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[The Sheriff]

We have enjoyed(?) a base rate of 0.5% for a number of years now. Hence, supposedly cheap loans and mortgage repayments. I've seen the much higher in my time, but even I'd forgotton just how high they've been in the past.
Imagine your mortgage repayments if any of these babies reappeared:

http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp

[Varche]

Quite true , there is a whole generation of folk out there doing the borrowing to the hilt(we have all done it I guess at some time)thing blissfully unaware of the impact of a base rate of 5, 10 or 15%. Those BOE figures are always lower than the rates sprung by lenders - that is after all how they make their pound of your flesh.

I remember our first house back in the 70's. The interest rate on purchase was something like 7% within a few years it doubled to 15% and we received a letter giving us 3 options. 
1. Increase payments to about double and the loan would be paid off in the original 25 years
2. Pay about £50 a month more and it would be paid off in 40 years
3. Keep paying the same amount and it will NEVER be paid off.

We couldn't afford it but did the extra £50 ( i was on £1800p.a)
 As it turned out it didn't really matter as house prices kept increasing and so did wages. But will they this time?

[TheBoy]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.  Still, my endowment matures next year

[ronnyd]

Oh yes, i remember the good old days of my 13.5% mortgage, my eyes still water at the memory. All paid for now.

[Field Marshal Dr. Opti]

I paid 16.5% in 1989/90 because I had one of those lovely 100% mortgages.

[Field Marshal Dr. Opti]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.   

Do you know if it will pay it off?

[Field Marshal Dr. Opti]

We have enjoyed(?) a base rate of 0.5% for a number of years now. Hence, supposedly cheap loans and mortgage repayments. I've seen the much higher in my time, but even I'd forgotton just how high they've been in the past.
Imagine your mortgage repayments if any of these babies reappeared:

http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp

Yet most banks(crooks) will charge about 5-6%.

Base rate and the mortgage rate used to be within 1% of each other. Pity the poor banker trying to earn a crust.

[TheBoy]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.   

Do you know if it will pay it off?

I've no longer got that mortgage. But kept the endowment going, as it wasn't worth cashing it it.

But, no, it wouldn't have paid off the mortgage it was designed to cover.

[Olympia5776]

I bought my first house in September 1978 and can still remember the real pain and stress that hit us in November 1979 , that was a rude awakening as to the joys of house ownership.

Thankfully due to a swift buy ,modernise and sell period in the mid to late nineties  ( 5 houses ) we last paid a mortgage in 2004 , but don't talk to me about savings 
Re endowments , I paid two for 25 years one came in with a nice little profit whereas the Standard Life one gave me back more or less exactly what was paid in . I have much regret when I think of that wasteful company .

[Rods2]

If things continue as they are with energy prices dropping further or even staying as they are, I can't see rates going up at least in the first half of 2015 and probably not at all in 2015. The only thing that might change that is if the dollar really strengthens much more quickly this year, against most other currencies, including GBP, which is quite possible.

Squeaky bum time for all those developing nations like India, Brazil, Indonesia, Russia, Venezuela etc, where they have dollar denominated loans and trade in a collapsing local currency,  and double squeaky bum time if they rely on energy exports. IMO it couldn't happen to two more deserving presidents than those of Russia and Venezuela. 

Russia has officially about $390bn of foreign currency reserves left, unofficially there are quotes as low as $200bn, so it is probable somewhere between these figures. Even if we take the higher one, Russia is burning through at least $10bn a week trying to prop up its currency ($23bn in the last 2 weeks). If things carry on as they are, this means Q4 of 2015 is going a very interesting one for Putin. Where his inner circle consists mainly of GRU / FSB buddies, who tell him what he wants to hear and where he is meant to hate economics and central bank officials struggle to get an audience with him, I think that may change out of necessity soon.  Russian industry also owes $125bn in loan and bond repayments in 2015, which can't easily be extended where sanctions have essentially closed their access to capital markets.

[Field Marshal Dr. Opti]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.   

Do you know if it will pay it off?

I've no longer got that mortgage. But kept the endowment going, as it wasn't worth cashing it it.

But, no, it wouldn't have paid off the mortgage it was designed to cover.


 

Our endowment needed to cover the relatively paltry figure of £41,000. This should have been piss easy. After all, we paid in almost £15000 over a 25 year period so were expecting the initial £41000 to be easily covered. Cashback time we thought.

Wrong.

With just a few year to go we were told the policy was only worth about £6000.....leaving us about £35000 short. 

Not to worry......I'm such that all the greedy inept fund managers who 'professionally' invested our money all took a huge slice of the pie.


 

 

[Olympia5776]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.   

Do you know if it will pay it off?

I've no longer got that mortgage. But kept the endowment going, as it wasn't worth cashing it it.



But, no, it wouldn't have paid off the mortgage it was designed to cover.


 

Our endowment needed to cover the relatively paltry figure of £41,000. This should have been piss easy. After all, we paid in almost £15000 over a 25 year period so were expecting the initial £41000 to be easily covered. Cashback time we thought.

Wrong.

With just a few year to go we were told the policy was only worth about £6000.....leaving us about £35000 short. 

Not to worry......I'm such that all the greedy inept fund managers who 'professionally' invested our money all took a huge slice of the pie.

The company I worked for prior to leaving and coming over here transferred it's company pension scheme to Standard life just before I left . I'll always remember the day that SL were coming to give a presentation to the assembled workforce to persuade them to stay with them and not opt out.
Four ,yes four , "executive's" arrived almost simultaneously and parked there silver C and E class Mercs in a line next to each other in the visitors car park right in front of the room being used for the presentation .........

[Vamps]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.   

Do you know if it will pay it off?

I've no longer got that mortgage. But kept the endowment going, as it wasn't worth cashing it it.

But, no, it wouldn't have paid off the mortgage it was designed to cover.


 

Our endowment needed to cover the relatively paltry figure of £41,000. This should have been piss easy. After all, we paid in almost £15000 over a 25 year period so were expecting the initial £41000 to be easily covered. Cashback time we thought.

Wrong.

With just a few year to go we were told the policy was only worth about £6000.....leaving us about £35000 short. 

Not to worry......I'm such that all the greedy inept fund managers who 'professionally' invested our money all took a huge slice of the pie.

Yes, they were 'dark times'..............

[Field Marshal Dr. Opti]

I bought my first gaff in 1991...   ...and could only afford interest only mortgage.   

Do you know if it will pay it off?

I've no longer got that mortgage. But kept the endowment going, as it wasn't worth cashing it it.

But, no, it wouldn't have paid off the mortgage it was designed to cover.


 

Our endowment needed to cover the relatively paltry figure of £41,000. This should have been piss easy. After all, we paid in almost £15000 over a 25 year period so were expecting the initial £41000 to be easily covered. Cashback time we thought.

Wrong.

With just a few year to go we were told the policy was only worth about £6000.....leaving us about £35000 short. 

Not to worry......I'm such that all the greedy inept fund managers who 'professionally' invested our money all took a huge slice of the pie.

Yes, they were 'dark times'..............

Agreed, Mr Vamps. Many beside myself were caught out by the 'endowment trap'.

All that glisters is not gold.

[Kevin Wood]

All that glisters is not gold.

Quite the contrary. Sounds like something you'd be best off going to see the quack about, TBH.