we face is dire, but can we please end the attitude of “they had it so much easier than us when houses only cost 90p”. Because it’s bollocks.

quite! I worked for a firm of solicitors back then, only a small firm and we had one department who just did repossessions. It was awful

PigsInBlanketyBlankets · 28/09/2022 23:16

The amazing non sleeping woman 😅 they should make a documentary about you

DuesToTheDirt · 28/09/2022 23:17

mintywinter · 28/09/2022 20:41

My cousin bought in the last 5 years; a 110k house which they put down 5.5k for. Easily doable for 2 adults in their 20s. It’s a lovely 2 bed terraced house with a garden. Granted it’s on a main road but in a city and right on transport links. One of the problems amongst her friends was that they wanted their “forever” homes for their first homes; the 4/5 bed detached with the double garage. It’s a case of unrealistic expectations for many

Perhaps it depends where you live. I don't know of any houses going for 110k, that's not the norm in the UK. You talk of unrealistic expectations when all around us people can barely meet rent and bills let alone food. Having a warm home and food aren't unreasonable. There's so much 'I'm alright jack' among people, many of whom have big pensions and BTLs or big homes bought for peanuts.

Well that's nice for them. Where I live 110k would barely buy you a 1 bedroom flat in a grotty part of town.

In fact I just had a look. 820 properties for sale in my city, 12 of them at 110 or less. Those 12 are mostly retirement flats, garages, 25% shares...

meateatingveggie · 28/09/2022 23:17

PigsInBlanketyBlankets · 28/09/2022 23:14

"I just went without sleep and got on with it because we had no choice"

🤣 I was there, this is your rose tinted glasses talking. It's much harder for them now.

Went without sleep, what, every day?

I worked 2 or 3 night shifts a week opposite my DH who worked 6 day shifts. I stayed awake with the children because I had no family to help, no free childcare and we couldn't afford to pay for it, and until they started reception they were with me. It was hard.

I don't doubt it's hard now.

Please don't doubt it was hard then too.

PigsInBlanketyBlankets · 28/09/2022 23:18

@meateatingveggie I know it was hard then. I was there. It is harder now, that's a fact.

It's basic maths.

meateatingveggie · 28/09/2022 23:22

PigsInBlanketyBlankets · 28/09/2022 23:18

@meateatingveggie I know it was hard then. I was there. It is harder now, that's a fact.

It's basic maths.

Then don't patronise me with comments of rose tinted glasses. You clearly haven't worked 3 night shifts in a busy ITU and then looked after 2 pre school children with no sleep over and over again

kitcat15 · 28/09/2022 23:22

NCFT0922 · 28/09/2022 23:12

@kitcat15 there is a limit on how much you can earn to be eligible for 30 hours.

Well if you earning over the limit you can afford nursery fees🙄

FunnysInLaJardin · 28/09/2022 23:23

am slightly amused that us Gen X's are now been judged like boomers are as it was just so great in the 80's and 90's and we haven't a clue how hard it is for the youngsters now.

It just all goes around in a circle. Your time will come millennials and Gen Z's, dont worry

kitcat15 · 28/09/2022 23:23

PigsInBlanketyBlankets · 28/09/2022 23:18

@meateatingveggie I know it was hard then. I was there. It is harder now, that's a fact.

It's basic maths.

No it’s really not….it was hard then and it’s hard now…just different hard

boxybox · 28/09/2022 23:25

No it’s really not….it was hard then and it’s hard now…just different hard

well that makes sense...

kitcat15 · 28/09/2022 23:25

PigsInBlanketyBlankets · 28/09/2022 23:16

The amazing non sleeping woman 😅 they should make a documentary about you

Do you think you’re funny…cos youre fucking not 🙄

kitcat15 · 28/09/2022 23:26

boxybox · 28/09/2022 23:25

No it’s really not….it was hard then and it’s hard now…just different hard

well that makes sense...

Another fucking comedian

boxybox · 28/09/2022 23:27

Another insightful contribution to the thread 👍🏼

boxybox · 28/09/2022 23:28

The amazing non sleeping woman 😅 they should make a documentary about you

start practicing your sad face 🤣🤣

PigsInBlanketyBlankets · 28/09/2022 23:28

"Then don't patronise me with comments of rose tinted glasses. You clearly haven't worked 3 night shifts in a busy ITU and then looked after 2 pre school children with no sleep over and over again"

Ha. I've worked 7 night shifts (detailed) in what I'd argue is an equal/worse environment than that. For decades. My kids were 18 months apart in age and DH worked away in a very stressful job.

Many of our generation have rose tinted glasses because they forget everything else. That we didn't pay a fortune for food, that we earned better in relative terms, that our mortgages were somewhat affordable. That we didn't have to travel to the same extent, and if we did then it didn't cost a fortune. The list goes on

CapMarvel · 28/09/2022 23:30

Lostinabba · 28/09/2022 22:12

Sod off yourself.
You have no idea what other people's were like.

Show quote history

Yes, I do.

And - FFS - I wasn't saying it wasn't hard, you have just decided to get offended for no reason at all.

PigsInBlanketyBlankets · 28/09/2022 23:31

"Do you think you’re funny…cos youre fucking not 🙄"

Eh? 😂

ThomasinaGallico · 28/09/2022 23:40

Getting my Four Yorkshiremen bingo card ready…cardboard box…middle o’ t’road….😂

gwenneh · 29/09/2022 00:12

ThomasinaGallico · 28/09/2022 23:40

Getting my Four Yorkshiremen bingo card ready…cardboard box…middle o’ t’road….😂

LUXURY!

Itsutterlybonkers · 29/09/2022 00:13

I don't get why this would be difficult to understand It's simple maths. My ex local authority small house is 11 x my income - and national average income - and 10 x local average income.
I'm lucky to have bought a while ago. How are any of my younger colleagues meant to buy? They can't just "get on with it" they could give up Netflix or whatever and still is impossible.

My mortgage repayment is half my income. I can't afford an interest rate increase. I have no room for manoeuvre. What use is"stress testing". It was the cheapest house I could find. And rent would have been even more.

TiddyTidTwo · 29/09/2022 06:29

It was NOT harder or just as hard in the 80s/90s. I existed then too, with a mortgage.

It felt hard but it was not impossible. The situation now is impossible for many.

Like I said previously, I'm a financial adviser and it's bloody terrifying out there. Not just with mortgages. Mortgages are just a part of the whole shitshow out there.

TiddyTidTwo · 29/09/2022 06:33

"My mortgage repayment is half my income. I can't afford an interest rate increase. I have no room for manoeuvre. What use is"stress testing". It was the cheapest house I could find. And rent would have been even more."

Stress testing has its place but is basically useless when all the other factors have come into play like inflation, cost of living crisis, energy crisis, tanking pound, no wage increase, etc etc.

Lostinabba · 29/09/2022 06:41

CapMarvel · 28/09/2022 23:30

Yes, I do.

And - FFS - I wasn't saying it wasn't hard, you have just decided to get offended for no reason at all.

Show quote history

Irritated at silly sweeping statements.
Offended by being sworn at, Its the first time in over 17 years of being on here so can tick it off my my mumsnet bingo card 😂.

Lostinabba · 29/09/2022 06:42

See I am so old having lived through the 80s and 90s I can't even type properly.

TiddyTidTwo · 29/09/2022 06:44

Fast forward 25 years later, totally amazed when our daughter applied for a mortgage, no deposit needed, 100% mortgage, the lenders seemed to be throwing money at borrowers. @Thinkingblonde

Who gave her that? I'm astounded.

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