BoE cuts rates to 3.0%!!!

WTF?_2

andys15 wrote: »

that is the bottom line. it might now worry people into buying now.


what percentage of people do you think would buy now if they could buy, as opposed to the ones who are putting off buying as they feel house have further to drop[but they could buy the house they want now]

That's almost the boat I'm in. I could buy a house now but want a better one.

My best guess is that if we seem a 'crack up boom' happening, best to get in and get a tangible asset for cash (no borrowing) because even though borrowing will be cheap, you don't want to be left with debt on your property when the last hurrah finally collapses which is inevtiable but unpredictable.

carolt

Really2 wrote: »

Your right Carol you would still stugle to get a new mortgage less than 4.5% unless you have 25% deposit.

How many FTB's have 25% deposit?

Not enough to make serious inroads into the housing crash.

Whilst good news for those on existing trackers, as I said, I don't expect this to have any impact whatsoever on the downward spiral of house price falls.

Those at the bottom of chains still won't be able to afford to buy at current prices.

southantrim3

Goodness this is a busy thread!! So my questions are:
Whats gonna happen when house prices still continue to drop, even after this rate drop? What will the government do then?

Really2

carolt wrote: »

How many FTB's have 25% deposit?

Not enough to make serious inroads into the housing crash.

Whilst good news for those on existing trackers, as I said, I don't expect this to have any impact whatsoever on the downward spiral of house price falls.

Those at the bottom of chains still won't be able to afford to buy at current prices.

No nead to get the pig I was agreeing with you.:rolleyes:
It may have an impact on reposessions, due to cheaper mortgage payments and less redundancies

MissMoneypenny

!!!!!!? wrote: »

Pensioners on Jermemy Vine show spitting blood. Still, those trusting fools lived prudently and saved all their lives so should be expected to take the pain of the cretins who overborrowed.....

I'm sure the pensioners will punish Gordon at the next election.

WTF?_2

carolt wrote: »

How many FTB's have 25% deposit?

Not enough to make serious inroads into the housing crash.

Whilst good news for those on existing trackers, as I said, I don't expect this to have any impact whatsoever on the downward spiral of house price falls.

Those at the bottom of chains still won't be able to afford to buy at current prices.

I disagree - I think it will give the market a temporary kick.

I was thinking the other day that we haven't seen a bull trap yet - I guess this could be it.


Of course, if things tip over into strong inflation quickly then we'll see houses go back up in price - just like everything will be going up in price. At which point they can wildly jack rates back up to try to control things or ...... well, God knows really.

I think this is a sign they really have lost control and are resorting to panic measures. I think we'll see it proved that as long as you can simply print money and distrubute it quickly around the economy, you can prevent deflation .... at least for a while.

Really2

!!!!!!? wrote: »

I disagree - I think it will give the market a temporary kick.

I was thinking the other day that we haven't seen a bull trap yet - I guess this could be it.


Of course, if things tip over into strong inflation quickly then we'll see houses go back up in price - just like everything will be going up in price. At which point they can wildly jack rates back up to try to control things or ...... well, God knows really.

I think this is a sign they really have lost control and are resorting to panic measures. I think we'll see it proved that as long as you can simply print money and distrubute it quickly around the economy, you can prevent deflation .... at least for a while.

I Disagree I have a family member who is an EA and he says nearly all FTB do not have sufficent deposits!
And I am classed as a "Bull"

pickles110564

MissMoneypenny wrote: »

I'm sure the pensioners will punish Gordon at the next election.

I doubt it Gordie will bring back the king of spin (Ali) and he will turn him into the worlds hero and he will get back in with an even bigger slice of the pie.

carolt

Really2 wrote: »

No nead to get the pig I was agreeing with you.:rolleyes:
It may have an impact on reposessions, due to cheaper mortgage payments and less redundancies

"Get the pig"????! Not heard that one before!

Anyway, times will get pretty tough for all those about to retire/living off savings etc - due to 5% inflation and 3% base rates, your savings are worth less by the day just in the bank.

Wonder how quickly the cuts will be passed on to savers?

carolt

!!!!!!? wrote: »

I disagree - I think it will give the market a temporary kick.

I was thinking the other day that we haven't seen a bull trap yet - I guess this could be it.


Of course, if things tip over into strong inflation quickly then we'll see houses go back up in price - just like everything will be going up in price. At which point they can wildly jack rates back up to try to control things or ...... well, God knows really.

I think this is a sign they really have lost control and are resorting to panic measures. I think we'll see it proved that as long as you can simply print money and distrubute it quickly around the economy, you can prevent deflation .... at least for a while.

Disagree - 2005-2007 was the bull trap.