How long before the inevitable nominal fall of 35% in houseprices

Cherryjack

i have an interest only mortgage due to bad debt which i am slowly clearing.. my mortgage was going to be £1300.00 in 2006 and then the credit crunch hit and it went down to £600..
do you see this rising any time soon? it scares me..
Thank you

robmatic

paulmapp8306 wrote: »

Not quite sure why thats relevant. I dont think many say the global crash and teh need to lower rates. However, as there as low s they could be and with inflation rising, and considerbly higher than interewst rates already - its only a matter of time bofre the BOEs hand is forced regardless of the state of the economy.

I conceed if rates were at say 2%, then I couldnt predict if they would go up or down - though id still say up given the current issues - but as there at the lowest point the only was IS up.

It's true that the only way is up but given the recent additional round of QE being announced and the general fact that the global economy is fooked, it's not likely to be soon.

homelessskilledworker

Cherryjack wrote: »

i have an interest only mortgage due to bad debt which i am slowly clearing.. my mortgage was going to be £1300.00 in 2006 and then the credit crunch hit and it went down to £600..
do you see this rising any time soon? it scares me..
Thank you

No Cherryjack, they will not be raising them soon and if they do they will not be by much. It would have been laughed at 10 years ago if someone had said that if BOE raise interest rates to 3% then the whole country would be hammered, but thats where we are now.

Your only hope is for the UK to remain desperate.

mcc100

I can't see there being any dramatic falls whilst the number of forced sellers remains low. This will only change once interest rates rise, and no-one knows when that will be.

However, I am sure that the exposure of UK banks to the Eurozone crisis is being covered up, and when they take the inevitable hit, mortgage rationing will be on a far higher scale than present and will certainly affect house prices.

homelessskilledworker

mcc100 wrote: »

I can't see there being any dramatic falls whilst the number of forced sellers remains low. This will only change once interest rates rise, and no-one knows when that will be.

However, I am sure that the exposure of UK banks to the Eurozone crisis is being covered up, and when they take the inevitable hit, mortgage rationing will be on a far higher scale than present and will certainly affect house prices.

Good points

And from what I have heard 2012 is going to be the real credit crunch, if people thought this year was bad they have seen nothing according to "some experts".

The only conclusion I could come up with was the exposure we have to the Eurozone, not so much Greece which in my view is as good as out of the euro already, but Italy and Spain. I think we are months from something really awfull happening.

DervProf

homelessskilledworker wrote: »

No Cherryjack, they will not be raising them soon and if they do they will not be by much. It would have been laughed at 10 years ago if someone had said that if BOE raise interest rates to 3% then the whole country would be hammered, but thats where we are now.

Your only hope is for the UK to remain desperate.

True.

This is where you get if you worship at the altar of HPI. Low interest rates become a necessity, rather than a bonus.

robmatic

DervProf wrote: »

True.

This is where you get if you worship at the altar of HPI. Low interest rates become a necessity, rather than a bonus.

I am curious regarding what exactly those people for whom low interest are a necessity were doing in 2005/2006 when their housing costs were much higher?

DervProf

robmatic wrote: »

I am curious regarding what exactly those people for whom low interest are a necessity were doing in 2005/2006 when their housing costs were much higher?

MEWing and maxing their credit cards ?

robmatic

DervProf wrote: »

MEWing and maxing their credit cards ?

Possibly. I would really hope that such people would have spent the last 3 years sorting themselves out but that could be a wildly optimistic view of human nature.

homelessskilledworker

robmatic wrote: »

I am curious regarding what exactly those people for whom low interest are a necessity were doing in 2005/2006 when their housing costs were much higher?

Remortgaging