Inflation and it's impact on my ability to buy a house!!

System

Using ad's example in another thread, the mortgage rate increases announced equate to an increase of £6450 on a 150,000 5 year fix.

So now you need another 4% drop just to break even on that last mortgage hike.

chucky

sabretoothtigger wrote: »

Martin knows a good deal when he sees one I think. Prices might still fall but the total costs are not that simple, now might be the best time to buy and we wont know that till later

yes like fixing your Gas tariff and putting your money in Icelandic savings accounts.

sabretoothtigger

Capping the gas tariff was a better bet, I think he mentioned that. Not sure about Iceland risk warning, wasnt looking at savings.

You always have to weigh it up for yourself though, he can hardly advise personally to millions

mewbie_2

Joeskeppi wrote: »

Using ad's example in another thread, the mortgage rate increases announced equate to an increase of £6450 on a 150,000 5 year fix.

So now you need another 4% drop just to break even on that last mortgage hike.

Or to put it another way. Another 4% will cancel out that hike.

ruggedtoast

Joeskeppi wrote: »

Using ad's example in another thread, the mortgage rate increases announced equate to an increase of £6450 on a 150,000 5 year fix.

So now you need another 4% drop just to break even on that last mortgage hike.

Mortgage rates go up and down. The principal you owe will not.

Higher mortgage rates = lower house prices.

Fin.

chucky

ruggedtoast wrote: »

Mortgage rates go up and down. The principal you owe will not.

does that really happen on a repayment mortgage

ruggedtoast wrote: »

Higher mortgage rates = lower house prices.

Fin.

i'd re-check these statements - typical of user on an internet forum saying things they assume and qouting them as facts :rolleyes:

sabretoothtigger

Whats the gap between renting and owning with repayment mortgage because really the capital value comes second to that

Whats the point of wisely waiting while prices fall if you are paying for the privilege in rent, it can only make sense for so long.
If the rate of decline is slowing then the gap is closing right

StevieJ

Cannon_Fodder wrote: »

In the most reliable index, according to those who said a year ago or more the Haliwide was of insufficient coverage, prices ARE still going down;

http://www1.landregistry.gov.uk/houseprices/

-0.3%...!

Whoop!

That should relate to about Jan, Spring bounce still to come whoopee :j

Treadmill

sabretoothtigger wrote: »

Martin knows a good deal when he sees one I think. Prices might still fall but the total costs are not that simple, now might be the best time to buy and we wont know that till later

Decide for yourself on your own budget if you can find a good place to live that you can afford.
Following the herd is what caused the high prices that made no sense and the worst mistakes are always repeated, decide for yourself if now is a good time to buy because its definitely a possibility imo

Dunno about that, not so long ago when the credit crunch started Martin was advising people to take an unsecured loans as a deposit so they could secure deals around the 6% mark... that wasn't such good advice in my opinion

nearlynew

Isn't it awful that someone like the OP should feel the way they are?

Wouldn't it be great if you could just buy a house when you were ready - when you got married or having kids or wanting to move out of your parents...... whatever reason.

Without having to consider what the market is "doing" or weighing up where interests may be going.