interest rates have gone up

UK007BullDog

albacore1854 wrote:

No lets.

Doom and gloom is good, lets all watch the smug BTL'ers panic. It'll take more than a coat of magnolia, and some pebbles in the fireplace to keep a roof over their head.

:rotfl: I dont think so. With all those people moving into the UK and they have to live somewhere I cannot see any crash happening. People are still buying like crazy. There is a lot of rental stock available but it does not seem to deter people from buying. 1 beds and studios fly off the shelves. Everyone wants to live on their own. So the builders will keep churning it out and people will keep buying, lenders will do anyting to make it affordable.

I cannot see it crashing. A correction yes but not a crash, unless our economy goes totally in reverse. We are living in/on borrowed time/credit cards :rolleyes: which has fuelled our economy.

The clever BTL invester has gone for the long haul and fixed for 3 or 5 yrs. The short sighted ones for 2 yrs. Those on a complete gamble will have tracked or SVR'ed it and they are now the ones having to subsidise the tenants. :rotfl:

movieman

The clever BTL invester has gone for the long haul and fixed for 3 or 5 yrs.

The clever BTL investor has sold to wait for the crash, and will buy back in at the bottom in five years when those fixed mortgages run out with their properties worth 60% less.

KTF

I think you will be waiting around for a very long time before property loses 60% of its value. I cant see that happening at all.

If it did then everyone would jump on the property ladder and push them back up again anyway.

talksalot81

My goodness, the BoE actually have some balls...

movieman

I think you will be waiting around for a very long time before property loses 60% of its value. I cant see that happening at all.

It's a well-established fact that most people can readily predict when others will lose money, but can't see it happening to themselves. Hence, for example, 'yes, housing will drop in the North where prices are absurd, but will never drop in Surrey/London/Devon/wherever you live', or whatever.

If it did then everyone would jump on the property ladder and push them back up again anyway.

Eventually, perhaps. But if prices drop that far in the UK after this bubble, so many people will be burned that I suspect we're far more likely to 'go Japanese' with no-one wanting to buy houses in case they drop further... even 0% interest rates didn't help stop their crash.

And those who are relying on mass immigration to prop up the market are forgetting that immigrants go to places where they can get jobs easily and make money; and if the UK is in a recession they'll find much better opportunities elsewhere.

talksalot81

KTF wrote:

If it did then everyone would jump on the property ladder and push them back up again anyway.

Well it wouldnt be a crash then would it?!

Alot of people have alot of equity in housing. If prices go down, they wont be able to get the equity out and will not be able to 'jump' back on board. You would be relying upon those who are not tied into the market already.

vandanfc

worto03 wrote:

I'm tied into a fixed rate until August this year with A&L - does that mean there is nothing much I can do until a month or so before that date?

sorry for the basic question - it's my first house so I just kind of did what the financial bloke said - wish I'd had fixed for at least 3 years now but never mind. (I didn't join this forum until after that)

I won't be effected until my fixed rate ends but there have been a few increases since I took out mine.

worto.

If you are going to stay with A & L you should be able to apply for a new loan 2 months before the end of your current one, but I would start looking at deals another month os so before this.

Our fixed rate with A & L ran out 31 Dec 06, they let us apply anytime after 1 Nov 06. Got a new rate just before the last rate right and just a day or so before A & L raised their mortgage rates.

MABLE

The market where I live is saturated with buy to lets and nothing would be greater pleasure for those greedy little speculators to come unstuck.
If we need a house crash to do this then so be it.

dwsjarcmcd

sten wrote:

I am in the process of getting a fixed rate mortgage (not yet applied fully), when will fixed rates increase? Do I need to rush now?

Thanks

Sten,
Probably, not many lenders have repriced yet (Portman and a few others aside). Swop rates have risen recently and the deals available would have needed to be re-priced up even before todays increase.

I think all of the deals available today will be gone by Monday night. If Ihad been researching a mortgage right now, I would get my application in asap!

xtratime

5.25% isnt that bad.

My first morgage 18years ago was 15.4%.