Warning!! House Price Inflation!!

PasturesNew

DD's right. They will rise. Probably by 1% in 2049
Prepare yourself!!
Prepare!
You have been warned!
Don't miss out.

Cannon_Fodder

Conrad wrote: »

Here on the front line I'm observing people looking at moving due to reducing mortgage rates.
One example in particular today is quite stark. They originally looked at a self cert mortgage with HBOS costing £2200 per month. They are going ahead now that the rates have fallen taking £700 per month off thier payments, and likely to reduce again in the comming months. It is quite concievable that thier payments will in total have reduced £1000 per month.

Have they the option to fix, close to the same monthly outlay/fees?

If they can get 2% below where rates were, say a near 50% saving, as your maths suggests, over a 5 year fixed period, would be £60K saved...

Versus waiting for a £60K drop to happen and maybe rates won't be so benign...

Makes some sense. Good news for them individually.

Though LTVs, salary multiples and lending criteria prevent that being a widespread "back on the up" option, at the moment.

Dithering_Dad

PasturesNew wrote: »

DD's right. They will rise. Probably by 1% in 2049
Prepare yourself!!
Prepare!
You have been warned!
Don't miss out.

Plenty of room on this bandwagon PN. I especially like your 2049 predictions. It's so far away that no one will be around to pull you up on it if it's wrong. Definitely WTFian economics.

chopperharris

Predictions like this are a joke , eventually an open ended one is always right , but is also wrong in that time too.

The thing you have to understand is if there is no buyers then the price falls.If there is plenty of buyers then its supply and demand , and yes the price rises at one end.

In this time of receeding mortgage percentages , stagnated supply of new builds , and the recession and its asociations then the price falls...its the other side of supply and demand.

Until the banks are on solid ground again , and confidence returns to the financial industry and its markets , then it will be a long slog.The debt of the country for a change looks like it will be paid by the same generation that used it , and it is the unchecked debt that has this country one step from on its knees.

After all this financial wake is done and dusted then a sliding TAX on credit should be applied , in as such as to repay fast the govt bailouts and to create a disaster fund for the prevention of it ever happening again.LArge loans equals large tax.

If you think now is a problem just wait till all govts need to tackle global warming.If the weather over the last two years hasnt convinced you yet that its happening then wait....tipping point is just round the corner , and you cant bail out the planet by nationalisation or a loan.

We are at the point in consumer spending where its defined by luxuries and neccessities.This could , if the "stimulous global" doesnt work the way its predicted , be another great depression....and just how did house prices rise then?

Really2

PasturesNew wrote: »

DD's right. They will rise. Probably by 1% in 2049
Prepare yourself!!
Prepare!
You have been warned!
Don't miss out.

You should have said at least 1% that would have covered you.;)

Dithering_Dad

Really2 wrote: »

You should have said at least 1% that would have covered you.;)

lol, Really2. You really do understand WTFian economics!

Really2

I think some people may be irony deficient.

Cannon_Fodder

But was !!!!!!? only plagarising Vince Cable...

http://www.guardian.co.uk/money/2004/feb/09/creditanddebt.business

Fancy being 4 years early...

Dithering_Dad

People will be quoting me, saying I was ahead of my time. "That Dithering Dad really understood WTFian economics, he saw all this HPI coming absolutely years ago! As he keeps telling us time and time again!"

You saw it here first folks. HPI is coming!

chucky

DD - does !!!!!! still have you on Ignore?

I would have thought we would have a link being posted of impending doom to Sterling as a currency by now