moneygrower
Registered User
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- 630
Hi, I was talking to a man who's been around the block a bit longer than me about selling up, renting and waiting for prices to come down. He said that in 1979/80 when prices came down the banks introduced a two tier interest rate system whereby if you already owned your house your interest rate went up slightly but if you were buying into the newly slumped market you paid a much higher interest rate if on a cheaper house. So I guess the buyer in 1980 was carrying the can for the person who bought in 1979 and now had negative equity.Don't know if I've explained this clearly but I wondering what ye think the likely hood is off this happening again. Will the ECB setting our interest rates rule this out, or the new competition in the banking market, or will the banks make sure they get a nice cut one way or the other?