Buyer reduced bid by 9% before exchange

Gycraig

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

[Deleted User]

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

6% is historically a normal mortgage interest rate. There is still a property shortage, rents will continue to increase, property will continue to be considered a safe investment. Demand will drop from extremely high to high. The market might stagnate, but it won't drop.

billy2shots

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

That would only be on an interest only mortgage. 


£300,000 mortgage for illustration over 25 years

@ 3%  mortgage repayment would be £1,422

@6% mortgage repayment would be £1,933


So a 3% rise in mortgage rate would equal a 26.5% rise in repayment. A quarter compared to a half. Still not nice. 



In the above example. 
For a 50% rise at 6% mortgage repayment, the initial rate must have been -0.27% (minus 0.27) which seems unlikely. 

silvercar

billy2shots said:

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

That would only be on an interest only mortgage. 


£300,000 mortgage for illustration over 25 years

@ 3%  mortgage repayment would be £1,422

@6% mortgage repayment would be £1,933


So a 3% rise in mortgage rate would equal a 26.5% rise in repayment. A quarter compared to a half. Still not nice. 



In the above example. 
For a 50% rise at 6% mortgage repayment, the initial rate must have been -0.27% (minus 0.27) which seems unlikely. 

Your figures are based on a repayment mortgage. Some people have interest only or a mixture of the 2. 

billy2shots

silvercar said:

billy2shots said:

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

That would only be on an interest only mortgage. 


£300,000 mortgage for illustration over 25 years

@ 3%  mortgage repayment would be £1,422

@6% mortgage repayment would be £1,933


So a 3% rise in mortgage rate would equal a 26.5% rise in repayment. A quarter compared to a half. Still not nice. 



In the above example. 
For a 50% rise at 6% mortgage repayment, the initial rate must have been -0.27% (minus 0.27) which seems unlikely. 

Your figures are based on a repayment mortgage. Some people have interest only or a mixture of the 2. 

As in the first line of my post?

MobileSaver

silvercar said:

billy2shots said:

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

That would only be on an interest only mortgage. 


£300,000 mortgage for illustration over 25 years

@ 3%  mortgage repayment would be £1,422

@6% mortgage repayment would be £1,933


So a 3% rise in mortgage rate would equal a 26.5% rise in repayment. A quarter compared to a half. Still not nice. 



In the above example. 
For a 50% rise at 6% mortgage repayment, the initial rate must have been -0.27% (minus 0.27) which seems unlikely. 

Your figures are based on a repayment mortgage. Some people have interest only or a mixture of the 2. 

The vast majority of mortgages are repayment so @billy2shots's figures were much more representative; less than 10% of mortgages are interest-only and that 10% is reducing even further as existing IOs come to completion.

billy2shots

I think it's a fairy common misconception. 
People think mortgage rates going from 2.5% - 5% or 3% - 6% means their payments double. 

It doesn't of course. The headlines always go with the click bait 'Doubling' headline but for the vast majority of people it is not doubling (yet). 

Even so, rates rising at a time when we are all hard pressed with other bills is not fun. 

Still need to be accurate though. 

silvercar

MobileSaver said:

silvercar said:

billy2shots said:

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

That would only be on an interest only mortgage. 


£300,000 mortgage for illustration over 25 years

@ 3%  mortgage repayment would be £1,422

@6% mortgage repayment would be £1,933


So a 3% rise in mortgage rate would equal a 26.5% rise in repayment. A quarter compared to a half. Still not nice. 



In the above example. 
For a 50% rise at 6% mortgage repayment, the initial rate must have been -0.27% (minus 0.27) which seems unlikely. 

Your figures are based on a repayment mortgage. Some people have interest only or a mixture of the 2. 

The vast majority of mortgages are repayment so @billy2shots's figures were much more representative; less than 10% of mortgages are interest-only and that 10% is reducing even further as existing IOs come to completion.

Interesting. My son has just bought as a FTB. His mortgage is part IO and part repayment.

billy2shots

silvercar said:

MobileSaver said:

silvercar said:

billy2shots said:

Gycraig said:

housebuyer143 said:

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

If interest rates go up to 6 percent it’s almost a 50 percent increase in payments for a first time buyer. 

How are houses gonna go up with inflation when the main tool for acquiring one is going up by 50%. 

If interest rates go to 6 percent these house prices won’t be matching inflation they will be dropping by a good 10-20 percent 

I pray your right about it being temporary as I was about to buy a btl property. 

That would only be on an interest only mortgage. 


£300,000 mortgage for illustration over 25 years

@ 3%  mortgage repayment would be £1,422

@6% mortgage repayment would be £1,933


So a 3% rise in mortgage rate would equal a 26.5% rise in repayment. A quarter compared to a half. Still not nice. 



In the above example. 
For a 50% rise at 6% mortgage repayment, the initial rate must have been -0.27% (minus 0.27) which seems unlikely. 

Your figures are based on a repayment mortgage. Some people have interest only or a mixture of the 2. 

The vast majority of mortgages are repayment so @billy2shots's figures were much more representative; less than 10% of mortgages are interest-only and that 10% is reducing even further as existing IOs come to completion.

Interesting. My son has just bought as a FTB. His mortgage is part IO and part repayment.

What rates did he manage to secure?

[Deleted User]

Had 6 viewings yesterday and 2 offers. 10k under from a FTB, 10k over from a BTL investor.

I negotiated the FTB to 5k under asking and accepted the offer. Here's hoping it goes smoothly.