We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
blimmey!... housing market 2007...
Comments
-
Moving up? I ain't even climbed on to the first "rung", mate.james3333 wrote:I TAKE IT YOUR NOT THINKING OF MOVING UP THE LADDER ANYTIME SOON THEN MEANMACHINE?;)
Not that it is a ladder in a low wage inflation environment.
But let's not go there. It's Christmas, after all.
0 -
These are just silly figures.
When interest only figures become unfordable which they practically are then we have real problems. Which we practically do!0 -
sm9ai wrote:These are just silly figures.
When interest only figures become unfordable which they practically are then we have real problems. Which we practically do!
Which is the very reason I think we'll see 35, 40, 45 and 50 year lending become the norm, this is the only way current payments remain affordable without a severe restructuring (read crash).
It's one or the other, up until very recently I'd have adamantly believed in a crash, but I think the lenders have become a law unto themselves and in any case where they have been judged as lending improperly the fines are so minimal compared to the earnings generated that I think they just factor these costs into their figures.
Lenders drive the housing market, without the ability to borrow you cannot buy at ever increasing prices. As long as there are companies willing to change their criteria to continue lending the prices will continue to rise.0 -
I agree Alan.
Although some parts of the UK are experiencing some slowdown ( anecdotally at the least) Im not as convinced as I was a few months back .Which is the very reason I think we'll see 35, 40, 45 and 50 year lending become the norm, this is the only way current payments remain affordable without a severe restructuring (read crash).
What bothers me about this is say the average FTB is 30 a 35 year mortgage will take them right up to retirement. Of course the average FTB is apparently mid-30s, so a 35 year mortgage will take them to being 70.
A 50 year mortgage isnt going to be able to suit anyone over 20- or have I missed something here?:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
lynzpower wrote:
What bothers me about this is say the average FTB is 30 a 35 year mortgage will take them right up to retirement. Of course the average FTB is apparently mid-30s, so a 35 year mortgage will take them to being 70.
A 50 year mortgage isnt going to be able to suit anyone over 20- or have I missed something here?
No you haven't missed anything. Your quite right in what you say.
A lot of people who I speak to are adamant that lifetime mortgages etc will become the norm.
I'm not convinced of this. The reason being that nursing care and things like stamp duty and inheritance tax are crucial to the way the government runs the country.
If it is common that most people haven't got a house to pay for their nursing care, then the government are in the s***.
Regardless of the current attempt to keep the housing market going, I firmly believe in the cyclical nature of the housing market.
Until now the housing market has either had a correction or inflation has brought wages back in line with house prices.
Unless it is truly "Different this time"?0 -
Sightly off tangent but linked in a way, ALL of the UK Property fund managers expect 2007 to have returns in single figures with some quoting as low as 2%. Now a lot of that is commercial property but this would be the first time since the 90s that it has fallen that low.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
Only problem is if it's a repayment mortgage it will take all or more than all of your net income. Run the figures in a mortgage calculation and wages calculation:greencat wrote:10+X mortgages anyone? ......
http://www.whatsthecost.com/mortgage.aspx
http://www.pru.co.uk/home/calculator/income_tax/A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
lynzpower wrote:I agree Alan.
Although some parts of the UK are experiencing some slowdown ( anecdotally at the least) Im not as convinced as I was a few months back .
What bothers me about this is say the average FTB is 30 a 35 year mortgage will take them right up to retirement. Of course the average FTB is apparently mid-30s, so a 35 year mortgage will take them to being 70.
A 50 year mortgage isnt going to be able to suit anyone over 20- or have I missed something here?
Halifax will now lend beyond 70 if there is enough equity in the property and the ability to pay.
Fundamentally what you are saying is correct, it doesn't seem feasible that loans of this length should be extended. The loans will either be designed to be passed on to the next generation or be paid by disposal of the property.
Of course in a term of 50 years the theory is that the property will have increased so much in value that any remaining mortgage will be negligible as a percentage of the property value.
The increase in term will allow extension of mortgage multiples to unprecedented levels and allow the gravy train to continue.
Of course this, like any conversation about increases and crashes is conjecture, but it's not beyond the realms of probability.0 -
wibble68 wrote:No you haven't missed anything. Your quite right in what you say.
A lot of people who I speak to are adamant that lifetime mortgages etc will become the norm.
I'm not convinced of this. The reason being that nursing care and things like stamp duty and inheritance tax are crucial to the way the government runs the country.
If it is common that most people haven't got a house to pay for their nursing care, then the government are in the s***.
Regardless of the current attempt to keep the housing market going, I firmly believe in the cyclical nature of the housing market.
Until now the housing market has either had a correction or inflation has brought wages back in line with house prices.
Unless it is truly "Different this time"?
The thing with a 50 year mortgage is at end of term, the sum outstanding (assuming no further borrowing has been made) will be a small percentage of any value of the property, well that's the assumption.
Consider the value of a property you live in today 50 years ago, I'd be very very surprised if the total purchase price of the property was more than 2% of it's current value. Which in the grand scheme of things really is negligible.
So all the points you make above about funding old age and retirement would comfortably be covered any resulting equity in the property.0 -
So much for my predictions, a slow down at the end of this year moving into reverse for 07. As has been pointed out, the VI's want to continue the party for as long as possible and Gordo would like to keep it going until the next election. One things for Certain -when the wheels (eventually) come off the Property market it 'aint going to be pretty. We thought the last crash was bad and that took eight years to recover,the next one will take decades.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards