When interest rates to go back to normal many more distressed sellers?

novazombie

When interest rates to go back to normal. Then we will see even bigger falls to house prices as we see more distressed sellers.

Its looking likely this year will be the one when IRs start their journey back to normal. Will they overshoot though?

With so many struggling to pay their mortgages now what about when rate go back to normal?

HAMISH_MCTAVISH

Why does this site attract people with below average intelligence?

Cleaver

Before commenting on this I would like to see all homeowers split in to groups by percentage:

Own outright
Mortgage on fixed rate
Mortgage on tracker
Mortgage on SVR because it suits them
Mortgage on SVR because they are unable to remortgage

As I've said a few times on here, we had a five year fixed from 2003 to 2008 on about 4.7%, then SVR for a short while in 2008 on around 5%, then 3.75% throughout 2009 and early 2010 and we've recently fixed it for 5 more years until 2015 at 3.99%.

So we are one house with a mortgage that hasn't been affected by base rates in the past, and won't be in the near future. I know not everyone will be in the same boat, and I'm sure there will be people will be f*cked when the rates go up. I just don't have a handle as to how many.

Cleaver

HAMISH_MCTAVISH wrote: »

Why does this site attract people with below average intelligence?

Don't be too harsh on yourself Hamish, you can sometimes come across as quite erudite.

DervProf

HAMISH_MCTAVISH wrote: »

Why does this site attract people with below average intelligence?

Speak for yourself, sunshine.

Hello Hamish, any comment on the Halifax figures ? I was awaiting your input to that thread, but you seemed a bit shy. I had a severe pecking by chucky, but I managed to fend him off, just.

purch

When interest rates to go back to normal

What level do you mean as "normal" ?

(8.4% average Base Rate over last 35 years, 7.13% over last 25 years, 5.024 over last 15 years, 4.379% over last 10 years or 4.124% over last 5 years)

Its looking likely this year will be the one when IRs start their journey back to normal

What gives you that idea ??

stringsmk2

Cleaver wrote: »

Before commenting on this I would like to see all homeowers split in to groups by percentage:

Own outright
Mortgage on fixed rate
Mortgage on tracker
Mortgage on SVR because it suits them
Mortgage on SVR because they are unable to remortgage

As I've said a few times on here, we had a five year fixed from 2003 to 2008 on about 4.7%, then SVR for a short while in 2008 on around 5%, then 3.75% throughout 2009 and early 2010 and we've recently fixed it for 5 more years until 2015 at 3.99%.

So we are one house with a mortgage that hasn't been affected by base rates in the past, and won't be in the near future. I know not everyone will be in the same boat, and I'm sure there will be people will be f*cked when the rates go up. I just don't have a handle as to how many.

Tend to agree, during the height of the boom we still had people struggling to pay mortgages so nothing new there. I would also suggest that those struggling are already on high fixed rates or SVR, and a rise interest rates wont really make that much of a difference as they struggling anyway

HAMISH_MCTAVISH

Cleaver wrote: »

Don't be too harsh on yourself Hamish, you can sometimes come across as quite erudite.

No really, what is it about topics such as house prices and immigration that attract people of obviously limited intellectual capacity with debating positions even a neanderthal would have realised were untenable.

Under normal circumstances I may have humoured the OP with a condescending rebuttal of their position, pointing out the obvious logical fallacies, and prompting them to put a bit more thought into breaking down and illustrating the mechanism through which such a process could be achieved. I'd then usually point out the contradictory nature of their assumptions, highlight the illogical basis of their argument, and pour myself another homebrew, made from the finest bear tears.

But I just can't be bothered today, so I'm off to get a fish supper instead.

myhouse_2

Seems a bit harsh - simplistic though the OP's post was, it did seem to point out the obvious. Not sure what the logical fallacies and contradictions you refer to were, but I'd be interested to know, even if you don't want to humour the OP.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Why does this site attract people with below average intelligence?

You tell us, it attracted you.

antrobus

Cleaver wrote: »

Before commenting on this I would like to see all homeowers split in to groups by percentage:

Own outright
Mortgage on fixed rate
Mortgage on tracker
Mortgage on SVR because it suits them
Mortgage on SVR because they are unable to remortgage

Well, roughly speaking, there are about 17.5 million households which are owner occupied, 11 million have mortgages, the balance are owned outright. As to any breakdown by mortgage, dunno, the CML or BoE might keep tabs on it - probably fluctuates year on year anyway.