House prices suffer biggest drop since 2009 - Nationwide -2.6%

sabretoothtigger

Besides all that it does seem often better to pay off a mortgage then rent, presuming you arent going to move or expect the house price to go up.

What is the average years rental in a house price now

Graham_Devon

RenovationMan wrote: »

You said between 2% and 4% and it's actually over 4%.

You asked me what rates these "low SVR's were at".

I answered that question and stated around 2-4% I'd guess, on average.

They would be the low SVR's. As stated, if the average is 4.17%, there will be SVR's under that average....those being the low ones... There are of course high SVR's too.

I guess you think there is something far more sinister going on. But it's true. People can actually answer an outright question with an outright answer. Amazing, eh?

If you had asked me what the high SVR's were at, I'd have answered around 5-6%. If you'd asked me what the average SVR was at, I'd have got it wrong, as I'd have answered about 4.5%.

DervProf

Thrugelmir wrote: »

Or low mortgage interest rates are enabling many people to keep their heads just above water.

I guess there could be some truth in what you say.

Talking to a close friend this weekend, he says that he's finding things quite difficult financially. This is due to several factors - inflation, no pay rises for a couple of years, and growing kids. Even though his mortgage is not large by any stretch of the imagination, a couple of extra % on his rate would really make things difficult for him. Had he taken on a larger mortgage a few years ago, the low mortgage rate factor would certainly be preventing him from serious trouble. I expect he's not alone.

Thrugelmir

DervProf wrote: »

Had he taken on a larger mortgage a few years ago, the low mortgage rate factor would certainly be preventing him from serious trouble. I expect he's not alone.

Soon gets forgotten that 5 years ago base was 5%. Majority of mortgage holders pay far less than that today for their mortgages. Even the poor risks with NRAM only pay 4.79%.

Low mortgage rates have only provided a temporary boost. Given the low pay rises that many are receiving.

DervProf

Thrugelmir wrote: »

Soon gets forgotten that 5 years ago base was 5%. Majority of mortgage holders pay far less than that today for their mortgages. Even the poor risks with NRAM only pay 4.79%.

Low mortgage rates have only provided a temporary boost. Given the low pay rises that many are receiving.

I don't know what rate "the average" mortgage holder is on, but I guess it is around 4%. I know some are are very low rates if they got one of the cheap trackers a couple of years ago. The BoE say they cut rates to help business, so it's a nice side-effect for mortgage holders. Without these low rates, I'm sure HPI would be firmly in negative territory. I'm still not sure though that the BoE "ignore" the property market when setting rates.

wotsthat

sabretoothtigger wrote: »

We have 0.5% rates. Its not pedantic to point out the costs change massively as soon as we go back to 5%.

If I'd said that costs didn't change with changes in interest rates then, I agree, under these circumstances it wouldn't be pedantry to point this out.

Kill_Face

Wrong time to buy? Seems the prices in Cambridge never drop!