Interest Rates rise again
11 January 2007, 03:40 PM
#91
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to me that is big enough to start with!!G.
11 January 2007, 03:42 PM
#92
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Yes but you was talking about after the housing market crash (if it ever happens) what would you expect the £250k pad to be worth after a crash?
11 January 2007, 03:44 PM
#93
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Current situation:
250k mortgage @ 5% 1480 pm
Future situation: house crash and interest rate rise, buying the same house:
150k mortgage @ 12% 1595 pm
Extreme but you never know.
250k mortgage @ 5% 1480 pm
Future situation: house crash and interest rate rise, buying the same house:
150k mortgage @ 12% 1595 pm
Extreme but you never know.
11 January 2007, 03:45 PM
#94
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11 January 2007, 03:51 PM
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LOL 12% is extreme....
OK DCI, answer for him thats fine but as you can see using Davys point (as was mine earlier
lets say they have a 20k deposit the £250k house would be £230k mortgage @ 5.5% = £1429pm over 25 years
£165k mortgage @ 8% is £1288
£150 difference isnt too much when your looking at them sort of figures in the first place....
So how long do people sit on the fence waiting for the property that they could have bought 2 years ago?!?!? Unless your out to make money rather than buy a home then I dont see what all the fuss is about
OK DCI, answer for him thats fine but as you can see using Davys point (as was mine earlier
lets say they have a 20k deposit the £250k house would be £230k mortgage @ 5.5% = £1429pm over 25 years
£165k mortgage @ 8% is £1288
£150 difference isnt too much when your looking at them sort of figures in the first place....
So how long do people sit on the fence waiting for the property that they could have bought 2 years ago?!?!? Unless your out to make money rather than buy a home then I dont see what all the fuss is about
11 January 2007, 03:51 PM
#96
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Got mates in St Columb - All been priced out of Polzeath so moved there instead!
We probably know each other...
11 January 2007, 03:53 PM
#97
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LMAO @ you lot thinking everyone with a mortgage is worried by interest rate rises...
Whats the percentage of mortgage owners on a variable rate really? the change will hardly have an effect on many people and lets face it a .25% increase ona £100k mortgage is only going to rise £20 at the most.... wooooooooo bancrupcy here we all come
Calm down and go give your mum your £50 rent children.
Whats the percentage of mortgage owners on a variable rate really? the change will hardly have an effect on many people and lets face it a .25% increase ona £100k mortgage is only going to rise £20 at the most.... wooooooooo bancrupcy here we all come
Calm down and go give your mum your £50 rent children.
...good point though!!
11 January 2007, 03:54 PM
#98
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Why not look at the price a house sold for 25 years ago (mortgage term). Long term you can't lose, so not really a problem unless you are right up to the hilt in debt 
11 January 2007, 03:55 PM
#99
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Dave - It's not a crime to save rather than get out a big mortgage you know.
If we'd bought, we couldn't have moved to London very quickly, sold a business there, then moved back to Bristol all in the space of a year. Now THAT would have cost us much more than buying some little flat and being tied to it.
Some of us don't want the hassle of buying in this climate -
Boilder blows up? Who cares? Roof falls in? Oh well, it gets sorted.
Different strokes for different folks.
11 January 2007, 03:55 PM
#100
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Agreed, so everyone sitting around for years waiting for this crash (I first heard it mentioned early 2002) have just wasted 5 years and lots of equity 
11 January 2007, 03:58 PM
#102
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Dave - It's not a crime to save rather than get out a big mortgage you know.
If we'd bought, we couldn't have moved to London very quickly, sold a business there, then moved back to Bristol all in the space of a year. Now THAT would have cost us much more than buying some little flat and being tied to it.
Some of us don't want the hassle of buying in this climate -
Boilder blows up? Who cares? Roof falls in? Oh well, it gets sorted.
Different strokes for different folks.
If we'd bought, we couldn't have moved to London very quickly, sold a business there, then moved back to Bristol all in the space of a year. Now THAT would have cost us much more than buying some little flat and being tied to it.
Some of us don't want the hassle of buying in this climate -
Boilder blows up? Who cares? Roof falls in? Oh well, it gets sorted.
Different strokes for different folks.
Fair play to you for doing what you feel is best for you... I have no issues with that at all but it makes me laugh the second we see a .25% interest rate change we get everyone jumping up and down like mad monkeys in a zoo.
11 January 2007, 03:58 PM
#103
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LOL 12% is extreme....
OK DCI, answer for him thats fine but as you can see using Davys point (as was mine earlier
lets say they have a 20k deposit the £250k house would be £230k mortgage @ 5.5% = £1429pm over 25 years
£165k mortgage @ 8% is £1288
£150 difference isnt too much when your looking at them sort of figures in the first place....
