Britons forced in to 'modern day slavery' by soaring house prices!!

Jonbvn

Oh how I remember the days from the late 80's. House prices were increasing so fast that it was suggested that "for sale" signs should have LED displays, to easily show the rapidly increasing prices!

Humour aside, it is clear that there are several social changes which have driven HPI. However, surely house prices cannot increase continuously, given the outlook for the IR and people's perception of the housing market.

Overall, it would seem that at present BTL is no longer a feasible investment. This must surely reduce the demand for properties.

Romani_Ite_Domum

thesaint wrote: »

What I want to declare is my home is worth more now than it was this morning.:j

Did you spend the day putting down some laminate flooring and painting the walls magnolia then Saint?

thesaint

Romani_Ite_Domum wrote: »

Did you spend the day putting down some laminate flooring and painting the walls magnolia then Saint?

No, nothing so taxing. HPI took care of my rising house price.:j

I am Sarah Beeny's number 1 fan, but, wouldn't have laminate or Magnolia paint in my gaff (sorry Sarah).:cool:

wecanhelpu

It can't be all HPI though can it?

I bet you've got halogen spots as well , eh?

Go on tell us your secrets

olly300

thesaint wrote: »

No, nothing so taxing. HPI took care of my rising house price.:j

I am Sarah Beeny's number 1 fan, but, wouldn't have laminate or Magnolia paint in my gaff (sorry Sarah).:cool:

I thought laminate was out and it was proper wooden flooring.

ManAtHome

wibble68 wrote: »

It's my belief that these stories are an attempt to talk the BOE out of further rate rises.

Yes, there has been a similar pattern for some time now.

Week before BoE meet - everything stagnant, worse retail sales for 250 years, CBI plead for no more rises.

Week after - everything up 20%, CBI call for directors bonuses to increase massively.

And whatever happens, the current interest rate "is the peak of the cycle"... lol.

Melissa177

We shouldn't forget HPI is localised. Brighton saw growth of 15% last year in prices, whilst Nottingham saw only 1%. I don't think a "correction" (if it does come, and I don't think it will do because of housing pressures in the UK at the moment), will be evenly spread across the UK.

nelly_2

from the financial times

Time bomb for 1m mortgages

By Jane Croft, Retail Banking Correspondent
Published: June 1 2007 20:15 | Last updated: June 1 2007 20:15


Up to a million homeowners could see their mortgage repayments jump by almost a third in the next 12 months as they approach the end of cut-price mortgage deals.
Four interest rate hikes in the past 10 months mean that borrowers are now facing a ticking time bomb as they near the end of two- and three-year fixed-rate mortgages taken out in 2005, which are now poised to shift on to more expensive rates.

The problem is also backloaded to the end of this year because there were a number of good deals around in the latter half of 2005 after the rate cut in August of that year.
About £200bn of mortgages – approximately 20 per cent of the UK mortgage market – moved onto fixed-rate deals in 2005, according to new research by analysts at Credit Suisse.
Credit Suisse estimated a large chunk of these mortgages would be written on two- or three-year fixed-rate deals because these were the most commonplace in the market.
Jonathan Pierce, banks analyst at Credit Suisse said these fixed-rate mortgages were now coming to the end of their deals and up to a million households could face higher payments.
“For some customers we see a 25-30 per cent increase in interest payments,” he said.
He said the payment shock could lead to higher arrears as more consumers who might have overstretched themselves to get onto the housing ladder struggled with the increased payments.
In some cases consumers could find themselves paying hundreds of pounds more per month.
Back in 2005, fixed-rate mortgage deals were around 4.49 per cent but comparable fixed-rate deals have now risen to just under 6 per cent, according to Moneyfacts, the financial information group.
This could mean a homeowner with a £125,000 interest-only mortgage would see their monthly mortgage payments jump from £457 per month to £612 per month.
Those who had a two-year fixed-rate £300,000 interest-only mortgage in 2005 would see payments rocket from £1,100 to £1,470.
Consumers can find cheaper fixed-rate deals on the market – but most of these now charge large upfront fees of £1,000 or even 2.5 per cent of the value of the mortgage.
If consumers coming off fixed- rate deals do nothing, they will automatically be moved to their lender’s standard variable rate, which is around 7.5 per cent.

lynzpower

This could mean a homeowner with a £125,000 interest-only mortgage would see their monthly mortgage payments jump from £457 per month to £612 per month.
Those who had a two-year fixed-rate £300,000 interest-only mortgage in 2005 would see payments rocket from £1,100 to £1,470.

This bothers me greatly.
Additionally, as many wont realise/ be bothered/ understand that their fixed product is up ( I didnt get any notice from my lender, it just expired- luckily for me I had an overdraft to cover the extra couple of hundred quid) for the overextended, what could happen, is that they dont have an OD or its maxed- the payment for the mortgage goes out and bounces the account, loads of other payments for the month bounce and voila- it makes it more difficult to get a good fixed rate as the payment history is goosed.

mr.broderick

Lol @ goosed