want to get out of parents

mi-key

That's just wishful thinking on your part. I reckon house prices will be the same or higher in a year or so while mortgage rates will be much higher than they were a year ago.

Or do you think we will be returning to record low mortgage rates in a year or two?

 Looks like the OP isn`t going to return so the thread is basically finished, for what it`s worth I agree with this.....

https://www.lbc.co.uk/news/low-interest-rates-anomaly-martin-lewis/

We are returning to normal, which is a medium to high cost to borrow money and much lower house prices.

That's good news for you then, seeing as you have been waiting over a decade for house prices to come down so you can buy somewhere again when they drop by 50%. Better get your MIP sorted out so you are ready to snap up a bargain !

Although there is an obvious flaw in your master plan : if prices dropped that much, people would just not sell their houses and sit where they are paying the mortgage happily as they are still nice and affordable. This means there would be a lot less houses, but still plenty of people who want to buy. 

For those who have to sell, they will have plenty of buyers due to the shortage, who because they want a house will end up outbidding each other to secure it, driving the price up ( basic suppy and demand economics ) 

mi-key

Sarah1Mitty2 sThat doesn`t make sense, mortgage rates going higher means prices going lower

That's just wishful thinking on your part. I reckon house prices will be the same or higher in a year or so while mortgage rates will be much higher than they were a year ago.

Or do you think we will be returning to record low mortgage rates in a year or two?

 Looks like the OP isn`t going to return so the thread is basically finished, for what it`s worth I agree with this.....

https://www.lbc.co.uk/news/low-interest-rates-anomaly-martin-lewis/

We are returning to normal, which is a medium to high cost to borrow money and much lower house prices.

P.S. sorry to dissapoint you, but all the news is saying inflation is dropping, wholesale gas is at the lowest for 18 months, so not as likely we will go into recession, and the BoE won't be increasing rates much more than once this year as they won't need to. Plenty of mortgage deals available around 4%, and wages increasing on average over 6% per year, so affordability is good...

Sarah1Mitty2

mi-key said:

That's just wishful thinking on your part. I reckon house prices will be the same or higher in a year or so while mortgage rates will be much higher than they were a year ago.

Or do you think we will be returning to record low mortgage rates in a year or two?

 Looks like the OP isn`t going to return so the thread is basically finished, for what it`s worth I agree with this.....

https://www.lbc.co.uk/news/low-interest-rates-anomaly-martin-lewis/

We are returning to normal, which is a medium to high cost to borrow money and much lower house prices.

That's good news for you then, seeing as you have been waiting over a decade for house prices to come down so you can buy somewhere again when they drop by 50%. Better get your MIP sorted out so you are ready to snap up a bargain !

Although there is an obvious flaw in your master plan : if prices dropped that much, people would just not sell their houses and sit where they are paying the mortgage happily as they are still nice and affordable. This means there would be a lot less houses, but still plenty of people who want to buy. 

For those who have to sell, they will have plenty of buyers due to the shortage, who because they want a house will end up outbidding each other to secure it, driving the price up ( basic suppy and demand economics ) 

As this hasn`t happened yet, where are all the people who will want to buy living at the moment? Most people are concerned by rising mortgage rates, especially if they have big mortgage debt, you are very fortunate if they are still "nice and affordable" to you. My advice to the OP is definitely do not throw 200k into property at this time.

Sarah1Mitty2

mi-key said:

Sarah1Mitty2 sThat doesn`t make sense, mortgage rates going higher means prices going lower

That's just wishful thinking on your part. I reckon house prices will be the same or higher in a year or so while mortgage rates will be much higher than they were a year ago.

Or do you think we will be returning to record low mortgage rates in a year or two?

 Looks like the OP isn`t going to return so the thread is basically finished, for what it`s worth I agree with this.....

https://www.lbc.co.uk/news/low-interest-rates-anomaly-martin-lewis/

We are returning to normal, which is a medium to high cost to borrow money and much lower house prices.

P.S. sorry to dissapoint you, but all the news is saying inflation is dropping, wholesale gas is at the lowest for 18 months, so not as likely we will go into recession, and the BoE won't be increasing rates much more than once this year as they won't need to. Plenty of mortgage deals available around 4%, and wages increasing on average over 6% per year, so affordability is good...

