Brace Yourself for Shocking Mortgage Rates!

Brace Yourself for Shocking Mortgage Rates!

9:02 AM, 22nd June 2023, About 10 months ago 1

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Hold onto your seats because we have a jaw-dropping revelation about mortgage rates today that will leave you stunned.

Did you know that a seemingly modest 6.43% rate offered today is equivalent to a whopping 25.7% rate back in 1980? That’s right, housing affordability has plummeted to an all-time low, and we’ve got the numbers to prove it!

Leeds Building Society has unearthed some eye-opening historical data that sheds light on the true magnitude of the mortgage crisis. Sure, 6.43% may seem like a walk in the park compared to the outrageous 15% rates in the 80’s. But hold on, there’s a crucial twist to this story. Brace yourself for this revelation: skyrocketing house prices, driven by limited supply and record-low interest rates since the 2008 financial crisis, have led to a terrifying surge in household debt. So, when we say 6.43% today, we’re talking about a mortgage rate that’s equivalent to a heart-stopping 25.7% rate from the ’80s. Unbelievable, right?

To put things into perspective, let’s take a trip down memory lane. Back in 1980, the average UK house price was a modest £21,000, and mortgage costs consumed only 11.3% of disposable income. Fast forward to today, and those figures have exploded. Prepare yourself: the average house price now hovers around a staggering £292,000, and mortgage costs devour a mind-numbing 45.1% of hard-earned income. Ouch!

Hold onto your wallets, folks, because it gets worse. Brace yourself for the most alarming truth about the current state of housing: it has become utterly unaffordable. In fact, it’s reached a historic low in terms of affordability. Today, the average home costs a mind-blowing 9.1 times the average local wage, compared to a mere 3.5 times back in 1997. That’s according to the Office for National Statistics (ONS).

So, buckle up, folks, because the mortgage rates rollercoaster is taking us on a wild ride. Brace yourself for the unexpected, and let’s hope for swift action to alleviate this housing nightmare!

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Stuart Parker

7:21 AM, 24th June 2023, About 10 months ago

Ah but in the 80's the cost of living was significantly higher, despite lower debt levels people were worse off in the 80's than they are now.

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