Durham Lad

Though I don't agree that the builder should feel entitled to a loan from Barclay's, I can't for the life of me, believe that any bank would charge a seven thousand pound arrangement fee for such a relatively small sum; I wonder if he is telling a 'porker'. If on the other hand Barclay's really is charging so much, then they are both in the wrong. And, the country is well and truely heading into another ressesion. Two wrongs don't make a right!

Reminds me of something my debt laden brother always says to me: When you owe the bank 10,000 pounds you worry; when you owe the bank a million pounds they worry! He seems to have been right for the last twenty years: I've never been in debt and the bank manager doesn't know I exist; my brother gets regular phone calls on his birthday and even christmas cards! What a mad, mad country we have become.

Unbelievable!!!!! I refuse to believe that anyone would have paid one hundred and sixty five thousand pounds for a flat in such a location! There must be more to this than meets the eye - no pun intended.

Just thought I'd post to keep the thread going and contribute to the wider debate. You know we often forget that there's more to life than house prices. Everything in life is relative. Happiness does not depend on owning a house; buying at a low; or selling at a high. A person can be as happy as a bee, whether in a rented house or own house - belonging mostly to the bank. It seems to me that we are in for a long wait for house prices to reach a sane level and that in the meantime we should put buying a house to the back of our minds, and just get on with life. I've met too many people who spend most of their time obsessing about house prices. They really don't know what they are missing. What do you guys out there think?

Good things come to those who wait!

Sammi, Firstly, I wouldn't be in any hurrry to buy a property any time soon. On the other hand the northern half of Low Fell is one of my intended places when I finally buy a house. Having lived in Jesmond, and knowing Gateshead quite well, I honestly think that there is not too much difference between the Saltwell Park end of Low Fell and Jesmond, except of course that Jesmond is twice or even three times the price! Yes, I would prefer Jesmond but not at the price differencial: Low Fell is much better value for money. It is even walkable to Northumberland Street, though it takes the better part of an hour. Still the exercise is good for you! The best course of action for now is to save as much as you can, so that you have a decent deposit at hand when the time comes to buy. Good Luck, Durham Lad

Walterg, Obviously this site is inhabited mostly by people who believe that property prices will be going down. That said, I am one of them. The idea that rent is dead money is a myth, particularly if you take into account that over 25 years about 60% if not more - depending on interest rates -of mortgage repayments is interest. The only thing holding property prices up is historically low interest rates, which will not last forever. On a different note: of the three places you mention as potential areas, I would go for Sandyford. Gosforth and Jesmond reached their hights a long time ago, but Sandyford is an area which I believe will appreciate over the long term more than the other two. Good luck Durham Lad

Guitars, I know Bensham pretty well - relatives live there - and I think your gut feeling is spot on. Bensham is awfully overpriced considering it is... well Bensham. you should sit tight for another year or two or three and buy for half the current prices. Bensham will be one of the first places to drop when the sh!t finally hits the fan.

Thanks Deeplyblue & Meow, Your advice is sound and as I'm not in a hurry I'll keep looking and waiting. Keep up the good work! DL

Thanks rich1234, I am after a real house, and not a flat. The dilemma is: Is it better to pay £1080 fixed for 10 years on a 100k mortgage, or wait a couple of years and get a smaller mortgage at a higher rate which might even cost more? You can see I'm not the best at maths! I'm starting to wonder if the plan to wait might in fact be a waste of two good years! Cheers all.

Hi Guys, My first post, though I’ve been reading Housepricecrash every week for the last 4 years or so. Have to give everyone who has ever contributed a big thank you for your part in educating this simple Durham Lad. Thanks to this site I have avoided making a lifelong mistake of buying a house at the wrong time. Many on Housepricecrash argue that the only option for now is to wait the phoney war out, till house prices are 20% or 30% lower or even more. This makes a lot of sense to me, but I am faced by a dilemma, and hopefully the more experienced members might know the best solution. I have about 40% saved for a home; and wouldn’t normally think of getting a mortgage for a couple of years at least. Britannia Building Society however has come out with a 10 year fixed mortgage at 5.49% which would allow me to pay off the entire loan over ten years. The dilemma is whether to wait for a couple of years, when house prices should be lower but mortgage rate will be say 7% to 8%, or buy now when the house price is overpriced but the rate is unlikely to get any better on a ten year fixed?