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Debate House Prices
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The 3 year anniversary of the 0.5% BOE interest rate.
Comments
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Well done to them if they did, it's certainly what I would have done.
It's going to interesting to see what happens over the next year or two. Many deals taken out since 2007 will be coming to an end, and recent news suggests that the banks are wanting a little more from their mortgage payers.
The SVR holders are bearing the initial brunt of this but as SVR holders tend to have lower debts and are only 15% of the market the average effect will be small.
Banks always want more so the next people in line will be those who next arrive on to the SVR. If they are a poor financial position they'll be stuck paying more interest on bigger loans so we'll see the average rate rising.
However, I happen to think that reports of the dire straits of mortgage holders are overdone so they'll be able to escape to better deals and the average rate will rise more slowly.0 -
ringo_24601 wrote: »Very true, those in one of the worst positions are people currently saving for a deposit and think there is going to be a big drop in prices.. which there will not be in London
There already are drops in house prices in London.
What is all this "there will be no drops in London" and London prices never drop"?
Coming from a long line of Londoners, I can assure you that London houe prices do drop.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
MissMoneypenny wrote: »I'm not sure it will be 3 years before there is a run on sterling. It's a case of "when" and not "if".
Just watch how quick the BoE will raise the rate then, to protect sterling.
:rotfl:MissMoneypenny wrote: »That depends how long they have been saving.
My son was going to wait to buy when these higher SVR rates bite and the benefit drops take effort (spurred on by the Welfare Bill just being being passed which see dramatic drops in benefit "income" for many). But in the area of London he has been looking at, there have suddenly been a lot of properties put on the market.
:rotfl:MissMoneypenny wrote: »There already are drops in house prices in London.
What is all this "there will be no drops in London" and London prices never drop"?
Coming from a long line of Londoners, I can assure you that London houe prices do drop.
:rotfl:
Well done.
Funniest thing I've read on here for ages.:T
We haven't seen such unrepentant bear comedy gold in a year or two now, it's like a blast from the past.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »Christ. Theres a lot of people on those threads where a 1.5% rise is, in their own words and explanations, pushing them right to the edge, with some suggesting they fear loosing their home.
The key running through most of them is they expected their house value to rise, so they could switch to a better deal with a lower LTV.
The word "trapped" and "fear" comes up frequently.
Even I didn't imagine people would find such small rises so punishing.
Just shows how many people really can't afford their homes. This small rise is costing people £200 and more!
Now take a look on the benefits board. Read the posts from those who say they can't cope with their benefit drops and the extra hours that parents are now being asked to work from April (20 hours between them, instead of 16 hours a week). Or those that are losing their mobility cars because they can walk; or losing their sick payments as they have been found fit to work; or those that lose their sick payment as their OH will have to support them now instead of the tax payer.
They haven't even started on removing DLA yet!
The benefit rent reductions hit this year.
Then in 2013 Universal Credits start and the benefit gravy train is over.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
HAMISH_MCTAVISH wrote: »:rotfl:
:rotfl:
:rotfl:
Well done.
Funniest thing I've read on here for ages.:T
We haven't seen such unrepentant bear comedy gold in a year or two now, it's like a blast from the past.
You really think there won't be a run on sterling? Do you know what is meant by a run on something? And you think that house prices in London haven't dropped?
This will upset you even more. You know how you have going around this site moaning about the bankers and their pay?.....he is one of them...and so am I.:DRENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
Graham_Devon wrote: »Christ. Theres a lot of people on those threads where a 1.5% rise is, in their own words and explanations, pushing them right to the edge, with some suggesting they fear loosing their home.
The key running through most of them is they expected their house value to rise, so they could switch to a better deal with a lower LTV.
The word "trapped" and "fear" comes up frequently.
Even I didn't imagine people would find such small rises so punishing.
Just shows how many people really can't afford their homes. This small rise is costing people £200 and more!
Seriously, you call £200 a month a small rise?Official MR B fan club,dont go............................0 -
Seriously, you call £200 a month a small rise?
No. My point was to suggest that a small rise is costing a very large amount.
Leads from my point about people buying and "hoping" for house price rises to sort them out. I find it a little insane that people are being pushed to the edge on a 1.5% rise. But can see why when that equates to £200 a month.
They are up to their eyes in debt and the party has stopped with them holding the parcel. They are now stuck with no new cheap credit to switch to (hence they say they are trapped). Like I said, even I didn't think it was that bad. To think that some of these are likely to be on IO too and it only makes it worse.
It's just 2-3 people, but surprised me to see it written in their own words.0 -
Seriously, you call £200 a month a small rise?
It seems many on that thread didn't didn't use these last 3 years of cheap mortgages, to pay down their mortgage and still have their huge mortgage debts.
Some people on the benefits board are saying they will struggle with losing their welfare payment of £10.40 a week (family element of Tax Credits) in April!RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
Graham_Devon wrote: »No. My point was to suggest that a small rise is costing a very large amount.
Leads from my point about people buying and "hoping" for house price rises to sort them out.
Right understand,my SIL is with BOI its been an interesting discussion when the letter dropped on their mat,all £280 worth of increase.Official MR B fan club,dont go............................0 -
That gives out a very different message to what many on this board would have us believe.
If you read the mortgages board, benefits board and disability board, you get a clear picture of what is happening to peoples finances.
It's interesting to read that when Halifax and RBS increased their SVR, some experts reported that this would not start a domino reaction. Yet days later, 3 more banks have already raised their SVR.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0
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