The average mortgage debt level is significantly higher today than in 1990 when it stood at £35,000 compared to £120,400 today. Property repossessions are also higher than they were 22 years ago (43,900 compared to £36,200), while the unemployment rate stands at 8.4 per cent opposed to 6.9 per cent.
But it is not as bad as it sounds; Peter Dockar, head of mortgages at HSBC said: "The evidence suggests in many ways we are now better off than in the last downturn of the early 1990s.
“Inflation is half what it was then while the bank rate is a thirtieth lower, meaning borrowing is far more affordable.
"It is unlikely we will ever see rates peak as high as they did in 1990 in our lifetimes, however, there is no doubt that rates can only go one way from their historic low in future so it is essential that borrowers are prepared financially for future fluctuations in the cost of borrowing."
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