Brace Yourself for Shocking Mortgage Rates!

Brace Yourself for Shocking Mortgage Rates!

9:02 AM, 22nd June 2023, About 8 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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Comments

Stuart Parker

7:21 AM, 24th June 2023, About 8 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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