Predicted increase in cost of Mortgages

harpoboy

CKhalvashi wrote: »

I bought in early 2007, and my house is worth about £150k more than we paid for it (£600k-ish), so don't worry.

My old house (W3) is back on the market for £900k, and we sold that for £650k.

My own experience is that I bought in early 2007 for just under £1m. Next door (identical layout, but poorer condition than mine) just exchanged for £1.3m


Mrs H and I also have flats in Ldn that have risen a similar amount. Hope to sell one of them next yr to go mortgage free, or could hold onto it for a few years to fund a year travelling


The crash of 2008 is distant history in London and the SE. We are looking at the start of the next leg up

SG27

CKhalvashi wrote: »

I bought in early 2007, and my house is worth about £150k more than we paid for it (£600k-ish), so don't worry.

My old house (W3) is back on the market for £900k, and we sold that for £650k.

Don't worry? Unless they are buying their forever house prices going up will be bad news for them. Meaning upsizing will cost more. Any money they 'make' on their house will be swallowed up plus more by the increased cost of the new house.

CKhalvashi

SG27 wrote: »

Don't worry? Unless they are buying their forever house prices going up will be bad news for them. Meaning upsizing will cost more. Any money they 'make' on their house will be swallowed up plus more by the increased cost of the new house.

What I'm saying is that at the moment, in the rough area OP is looking, property is in high demand anyway.

I envisage that this will be the case for some time to come.

CK

brit1234

CKhalvashi wrote: »

What I'm saying is that at the moment, in the rough area OP is looking, property is in high demand anyway.

I envisage that this will be the case for some time to come.

CK

London bubble will pop again like 2008, maybe with the capital tax changes or mansion tax 2015. On average Londoners are poorer than 2007 and the stimulus is slowly being erroded.

What I do remember is FLS lowered by saving rate by more than 1/2 (3.3% to 1.6%). I do expect mortgage rates to rise due to it and more so as QE is phased out internationally making money more costly on money markets. Mortgage rates have been creeping up the last couple of months anyway, safe to assume they will continue to increase slowly over next few months. A good 5-10 year fix may be a good deal at moment before they go up.

Also all those people bragging about big equity increases in their properties I would ask what have they done to add this value or is it all speculative froth.

CKhalvashi

brit1234 wrote: »

Also all those people bragging about big equity increases in their properties I would ask what have they done to add this value or is it all speculative froth.

I've done the kitchen and bathroom, and apart from that, just some wallpapering/flooring.

The property next door to mine sold for £725000, and is more/less the same as mine, apart from us having a conservatory/third storey extension, so £750k is realistic for the current market.

I do, however, live close to Stansted Airport, which could affect matters.

CK

John1993_2

brit1234 wrote: »

London bubble will pop again like 2008.

Is this the first time that youve predicted this, or have you made a habit of incorrectly predicting imminent crashes for several years?

I boight three years ago in the knowledge that prices might drop, but they haven't. I don't really see London prices dropping at all in the near future, either, and wish that I'd leveraged up even more.