Am I crazy to be thinking of buying a house right now?

Gwhiz

suljka wrote: »

Yeah right! Because what normally happens is rent always stay the same, no matter what happens to the market?! Right... and the pig can also fly :eek:

Doctor Gloom, why so gloomy

Although to be fair, anyone who takes a mortgage on now thinking rates won't a least double in the next few years needs their head examined.

quantic

I agree that mortgage rates have no where to go but up, however, if the base rate went up any time soon (substantially) I think we would see a massive peak in repossessions.

My bet would be that the base rate will stay the same for the next 3/4 years and then will slowly begin to climb. If the market is this stagnant WITH low interest rates, it would be dire with higher ones.

JuniorSherlock

Hi Gwhiz and good luck on your build!

Yes we are buying in the knowledge that interest rates will go up. We are looking at a fixed rate for 3 years, we'll take out mortgage protection with that, my husband's job is fairly secure and I know we can afford to pay the rent on his income alone as we've had to do that in the past.
Also the bank have not taken my earnings into consideration, so long as I keep working we should be able to afford whatever the interest rates throw at us.

Having said that, already we are having problems just getting hold of our mortgage in principle at the moment - nothing in the post 3 days later and estate agents have not received the numerous faxes the bank say they've sent. I've a feeling this will be just the beginning of the problems we face in buying a house. :eek: