Interest rates go up! Now 4.75%

mystic_trev

PoorDave wrote:

Does it make you happy?

Still by far and away at a historic low level though.

Don't forget that many people are on fixed rates, so this will have no effect on their affordability for years yet.

Also, from some research i did this week using Nationwide house price data, at the last crash it took seven years from initial drop to absolute trough, so you're best off buying sometime in 2013, if this is repeated, and i know there's no certainty!

Also, if it's a bigger peak, will it take longer to reach the trough?

A - Yes
B - Wrong historic average is 5% i.e one more rate rise
C - Most fixed rates are for 3 - 5 years, hardly a long time, and many peoples fixed rate deals are now coming up for renewal
D - Not totally correct as you need to include other data, not just Nationwide.
E - It's a much bigger bubble, therefore likely to "deflate" a lot faster.

sanfrancisco

mystic_trev wrote:

E - It's a much bigger bubble, therefore likely to "deflate" a lot faster.

Hey mystic trev,

Why do you think this? I am a confirmed believer in a house price crash, but I am expecting a looooonnngggg wait. Can you make my day even better?

Cheers

FaTB

Debt_Free_Chick wrote:

But spare a thought for those struggling with personal debt.

Erm........ No sod 'em, they didn't have to get into debt !!

PoorDave

FaTB wrote:

Erm........ No sod 'em, they didn't have to get into debt !!

That's the spirit!

PoorDave

mystic_trev wrote:

A - Yes
B - Wrong historic average is 5% i.e one more rate rise
C - Most fixed rates are for 3 - 5 years, hardly a long time, and many peoples fixed rate deals are now coming up for renewal
D - Not totally correct as you need to include other data, not just Nationwide.
E - It's a much bigger bubble, therefore likely to "deflate" a lot faster.

A - Right...
B - Prove it! Also depends what we mean by historic. I looked at the BoE data back to about 1950ish (might be a few years out), and it seems to start with many peaks and troughs which (by eye) look to average at 7 or 8%, compared against which, rates in recent years look low.
C - Says who? My point was that it won't instantly affect everyone.
D - That's why i pointed out where my data came from. People posting forecasting a crash on MSE often base their theories on the lastest monthly figures from one source. I suppose that makes us as bad as each other! Dammit
E - Says who? Wishful thinking?

PoorDave

biting_the_bullet wrote:

The significant thing here, is that the buy to let brigades yields have just been dented, just like that. In an enviroment where things are getting harder and harder for speculators to make a few quid renting out property, this may just be the reason to f**k them off out of it, and leave homes for folk to live in.
Also, for the potential owner occupiers, affordability has just been lowered. Guess what?? If buy to letters are getting out and owner occupiers can't afford crazy prices, then who will be buying??? Result= Prices Falling and about time too.

There are fixed rate BTL mortgages you know...

kenshaz

I am in the fortunate position of having no mortgage or debt,but I still can understand the feelings of those struggling,because I am not selfish or greedy ,and I have children who will be effected,what I was receiving was fine,stand in the shoes of DFWs,trying to clear debt,and the others cheering because they are going to get fatter

FaTB

PoorDave wrote:

That's the spirit!

I don't wish these people bad fortune, equally I don't have any sympathy for them either.

I have taken great care to save a bit each month and stay out of debt, and have missed out on alot of the little luxuries in life because of that.

I only buy things when I have the money to buy them CASH, and then I ask myself again "Do I really need it, or is it just consumer crap ?? "

Meanwhile many people including most of my freinds have been living it up like footballers wives, and are now thinking "Oh SH*t how did I manage to get £30k in debt" and all they've got to show for it is a car that has depreciated by 50% since they bought it, but are still paying for it.

Sorry but sod 'em !!

fattyamal

FaTB wrote:

...I have missed out on alot of the little luxuries in life because of that..
..Meanwhile many people including most of my freinds have been living it up like footballers wives..

On the one hand, I do think along similar lines to yourself, but then again.. when you're lying on your death bed will you not regret giving yourself more luxuries whilst you were alive to enjoy them rather than penny-pinching your way to the grave? You can't take the damn stuff with you, so why not "live it up" and enjoy all the nice things in life before it's too late...? No point in having cash in the bank then, so a bit of splurging doesn't seem too bad. (says me, who my best mate called 'the tightest man he'd ever known' !!)

Yeah, fu** it, the more I type this the more I think you may as well be in debt and enjoying oneself than living miserably with no debt before suddenly being hit by a bus. Life's too short people, don't go stupid or anything, but that extra night out with your friends costing £20 might be the last time you see them. Crikey, sounds like I'm on something this evening...

hitman_uk

i have put off buying for a while now due to the excessive cost. I could afford it but my rent is more than 50% cheaper. My main question is how much will his effect someone in £'s per month or £'s per year. I was thinking not much maybe £30 per month on a 120k mortgage But then i suppose with the utility bills rising then it will all add up...people must be living so close to the bone if this has a major effect. Can someone give me an example of the cost?