Van

I'm likewise - FTSE-tracking ISA, but I've hedged it with a spreadbetting short position. Overall I've net short by a small amount. The risk is overwhelmingly to the downsize over the next 3-4 months imo. Another strategy might be to buy some puts. They're not as cheap as they were last week but they could look extremely cheap in a few weeks' time if the sh1t really hits the fan.

I'm dubious it will go that low. You need to plot it on a logarithmic scale.

If you have good enough cashflow to pay it off in 3 years then it won't practially make much difference. I'd got the the cheapest mortgage possible. Depends on your LTV there are deals for 2.29% floating around, and Norwich & Peterbrough will only charge you 2.59% with up to 80% LTV.

I HIGHLY doubt that! 20,000 maybe.

Lending rates are already rising, though. eg Nationwide seem to have increased all their fixed rate deals by 0.9% in the last fortnight. That's really going to put the squeeze onto mortgage lending.

Thank god. Merv has been the weakest and most embarassing BoE chair in living memory. A figure of national disgrace.

Fair dues. It's possible to turn a profit if you improve a property, even in a weak market. He's improved the housing stock and if he has profited from his work then good for him. Of course it will be harder and harder to perform the same trick. As a new property investor, I can congratulate him on gross an annual salary of £19k. So the average house is only about 10 times his current salary.

Oil price is spiralling out of control, too. That will really heap more inflationary pressures over the next 12 months. Higher rates ARE coming - a question of sooner rather than later.

Holy cow - Nationwide have raised their fixed rate again even from yesterday. 2yr fixed rate 15% deposit - now 5.29% http://www.nationwide.co.uk/mortgages/interestrates-types/rates.htm?buyerType=ftb

Most of the most most competitive rates have a £800-£1000 up front fee. the APR usually works out almost identical over 2 yrs, though. We have a similar strategy to use the next few years to pay off a large chunk of the capital while rates are so low.

Sounds good. We don't have 40% deposit, though. I'm also considering discount/tracker - looks like Norwich & Peterbrough offer discounted rate currently at 2.59% for 85% LTV, 2yr fixed which is staggeringly cheap for such a high LTV. That is very very tempting. Sure, rates are going to go up, but are they going to go up more than +2% in the next two years? http://www.nandp.co.uk/mortgages/mortgage-products/discounted-mortgages/2-year-discounted-mortgage/

If you have a big mortgage still outstanding I would say that it is not just worth repaying your mortgage, it is almost essential that you do so while interest rates are this low. The over-leveraged are being given a golden get-out card at the expense of everyone else, so they would do well to take it. Rates will not be this low forever and if you don't pay off the capital now then when rates rise you may find your mortgage jumping by a huge amount.

I'd be interested if anyone knows of a better deal than 3.89% with ING with 80% LTV (2yr fixed) with £895 booking fee. Or I am also looking at ING's 3yr fixed 4.49% (but only £195 booking fee).

The only "talent" they have is for wasting everyone else's money.

Example: Nationwide 2yr fixed rate with 15% deposit - was 4.39% last week, now 4.99% ING 2yr fixed rate with 20% deposit - was 3.69% last week, now 3.89% Can't see how that is going to help house prices!

Depends a lot on the seller's expectations. A bit of detective work is required. How long has it been on the market? Has the property already taken a price cut? When did the seller buy it and at what price? How desperate is the seller? All these can have a big influence on what you should offer.

Couldn't agree more. The change in language is a reflection of the change in attitude among the sheeple. Instead of being a measure of increase in household wealth, housing is now gradually being seen as a cost of living (which of course it is). It is all playing out as foreseen. There are a few more years left before the endgame, but this is exactly the sort of sentiment that we should be seeing at this time.

Excellent links - thanks!

Prices are definitely softening up, and anything that is not in A-grade condition is getting a pummelling. Look at this place in Balham - put on the market in Nov at 290k, cut to £280k last month, and now slashed to 250k today. That's 14% off within a matter of months. Now over-optimistic sellers like this might be few and far between, but my Rightmove searching is showing absolutely truckloads of similar price cuts on properties all over London. It'll be lucky to go for £230k imo. That's a massive difference between what they originally thought they could get and the reality of the market. http://www.rightmove.co.uk/property-for-sale/property-17509266.html?premiumA=true 17 February 2011 * Price changed: Guide Price £259,950 £249,000 [Found by n/a] 03 February 2011 * Price changed: £279,950 Guide Price £259,950 [Found by n/a] * Status changed: from 'Available' to 'Premium Listing' [Found by n/a] 10 January 2011 * Price changed: from '£289,950' to '£279,950' [Found by n/a] 28 November 2010 * Initial entry found. [Found by n/a]

Houseprices.co.uk PropertyBee.com These are invaluable tools for buyers. Use them correctly and you'll know more about prices in the area and the history of the place than the seller or the agent.

08 January 2011 * Price changed: from '£569,950' to '£599,950' [Found by n/a] 07 January 2011 * Price changed: from '£599,950' to '£569,950' [Found by n/a] 30 November 2010 * Initial entry found. [Found by n/a] *rolls eyes*

Hey, I live in West Ken at the moment =) Yeah it's only Kensington in name - more correctly it's "North Fulham". But great transport links and not a bad area. We currently pay £240pw for a 750sqft place, which is a bit of a bargain, really. We're moving (buying) to Southfields soon though.

Yeah, there's no accounting for stupidity. I mean, a lot of homeowners are probably paying their lenders' SVR and could probably halve their mortgage payments if they remortgages. It's the same with renters. Hampstead is nice enough, but it's hardly Kensington is it? Move to a cheaper area- there are plenty of them, even in London.

ROTFL.

The internet as we know it has only evolved to the what it is because of PRIVATE companies that have expanded and improved it. There is a role for the public sector- of course there is. Back when electricity was first becoming available it was the govt who provided standards on plug sockets. Same for telephone sockets. But that's distinct from claiming that the govt are responsible for providing our energy and communications. They had a historic role in it, but their job is to facilitate the framework for the private sector do then do the job of actually providing the goods and services we need.