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Great News For Homeowners and First Time Buyers!!!

pickledpink
pickledpink Posts: 763 Forumite
in House buying, renting & selling
Great News For Homeowners!!!! Mortgages Will Be Cheaper!!
http://www.dailymail.co.uk/news/arti...-rate-cut.html

Great news, isn't it?:money: :T
«13

Comments

  • hostiegirl
    hostiegirl Posts: 108 Forumite
    I dont see how this is good news for FTB? Tracker mortgages have pretty much been stopped and if/when they do return with be more expensive. Good news for our mortgage though as on variable rate.
  • Austin_Allegro
    Austin_Allegro Posts: 1,462 Forumite
    1,000 Posts Combo Breaker
    pickledpink wrote: »
    Great News For Homeowners!!!! Mortgages Will Be Cheaper!!
    http://www.dailymail.co.uk/news/arti...-rate-cut.html

    Great news, isn't it?:money: :T

    ...not really. It's the equivalent of keeping a drug addict alive by giving them a bit more heroin. The strategy doesn't seem to be working in the US and didn't in Japan either. It's likely to devalue the pound and cause the economy problems further down the line, and in my opinion was an attempt by the government to buy popularity.
    'Never keep up with Joneses. Drag them down to your level. It's cheaper.' Quentin Crisp
  • bubblesmoney
    bubblesmoney Posts: 2,156 Forumite
    Part of the Furniture Combo Breaker
    i thought it was cheap credit that fuelled the unsustainable property prices boom which landed the banks in trouble in the 1st place with their lax lending policies.

    now we have flash gordon / boe lowering the interest rates and apparently armtwisting the banks to lower interest rates and whats worse to go slow on defaulters:confused: .

    so from what i understand. low interest rates+easy credit + lax lending = banks and financial system up shitscreek without a paddle and now flash gordon/boe have again lowered interest rates and want banks to give easy credit at 2007 levels plus go soft on defaulters.

    isnt it adding fuel to the fire. but what would flash gordon care, their eyes would only worry about the impending elections and anything more longterm can kiss their !!!! goodbye from the looks of it

    i might not have the financial dexterity of the wheeler dealers at lloyds / hbos / rbs / northernrock / bradford bingley but isnt the system trying to reward people who overstretch themselves rather than savers. but then what can u expect from a govt that emptys the purse with big spending plus takes loans in the good years and them come the bad years they have the wonderful idea to spend their way out of it by borrowing more money !!!

    moral of the story for our children and to be taught in all schools (and emmulate flash gordons economics). sppend spend spend and borrow in ur good years and when it comes to the bad years spend spend spend by borrowing money.

    one afterthought to a numpty like me though, i wonder when people start saving or do we all start to print money or keep endlessly stoozing by emulating our govt. better start buying gold and burying it in the back garden otherwise come retirement time my saving money wont be able to buy a loo roll with the way the economy is going and the pensions pots being emptied by flash gordon. oh i forgot they will keep increasing the retirement age to well above projected life expectency and do away woith paying pensions from the looks of it. bloody numpties
    bubblesmoney :hello:
  • things_are_looking_up
    things_are_looking_up Posts: 9 Forumite
    Im a first time buyer and i wont be looking to move for at least a year, its okay borrowing now at low rates. But i reckon ill save a lot more by hanging on another year.
    I have a 25000 pound deposit but if i bought now in 12 months that could come straight of my house the way the prices are falling, and i would be in negative equity.

    Things
  • pickledpink
    pickledpink Posts: 763 Forumite
    things_are_looking_up wrote: »
    Im a first time buyer and i wont be looking to move for at least a year, its okay borrowing now at low rates. But i reckon ill save a lot more by hanging on another year.
    I have a 25000 pound deposit but if i bought now in 12 months that could come straight of my house the way the prices are falling, and i would be in negative equity.

    Things


    Property isn't going to fall much further - it's already slowed down. Take a look at Rightmove and PropertyBee:p
  • bubblesmoney
    bubblesmoney Posts: 2,156 Forumite
    Part of the Furniture Combo Breaker
    pickledpink wrote: »
    Property isn't going to fall much further - it's already slowed down. Take a look at Rightmove and PropertyBee:p
    maybe u should revisit the interesting graph posted by generali earlier about the great american depression and see the small spike in the down turn before the further fall. i remember seeing a similar graph for japanese market as well. think they had small double spikes on the way down to eternity. (yikes if that happens i am up shitscreek too as i bought recently as well)

    but who knows afterall technicals is just forecasting the future by looking at the stains of yesteryears down ones loo. only time will tell what the future holds for us.

    EDIT: looks like this is a duplicate thread of the same one in the house prices subforum.
    bubblesmoney :hello:
  • hearts
    hearts Posts: 1,191 Forumite
    Bottom prices in most areas cant fall far. As soon as they reach a certain level they become a good investment for BTL. If the Yields become favourable properties will be snapped up.
    An average lower value house in my area. £120k aprox. Rental achieved. £550 per month.
    Drop 20% 96k same rent achieveable. Yield then becomes very attractive.

    So whereas higher value houses may drop on a house by house basis by differing amounts. I don't think there is a likelyhood of the lower end dropping by much. Which I would asume is the FTB market.
    Obviously this is only my opinion.
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    pickledpink wrote: »
    Property isn't going to fall much further -
    Don't take too much notice. It is the forum's resident troll/clown after all.
    Krusty & Phil Madoff, 1990 - 2007:
    "Buy now because house prices only ever go UP, UP, UP."
  • tom_thumb_2
    tom_thumb_2 Posts: 40 Forumite
    ad44downey wrote: »
    Don't take too much notice. It is the forum's resident troll/clown after all.
    How rude ....you must be the village idiot then i take it ?
  • brit1234
    brit1234 Posts: 5,385 Forumite
    tom_thumb wrote: »
    How rude ....you must be the village idiot then i take it ?

    And you the rotting fly infested turnip.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
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