There is an excellent short article by Martin Lewis at Money Saving Expert entitled A mortgage warning, take a look at the UK Interest rates’ history since 1694 he says Today’s interest rates aren’t just low, they’re not even just the historic lowest rate ever, they’re 1.5% below the prior lowest in its 316 year history!
The chart above shows what has been done to interest rates since the financial crisis in order to help out the banks. Below, interest rates since 1973. source Bank of England (archived)
Some time though, interests rates will rise, and they will rise a lot. It may be that unemployment falls and the BoE gradually eases them up, or there is a crisis of the kind which has hit so many other countries over the last few years which forces them up overnight.
What is going to happen to the housing market if interests rates suddenly treble, or quadruple?
Excellent article by Merryn Somerset Webb at Moneyweek The government is inflating a disastrous property bubble.
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