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Debate House Prices
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90% of all UK mortgages are on a variable rate
Comments
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Thrugelmir wrote: »What rates are you expecting in the future?
Which lenders will be offering them?
Only cheap lender at the moment is the HSBC. With retail deposits washing about in the Far East, then they've the funds to drive for market share.
The Icelandic bail out is costing lenders (and indirectly borrowers) an additional .25% alone in increased FSA levies.
No idea what rates will be in the future but if the doom mongers are to be believed they are going to sky rocket. A five year fix at around 4% sounds pretty good to me. You are then insured against any shocks if interest rates do go up.0 -
We have the best mortgage of all:j
When we started in the late eighties fixes were very much on the edge.
Variable was more likely and there were no arrangement fees either. You had to budget expecting a rate rise.
Situations change (and it wasn't down south) but at the time we had to offer the asking price or lose them.
Things weren't easy but the income multipliers were harder then on 3X single and 3.5X joint. Deposit was 16% and we had the same agian for "fitting" out. A couple of years later prices crashed, negative equity as now. Through that time property has double every ten years and that is still true on that first house today.
You could get higher multipliers and 95%LTVs but they weren't as common place.
I do believe prices will stabilise in the next couple of years but I have no certainty that the degree of growth will return.
There are more luxuries to tempt younger folk, things are wanted today and now (less saving), and there is less and less disposable income with things like graduate loans to pay back.
In the long run I am sure things will work out.:cool:"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
No idea what rates will be in the future but if the doom mongers are to be believed they are going to sky rocket.
When the economy rebounds so will interest rates. Alternatively like Japan we'll be stuck in a deflationary cycle for 20 years while the population ages and debt is repaid.0 -
Thrugelmir wrote: »When the economy rebounds so will interest rates. Alternatively like Japan we'll be stuck in a deflationary cycle for 20 years while the population ages and debt is repaid.
So when do you think interest rates will go up and how high?0 -
So when do you think interest rates will go up and how high?
Higher and faster the better for me.
Always two sides to a story."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Thrugelmir wrote: »When the economy rebounds so will interest rates. Alternatively like Japan we'll be stuck in a deflationary cycle for 20 years while the population ages and debt is repaid.
Being thick at moment but how will an aging population and repayment of debt increase interest rates?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Being thick at moment but how will an aging population and repayment of debt increase interest rates?
That was the alternative. They won't rise. Though neither will asset prices.0 -
So when do you think interest rates will go up and how high?
In my view base will ultimately rise back to 3.5% - 5%.
My comment about mortgages being 2%+ above base, was a commercial one. As lenders will need to make adequate margins to operate profitably.
As for the speed of the rise. Many different factors could come into play. So difficult to take a view.
Personally I would like the current status quo to be maintained for as long as possible. While the issues of the economy, Government and consumer debt, banks refinancing their balance sheets can continue to be addressed.
Though I suspect at some point the money market guns will be trained on the UK. As significant amounts of money will have to be raised. This could be the trigger for a rapid rise in interest rates. Outside of the BOE's control I should add.0 -
............by the time the period ends in 2015 I genuinely feel that we'll be in a position to be mortgage free, or there abouts.
Then you'll become a parasite.
Don't you realise it's your duty to borrow as much money as you can for as long as you can?"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Thrugelmir wrote: »In my view base will ultimately rise back to 3.5% - 5%.
My comment about mortgages being 2%+ above base, was a commercial one. As lenders will need to make adequate margins to operate profitably.
As for the speed of the rise. Many different factors could come into play. So difficult to take a view.
Personally I would like the current status quo to be maintained for as long as possible. While the issues of the economy, Government and consumer debt, banks refinancing their balance sheets can continue to be addressed.
Though I suspect at some point the money market guns will be trained on the UK. As significant amounts of money will have to be raised. This could be the trigger for a rapid rise in interest rates. Outside of the BOE's control I should add.
Spot on.
Personally I would like it back up there sooner rather than later.
It would also take some of the inflationary pressures out by helping sterling."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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