So how long do people sit on the fence waiting for the property that they could have bought 2 years ago?!?!? Unless your out to make money rather than buy a home then I dont see what all the fuss is about
OK DCI, answer for him thats fine but as you can see using Davys point (as was mine earlier
lets say they have a 20k deposit the £250k house would be £230k mortgage @ 5.5% = £1429pm over 25 years
£165k mortgage @ 8% is £1288
£150 difference isnt too much when your looking at them sort of figures in the first place....
So how long do people sit on the fence waiting for the property that they could have bought 2 years ago?!?!? Unless your out to make money rather than buy a home then I dont see what all the fuss is about
My first house cost me £140K, and at the time I didn't know how I would ever manage to make repayments!
Then the bubble burst, I went into 'negative equity' and then...... nothing! Yep, if I needed to sell up I would lose a few bob but other than that nothing really changed and low & behold eight years later house prices recovered anyway..
So **** it...... spend it like you stole it, or if you're Jonno Johnson 'spend it like your pocket money'
11 January 2007, 04:03 PM
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11 January 2007, 04:10 PM
#105
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Hopefully interest rates don't rise too much in the next 12 months and i will be ok. Will get a fixed Mortgage for 3/5 years... Then go from there.
11 January 2007, 04:15 PM
#106
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Good luck to you though
11 January 2007, 04:32 PM
#107
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For a start your banking on the fact that the market crashes and not having a clue how much equity I have in my property. Even if I did hit negative equity I wouldnt care because I bought my house to live in it and dont intend on selling until I have found a partner to marry and have at least 2 kids with, if a 3rd comes then Id consider somewhere bigger. I can see it being a good few years before I have to worry about that.
And how do you work out that November 2002 was the very near the top of the market since my property has almost doubled in value since then?
God your good at this arnt you....
Seriously Im not saying some people might start to think twice or worry about things but the majority of people are still comfortable. If need be I could cancel Sky Sports and Broadband, put a hold on one of my pensions, Im sure that would see me through some tough times as it would most people.
And how do you work out that November 2002 was the very near the top of the market since my property has almost doubled in value since then?
God your good at this arnt you....
Seriously Im not saying some people might start to think twice or worry about things but the majority of people are still comfortable. If need be I could cancel Sky Sports and Broadband, put a hold on one of my pensions, Im sure that would see me through some tough times
as it would most people.What you said at the end was the point I was trying to make though, going gets tough and people cancel sky/broadband/fitness centre, have fewer holidays. All of these things so down the flow of money and begin to impact on growth, at worst can cause a recession which will in itself reduce demand for housing (and by demand I mean the amount people are able to pay, not the number of people needing a house).
11 January 2007, 04:39 PM
#108
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LOL 12% is extreme....
OK DCI, answer for him thats fine but as you can see using Davys point (as was mine earlier
lets say they have a 20k deposit the £250k house would be £230k mortgage @ 5.5% = £1429pm over 25 years
£165k mortgage @ 8% is £1288
£150 difference isnt too much when your looking at them sort of figures in the first place....
So how long do people sit on the fence waiting for the property that they could have bought 2 years ago?!?!? Unless your out to make money rather than buy a home then I dont see what all the fuss is about
OK DCI, answer for him thats fine but as you can see using Davys point (as was mine earlier
lets say they have a 20k deposit the £250k house would be £230k mortgage @ 5.5% = £1429pm over 25 years
£165k mortgage @ 8% is £1288
£150 difference isnt too much when your looking at them sort of figures in the first place....
So how long do people sit on the fence waiting for the property that they could have bought 2 years ago?!?!? Unless your out to make money rather than buy a home then I dont see what all the fuss is about
11 January 2007, 05:07 PM
#109
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Thats not like for like though. If you buy now at £250k then (after any fixed interest period) you'll be paying the base rate+ just as any new mortgage in the future would. So say you buy now at £250k, and it crashes after your fixeed period. The guy who bought after the crash at £165k pays 8%, but now the chap who bought at £250k also pays 8%. 8% of £165k - £20k deposit = £11600, 8% of £250k - £20k deposit = £18400, a massive difference(assuming the crash is not in 10+ years time when you have already paid off a substantial amount of the £230k)!
11 January 2007, 05:12 PM
#110
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When the property market crashes most people who've been sensible need not worry - ok on paper your house is 'worth' less, and you're repayments might go up - but not too much - but so what?. The cycle will repeat like it always does, and the price will go up in the future.
Its all these "Im a property developer" "I've made a killing on my house price" amateur investors who will be hit - I have more then a few friends who have purchased BTL's and are only in the black by the value increaseing at unsustainable amounts each year. Theyre going to get their fingers burnt and it'll be an expensive lesson.
I think the smart money is leaving property now - my landlord is selling up all her BTL's - I'm getting kicked out end of Feb, but luckily Im moving to Leeds with my job end of Jan, so not an issue!
Its all these "Im a property developer" "I've made a killing on my house price" amateur investors who will be hit - I have more then a few friends who have purchased BTL's and are only in the black by the value increaseing at unsustainable amounts each year. Theyre going to get their fingers burnt and it'll be an expensive lesson.
