How we'll know when house prices hit rock bottom

WTF?_2

adr0ck wrote: »

on the best buy tables at the mo...the cut off for the best deal seems to be 80%

That's not bad actually - if I could get away with only ponying up 20% deposit for an offset I could keep a much bigger line of credit on tap by putting my money in the offset account .... I was thinking that I'd have to offer something like 50% to get the best deals.

stevetodd

brit1234 wrote: »

http://blogs.telegraph.co.uk/richard_evans/blog/2008/12/15/how_well_know_when_house_prices_hit_rock_bottom

So know that Natwest are offering 100% mortgages are you suggesting we have hit rock bottom?

http://forums.moneysavingexpert.com/showthread.html?t=1363627

Personally I think prices will fall about 15-20% more. I dodn't think Natweat are catually offering 100% mortgages to the general public, I think it is some sort of FTB scheme only product

neverdespairgirl

adr0ck wrote: »

on the best buy tables at the mo...the cut off for the best deal seems to be 80%

Quick look on a comparison site.

I put in £200,000 mortgage in London, £40,000 deposit, income of £60,000. It offered me, as the best fixed rate, 5.09% and £350 fees. The best tracker, with First Direct, is currently 3.49%

For a deposit of £100k, Lloyds TSB have a fixed rate of 4.3% fixed for 2 years, fee £2,900 (choke) max LTV of 75%. C & G's fix under 5% is also max 75% LTV, and the Woolwich's max LTV for 4.6% is 60%, as is A & L.

sabretoothtigger

I'd like to get a 10 year fix at todays rates

Entertainer

Last time the bottom was obvious. At the start of 1993 prices stabilised then were fairly static until the end of 95. Houses started to increase in price in 96 (flats took longer to recover as houses were so cheap people were going straight to them.) Auction prices did start to rise first- there was already firming up of prices in 93. Expect auction prices to do the same this time. There was an obvious trigger for the end of the slump, when the pound left the ERM and interest rates were slashed.

Now, there is no obvious light at the end of the tunnel. Interest rates are already very low but the economy is just entering recession.

Things seem to be happening alot quicker this time in the age of IT. For example, we have a President who only entered the Senate in 2004.

bob79

Entertainer wrote: »

For example, we have a President who only entered the Senate in 2004.

We have president? Did I miss the queen stepping down and the UK becoming a republic? And do we have something called a senate now, let alone in 2004?:D

Pobby

Can only agree. It is like a super tanker and if last time is anything to go by we will see a period of a few years when housing will stagnate. I personally would not like to say when we will arrive at this point but it feels like we are a fair way off at the moment. The bad news on the repo figures for next year would I guess rule 2009 out. My feelings are that a bottom will becalled earliest 2011. All guess work though.

IveSeenTheLight

neverdespairgirl wrote: »

Of course it matters, because you will be paying more money month in, month out, for the whole of the mortgage!

So delay buying a place to live in as a home because it may cost you more in the long term.

Some people weigh up the costs and are willing to do this for a number of reasons.

Gorgeous_George

We'll know we've hit the bottom when...

... prices start to rise.

GG

IveSeenTheLight

!!!!!!? wrote: »

It's always preferable to borrow less. Don't get fooled by the supposed 'affordability' of borrowing a large capital sum based on momentarily low interest rates when you are borrowing a lot of money and paying it back over the long term.

Affordability is still the key, granted you should still consider affordability should the rates change and be higher