what will the interest rate cut do to house prices?

pickledpink

Property prices will start to rise far more quickly now that interest rates are sooooo low!

People will be able to afford a mortgage. It will be cheaper than renting!

So...............more buyers buying...........more properties selling..........property prices will then start to rise.

I can foresee people missing the boat again if they don't buy now. They'll be kicking themselves for being so cautious.

You can wait forever sometimes..............and then you're too old to enjoy it. Shame!:money:

pickledpink

The rates won't affect me! My house is paid for lock, stock and barrell!:p

But I'm glad that some hard-working families with young kiddies will now be able to enjoy Christmas without the fear of having their homes repossessed!!!:T

Aren't you glad for that too?

skap7309

pickledpink wrote: »

The rates won't affect me! My house is paid for lock, stock and barrell!:p

But I'm glad that some hard-working families with young kiddies will now be able to enjoy Christmas without the fear of having their homes repossessed!!!:T

Aren't you glad for that too?

Please pickled, this is about you wanting house prices to rocket, no need to pull the sob story of little Johnny who got a lump of coal for Christmas (and wanted a replica ride-on BMW X5 mewed by his parents........) :rotfl:

drbeat

Prices will return to the pre-wholesale market levels regradless or IR cuts. 50% falls are on the cards, those who say prices will rise again are living in hope of widespread mortgage fraud returning back to scene!

Banks etc are now lending their own money and not someone elses. The days of repackaging debt and selling on to some other mug are long gone!

The IR cut is Crash Gordon's latest attempt at securing a win at the next election. The sheeple i.e. the twits on here who hope prices will rise again have swallowed the bait...just like they did in 1997 when Tony said 'things can only get better'.

SingleSue

I'm really not sure to be honest...

My gut thinking is that there will be some people who will be enticed by lower rates (IF they are passed on in new mortgages) enough to buy now, especially as their savings will not be growing at the rate they were before but on the other hand....who knows anymore!!

For me, arrrggghhhhh, I finally start saving again and the blooming interest rates come down! My pennies being stored away (and it is pennies compared to loads of others on these boards) are not for a deposit or luxuries but to help pay for the essentials when on tight weeks or if the children need new uniforms for school.

Mind you, if it can save just one family from reposession, then I don't mind that at all.

ad9898_3

SingleSue wrote: »

I'm really not sure to be honest...

My gut thinking is that there will be some people who will be enticed by lower rates (IF they are passed on in new mortgages) enough to buy now, especially as their savings will not be growing at the rate they were before but on the other hand....who knows anymore!!

For me, arrrggghhhhh, I finally start saving again and the blooming interest rates come down! My pennies being stored away (and it is pennies compared to loads of others on these boards) are not for a deposit or luxuries but to help pay for the essentials when on tight weeks or if the children need new uniforms for school.

Mind you, if it can save just one family from reposession, then I don't mind that at all.

Sue, these rate cuts will have virtually no impact on the housing market (as far as kick starting HPI), your savings have take a hit for sure but you will have to have about £3million in savings to lose the amount of interest per month as the average house is losing.

Jonbvn

skap7309 wrote: »

Please pickled, this is about you wanting house prices to rocket, no need to pull the sob story of little Johnny who got a lump of coal for Christmas (and wanted a replica ride-on BMW X5 mewed by his parents........) :rotfl:

Why not use such sob stories? Certain other prodigious HPC posters are using similar emotive arguments about rate cuts adversely affecting pensioners savings.

Cat695

pickledpink wrote: »

Property prices will start to rise far more quickly now that interest rates are sooooo low!

People will be able to afford a mortgage. It will be cheaper than renting!

So...............more buyers buying...........more properties selling..........property prices will then start to rise.

I can foresee people missing the boat again if they don't buy now. They'll be kicking themselves for being so cautious.

You can wait forever sometimes..............and then you're too old to enjoy it. Shame!:money:

Yes that always happens in a recession with lots of job losses

hethmar

Not for a while I dont think, once bitten, twice shy. The guys who would rush in probably havent saved a deposit yet. I guess the one light is that there should be less repossessions, which in a way should help stabilise house prices.

SingleSue

ad9898 wrote: »

Sue, these rate cuts will have virtually no impact on the housing market (as far as kick starting HPI), your savings have take a hit for sure but you will have to have about £3million in savings to lose the amount of interest per month as the average house is losing.

I'm inclined to agree but as said, I really have no idea on what is going to happen now so fence sitting seems a good idea! :rotfl:

Houses prices going down each month (or up!) is neither here nor there for me, I neither own or want to own so none of the losses or gains with the prices come into my figures. So for me, any reduction of interest on my savings, hits me where it hurts...in the pocket.

That said and as I said before, I don't mind at all if it saves a family from the heartache of losing their home but I do worry about future ramifications of this rate cut (if any).