Anyone Nervous?

neas

When i say recover i meant go up 5% not return to full vaue. Didnt clarify that.

I was a bit perplexed by the nationwide/halifax figures showing such a rise, just doesnt add up unless everyone knows more than me... my local town every day has another company who is making people redundant...

I am not nervous though, I realise i've lost 'savings' on a tracker mortgage if i entered the market at the right time (Mortgage market not housing market). But alas I believe these benefits will be eroded as interest rates rise and the capital worth of said property falls further.

Again though these are my thoughts.

Im biased, everyones biased. Its such a great deal of money to win or lose that everyone argues their own biased viewpoint, so i could be wrong and so could anyone. I just calculate my own scenario and my own risks... like every investment opportunity.. while it is a home for me and my wife it would also be wise not to overpay for it .

If anything i;d say the saving for the house thing has made me cncentrate on upping deposit , so thats a good ting coming from all of this.

wheresmydoshat

The money's available in the market to borrow already at 90% LTV?

So why wait?

because there's very few lenders doing it so not much choice, plus my partners salary goes up by about 10k in September making the whole process a lot easier.

Thrugelmir

neas wrote: »

I was a bit perplexed by the nationwide/halifax figures showing such a rise, just doesnt add up unless everyone knows more than me...

They are based on transactions they process. So are not necessarily representative of the entire country.

In the case of the Nationwide they are based on mortgage approvals.

Dan:_4

neas wrote: »

When i say recover i meant go up 5% not return to full vaue. Didnt clarify that.

I was a bit perplexed by the nationwide/halifax figures showing such a rise, just doesnt add up unless everyone knows more than me... my local town every day has another company who is making people redundant...

I am not nervous though, I realise i've lost 'savings' on a tracker mortgage if i entered the market at the right time (Mortgage market not housing market). But alas I believe these benefits will be eroded as interest rates rise and the capital worth of said property falls further.

Again though these are my thoughts.

Im biased, everyones biased. Its such a great deal of money to win or lose that everyone argues their own biased viewpoint, so i could be wrong and so could anyone. I just calculate my own scenario and my own risks... like every investment opportunity.. while it is a home for me and my wife it would also be wise not to overpay for it .

If anything i;d say the saving for the house thing has made me cncentrate on upping deposit , so thats a good ting coming from all of this.

Long term, proeprty will always be the best investment. So weather you buy in 2007 or 2017 - it will all work out okay in the end.

chucky

neas wrote: »

Now onto why i would think this. If you had read my post previous house price crashes werent caused by a credit crunch, a lack of credit for borrows, so FTBers and everyone else would be unable to purchase a house as nobody would lend the money... this caused a downward spiral.

can you re-word that please?

These secondary banks, like the larger institutions, had been lending based on the then recently rising housing prices in the late 1960s and early 1970s, and borrowing heavily to hold the loan assets. The rise in housing prices was seen as the last hurrah of the British Post-War boom. A sudden downturn in housing market prices coupled with hikes in interest rates and the jump in Oil prices caused by the 1973 Yom Kippur war left these smaller institutions holding many loans secured by property with lower value than than the loans. The Bank of England bailed out around thirty of these smaller banks, and intervened to assist some thirty others. While none of these banks were left unable to pay depositors, the Bank of England lost an estimated £100 million.The downturn was exacerbated by the global 1973–1974 stock market crash, which hit England already in the midst of the housing price crash.

http://en.wikipedia.org/wiki/Secondary_banking_crisis_of_1973%E2%80%931975

Thrugelmir

wheresmydoshat wrote: »

because there's very few lenders doing it so not much choice, plus my partners salary goes up by about 10k in September making the whole process a lot easier.

Unlikely that there will be many new lenders in the market in the near future. So wouldn't bank on that. (Forgive the pun).

With a rise like that save a bigger deposit!

ad9898_3

wheresmydoshat wrote: »

because there's very few lenders doing it so not much choice, plus my partners salary goes up by about 10k in September making the whole process a lot easier.

May I suggest then that your partner's extra 10k goes into saving a bigger deposit and wait maybe 12 months ?, after all that 10k put in your savings will transfer into 30k that you don't have to earn to pay down the mortgage when you get one, a bigger deposit will give you a better deal with the bank, and last but not least there is the other issue that prices will be lower in 12-18 months time.

lostinrates

wheresmydoshat wrote: »

because there's very few lenders doing it so not much choice, plus my partners salary goes up by about 10k in September making the whole process a lot easier.

Similar situation here: DH's salary increases significantly in March (nothing is failsafe though). We hoped to have bought before then, so that the mortgage was naturally constricted by this years income (our lowest for a few years, but planned for, and included a salary increase for DH) but we are seeing lots we like at well under the amount we could borrow if lending remains as it is now in March, but a bit over what we could borrow this year. If we bought something now on this years restriction mortgage would be better, not just because smaller amount borrowed, but because we'd have 25% (maybe a bit more) deposit and get a much better fix.

Ultimately, we feel no need to rush into anything just yet for the sake of it.

wheresmydoshat

we've put off buying long enough, and tbh my area has very little signs of accepting anywhere near the reported drops in prices.

chucky

wheresmydoshat wrote: »

we've put off buying long enough, and tbh my area has very little signs of accepting anywhere near the reported drops in prices.

some areas won't be that much affected but some have been.
this is the danger of people generalising and people assume it is happening everywhere.

wheresmydoshat wrote: »

because there's very few lenders doing it so not much choice, plus my partners salary goes up by about 10k in September making the whole process a lot easier.

it's all swings and roundabouts to be fair. the house price average indexes may drop a bit more but don't forget you may be in an area that is flattening out and may have increases at some point and it may be a good time to buy. if you're not and you think that prices will go down in your local area it may not be a good time to buy now and wait.

the second factor to think about is mortgage rates - will you be able to get a better rate now than in 6 months or a years times. my view on rates is that they will start to creep up and you may lose the opportunity to be on a low fixed rate.

just make the decision yourself, do your own research instead of taking advice from anonymous strangers on an internet forum who don't even know your local area - you'll know what's happening better than them.