I think the smart money is leaving property now - my landlord is selling up all her BTL's - I'm getting kicked out end of Feb, but luckily Im moving to Leeds with my job end of Jan, so not an issue!
11 January 2007, 05:53 PM
#111
LMAO @ you lot thinking everyone with a mortgage is worried by interest rate rises...
Whats the percentage of mortgage owners on a variable rate really? the change will hardly have an effect on many people and lets face it a .25% increase ona £100k mortgage is only going to rise £20 at the most.... wooooooooo bancrupcy here we all come
Calm down and go give your mum your £50 rent children.
Whats the percentage of mortgage owners on a variable rate really? the change will hardly have an effect on many people and lets face it a .25% increase ona £100k mortgage is only going to rise £20 at the most.... wooooooooo bancrupcy here we all come
Calm down and go give your mum your £50 rent children.
11 January 2007, 05:57 PM
#112
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11 January 2007, 05:59 PM
#113
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The "smart money" bought BTL's when property was at rock bottom, not in the last year or too, and would never sell their stock. All in preparation for the increased demand for houses to rent when "mickey mouse" landlords cannot make BTL pay and sell, therefore reducing supply, and demand for house purchases falls due to rising interest rates and lack of confidence in the market.
11 January 2007, 06:00 PM
#114
Thats not like for like though. If you buy now at £250k then (after any fixed interest period) you'll be paying the base rate+ just as any new mortgage in the future would. So say you buy now at £250k, and it crashes after your fixeed period. The guy who bought after the crash at £165k pays 8%, but now the chap who bought at £250k also pays 8%. 8% of £165k - £20k deposit = £11600, 8% of £250k - £20k deposit = £18400, a massive difference(assuming the crash is not in 10+ years time when you have already paid off a substantial amount of the £230k)!
11 January 2007, 06:03 PM
#115
If someone was paying 4.5+margin% back in July, they will now be paying 5.25+margin%, assuming they're on a variable mortgage. Most of my co-workers are on variable.
If you're on a fixed deal, what happens when your 4.5% fixed deal runs out and the best fixed deal you can get is 6% (or 5% with a huge arrangement fee)?
Edit: Oh, and you conveniently forgot that there's been three rises since August, which will cost 60 quid per month per 100k mortgage
11 January 2007, 06:12 PM
#116
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I have not conveniently forgot them at all. Im making comments based on this thread. Not threads dating back over the months. right so £60 a month more for the mortgage. cancel the Sky subscription everyone Im not going to rise to your baiting because Ive already said there will be people who are getting hot under the collar but if they are then WTF are they sitting on a variable rate for 
Look at it whichever way you want, at the minute they might be small rises coming our way but theyre not scarying anybody apart from certain foolish people who maxed themselves out last year and only have a 2 year fixed rate. Most other people are still sitting comfortably. Those who chose to get on the housing market are fairly capable of managing money otherwise they wouldnt have got on the ladder in the first place (with the exception of some dime bars off course)
11 January 2007, 06:14 PM
#117
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11 January 2007, 06:24 PM
#118
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it all seams to complicated for me 
i think i will rent to the G/F sorts out medical school and then look towards buying after that,
prices of most things seam to be sky rocketing now IMO
last year saw lots of things go up, wonder what the next year will bring>?
i put my prices up at work in december by around £5 per service and nobody really batted an eyelid, so far we have had 3 people query the prices, 1 person not pay the extra, the other 2 paid when explained about increased buisiness costs. the rest paid without even asking.
it was far to easy TBH
its currently making me on average £15 extra per day ?
i think i will rent to the G/F sorts out medical school and then look towards buying after that,
prices of most things seam to be sky rocketing now IMO
last year saw lots of things go up, wonder what the next year will bring>?
i put my prices up at work in december by around £5 per service and nobody really batted an eyelid, so far we have had 3 people query the prices, 1 person not pay the extra, the other 2 paid when explained about increased buisiness costs. the rest paid without even asking.
it was far to easy TBH
its currently making me on average £15 extra per day ?
11 January 2007, 06:48 PM
#119
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£60.00 per month per 100k. For me that would amount £480.00 per month for business loans and personal mortgage. Plus when interest rates go up it becomes harder to do business and earn money. Also in a period of time when Minimum wage has gone up so much in a few years. Gas and council tax have rocketed now interest rates are up again. Add in the costs of red tape even more cash hungry tax inspectors and see what hapens to small to medium size business in the UK
11 January 2007, 07:37 PM
#120
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So all those predicting this huge property price crash, when exactly do you predict its going to happen because its been banded about on SN for years and years and its never happened and each year goes by with no crash but so many still go on about it happening?
Open your eyes there is no dream property price crash looming so all those waiting for it are just losing out as the prices go up and up making it more difficult to get on the housing ladder.
Open your eyes there is no dream property price crash looming so all those waiting for it are just losing out as the prices go up and up making it more difficult to get on the housing ladder.