Mortgages when interest rates were high

Found 25th Oct 2017
When interest rates were relatively higher than today, say 8%, what %s were on 2 and 5 yr fixed deals at the time?

Am I mad to be thinking twice of agreeing to < 2% fix for 5 years??
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Normally banks charge 0.5-1% above base rate
Not sure on the answer to your question, however. If you're worried about stability of your mortgage payments, it would be a good time to look at fixing soon (provided you aren't already tied to a deal).
Mortgage rates are at a historic low and with the base rate looking likely to rise the best deals will likely to be pulled and increased new deals.
The rates are not likely to get any lower, I fixed for ten years before the referendum, so I'm stuck on a higher rate, but it's still ok.

All you really need to think about is can you afford the payments at that rate, no point in worrying that the rates may drop further, even if they did it would be by such a small amount it wouldn't make much difference.
I took mine out in 2009 wow the rates where high and I was only 24 years old , best thing I did as I only had to put £3k down and house prices were a lot lower then ,I 9 years my house had gone up near 30 k
Around 2008, the rates went up to around 8% and of course, those on 5 year fixed term at 3% were in a good place.
It's purely down to your preference what you do, just consider how you would feel if prices were to either go up or down over the term period.

I would say the options you have are:
1 - 5 year fixed term at ~2%
2 - < 5 year fixed term at a different rate

If the rate went up to 5% in a year, with option 1, you would be chuffed! However, if it went down to 1% how would that make you feel?

Option 2, if you're on a term for lets say, 1 year, and the rate goes up to 5% or 6% etc, again, think about the figures etc.

Personally, i always go for option 1 if the rates are right because fixing to 2% with the possibility of the rates going down to 1% isn't a horrific amount however the rates going up to 8% could be astronomical!

Hope that makes sense!
Sounds pretty good to me. Interest rates are being pressured upwards due to rising inflation, so fixing at a low rate is a good idea as well as giving you certainty of outgoings cost
The bank of England is due to increase the base rate by 0.25% within the next week or two.
Which has been increasing the lending rates for the last month or so.

Right now it can't really get much lower so if it's up for renewal I'd lock in for at least 2 years, personally I'd got for the 5 years.
Way too much uncertainty with Brexit.
Interest rates will be low for the next few years at least, any first time buyer since since 2008 have not known high rates and any increase to the pre late 2008 will have a major effect on the housing market and therefore on the economy. Back when rates were higher you needed to keep an eye on the rates and make sure you moved around or end up on higher variable rates. Best advice is to find a rate you are comfortable with paying, think of your circumstances will you want to move in a few years time and what the early repayments are in case you need to move or even if rates were to go down. Many people even when the rates reduced sat on high rates rather than paying a fee to get out even if it made financial sense to do so.

We are in the last 5 years of our mortgage got a lifetime base rate tracker at 0.79 above just as the rates fell in late 2008 was supposed to be a stop gap while waiting to see but was the best thing we ever did, only got that because of luck checked online banking and our bank had a special one day offer.
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