The BOE don`t control global interest rates, we saw evidence of this very recently, the OP will surely know this though and hopefully is going to stay put for a while until interest rates find their ceiling and the effects are known.

tiger135

hi all and thanks im surprised the thread is still going. 
i am 60/40 in favour of buying.
my only advantage over other people is my deposit. my job income is below average.
i take home 1800 a month and when one bedroom rentals are 950-1300 a month it is not easy to rent. i enquired about one flat and they want to know everything about you including a copy of your credit report. there are obviously loads of applicants for every rental that comes up. being single i am also competing with couples who can share a one bed and pay half each.
so this puts me in favour of buying as long term owning is best, i am not finding my perfect property out there, i may have to compromise on not having a garden and having another leasehold, but by getting back on the property ladder at least i wont have to do all the process again later and could port the mortgage to a better place in 5-10 years. 

Sunsaru

tiger135 said:

hi all and thanks im surprised the thread is still going. 
i am 60/40 in favour of buying.
my only advantage over other people is my deposit. my job income is below average.
i take home 1800 a month and when one bedroom rentals are 950-1300 a month it is not easy to rent. i enquired about one flat and they want to know everything about you including a copy of your credit report. there are obviously loads of applicants for every rental that comes up. being single i am also competing with couples who can share a one bed and pay half each.
so this puts me in favour of buying as long term owning is best, i am not finding my perfect property out there, i may have to compromise on not having a garden and having another leasehold, but by getting back on the property ladder at least i wont have to do all the process again later and could port the mortgage to a better place in 5-10 years. 

I guess if you've thought through all the options and have landed that way then yes, you will have to make compromises. I'm guessing you can't look further afield location wise??

tiger135

the trouble is i am a bit of a snob about areas, it matters to me more to live in a nice area than to live in an area i dont like just to get a freehold/garden. 
i feel like the area i live in has an effect on my mood, if i can walk out the door and go for a long walk in nice surroundings thats a big advantage. 
i dont want to have to drive everywhere if i can help it. 

Sunsaru

tiger135 said:

the trouble is i am a bit of a snob about areas, it matters to me more to live in a nice area than to live in an area i dont like just to get a freehold/garden. 
i feel like the area i live in has an effect on my mood, if i can walk out the door and go for a long walk in nice surroundings thats a big advantage. 
i dont want to have to drive everywhere if i can help it. 

In that case, if location is not up for discussion then compromise it is!

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

annabanana82 said:

Sarah1Mitty2 said:

A couple of my savings accounts have been in touch to say they are bumping their rates again, anyone living with parents at the moment and earning should be raking it in?

I have a mortgage and I'm also benefitting from the increases in rates too, we aren't all on the breadline you know!

Yes, but the point was about someone with no mortgage, they would be benefiting more.

They may benefit more in the short term but in the mid to long term they'll probably be much worse off when they eventually buy with a mortgage that will inevitably be at a much higher rate than someone like your mate who could have fixed at a record low rate last year.

That doesn`t make sense, mortgage rates going higher means prices going lower

That's just wishful thinking on your part. I reckon house prices will be the same or higher in a year or so while mortgage rates will be much higher than they were a year ago.

Or do you think we will be returning to record low mortgage rates in a year or two?

We are returning to normal, which is a medium to high cost to borrow money and much lower house prices.

I obviously agree with interest rates; it's unlikely we'll see them that low again for a long, long time which is why your mate may not be so happy when he realises how much more his mortgage will cost him than if he'd fixed at a record low rate last year.

However I can't see where all these "much lower house prices" are going to come from? Materials and labour prices have increased dramatically so how are builders going to build loads of cheaper new houses?

With existing properties, yes, you'll get some forced sellers due to death and divorce but the usual biggie "debt" will be a fraction of what happened last time. Unlike 2008 we don't have huge numbers of people with zero equity, liar loans or interest-only mortgages with no repayment plan in place. Before he was banned Fackers realised this and changed his signature from predicting a crash to a correction, maybe you didn't get the memo?

MFWannabe

tiger135 said:

the trouble is i am a bit of a snob about areas, it matters to me more to live in a nice area than to live in an area i dont like just to get a freehold/garden. 
i feel like the area i live in has an effect on my mood, if i can walk out the door and go for a long walk in nice surroundings thats a big advantage. 
i dont want to have to drive everywhere if i can help it. 

I agree; to me location is everything 
You can make other compromises but you can’t move a property to a better location