Will the rate rise change your buying/selling plans?

talksalot81

ravenfield wrote:

Those friends of mine who commented that it will rise are the rich ones. to be precise they are doctors, bankers, accountants, lawyers.

You have to remember that it is easy for such people to speculate and take on risk - they have piles of money to afford it if they are wrong. Maybe you dont have the same reserves in which case you are quite sensible not setting in a risk you cannot handle. By purchasing you open up a reward if prices rise but potentiually a big loss if they dont. By not purchasing, you dont get the reward on rise but you most definitely will not lose out if something else happens.

fivemice wrote:

It won't be changing our plans.
We worked out the other night that with a 15 yr mortgage we could afford interest rates upto 22% or thereabouts and that's not allowing for any future wage increases.

We are buying a house to live in, not to make money on. If we make money on it, it's a bonus but we plan to buy a house and live in it for the long term.

You are in an extreme minority. I suspect that a doubling of repayments would criple most people. If they multiplied by 4 (i.e. a £500 pm repayment mortgage suddenly became £2000) then I am certain the country would simply fall apart!