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Everything posted by Van

  1. And there are mortgage deals out there with silly rates like 2.5% from Norwich & Peterbrough with 25% deposit. ING will give you 3.69% with 20% deposit fixed for 2 years. While these sort of deals are around it makes buying a LOT cheaper than renting, and why prices will remain sticky high until rates rise.
  2. Barking and Dags are pretty grim. South Lon is full of gangs and East is full of BNP.
  3. uh, reading the OP again seems that he is the buyer of the flat. Still, as the buyer I'd be grateful that the EA is trying to move things along. It's in everyone's interest surely that this happens as soon as possible now, isn't it? I know that I always hate chasing up solicitors - they always seem to be waiting on something - either from one of the searches, or responses to enquiries from the local authorities, or for replies for the other sides' solicitors. It's good if there is pressure on them to get their ass in gear from more than one party.
  4. Try to live somewhere where you can cycle to work most/every day. It'll keep your stress levels down if you can avoid public transport. Anything within 5 miles of EC3 is faster and more convenient to cycle. It will pay for itself very quickly and then save you a tidy amount of money (especially if you can do ride2work via your employer) going forward. People who complain about the cost and inconvenience of public transport in London need to get out on their bikes more - it's quick and free, and always will be.
  5. Hey, it's probably a good thing if the EA is keeping right on top of things. He's probably doing the same to buyer's side to ensure that it goes as smoothly and quickly as possible. Be grateful. At the end of the day you are paying the EA, so make him do some work beyond just marketing the property. I'd rather have an overactive EA than one that just sits back and expects you to do all the chasing.
  6. Yeah, it's just quote of their current SVR that the mortgage will revert to once the discount/fixed period ends. It could and probably will be different when the time actually comes around for this. Of course any sensible sod will remortgage straightaway and avoid this.
  7. Try phoning the LR and asking. I did this and they were very helpful. Make sure you know the registration date and the transaction date; lenders have an anti-laundering clause that they will not lend on a property until it has been registered with the LR for 6 months.
  8. Uh, surely this is something only you can answer. From the sounds of your situation, anything from a £300pcm houseshare to a £1000pcm 1br flat would be workable. Depends what your priorities are. I would suggest trying to find a friendly houseshare- it's a good way to get to know some people which is important when relocating somewhere, and will keep costs down. It's also easier to move out of if you find you need/want somewhere bigger.
  9. It is pretty much standard practice nowadays - you have to have some proof of finance to be taken seriously by any EA/vendor simply because the mortgage market is so tight. You will certainly not get the house taken off the market without at least an AIP and a survey date. So yeah, your offer could be accepted, but until you get finance in place it doesn't really mean anything.
  10. So what, the FTSE doesn't mean much when it's at 3,000 as when it's at 6,000 as more transactions happen in a boom? It's an index- It measures prices, not volume. > We all know there need to be big drops in price before sheeple are buying again Incorrect. Volumes at the bottom of a market are still typically low. Credit will be hard to come by. It's near the peak of the market that we see the greatest volumes AND highest prices.
  11. Yes, precisely this. If we look at the Halifax monthly number last year we get the following: 2010: May 167,207 Jun 166,351 Jul 167,536 Aug 168,124 Sep 161,974 Oct 164,949 Nov 164,622 Current level 160,519 Look at the huge drop between Aug-10 and Sept-10. As that rolls out of the index then we'll quickly find outselves heading back towards closer to 0% YoY. The index will need to fall to around 155-156k in the next 3 months just to sustain this -4% YoY figure. Don't think it'll happen meself - certainly not that quickly.
  12. OK, here are the actual real figures: Last month the -3.7% is the 2010 3-month vs 2011 3-month. This is the published headline figure. April 2010 vs April 2011 was -4.9%: 168,593 vs 160,393 this month the 3 months average has moved to -4.2% The May 2010 vs May 2011 figure is 167,207 vs 160,519, which is -4.0% So I am right that the most accurate figure, without hiding behind 3-month averages, is moderating. -4.0% is the YoY change. Amazing that no one has bothered to work this out in this thread so far, but that is about the quality of posting that I am used to on HPC.co.uk these days.
  13. YoY is already moderating. It was -4.9% last month if I am not mistaken.
  14. Wage inflation will come AFTER commodity inflation has peaked. That's how the cycle works. People don't push for high wages because their living costs are falling; they do it after a period when their living costs have risen. Happened in the 70s and 80s, innit.
