Debate House Prices


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Respected Analyst : House prices 'could drop another 55%' and leave Britain bankrupt

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Comments

  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    beingjdc wrote: »
    Cheapest actual mortgage is about 3% though, and that's variable so if the Base Rate goes back up to 5%, you're lumbered with a 7.5% mortgage. Cheapest fixes still up around the 5% mark including fees, and that's with a good deposit.

    and it's an excellent rate - historically rates have been between 7% and 8%
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    beingjdc wrote: »
    Cheapest actual mortgage is about 3% though, and that's variable so if the Base Rate goes back up to 5%, you're lumbered with a 7.5% mortgage. Cheapest fixes still up around the 5% mark including fees, and that's with a good deposit.

    5% seems pretty good to me, I have paid 15.5% (albeit with an element of tax relief). BTW my mortgage at th moment is 1.45% :T but only on my £300 mortgage :mad:
    '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
  • beingjdc
    beingjdc Posts: 1,680 Forumite
    Yes, but 10% on £75,000 is less expensive than 5% on £150,000. That's the problem! Affordability is still very very stretched by historical standards.
    Hurrah, now I have more thankings than postings, cheers everyone!
  • treliac
    treliac Posts: 4,524 Forumite
    dervish wrote: »
    no but house prices are driven by AFFORDABILITY.

    A few years ago loads of mortgages giave you that affordability. Now they have gone.

    New levels of affordability will dirve house prices MUCH MUCH lower.

    How were they affordable when lots of us couldn't keep up payments on them?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    beingjdc wrote: »
    Yes, but 10% on £75,000 is less expensive than 5% on £150,000. That's the problem! Affordability is still very very stretched by historical standards.

    The Halifax had average house prices at 4.4 times average wages compared to a long term average of 4, bearing in mind fixed rates are a lot lower also, I would suggest that affordability at the moment is not that bad.

    The house price to earnings ratio – a key affordability measure - is declining significantly. The house price to average earnings ratio has fallen by 24% from a peak of 5.84 in July 2007 to an estimated 4.44 in December 2008. The ratio is now at its lowest level for more than five and a half years (April 2003: 4.44). The long-term average is 4.0.
    '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
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    StevieJ wrote: »
    The Halifax had average house prices at 4.4 times average wages compared to a long term average of 4, bearing in mind fixed rates are a lot lower also, I would suggest that affordability at the moment is not that bad.

    Sorry, but :rotfl::rotfl::rotfl::rotfl::rotfl:

    We have possibly one of the biggest crashes we've ever known with more reposessions than possibly ever, and affordability isnt that bad!?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Sorry, but :rotfl::rotfl::rotfl::rotfl::rotfl:

    We have possibly one of the biggest crashes we've ever known with more reposessions than possibly ever, and affordability isnt that bad!?

    What record repos are they, must have passed me by :D BTW market crash = better affordability :D BTW crash caused by the banks not lending not people not affording :rolleyes:
    '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
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    StevieJ wrote: »
    What record repos are they, must have passed me by :D

    he did say 'possibly' so it could be he didn't actually say that and tell you to re-read his post :p

    repos will still be lower in 2008 and 2009 than the 1990s recession even having more property now
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    chucky wrote: »
    he did say 'possibly' so it could be he didn't actually say that :p

    repos will still be lower than anytime in the 1990s though even though we have more property now

    Seems strange that we are going to get all these repos when Devs taxes (if he has a job:D) will be paying the mortgages :p
    '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
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    StevieJ wrote: »
    Seems strange that we are going to get all these repos when Devs taxes (if he has a job:D) will be paying the mortgages :p

    lol - you quoted me before i'd had time to re-word it
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