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Debate House Prices


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BoE cuts rates to 3.0%!!!

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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    MissMoneypenny wrote: »
    I don't think the HSBC will be grasping at straws, they will do what is best for themselves. That's the reason they will have clauses like this. Luckily for me, as I have a staff pension with them:D

    Well if they hammer me you can imagine what will happen to your pension pot.;) .

    PS I am offset so it makes very little difference to me anyway in the long run.:)
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    IveSeenTheLight wrote: »
    Definately appreciating the interest rate drop on my BTL tracker as well.
    Guess you have an outstanding mortgae of £96,000 ;)

    Out of interest, will this interest saving be going towards your profits or reducing the debt?

    Just to stir up a further debate, will you be passing on the savings to your tenants
    :eek:
    I'm not, I dont see it as greed though but as a way to increase the mortgage debt reduction rate ;)

    I wonder if there will be more call from this from tenants, but I guess it waould depend if they were happy to increase when rates go up as well

    i'm having a similar thoughts now - but i'm toying with the idea of reducing the rent on one of the properties so as not to make a profit on it - the rate cut reduces the monthly payment on the BTL mortgage and allows me to work on a minimal profit or potential small loss across the whole portfolio.
  • Pobby
    Pobby Posts: 5,438 Forumite
    rumbaba wrote: »
    Well it certainly is good news for homeowners, and no doubt people will start buying again - and properties will once again start to rise.

    What concerns me though are my savings. Does anyone have any suggestions? We were thinking of investing in property abroad but now might be a good time to invest in a holiday home in the UK.

    I`m sure this will come as relief to some mortgage holders. I have the same problem as you.

    Deffo will not be investing in property. Sadly the stock market isn`t looking overly impressed right now.
  • ginvzt
    ginvzt Posts: 4,878 Forumite
    1,000 Posts Combo Breaker
    Really2 wrote: »
    10% higher for new build usualy, it has narrowed from those figures.
    What was the average wage back then?

    It is not easy to find wages data for 50 years ago... But:
    http://www.housepricecrash.co.uk/gra...ings-ratio.php

    Can't post this graph as there is no link to it. Will update if I find something more useful.
    As you can see from the graph on the link, the house price/earnings ratio was just below 4 in those times. It is nearly 5 now! That would also put average wage at around £500.

    And, just to compare, in Q1 in 1983, First time buyer gross house price to earnings ratio was on average 2.7, with 3.7 in London and 2.3 in East Midlands. The average house price then was £26311. BoE Interest rate then - nearly 11%
    Spring into Spring 2015 - 0.7/12lb
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    Really2 wrote: »
    Well if they hammer me you can imagin what will happen to your pension pot.;) .

    It's a final salary pension:D We had it all.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    MissMoneypenny wrote: »
    It's a final salary pension:D We had it all.

    Best hope you keep your job then, but all these rate cuts should help.:D

    I would hope you are claiming it in the next 5 years I dont think they will all be honoured.
  • setmefree2
    setmefree2 Posts: 9,072 Forumite
    Mortgage-free Glee!
    For all with a mortgage I just want to post the following:-

    £100,000 at 3.5% over 25 years costs £150,188

    £ 90,000 at 4.5% over 25 years costs £150,075

    £ 81,000 at 5.5% over 25 years costs £149,233

    £ 74,000 at 6.5% over 25 years costs £149,898

    So enjoying low interest over the life of your mortgage is as good as a house price fall, IMHO - .;) I just thought it was worth a mention..
  • ginvzt
    ginvzt Posts: 4,878 Forumite
    1,000 Posts Combo Breaker
    MissMoneypenny wrote: »
    It's a final salary pension:D We had it all.

    They can always decide to transfer you to personal pension....
    Spring into Spring 2015 - 0.7/12lb
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    setmefree2 wrote: »
    For all with a mortgage I just want to post the following:-

    £100,000 at 3.5% over 25 years costs £150,188

    £ 90,000 at 4.5% over 25 years costs £150,075

    £ 81,000 at 5.5% over 25 years costs £149,233

    ;) So enjoying low interest over the life of your mortgage is as good as a house price fall, IMHO - well we have been called stupid idiots.. so I just thought it was worth a mention..

    And of course, interest rates will stay at current levels over the lifetime of your mortgage :rolleyes:

    Current levels - the clue is in the name
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    Really2 wrote: »
    Best hope you keep your job then, but all these rate cuts should help.:D

    I would hope you are claiming it in the next 5 years I dont think they will all be honoured.

    I don't know when I can claim it. That's a good point, I'll check that.

    Financially, I don't need to work. Mentally, I do.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


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