people want house prices to fall

mayonnaise

Carl31 wrote: »

you mean, the last time there was economic problems in the country, house prices fell as a result

That's right, Carl.

[Deleted User]

Fella wrote: »

Not really. It's always been in the interests of many (most?) homeowners for prices to fall, since they are still hoping to "trade up". The only homeowners better served by rising house prices are those intending to trade down e.g. retire.

Rising house prices help people re-mortgaging. I'm happy to see my LTV drop as my house gains value.

Started out as 85% LTV 4 years ago, now it's looking like 60%.

mayonnaise

ringo_24601 wrote: »

Rising house prices help people re-mortgaging. I'm happy to see my LTV drop as my house gains value.

Started out as 85% LTV 4 years ago, now it's looking like 60%.

Just don't mention you might be left with more money in your pocket on a lower LTV, or Graham will be all over you.

Fella

ringo_24601 wrote: »

Rising house prices help people re-mortgaging. I'm happy to see my LTV drop as my house gains value.

Started out as 85% LTV 4 years ago, now it's looking like 60%.

Which is fine if you're intending to never trade up, but if you want to trade up at some point then every house price rise means it's going to cost you more.

(No idea whether you are intending to trade up, down or stay put forever).

wotsthat

mayonnaise wrote: »

Just don't mention you might be left with more money in your pocket on a lower LTV, or Graham will be all over you.

LOL. The debt junkies had to issue a retraction after they said lower LTV's put money in people's pocket and it was shown it actually led to people paying less on their mortgage which is completely different.

I was forced to apologise when I said inflation was helping me to pay off my mortgage and reducing my monthly payment and it turned out my mortgage only got smaller when I made a payment and the payment actually remained unchanged.

[Deleted User]

Fella wrote: »

(No idea whether you are intending to trade up, down or stay put forever).

Don't worry, I don't know either what we want to do! Considering we'd need to put down at least £100k to get something marginally bigger (The joy of the South East), I'd say we're staying put for the moment.

The LTV change might mean we're protected a bit when the interest rates rise, that's my hope.

wotsthat

Fella wrote: »

Which is fine if you're intending to never trade up, but if you want to trade up at some point then every house price rise means it's going to cost you more.

Maybe a lower mortgage rate is some consolation for the average homeowner despairing as their biggest asset increases in worth.

There's a logical argument in what you say but, at the same time, the reality is very few people think like that.

missyrichards

ringo_24601 wrote: »

Don't worry, I don't know either what we want to do! Considering we'd need to put down at least £100k to get something marginally bigger (The joy of the South East), I'd say we're staying put for the moment.

This is exactly the position we are in.:mad:

[Deleted User]

missyrichards wrote: »

This is exactly the position we are in.:mad:

And that's why everyone around here extends their property. For £30k-45k I can just convert my loft (and not pay 'home moving' costs) to add another bathroom and double bedroom. I could convert the conservatory into a 'real' room - then I'd hardly have any reason to move at all (although i would love a garage).

It was bad enough paying £10k on stamp duty on this place; I don't fancy paying that again any time soon.

caronoel

Source is Moneyweek: the financial world's answer to the Beano

What a rag. Wouldnt clean my shoes with it