Mortgage rates rise for second time in days

smk77

Zammo wrote: »

If prices fall 60% I'll be able to buy a really nice place outright. Even if they only fall 30% with the size of my deposit I'm not going to have any trouble finding a mortagae.

Not all of us have spent the last ten years mewing, buying 4x4's and racking up huge debts on credit cards. Some of us saw this coming and started getting prepared.

:money:

If you really saw this coming and that were that prepared then you would have bought 10 years ago, sold last year and would now be sitting in rented accomodation waiting for a house price drop with a MASSIVE deposit!

Gorgeous_George

$$$ wrote: »

Already have a 70% deposit...

70% deposit for what?
A house?
Where?
London? Middlesbrough? Lancashire? Turkey?

GG

WTF?_2

LillyJ wrote: »

Good for you, I wish I had that kind of deposit but I don't!
I don't think many people are in that position though and so Zammo hailing this as a great thing for FTBs is a bit counterproductive, as houses might get cheaper, but they won't be able to get a mortgage, or if they do they will be paying a fortune for it.

Better to borrow a 'small' amount and pay a large amount of interest than borrow a whopping amount and pay low interest rates.

I predict that we'll return to the situation where anyone can get a house if they save hard for a deposit first and prove they have a steady job with enough income to safely make the repayments. Nothing wrong with that.

Stevenic

meanmachine wrote: »

Well put it this way, if the lotto numbers for the last 10 years had gone like this: 1,2,3,4,5...? for every single draw, much like the housing market has been quite obviously heading for collapse, even an idiot would be able to predict what comes next.

Exactly, you would think that this forum was filled with clairvoyants. Being able to outwit the stupid who thought that 'prices never come down' isn't really something I'd brag about

LillyJ

smk77 wrote: »

If you really saw this coming and that were that prepared then you would have bought 10 years ago, sold last year and would now be sitting in rented accomodation waiting for a house price drop with a MASSIVE deposit!

Precisely. Only someone who DIDN'T know what was coming would not have bought 10 years ago. If he had, and had sold last year, Zammo would have a hell of a lot more than 40% deposit right now.

LillyJ

!!!!!!? wrote: »

Better to borrow a 'small' amount and pay a large amount of interest than borrow a whopping amount and pay low interest rates.

I predict that we'll return to the situation where anyone can get a house if they save hard for a deposit first and prove they have a steady job with enough income to safely make the repayments. Nothing wrong with that.

Nope nothing wrong with that but the way things are going it is going to be very hard indeed to get a mortgage as an FTB. And by save for a deposit, what do you mean? 10%, 30%, 70%??

WTF?_2

smk77 wrote: »

If you really saw this coming and that were that prepared then you would have bought 10 years ago, sold last year and would now be sitting in rented accomodation waiting for a house price drop with a MASSIVE deposit!

Anyone lucky enough to have got on the ladder in the trough after the last bust is indeed laughing today.

Fortunately, many of us will now have the option of doing likewise in the trough following this bust and I'm sure we'll be quids in by the peak of the next boom.

LillyJ

And I suggest that people who also bought at the peak of the last crash are now also laughing. It's not as if house prices haven't risen above late 80s prices is it?

Many of my friend's parents were in this position, buying houses for £200k in the 80s that a couple of them have just sold for near to a million. 800 grand profit doesn't sound bad to me! (before you start, I am not saying that is what will happen this time, but it IS what happened last time.)

WTF?_2

LillyJ wrote: »

Nope nothing wrong with that but the way things are going it is going to be very hard indeed to get a mortgage as an FTB. And by save for a deposit, what do you mean? 10%, 30%, 70%??

10% is an absolute minimum. Anything above that means you can get a more favourable rate.

I think you'll find that if you have a 10% deposit you can still get quite a decent deal even now as, and it bears to be emphasised, interest rates are still remarkably low.

It's just that the public have become hooked on no-deposit, 'unfeasibly low fixed rates for 2 years and then a remortgage' products.

WTF?_2

LillyJ wrote: »

And I suggest that people who also bought at the peak of the last crash are now also laughing. It's not as if house prices haven't risen above late 80s prices is it?

Many of my friend's parents were in this position, buying houses for £200k in the 80s that a couple of them have just sold for near to a million. 800 grand profit doesn't sound bad to me! (before you start, I am not saying that is what will happen this time, but it IS what happened last time.)

They weren't 'laughing' for about a decade as that's how long it took on average for prices to return to the same levels. I don't imagine that years of negative equity and struggling to meet high repayments for an overblown loan were much fun in the meantime. :rolleyes:

I certainly wouldn't wish that on anyone which is why I've been blowing the trumpet for not buying at the present time, for some time now.