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Debate House Prices


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BoE cuts rates to 3.0%!!!

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Comments

  • danny69
    danny69 Posts: 462 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    All that is going to happen is that savers are going to lose out. People who are careful with their money and save it will suffer, and those that go throwing their money about will be in the same situation because banks wont reduce mortgage rates.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Yeah, that's a silly comparison. Even if rates were to majically remain at 3.5% over the term of the mortgage, salary growth would also reflect this (assuming the don't continue to fix the figures).

    So buying at a lower price at a higher rate not only means less risk, but also more rapid easing of the debt burden against your earnings. Oh, and your pension scheme wouldn't suffer so much either.

    Why less risk?, what about the risk of the property not reducing in price in the future.
    Rates can magically remain low( not esp 3.5%) if you buy into a long term fixed rate while rates are at historically low levels.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ginvzt wrote: »
    They can always decide to transfer you to personal pension....

    I just checked with staff pensions and they said they can't do that. They said they can pay me my final salary pension from age 55 if I request it.
    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.


  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    StevieJ wrote: »
    Is he not talking about fixed rates?

    Are those fixed rates actually ones which are available to borrowers?

    It's too early to see what momentarily low headline IRs are going to do to long term fixes.
    --
    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.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    setmefree2 wrote: »
    Obviously, I don't think so. The point I was trying to make (and have been for months) is that it's not necessarily a good thing to over focus on the cost of house as in the end the interest rate you pay over the life of a mortgage will have as much of an impact on the true cost of the house.

    Whether you think HPs will fall should be balanced with where you think interest rates are going..

    Yes - but todays headline rate cuts don't necessarily translate into longer term fixes for borrowers.

    The time to get a longer term fix would have been during the bubble when the lenders collectively lost their marbles.
    --
    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.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    ginvzt wrote: »
    Do you mean house price/earnings ratio? Halifax announced it today - 4.92

    No affordability as in mortgage payment as % of houshold income.
    They wont show until next month, sorry could be below 20% mark.
    (I put a wrong figure down before sorry)
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    I just checked with staff pensions and they said they can't do that. They said they can pay me my final salary pension from age 55 if I request it.

    How many years away is that? If it is more than 5 you are going to be a disapointed lady.
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    Have been pondering this cut this pm. Just kowing how ZaNulab works with the giving with one hand etc... I am expecting record rises in council tax!
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • Really2 wrote: »
    How many years away is that? If it is more than 5 you are going to be a disapointed lady.

    4 months. And thanks for calling me a lady. Staff pensions just told me that I need to put the request in writing, so I think I need to have a word with my accountant beforehand.
    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
    4 months. And thanks for calling me a lady. Staff pensions just told me that I need to put the request in writing, so I think I need to have a word with my accountant beforehand.

    I would do as you may as retire now than be forceably retired.;)
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