Why are posters so Obsessed with House Prices?

chucky

neverdespairgirl wrote: »

they were not 15% for a year in 1989 or 1990.

From the B of E's site:

Mon, 08 Oct 1990 13.88
Fri, 06 Oct 1989 14.88
Fri, 08 Sep 1989 13.75
Mon, 04 Sep 1989 13.88
Thu, 31 Aug 1989 13.84
Thu, 25 May 1989 13.75
Fri, 25 Nov 1988 12.88

it would help if you looked at mortgage rates and not BoE rates

1 Apr 91 - 13.75
1 Nov 90 - 14.50
1 Mar 90 - 15.40
1 Nov 89 - 14.50

chucky

RenovationMan wrote: »

Well, For Example :

Cost of home 200,000 in 2007
int at 2% 25 yrs 54,313
Total cost of home £254,313

Cost of same home 176,000 in 2010 (12% reduction from peak)
int at 5% 25 yrs 47,794.00
Total cost of home £223,794

Quick figures using the mortgage calculator on your link.

So basically, FTB are obsessed with house prices and OOs are obsessed with interest rates, and both for very good reasons.

Mr Man, you're making the same mistake as the OP of taking the same rate for the 25 years. it won't happen. short term and medium term you can plan but not long term.

it's too hard a difficult a comparison - there will be winners and losers in all of this but people won't realise this until after the event

Really2

neverdespairgirl wrote: »

I was the only one who mentioned 20 years, true. But that's a touch misleading as really2 was talking about 23 years from now!

It was hard not to when saying I believe the 25 year period from late 08 would see the lowest average base rates of our life time, possibly ever recorded.

If I said I think the base rate from march 2009 to now would be the lowest ever as a prediction/ assumption, although accurate it would be a bit pants.

Really2

chucky wrote: »

Mr Man, you're making the same mistake as the OP of taking the same rate for the 25 years. it won't happen. short term and medium term you can plan but not long term.

it's too hard a difficult a comparison - there will be winners and losers in all of this but people won't realise this until after the event

That is where offsets can help, overpay the good times so you dont have to ratchet up payments in the bad.

chucky

Really2 wrote: »

That is where offsets can help, overpay the good times so you dont have to ratchet up payments in the bad.

exactly paying a mortgage for 25 years or paying mortgage for 18 years - somehow some people think that they're going to get the house at the right price and time it to get the right mortgage interest rate.

it's not going to happen, to do this on purpose is impossible. you would do it by luck, nothing else.

Really2

chucky wrote: »

you would do it by luck, nothing else.

Your right, I thought a couple of years below 5% when rates started to fall.

Luck is your best friend, providing it is good.

neverdespairgirl

chucky wrote: »

it would help if you looked at mortgage rates and not BoE rates

1 Apr 91 - 13.75
1 Nov 90 - 14.50
1 Mar 90 - 15.40
1 Nov 89 - 14.50

No it wouldn't. Not when I'm responding to a statement that "In the 80's and through to 1992 interest rates were mostly in double figures - at the highest 15% for a year (from 1989 to 1990.)"

chucky

neverdespairgirl wrote: »

No it wouldn't. Not when I'm responding to a statement that "In the 80's and through to 1992 interest rates were mostly in double figures - at the highest 15% for a year (from 1989 to 1990.)"

yes of course i didn't realise - the thread is about buying a house with a mortgage.

davilown

Procrastinator333 wrote: »

Interest rates are going nowhere fast imo.

I think you have shown even further evidence of why the FTB should wait until they get up to a suitable LTV.

and with that a decrease in house prices as FTB aren't buying? I think We've all accepted that IRs are not going any fast soon but what would a 2% rise over the next two years do?

Gorgeous_George

At the peak I paid 16.5% on my mortgage.

GG