Debate House Prices


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Interest Rates going back up to normal levels again?

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  • GreatApe
    GreatApe Posts: 4,452 Forumite
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    Electrum wrote: »
    If interest rates do go back up to the long term norm, then repossessions will break all time records now.


    Why do you think that?
    If we look at ten years ago the base rate was 5.5% and repo rates were not bad.

    You may think house prices are now a lot higher but the truth is that in most the country house prices are the same as they were ten years ago. Scotland Wales N-Ireland NE-England NW-England Yorkshire&Humber all those areas are the same price as a decade ago
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    Electrum wrote: »
    If interest rates do go back up to the long term norm, then repossessions will break all time records now.

    How did we get into this mess?

    Sorry to hear that you are in a mess, I hope things work out for you.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • economic
    economic Posts: 3,002 Forumite
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    Electrum - my deepest sympathies for the mess you are in. i hope you get out of the mess asap.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    MobileSaver wrote: »
    What is the "long term norm?"



    Where market forces dictate lending rates.
  • AG47
    AG47 Posts: 1,618 Forumite
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    MobileSaver wrote: »
    What is the "long term norm?"


    .

    The long term norm is the average for the last 300 years.

    You can't change history.
    Nothing has been fixed since 2008, it was just pushed into the future
  • Tiners
    Tiners Posts: 232 Forumite
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    GreatApe wrote: »
    Why do you think that?
    If we look at ten years ago the base rate was 5.5% and repo rates were not bad.

    You may think house prices are now a lot higher but the truth is that in most the country house prices are the same as they were ten years ago. Scotland Wales N-Ireland NE-England NW-England Yorkshire&Humber all those areas are the same price as a decade ago


    Do you mean that decade ago when prices reached a certain level due to years of irresponsible and fraudulent lending by the banks and the market tried to crash due to the levels unsustainable debt?
  • ukcarper
    ukcarper Posts: 17,337 Forumite
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    Tiners wrote: »
    Do you mean that decade ago when prices reached a certain level due to years of irresponsible and fraudulent lending by the banks and the market tried to crash due to the levels unsustainable debt?
    But the UK mortgage market did not cause financial crash.
  • Tiners
    Tiners Posts: 232 Forumite
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    ukcarper wrote: »
    But the UK mortgage market did not cause financial crash.

    No, but Greatape seems to be suggesting that 2007 prices are some kind of benchmark of acceptable, sustainable affordability.
  • AG47
    AG47 Posts: 1,618 Forumite
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    Tiners wrote: »
    Do you mean that decade ago when prices reached a certain level due to years of irresponsible and fraudulent lending by the banks and the market tried to crash due to the levels unsustainable debt?

    And the correction still has been postponed

    How long can they keep kicking the can?
    Nothing has been fixed since 2008, it was just pushed into the future
  • ukcarper
    ukcarper Posts: 17,337 Forumite
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    Tiners wrote: »
    No, but Greatape seems to be suggesting that 2007 prices are some kind of benchmark of acceptable, sustainable affordability.
    I agree in many parts of country prices are to high, but that's more down to supply and demand than anything else and in some areas it's going to be very difficult do something about it.
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