Interest rates to hit 1.25% by year end

RenovationMan

ILW wrote: »

In the end, one persons price increase is anothers extra profit etc.
Virtually all scenarious regarding house price, interest rates et al produce winners and losers. Just depends which side ot the fence you happen to be on at any particular time.

True, and I dont have a problem with people wanting a particular asset class to rise or fall in order to suit their personal circumstances, its fair enough, though hoping for people to lose their homes is a bit mercenary, but hey-ho.

However AD has stated that s/he doesnt want house prices to fall because s/he wants personally to gain. AD seems to want rates to rise in order to punish people who dared to want more than out of life than s/he does.

ukcarper

Percy1983 wrote: »

I must say I am also mean spirited by your standards, I don't want 15% interest rates and a massive fallout, but I want a more 'normal' interest rate to which there will be some fallout. With that if I can't afford something I don't expect to keep it so why should overstretch home owners keep there homes? yes its unfortunate but it has to happen, we can't bail them out forever... can we?

I believe you are looking to buy a 3-bed house and the only thing stopping you is the size of deposit. Still it's ok to make a few people homeless so you can achieve it.

RenovationMan

Percy1983 wrote: »

I must say I am also mean spirited by your standards, I don't want 15% interest rates and a massive fallout, but I want a more 'normal' interest rate to which there will be some fallout. With that if I can't afford something I don't expect to keep it so why should overstretch home owners keep there homes? yes its unfortunate but it has to happen, we can't bail them out forever... can we?

Do you want rates to rise because you want the "over-leverged to be taught a lesson"?

ukcarper

RenovationMan wrote: »

Do you want rates to rise because you want the "over-leverged to be taught a lesson"?

That might be ok if that was the way it worked but a lot of those people will be ok while people who have be unlucky and had a wage cut or lost their job and find another a lower wage will be the ones to suffer.

Percy1983

ukcarper wrote: »

I believe you are looking to buy a 3-bed house and the only thing stopping you is the size of deposit. Still it's ok to make a few people homeless so you can achieve it.

I am going to get there eitherway, I would just rather interest rates where a little higher when I get there.

By all means the fallout I wish to see wouldn't really cause a housing crash but will hit a few fools, no problem really.

1984ReturnsForReal_2

ILW wrote: »

In the end, one persons price increase is anothers extra profit etc.
Virtually all scenarious regarding house price, interest rates et al produce winners and losers. Just depends which side ot the fence you happen to be on at any particular time.

You assume there is the same amount of people on one side of the fence as the other.....................

System

Percy1983 wrote: »

I am going to get there eitherway, I would just rather interest rates where a little higher when I get there.

Why would you want higher IR's when you're about to buy?

B_Blank

Get rates up now. I hope the housing market crashes.

ILW

1984ReturnsForReal wrote: »

You assume there is the same amount of people on one side of the fence as the other.....................

Makes no difference, it was about peoples differing opinions.

Percy1983

Joeskeppi wrote: »

Why would you want higher IR's when you're about to buy?

Because right now the only way is up.

I do believe if I go for a fixed rate it will be the same rate more or less if rates are on 0.5% or 1.5% I will end up paying around 5.5%, but the key is in the SVR, right now they are all base +4% (more or less) so if rates go to 1.5% the SVR's will be around base +3%.

Thats the theory anyway.

Eitherway I can't get the deposit together any quicker so I will just deal with whatever is happening when I do.