Homeowners with Trackers to face shock rise?

JayScottGreenspan

hundredk wrote: »

So a developer with 20 houses all identical new development. House 1 sells for £100k. The developer buys his own house 2 for £200k. Does that make the neighbours houses 3-20 worth £200k.

That's not a market price.

Dithering_Dad

SingleSue wrote: »

My parents (on reading the newspapers, listening to the radio etc) are now firmly in the belief that the recession is over and house prices are rising again....until I told them they are being sheeple, explained why and now they are questioning their belief.

For information, they do own a property, mortgage free for the last 35ish years and are aware their property has reduced in value. They couldn't quite get the hang of the idea that if a property sold for a lower amount that it would then have a run on effect on other similar properties in the area though.......

They may not have their finger on the pulse of finance, but after being mortgage free for 35 years they don't need to have their finger on the pulse. Regardless of whether house prices rise or fall, mortgages rise or fall, they're not affected and so they're not interested.

I'm not interested in the price of antique or classic cars, or whether they're appreciating in value or depreciating, because I have no interest in antique or classic cars. Does this make me a 'sheeple' or foolish? Nope, it's just not on my radar because it simply does not affect me.

People who are mortgage free or have small mortgages (or have mortgages that are small compared with their incomes) will have little or no interest in mortgage rates because they won't be impacted that much one way or the other.

As far as SVR rates, I bought my property with a mortgage from Standard Life Bank on a discounted rate, I then went onto their SVR rate for a few months while I decided what I wanted to do financially. I then chose a 3 year discounted mortgage. At no point was my property re-valuated or was I expected to pay a fee to my mortgage provider when I transitioned to SVR. My mortgage is arranged for 25 years with Standard Life, not just for the duration of a particular mortgage deal.

whathavewedone

I agree with this. It was what I meant when I said that I have noticed that older people pay less attention to what is happening with the economy.

My parents are the same - both have paid off their mortgages so take little interest.

I remain of the view that the majority of people with mortgages are aware that rates go up as well as down, that you need to be in positive equity to remortgage and that prices have fallen and are likely to continue to fall. It is that category of people who are relevant to this thread, not those of grandparent vintage who have paid off their mortgages.

I hate the phrase sheeple, it's one of the reasons I can't bear to go on HPC even though there is some intelligent debate there amidst the end is nigh stuff.

lostinrates

whathavewedone wrote: »

I agree with this. It was what I meant when I said that I have noticed that older people pay less attention to what is happening with the economy.

My parents are the same - both have paid off their mortgages so take little interest.
......

My parents have never seemed to be very interested, and have made, IMO, fairly poor financial decisions as a result. It seems to bne they were more interested in gting through a orking day, providing as best they could and were to exhausted to do much faffing about after satisfying the demands of work and home. They never sort best deals for mortage and insurance etc, choosing o go wiht a ''trusted'' supplier, i.e. the big one they'd always used.

Is it generational?


I'm with you on ''sheeple''.

Treadmill

How times change, you'd have dreamed of a 3.5% mortgage 2 years ago, now you are supposed to be scared if your mortgage rate "Shoots Up To" 3.5%

Crazy

mewbie_2

Homeowners with Trackers to face shock rise?
Well the sheeple would be shocked if they heard the earth was round. That's the trouble with sheeple, they think like sheep, but they're.. er.. people. Hence sheeple.

To all those complaining about this most excellent word, try it with another animal. I had a quick go but couldn't make it work. Pigple, bullple, bearple - nope nothing.

System

Elephantple works nicely.

hundredk

dopester wrote: »

You deliver the real reasons for why all property went up in value (buyers who were buying at ever higher prices via bigger mortgages), but you're deceiving yourself about falling values, because one home that sells at a lower price than in previous months or years, also brings down the values of other homes, including neighbours' homes.

The reasons why properties go up and down in value is the same - demand. Demand is driven by desireability, and affordability - without both of those there is no demand. See supply & Demand here.