House prices in the real world....

ess0two

Graham_Devon wrote: »

Where do you stand on interest rates going up?

They are long forgotten, but still a major factor in how house prices are where they are at.

As much as you want it to happen it wont,still peeves you that many got lucky.

Thats life.

Graham_Devon

Joeskeppi wrote: »

I didn't say you did. You accused me of lying in a thread about renting recently.
http://forums.moneysavingexpert.com/showpost.php?p=60192495&postcount=79

Why would someone have such a discussion about taking up a scheme when it becomes available, when it's already available?

Funny how this anecdotal (which others are not allowed to use) backs up your thoughts!

And I didn't realise you were still upset about it.

Graham_Devon

ess0two wrote: »

As much as you want it to happen it wont,still peeves you that many got lucky.

Thats life.

So interest rates will never go up?

System

Graham_Devon wrote: »

Why would someone have such a discussion about taking up a scheme when it becomes available, when it's already available?

Help to Buy: mortgage guarantee will be available from January 2014. The Government will provide further details about the scheme later in the year.

Which view of mine does this anecdotal back up exactly?

A friend of mine asked me about this today. He wants to buy but £800pm rent is stopping him saving a deposit. I think he'll be using this scheme when it becomes available.

A serial liar accusing me of lying over a competely normal and very common situation is a little upsetting to be honest yes, by all means carry on making yourself look like a vile little cretin but keep me out of it.

Graham_Devon

Joeskeppi wrote: »

A serial liar accusing me of lying over a competely normal and very common situation is a little upsetting to be honest yes, by all means carry on making yourself look like a vile little cretin but keep me out of it.

This is cringeworthy.

Firstly you are upset about someone not believing your anecdotes which just so happen to back up your views. You then splurge out abuse while being all sensitive yourself.

You then, after all that, ask me to leave you out of it..... the only reason I piped up being that you were throwing accusations around when I wasn't even active on the thread. So seems you want to throw whatever accusations you like around, but don't wish for any comeback, otherwise you start getting upset.

Couldn't make it up. If you want to be left out of things, and don't want to find yourself snivelling, can I suggest you don't throw it around to start with?

wotsthat

A friend of mine asked me about this today. He wants to buy but £800pm rent is stopping him saving a deposit. I think he'll be using this scheme when it becomes available.

I can see why Graham thinks you made that up - it's outrageous!

fc123

Graham_Devon wrote: »

Where do you stand on interest rates going up?

They are long forgotten, but still a major factor in how house prices are where they are at.

The Govt want to inflate away as much of the deficit as they possibly can....but are trying to do it in a more 'managed' way.

OK, they are also trying to reduce it by piddling around with cuts to make it look more 'managed' +( Mr + Mrs Ordinary Voter understand that method) but I read recently that they are actually spending more (sorry no link as I can't recall where I read it) this year than last. Victims of their own QE effect.

Low interest rates benefit the govt as a low rate reduces the amount of interest paid on the debt. ...meanwhile QE and subsequent inflation reduce the deficit for free.


I am far, far away from being any kind of 'expert' (almost the opposite ) but I do know Governments do whatever they can to keep 'their' strategy/palns on track and on political message ~(so they can keep voters happy).

If one of the other regulars did a poll on when rates will hit 10% again, I would tick the 15 year box.

Graham_Devon

10% rates are one thing, but even 2% rates are a 400% rise.

Considering all the forbearance happening now with rates where they are, this can only get worse. It doesn't really take 10% rates to make things bad. Just 2% would hit people very hard.

UK debt is likely to pass 100% of GDP soon. Rates themselves may have pressure piled on them.

fc123

Graham_Devon wrote: »

10% rates are one thing, but even 2% rates are a 400% rise.

Considering all the forbearance happening now with rates where they are, this can only get worse. It doesn't really take 10% rates to make things bad. Just 2% would hit people very hard.

UK debt is likely to pass 100% of GDP soon. Rates themselves may have pressure piled on them.

I don't agree as I lived through the early 90's with soaring rates (and so the mortgage went sky high) and so did nearly everyone we knew. Back then we most of us owned (at the bottom of the ladder) or were in council places (hard to let ) and we all survived. Not because we were 'special' or different but we were representative of a cross section of the GBP.

We hung on, we did extra hours/jobs/up-skilled and so on. I knew one person that was repo'd and that was mainly due to divorce.
The majority of mortgage payers will survive a 2% increase in rates. For many it might be hard but most modern lifestyles can be downsized in spend.

wotsthat

Graham_Devon wrote: »

Considering all the forbearance happening now with rates where they are, this can only get worse. It doesn't really take 10% rates to make things bad. Just 2% would hit people very hard.

Mortgage rationing has ensured that, for the last five years, only the most robust risks have been selected for mortgage lending. Pre-existing borrowers have 5 years of payments behind them.

2% base rates would make only the tiniest difference in arrears or forbearance.