Re:When George Soros Broke the British Pound (2014)
by tomatocracy on Tuesday November 05, 2019 @06:51PM
(#21458220)
Rates going from 10% to 15% means an average monthly payment on a repayment mortgage with 15 years left to run would have increased by nearly 30% overnight (assuming mortgages at 2% above base rate). This was announced in the jaws of the early 90s recession.
To put that in context - today the GBP bank rate is 0.75% and the average mortgage rate is probably c.1% above that. The base rate would have to rise to more than 5% to get the same size effect on the monthly cost of a repayment mortgage with c.15 years left to run.
To put that in context - today the GBP bank rate is 0.75% and the average mortgage rate is probably c.1% above that. The base rate would have to rise to more than 5% to get the same size effect on the monthly cost of a repayment mortgage with c.15 years left to run.