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About pmf170170

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  1. Lloks like a very desirable house and decent value. The current heating bills would be prohibitive for most though and it will be a very cold house during winter.
  2. If my memory serves me well, there are a few centuries worth of good quality coal under our feet that can be called upon. Despite the climate concern, I can see a case of needs must.
  3. The Government made £12bn on the Northern Rock rescue. I agree with your point though.
  4. This article essentially makes that point and sees the reduction in lending as the solution to bringing prices down https://radixuk.org/opinion/13661-2/
  5. But the collorary is that if interest rates rise 'too high' the economy flat lines, hence Bo Jo's promulgation of 50 year mortgages. Kick the proverbial can further down the road. 25 years further!
  6. Turkey cut rates in response to rising inflation. The outcome was to be expected.
  7. This guy is always worth a read and writes a lot of sense. Some tasty bear food in this article https://surplusenergyeconomics.wordpress.com/2022/07/02/234-britain-on-the-brink/
  8. That is not the current problem but BJ is concerned that it will become the problem if there are big pay rises. The current issue is all supply related and the interest rate rises will have a very limited effect. They will be mitigating inflation only to the effect that the slightly stronger pound controls import prices. I read an article indicating that stripping out the effects of energy inflation, core inflation is running at circa 1%. Switzerland has low inflation because of a combination of the strong currency and the fact that 75% of their energy comes from hydro and nuclear.
  9. You are taking on a huge financial commitment with no guarantee that your circumstances will not change. There are pros and cons to the length of the fix. I went for 10 years but my rate was much lower. Personally I'd extend the term as long as you can to give yourself flexibility. Nothing to stop you from overpaying but if your financial circumstances do change, it's good to have a lower fixed commitment. Take the loan over the longest possible term and pay it off as soon as possible. Personally I would not be looking to buy now given the uncertainty. I would only do so if a great deal came along. I could be tempted to consider a smaller cheaper home as a hedge but again it would have to be a good deal. What ever you decide. Good luck. Much of success comes down to luck and being in the right place at the right time.
  10. There is no alternative and any political party coming to power will have the same issue. I fear that we are heading back to the 1970s in terms of inflation. Large parts of the Western world has got the same problem. When circa £3 of new debt is required for each £1 of GDP growth we are royally screw**
  11. Interest rates are going nowhere significant. The government could not afford to service its debt. Inflation is the only way out with savers and pensions sacrificed. Even DB schemes will become worth a lot less in purchasing power. I have no idea how to avoid the worst of the fall out.
  12. But from an extraordinary level. I understand that the emporer's Palace was considered to be worth more than the US state of california.
  13. You didn't make your own luck. You were just lucky, as was I. Like you I STR in 2007 (having bought in 1998 and benefited from 100% plus inflation) and bought back in (at 2002 prices) a year later. I could not have timed it better but I had been thinking of doing it for years. At any other time I would have come unstuck. My mortgage was a lifetime tracker which is currently less than 1%. If I have any regrets it's not stretching myself financially in 2008.
  14. Bangalore money is probably more expensive. Their costs are going through the roof.
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