9% instant access savings accounts

[Ari]

Just seen this classic advert for Leeds Liquid Gold - look at the interest rate!

https://www.youtube.com/watch?v=OfCnXLeopq4

Nineteen eighties I think. Happy days for savers!

[Ari]

10%!

https://www.youtube.com/watch?v=eanlru8HkOI

FFS.

[Ari]

Correct, and strict 3.5 times salary leading. Resulting in far far cheaper properties, keeping house prices under control and affordable. No need for Help To Buy, interest only and other nonsense in those days.

10.75% offered to savers with a bit more at the end of that second advert!

[Ari]

Cotty said:

Dr Doofenshmirtz said:

I wish we could go back to those rates!!

I wish but as someone mentioned the mortgage rates were killer. Mind you as im about to pay mine off im not that worried.

No they weren't, because houses were far cheaper so the repayments balanced out.

House prices are driven largely by what people can afford - they're constantly at the edge of affordability. Drop interest rates to the point where mortgages halve and house buyers don't end up paying half as much every month, house prices increase until those people are back at the edge of their monthly payments.

Yes, lower interest rates now, but lower payments on a house/affordability basis?

[Ari]

Sticks. said:

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

Lazy was once called prudent. But then again credit was once called borrowing.

Perfect.

[Ari]

Cotty said:

Ari said:

No they weren't, because houses were far cheaper so the repayments balanced out.

I see what you are saying but 8.6% was a killer for me when I took my mortgage out. Im not sure I could get a mortgage on my that property now, let alone pay it even at todays rates. The capital payment would cripple me without taking the interest into account.

Whereas today you'd get a nice low rate, but the actual house price (and thus repayments) would be the killer - not to mention the deposit.

Mortgages are killers for most people initially, whatever the reason. That's what I mean about being on the limit of affordability, most people with their first mortgage are on that limit. Lower the interest rate and the prices rise till they're back on the limit - hence the situation we're now in.

[Ari]

Guvernator said:

During my parents time, interest rates where consistently above 10%. My parents struggled, scrimped and saved for years to be able to buy their first house. Their mortgage was their biggest monthly outgoing\burden.

During my time interest rates have been consistently below 5%. I struggled, scrimped and saved for years to be able to buy my first house and my mortgage is my biggest monthly outgoing\burden.

I don't see that much has changed to be honest.

Precisely my point above. It's not about interest rates, it's about repayments. Lower the interest rates and property rises back to the limit of affordability.