  15. But they're not getting more expensive- only more expensive to you wages. Petrol is getting more expensive, but I don't see the demand for oil dropping.
  16. There will be shocks along the way, no doubt. What rankles me more and more is the HPC belief that one day, if you just keep waiting, average house prices will be two times earnings and you'll have a 50% deposit and be able to secure a competitive mortgage and there'll be job security and the economy will be growing and all the stars will be aligned. I think these people are in for a very rude awakening - it will be MORE difficult to buy at the bottom despite all the "good fundamentals" than it was to buy at the peak. This is precisely what makes it a bottom!
  17. Nothing you can do about it, unfortunately (unless you buy gold etc). What we will see however is when this period of cost-push inflation subsides and the economy is stronger, there will be demand-pull inflation and wages will eventually catch up and surpass general inflation when workers are more confident that they will be able to ask for bigger payrises. First though the country needs to pay down its debt and repair its finances, though.
  18. Been saying for a long time now that this is the way it'll play out. Small nominal falls, maybe even flat, with moderate inflation doing the rest over the next 4-5 years. Prices will be flat for the rest of this year. The YoY will flatten out to nearer 0% as last years' peak numbers fall away, and there may even be a small rally into next year as more people strive to take advantage of the stamp duty deadline.
  19. EA selling fees were commonly 1% back in the days of the boom, but I'm under the impression they are somewhat higher now on average. I heard Foxtons charge 3%. Explains how they can keep going despite the low number of transactions. The whole EA model is way out of date. They have diversified with FA/mortgage services too, but this needs to be taken much further.
  20. Silly salary multiples are still alarming common., but seriously it is nothing to worry about. Just tell the agent the upper price limit that you are willing to go to and make it very clear you don't want to go above this. We borrowed x1.8 our joint salary and never wanted to borrow more, but most banks will still lend us x4-4.5 times our joint income. We could have borrowed more if we wanted - but that would have meant paying 6% on a 400k loan instead of <4% on a 200k loan- ie our monthly mortgage payment would have been £2,700 vs £980.
  21. It's it a bit of a rhetorical question? There is absolutely no upper cap on how high rates can go, just as there is no time limit to how long we can sustain negative real interest rates as we currently have. FWIW I think the scale goes something like this: 1% - enough to kill any bouyancy the market; +5% of homeowners will struggle 2% - enough to knock 10% off prices; 20% of homeowners will struggle 3% - enough to knock 15% off prices; 40% of homeowners will struggle. We are talking back into recession 4% - 25% off prices. Worse than 2007/2008. 5% - 1/3 off prices. The market will collapse and the govt will be slung out of office of a generation like we saw with Major >6% - Armageddon territory. will represent once-in-a-generation chance to pick up a truely cheap asset. The govt and BoE know this of course, which is why rates will be kept artificially low for many years yet.
  22. *Sigh* Moneyweek again, eh? They're confusing the matter yet again. House prices will not fall because mortgage approvals are low, but rather mortgage approvals are low because asking prices are too high. All this is telling us is that there are a lot of overoptimistic sellers out there fishing for peak prices... and they can afford to do so when rates are so low and there is no real selling pressure. There's a mexican standoff- not many buyers will pay top prices, and not many sellers will cut their asking prices to more, thus we have a market where transactions are low. Yes, prices need to fall further to get the market moving again, but while rates are low this sort of low transaction/still overpriced market can be sustained almost indefinitely.
  23. Depends how long you are planning to stay there. If you're only planning on a few years, I'd go for the nice house - if you do it up you won't be around to enjoy it. If you're planning to stay there 20 years then go for the location, take time to do the place up to your liking, and enjoy the fruits of your labour for many years to come. On our purchase we've gone for a nice place in a slightly more remote area, as we only plan to stay there for 3 years max.
  24. Something has gone wrong at more than one stage here. - Her mortgage broker should have advised her that it would be very difficult to get a mortgage approval - Halifax underwriting should have denied her mortgage following the survey on account of her previous bankruptcy - Her solicitor should have performed bankruptcy searches and advised both her and the lender of her bankruptcy status It sounds like they have gone ahead and Exchanged before having a proper Mortgage Approval (as opposed to just the original "mortgage in principle" offer). I think she has been badly advised, as well as just plain stupid. I would hope she gets her deposit back as a minimum though. It does sound like parties who should know better have not acted in her best interest.
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