Comments on: Fighting the Inflation http://www.personal-finance-views.co.uk/uk_finance/ukmortgage/uk-mortgages/2008/03/18/fighting-the-inflation.html Just another WordPress weblog Mon, 01 Dec 2008 22:23:48 +0000 http://wordpress.org/?v=2.1.3 By: Troy http://www.personal-finance-views.co.uk/uk_finance/ukmortgage/uk-mortgages/2008/03/18/fighting-the-inflation.html#comment-1932 Troy Sat, 05 Apr 2008 04:16:48 +0000 http://www.personal-finance-views.co.uk/uk_finance/ukmortgage/uk-mortgages/2008/03/18/fighting-the-inflation.html#comment-1932 Three or four per cent? According to the historical data on interest rates in Britain there have been times when rates have raised more than 10 per cent!!! Take a look at historical records. In 1989 the official base rate was 15 per cent, which is about a 10 per cent increase from the current base rate. Not only that but it stayed above 10 per cent for three and a half years. I do agree with the article that inflation trends are stubborn, and base rate trends are just as stubborn, but three of four per cent? I think people should consider what would happen if rates were more than 10 per cent higher. With 30-year mortgages high interest rates are a real threat in the long term. Three or four per cent? According to the historical data on interest rates in Britain there have been times when rates have raised more than 10 per cent!!!

Take a look at historical records. In 1989 the official base rate was 15 per cent, which is about a 10 per cent increase from the current base rate.

Not only that but it stayed above 10 per cent for three and a half years.

I do agree with the article that inflation trends are stubborn, and base rate trends are just as stubborn, but three of four per cent? I think people should consider what would happen if rates were more than 10 per cent higher.

With 30-year mortgages high interest rates are a real threat in the long term.

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