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Debate House Prices
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Clear majority of people support Help To Buy
Comments
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The issue is that if the only way people can buy a property is to buy an new house, .
The bigger part of the scheme is for any houses, not just new ones.“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 -
HAMISH_MCTAVISH wrote: »Absolute Nonsense.
The percentage of after tax income being used to service mortgage payments is currently 28%, at near record lows, versus the long term average of 37% and peak of 68% in 1990.
Is that because house prices are, or were bought "cheap", or something to do with a base rate of 0.5% ?
How much lower can that rate go ?
How much higher can it go ?
Which direction is it more likely to go in in the future ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Is that because house prices are, or were bought "cheap", or something to do with a base rate of 0.5% ?
More to do with the previous peak of mortgage payments being when rates were at 15%.
Which is why 3.5 times income made sense.
Much as having a bomb shelter in the garden made sense in 1940.
But times change....How much lower can that rate go ?
How much higher can it go ?
Which direction is it more likely to go in in the future ?
You're deliberately, and quite disingenuously, trying to link base rates and mortgage rates when you know full well they've completely detached with each other, particularly for new buyers.“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 -
Is that because house prices are, or were bought "cheap", or something to do with a base rate of 0.5% ?
How much lower can that rate go ?
How much higher can it go ?
Which direction is it more likely to go in in the future ?
You'll go round and round with the interest rate thing. He simply will not accept what pretty much everyone else sees.
Your point will be diluted, then diluted again. You'll simply end up in a situation where you have no idea why you bothered.0 -
HAMISH_MCTAVISH wrote: »You're deliberately, and quite disingenuously, trying to link base rates and mortgage rates when you know full well they've completely detached with each other, particularly for new buyers.
Well, I wasn't actually.
However, I do admit that I am not aware exactly what rates FTBs are currently faced with, but I expect them to be fairly low, and much lower in recent times.
A quick "google" reveals some pretty low rates.....
http://www.ybs.co.uk/mortgages/index.html?cmpid=702
Now, I suggest those (low) rates are somewhat related to the base rate. If the base rate were closer to it's long term average, I suggest that a rate of <2% for a FTBer would be pretty rare.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Who the hell needs "official figures"?
Anyone can see the problem just by using their own eyes and ears.0 -
HAMISH_MCTAVISH wrote: »The bigger part of the scheme is for any houses, not just new ones.
The help to buy scheme that starts in April only applies to new properties.
As I made clear my comments referred to the buying of new builds.
In any event it's a poor system unsuited to most people.0 -
I do admit that I am not aware exactly what rates FTBs are currently faced with, but I expect them to be fairly low, and much lower in recent times.
Not really.
Typical rates for 90% mortgages are around 5.5%. A few best buy deals are in the 4.5% range, but they're only releasing a few hundred mortgages a year at those rates.
Most FTB mortgages in the decade leading up to 2007 were also around the 5% range.Now, I suggest those (low) rates are somewhat related to the base rate. If the base rate were closer to it's long term average, I suggest that a rate of <2% for a FTBer would be pretty rare.
If you don't have a HUGE percentage deposit, most people can't really get particularly low rates. In fact, most people won't get a mortgage at all.“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: »Your point will be diluted, then diluted again. You'll simply end up in a situation where you have no idea why you bothered.
Whereas with your posts, they'll be demolished, and then demolished again, while the rest of us wonder why on earth you bothered.
“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 -
Anyway Hamish, as my accountant told me about 4 years ago, "the banks need to recapitalise".
This seems to involve borrowers paying a bit more, and savers getting a bit less than they would normally. This is what is now happening.
You can whinge all you want, but lax lending is partly the reason why we are where we are now. Forcing the banks to lend more now is simply going to get us nowhere (and likely to get us into more trouble).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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