Interest rate raise already having an effect ?

mi-key

Interesting day today - went down to view another couple of houses, one of which we are considering making an offer on as the EA hinted that the sellers were 'well open to offers'.

Just got back home, and another agent phones us - one of the bungalows we had shortlisted for viewing sold last Sat before we had a chance to see it - turns out it is back on the market as the chain has collapsed.

Could just be coincidence of course, but the fact a price was agreed less than a week ago, then less than 24 hours after the interest rate the chain has collapsed ?

Prudent

Perhaps people are aware that rates are on the way up. The number of 7% and 8 % savings rates around may be an indication of this potential rise? Personally I would opt for a fixed rate if I was buying just now. There still seems to be some good fixed rate deals around. Ask your estate agent fro an opinion?

robwend

the raise only raises the average mortgage by £12.00 a month <so they papers say> so i doubt thats the reason

Prudent

I am surprised it is so little. I guess it depends how far they rise.

Woby_Tide

we've watched sales fall through on a number of properties we've viewed for various reasons over the last 4 or 5 months. Any number of reasons and probably completely unrelated to the rate rise. There seems to be a correlation though that the further up the market you move house size/price wise, the more likely it is to fall through, and they tend to fall through at the early stage rarther than later on in the process

Doozergirl

Zilch impact on the viewing front...

We're just putting a flat to the market, handed the keys over at 5pm yesterday to discover the agent had lined up 6 viewings; the first at 7.30pm last night. They've got no sales particulars, no measurements, no board, no advert, no nothing and we're marketing at £10,000 over my valuation. THEN, today there's a second viewing already!

Evidently there's a boom going on in the area and we've made a good call with the purchase. Obviously, I want to sell but I do think that the world has gone mad as I just couldn't justify paying that price when it really would be cheaper to rent in the area.

Here's my vote for a more steady market. :wave: Really.

meanmachine_2

Well, none of the main lenders have even bothered updating their websites yet, so any impact is unlikely to be felt until a few months down the line when new borrowers come on stream.

Given the recent high level of mortgage borrowing we'll still see high HPI for a few more months at least.

mi-key

All the main lenders advertised in the papers yesterday saying they were putting their own base rates up to 4.75% - even if they havent updated their websites, I think most have already put up their mortgage rates.

I think borrowers who are assuming they are going to get the same rate they were offered a month ago could be in for a shock.

When Lloyds TSB raised their rates weeks ago they told us it takes ages to get the website updated, and they were still handing out the old paper leaflets with the old rates in because they were 'waiting for the new ones from the printers'.

richgirl

Borrowing rates usually rise near immediatly by the full amount, whereas savings rate tend to lag with a smaller rise.

Jorgan_2

Well this Saturday has been busier with viewings than last Saturday, mainly FTBers.

Time will tell.

meanmachine_2

Jorgan wrote:

Well this Saturday has been busier with viewings than last Saturday, mainly FTBers.

Time will tell.

Well if they've already got their mortgages in place...

I hope for your sake you're right. Otherwise your stock is going to seem rather overpriced in the coming months...


By the way, I don't remember a SINGLE post from EAs on here last year admitting that business was slack. Not one.

Of course, after the event they were happy to admit to a slump, but never at the time.