We are in a completely different world to 92. The whole world has allot more debt full stop. Sure we can expect higher interest rates but at the end of the day the rates can only go up if the majority can still service their debts otherwise it becomes a pointless exercise and those that want to earn money through interest will lose far more through defaults. I would suggest that 12.5% would be the absolute max for normal home loans but it would be more than likely 10% as by then the economy would have well and truly ground to a halt - inflation certainly wouldn't be a problem as while the majority will still survive they won't have any extra money to spend in the wider economy.
