Interest rate raise already having an effect ?

Jorgan_2

realwildone wrote:

What a load of EA bull. The rate rise will and maybe already has had an effect on the market. The suspicion of more rises will kill it.

Which part of what I posted is EA bull realwildone, please be more specific.

Xbigman

Graham_Devon wrote:

How they came up with £12 is laughable. So the average property price is now £160 odd thousand. Say a buyer goes in with a 10% deposit, they need a mortgage for £144k.

Over 25 years, at 4.5% their repayments would be £809.26 (repayment)
Over 25 years, at 4.75% - £830.22

Thats a difference of £21.

The calculator I'm using actually states 'be careful, if the interest rate rises to 12% your repayments would be £1529....scary!!

This is on only a £144k mortgage....

Those with a 220k mortgage will see a rise of £32 a month.

Who really, apart from those who bought before the boom will see a £12 rise. Averages are great, but this is average of many many years and doesn't look at todays prices very well at all.

It's now a lot harder for first time buyers.

The average mortgage in the country includes all those set up over the last 25 years, so there are people out there with mortgages that *started* as low as 10k. The average active mortgage in the country is 31k (IIRC - I saw it quoted somewhere). So an average mortgage will go up less than £12. Where as an average recent mortgage of 100k will go up £19 (or £18 or £22 depending on which paper you read).
However, the Sun says mortgages will go up only £2, but those £'s are great big bouncy ones that stick out in front :rotfl:
Regards



X

hethmar

Well, in my non expert, humble opinion, it doesnt seem to have changed peoples interest in buying at all. We have just been gazumped on a property and when I went in to EA to speak to them, there was a queue! Yep, a queue of people wanting to look at properties and as far as I could see, all non-local people.

Id love everything to cool down but it just doesnt seem to be happening in this area - what we are seeing is people selling up their extremely overpriced terraced/semis in big cities and then moving to a 4 bed detached in our country town. Its not a good situation as most seem to think they will commute the 120 miles and given a 6 months stint of 6 hours a day travelling will then pack up their jobs and be unemployed, adding more pressure to the local facilities.

But this is pushing up prices for the local kids who cant even rent a one bed flat in this area now.

Jorgan_2

Hethmar, try a local agent for local people.

I agree with you, we've had four people in this morning looking for buy 2 let, as usual 3 didn't have a clue what they were talking about, except telling me 'that you can make money out of it & its a better bet than other investments' (don't shoot me, I'm quoting what they said, not agreeing with it). The fourth already had a few properties & was looking to buy properties in a cheaper area.

hethmar

Yes, thats what we need "a local estate agent for local people ONLY" - would solve a lot of problems - certainly locals wouldnt go gazumping prices of cottages when they have seen them a tiny percentage of their current prices.

richgirl

The year on year gains peaked in 2003, and have been trending lower since, looks like the next leg down will take us into falling house prices over the next 12 months,

F_T_Buyer

House Prices reach £200k: http://news.bbc.co.uk/1/hi/business/5253112.stm

There's an interesting distribution of price changes: http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm

Jay1b

Graham_Devon wrote:

How they came up with £12 is laughable. So the average property price is now £160 odd thousand. Say a buyer goes in with a 10% deposit, they need a mortgage for £144k.

Over 25 years, at 4.5% their repayments would be £809.26 (repayment)
Over 25 years, at 4.75% - £830.22

Thats a difference of £21.

The calculator I'm using actually states 'be careful, if the interest rate rises to 12% your repayments would be £1529....scary!!

This is on only a £144k mortgage....

Those with a 220k mortgage will see a rise of £32 a month.

Who really, apart from those who bought before the boom will see a £12 rise. Averages are great, but this is average of many many years and doesn't look at todays prices very well at all.

It's now a lot harder for first time buyers.

Well i brought for the first time in April, and my mortgage should increase by about £15 per month. You're forgetting that most people dont buy an average priced house to begin with, they buy starter homes. When they move to a averagely priced house they already have lots of equity... Also you have people in the north where houses are only about £80K, and then people with flats etc...

Jorgan_2

Jay1b wrote:

Well i brought for the first time in April, and my mortgage should increase by about £15 per month. You're forgetting that most people dont buy an average priced house to begin with, they buy starter homes. When they move to a averagely priced house they already have lots of equity... Also you have people in the north where houses are only about £80K, and then people with flats etc...

According to the NAEA, FTBers currently make up about 12.5% of the current buyers, therefore 'most' people don't buy starter homes.

meanmachine_2

Jorgan wrote:

According to the NAEA, FTBers currently make up about 12.5% of the current buyers, therefore 'most' people don't buy starter homes.

And you say this like it's a good thing?

Compare this to 10 years ago when FTBers made up 40-50% of the market.

Starting to get worried yet?

No? You should be. When the !!!!!! falls out of the BTL market, you're not going to have any FTBers around to bail you out mate.