0.25% cut in BoE base rate

EdInvestor

ali007 wrote: »

Does anyone know:

a) amount of mortgage debt in the country at present
b) amount of non-mortgage debt
c) amount of cash in bank accounts - current, savings, ISas, Tessas etc?

Some figures that may help.

http://www.statistics.gov.uk/cci/nugget.asp?id=1928

adr0ck

!!!!!!? wrote: »

It's almost like there are a number of posters in this group not interested in actually debating the issues around the coming drops in house prices but instead intent on reducing everything to name calling to sabotage any talk of falling prices. :think:

I'll be careful not to get drawn into debate with the 'wreckers' in future. I think there were some useful points made about inflation and interest rates anyway.

wow thats a very good description of yourself !!!!!!

if you read the posts you will see that you started the name calling

i still believe that £350 is quite a lot of money to a lot of people

obviously not to you (as your so rich)

adr0ck

!!!!!!? wrote: »

The actual sequence of quotes:

You:
wheres almacs comments gone?
i take it he doesnt want to give me £350
and i thought it was so a small amount of money to him
Me:
Well, If you're one of the over-indebted, squealling blindly for interest rate cuts to
save your bacon, then he kind of already is giving you cash to bail you out.
(As indeed is everyone with savings or not in debt)
You:
how do you work that one out?


People can decide for themselves what you were actually getting at.

you've missed out all the posts between me and almac

where he was stating that £350 is no money at all (bit like what 2p is worth to me)

and you agreeing with him

carolt

EdInvestor wrote: »

I'm really starting to feel sorry for all these preople who desperately want a house price crash.

*First mortgage interest rates go up, so it will cost them a lot more to buy

*Then LTVs go up, so they have to save much more for their deposit

*Then savings interest rates start coming down, which means inflation will rise, so their living costs go up

*.... and they get less interest on their savings so it's harder to gtet a deposit together

They just can't win, it seems. :rotfl:

Glad you find it amusing!

Needn't worry though:

1. They won't buy until prices have fallen sufficiently. You only pay mortgage interest on what you borrow; if you borrow less, you pay less.

2. Likewise, as prices fall, 10% or whatever deposit is required, falls dramatically too. So would-be FTB'S save money. Compared to all those with mortgages, who will find that the rise in LTV's required means they have no choice but to stay on their lenders' very expensive SVR.

3. Inflation going up hits everyone, not just would-be FTB's. People who over-stretched themselves to buy an expensive house recently would find it much harder to cope with that, I would guess. Particularly if they are one of the estimated 3m? coming off standard rates soon to find themselves on SVR's. Wheras renters happily need never worry about what mortgage rates are doing.

4. But rents fail to go up - certainly in all the areas I've been tracking - meaning that any interest on savings pays for as much rent as it did before. And whilst everyone - would be buyers and homeowners alike - are affected by general inflation, house prices are not just NOT inflating, they are falling dramatically. So great news for those waiting patiently for prices to fall before buying!

So, thanks for your (very genuine I'm sure!) concern; but those who have NOT yet bought will be just fine (or as fine as anyone can be in a dodgy economy).

It's the ones who have just bought, or who might be misled into buying now by your 'humorous' post that I really worry for.......

Treadmill

whats wrong with buying now ? if you can afford the mortgage and you dont plan on moving soon everything will be hunky dory.

Dan:_4

carolt wrote: »

It's the ones who have just bought, or who might be misled into buying now by your 'humorous' post that I really worry for.......

I very much doubt you worry too much about these people, as you are so desprate for a crash so you can afford a house yourself.

Treadmill

Yup, sat there in his rented accom, despising his landlord for making money from him lol

neverdespairgirl

Treadmill wrote: »

whats wrong with buying now ? if you can afford the mortgage and you dont plan on moving soon everything will be hunky dory.

Because you may well be paying lots more per month for a long time, compared with buying in a year or so? Because you might find yourself in negative equity and unable to get a decent mortgage deal when yours expires? Because circumstances change, and you might need to move despite your plans?

Treadmill

So whats the alternative then, wish your life away frantically scouring news reports looking for signs of a crash and hanging around on forums plucking up the courage to buy when everybody else tells you the markets bottomed, lifes to short.

Turnbull2000

Treadmill wrote: »

So whats the alternative then, wish your life away frantically scouring news reports looking for signs of a crash and hanging around on forums plucking up the courage to buy when everybody else tells you the markets bottomed, lifes to short.

Sure is, and with practically every indicator in favour of a downturn, why waste the prime of your only opportunity at life struggling to pay a bloated mortgage.

Oh, and you don't have to frantically scour for news reports these days - the whole property scam and it's failings has gone mainstream