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Will the rate rise change your buying/selling plans?
BettiePage
Posts: 4,627 Forumite
Are you worried your buyer may now pull out?
Will you be going back to the vendor with a lower offer because of this rise?
Will you be going back to the vendor with a lower offer because of this rise?
Illegitimi non carborundum.
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Or heres another one, will you now have to sell your property because you can no longer afford the mortgage repayments? If so, will you be downsizing or going into rented?Illegitimi non carborundum.0
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i can hear you rubbing your hands accross cyberspace.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Who lil' old me?lynzpower wrote:i can hear you rubbing your hands accross cyberspace.Illegitimi non carborundum.0 -
BettiePage wrote:Who lil' old me?
Me too. Rising IRs are fantastic news for me. I cannot afford a house but I do have savings. So a rise is likely to damage the housing market (good for me) and is likely to make my savings grow more rapidly (good for me)!2 + 2 = 4
except for the general public when it can mean whatever they want it to.0 -
talksalot81 wrote:Me too. Rising IRs are fantastic news for me. I cannot afford a house but I do have savings. So a rise is likely to damage the housing market (good for me) and is likely to make my savings grow more rapidly (good for me)!
Good for you:T :T0 -
All of my friends commented that 0.25% increment is nothing at all. 10 years ago the interest rate is much higher than 5.25% so even if it increases to 7% it won't have any impact to the booming housing market. you only have to pay 0.25% extra on morgage per year but the house price rise is around 10% a year. some think it's likely to drop back to 5% by end of this year.0
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ravenfield wrote:All of my friends commented that 0.25% increment is nothing at all. 10 years ago the interest rate is much higher than 5.25% so even if it increases to 7% it won't have any impact to the booming housing market. you only have to pay 0.25% extra on morgage per year but the house price rise is around 10% a year. some think it's likely to drop back to 5% by end of this year.
I am guessing your friends not to be mathematicians.
Imagine repayments of £1000.
1) Interest rate 12%. Rate rises 6%
2) Interest rate 4%. Rate rises 2%
Which one makes a bigger difference to the repayments? Answer - neither. Both result in a repayment of £1500.
So this 0.25% rise is basically the same as a 0.75% rise in 1990.
Interestingly, the rate was well above 10% through the 80s. At crashing point, the rates were only just below 15%. So that is a 50% rise to yield the crash (many people believe the IRs were the major factor). In 2003 we got to 3.5%. Today we are at 5.25% - 50% above what we were at the minimum...2 + 2 = 4
except for the general public when it can mean whatever they want it to.0 -
they were also saying the house market will not crash until at least 2012 because of Olympic. So in theory, the house market will keep rising until 2012. Conclusion = better buy now than later.0
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But that is the 'bargain' mentality. "It is a bargain - Id better buy it". It rarely seems to matter to people that they dont really really need it and more importantly, that they cant really afford it.2 + 2 = 4
except for the general public when it can mean whatever they want it to.0 -
ravenfield wrote:they were also saying the house market will not crash until at least 2012 because of Olympic. So in theory, the house market will keep rising until 2012. Conclusion = better buy now than later.
What complete twaddle...0
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