HSBC rings in the changes over the past 22 years:
| March 1990 | March 2012 | |
| Cost of Borrowing | ||
| Highest SVR | 15.4% | 6.00% |
| Average SVR | 15.23% | 4.80% |
| Bank Base Rate | 15% | 0.5% |
| Average House Price | £69,240 | £160,907 |
| Average Mortgage Size | £35,000 | £120,400 |
| No.Mortgages Outstanding | 9,415,000 | 11,220,000 |
| No.Property Possessions | 36,200 | 43,900 |
| Cost of Living | ||
| Average Earnings | £13,760 | £26,200 |
| RPI Inflation | 7.7% | 3.9% |
| Unemployment Rate | 6.9% | 8.4% |
| Pint of Milk | 31p | 50p |
Peter Dockar, Head of Mortgages at HSBC commented:
"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."
