BOE's David Miles: House Prices will "Rise for Years"

shortchanged_2

Oh well, I suppose if house prices rise by 0.1% a year for years then he is technically right.
Looks like a win for the bulls then.

suburbanwifey

I just knew house prices would only ever go one way, and that is up. I've been saying this all along. I think anyone who sold to rent, hoping to buy a house at rock bottom prices when they crashed, got it very wrong. I'm sure most here truly realised this wouldn't happen, the Govt. wouldn't let it and due to shortage of supply, society wouldn't ever let it happen.

I see no reason to not bring back the 100% mortgage as property will only ever get up. That's how an awful lot who have houses now managed to buy a house in the first place! I didn't, when I bought my last property I got a 95% mortgage, and paid it off within 6 1/2 years due to the economy crashing and low interest rates which enabled me to do that.

Good news for home-owners, bad news for those renting. Property has always been a great investment

ILW

suburbanwifey wrote: »

I just knew house prices would only ever go one way, and that is up. I've been saying this all along. I think anyone who sold to rent, hoping to buy a house at rock bottom prices when they crashed, got it very wrong. I'm sure most here truly realised this wouldn't happen, the Govt. wouldn't let it and due to shortage of supply, society wouldn't ever let it happen.

Did more than a handful of people ever do that?

Sibley

I just knew house prices would only ever go one way, and that is up. I've been saying this all along. I think anyone who sold to rent, hoping to buy a house at rock bottom prices when they crashed, got it very wrong. I'm sure most here truly realised this wouldn't happen, the Govt. wouldn't let it and due to shortage of supply, society wouldn't ever let it happen.

I see no reason to not bring back the 100% mortgage as property will only ever get up. That's how an awful lot who have houses now managed to buy a house in the first place! I didn't, when I bought my last property I got a 95% mortgage, and paid it off within 6 1/2 years due to the economy crashing and low interest rates which enabled me to do that.

Good news for home-owners, bad news for those renting. Property has always been a great investment

There are a few people on here who will be spitting feathers reading that.

Really true though. 100% spot on.

DervProf

suburbanwifey wrote: »

I see no reason to not bring back the 100% mortgage as property will only ever get up.

Once 100% mortgages are readily available, what do you suppose will have to be done to enable people to borrow enough to buy a home ?

If 100% mortgages are introduced, house prices will reach a point more quickly where current lending criteria will price out more people. It'll also mean that more people will be more vulnerable to negative equity (not that I think it's such a terrible thing, but a lot of people do) in the unlikely event that property prices fall a bit.

CRASH_BANG_WALLOP

suburbanwifey wrote: »

I just knew house prices would only ever go one way, and that is up. I've been saying this all along. I think anyone who sold to rent, hoping to buy a house at rock bottom prices when they crashed, got it very wrong. I'm sure most here truly realised this wouldn't happen, the Govt. wouldn't let it and due to shortage of supply, society wouldn't ever let it happen.

I see no reason to not bring back the 100% mortgage as property will only ever get up. That's how an awful lot who have houses now managed to buy a house in the first place! I didn't, when I bought my last property I got a 95% mortgage, and paid it off within 6 1/2 years due to the economy crashing and low interest rates which enabled me to do that.

Good news for home-owners, bad news for those renting. Property has always been a great investment

100% mortgages are not on the way back missy. why would the dudes who own banks risk it! halifax have already stated they wont return and outside of cash rich foreign dudes skewing the london market, prices are not rising

CRASH_BANG_WALLOP

Sibley wrote: »

There are a few people on here who will be spitting feathers reading that.

Really true though. 100% spot on.

mr ree tell us why 100% mortgages are coming back

Sibley

tell us why 100% mortgages are coming back

Please allow me.

100% will come back because banks like making money.

Now all this doom and gloom has vanished people can get back to making money.
This is the positive news we needed.

The government will start funding mortgages in the New Build scheme. This will lead to one or two banks or BS offering 100%. They will get all the business and force the others to follow.

Happened last time and will happen again.

Sit back and watch.

suburbanwifey

ILW wrote: »

Did more than a handful of people ever do that?

I would hope not! to be honest. Sheer stupidity to sell your home then waste part of the proceeds lining someone else's pocket by paying their mortgage for them in the form of rent. Many thousands will have been lost to those that sold to rent and now, mortgage lending has been tightened up to such a level that a lot of those that did that will no longer be able to get back on the housing ladder as such. Such a bad move, so although I cannot answer your question as to how many did actually sell to rent, I can say that those many/few/whoever that did, made a bad calculation.

suburbanwifey

Sibley wrote: »

Please allow me.

100% will come back because banks like making money.

Now all this doom and gloom has vanished people can get back to making money.
This is the positive news we needed.

The government will start funding mortgages in the New Build scheme. This will lead to one or two banks or BS offering 100%. They will get all the business and force the others to follow.

Happened last time and will happen again.

Sit back and watch.

I totally agree! and so will most others as things develop over the next 12 months or so. Its not possible for the market to keep functioning without the return of 95% or 100% mortgages, so I am quite sure they will be back as well.