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House Price Crash Forum


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Everything posted by Tulip_mania

  1. I understand what you're trying to say, but the mortgage makes a lot of difference. June 2021: £400k House, £40k deposit (Cash up Front), £360k mortgage (90% LTV) October 2021: £400k House, £40k deposit and £10k stamp duty (cash up front), £360 mortgage (90% LTV) The cash up front requirement has gone from £40-£50k, a 25% increase, even if the stamp duty is 2.5% of the house price. A lot of people can make the monthly payment, but not magic up £10k cash out of nowhere.
  2. Isn't the real benefit of this to pay off your HTB loan at the depressed value, then assuming the construction is subsequently deemed acceptable, you have a flat you can sell at market value. If you actually sell the house now you take the hit on 60-80% of the value.
  3. The overseas thing is largely tax, my work had a thing about last year, essentially if you're living and working (from home) in France or many other countries, the employer may be required to pay local equivalents of Employers NI which obviously varies between countries. In general, I don't think it's unreasonable not to pay London Weighing to people who don't need to go into an office, but if you're doing the job properly, you should be paid the wage properly. The difficulty with hybrid is that even if you only wfh 1 or 2 days a week you still need a proper home office, and post covid rule around ergonomics will have to be observed again. So no working from bed or the sofa, proper desks, monitors and chairs. Companies that think an average of 3 days a week in the office allows them to only pay for 60% of the office space will also hit a problem when all the employees try to wfh Mon & Friday and 80% of staff try to fit into a 60% capacity office Tues-Thurs.
  4. The thing is, to exchange contracts you have to be pretty much in a position to move. With survey, searches and mortgage sorted. Maybe removal companies are really backed up, but this is practically a 2 week extension at most. If things aren't in progress yet, then you're unlikely to hit 30th June, still the <£250k bit until the end of September, but again chain complete by end of June probably needed for that.
  5. The maths is fairly straightforward, I've put a simple example below. £300,000 house 80% LTV, IR 2.2%, Mortgage £240000, Monthly Payment £1041 95% LTV, IR 4%, Mortgage £285000, Monthly Payment £1504 You now don't need a £60k deposit, but you do need to earn £6k/year after tax more to pay the mortgage. Affordability calculations probably higher.
  6. What isn't selling, in suburbia, houses with really significant problems (no garden, unwanted granny flats in the garage) or which are genuinely stupidly priced, usually combined with a vendor who is unwilling to negotiate towards even current irrational pricing. Pretty much anything half decent with a price this side of the moon is selling, the best stuff within days. I'm not thrilled with this fact, but the magic money tree, the stamp duty holiday, no holidays and a year's home schooling the kids have poured petrol and liquid oxygen on the fire.
  7. Yeah, it was cut from 2.5% last year, they never particularly did answer why an 0.6% cut in BoE base rate caused a 1.5% cut in interest. It's about the best going, there was also a triple access ISA which started at 1% (for a year) then got cut for new accounts repeatedly to 0.25%, I've just looked and this appears to be the one the @sammersmith mentioned increasing to the giddy heights of 0.4%. Sadly the 1% on that expires shortly.
  8. I'd think an individual back cab, driving round or waiting in a rank for fares is still self employed as long as they don't take more than 50% of their bookings through a prebooking service or app. But pretty much any minicab or radiocab taking fares though a pre-booked network, be it office, phone or app is employed now.
  9. Whether or not it's cheaper than renting depends on the market in your area, but it's not a saving, it's a transfer of money. Short term effects Deposit + Stamp Duty remains the same, more goes to the seller, less to the government. Buyer: No Difference Seller: Better Off Government: Worse Off Long term effects Mortgage for larger amount, you pay more capital and interest to the bank over 25-40 years. Buyer: Worse Off Bank: Better Off So Overall: Sellers (outright or downsizing) and Banks are better off, Buyers (FTB or upsizing) and Government are worse off and those moving sideways about neutral. FtB's and those upsizing would have been better off overall if the government had done nothing.
  10. 3% is max saving (500k house), but a 2-3% saving with a 75% mortgage is 8-12% higher prices. People aren't saving anything today, paying their deposit to seller rather than taxman, but are paying the rest of the price increase (with interest) over possibly up to 40 years. Crazy, but that's what's happening.
  11. The price caps (new scheme) from April, will mean that at least in the Midlands/North, it is restricted to more basic houses. So no longer available on 'executive' homes. Though price caps should really be 4*Regional Median Wage, they're over double that, so even for a couple both earning the average local salary some will be a bit expensive.
  12. I agree that applies to hospitality and travel staff, I fully intend to go to the pub and on holiday when it's allowed. There may be some cases e.g. retailers in the process of going bust when it doesn't, but it's probably slightly better for the staff, who are going to struggle to find a new job in the middle of lockdown.
  13. Forbes is a full blow 'wee free' Presbyterian, she's not going to be a fan of debt. The CoE forgives 'Trespassers' the CoS forgives 'Debtors', highlights what they think is a cardinal sin.
  14. Costs should be split 1/3rd Developer (levy on construction industry for those who have wound up since as they will have reappeared with a new trading name) 1/3rd Freeholder 1/3rd Leasholder
  15. Exactly, rates are also creeping back down, there may have been a bit of risk averse behaviour last spring. But by October it was straightforward demand management, they couldn't process all applications, so they took safer ones at higher margins. I presume they're starting to get through the backlog, so they actually have to encourage business now.
  16. Isn't it the 33rd percentile of the market, which will cover the cheapest 1/3rd of that type of place in the area, but as the OP chose where to live when he had a job he may be living somewhere slightly nicer so the payment doesn't fully cover his rent?
  17. The Times reporting on a 'Mortgage War' of reduced rates as Banks try to lend the ocean of credit the BoE/Govt is drowning them in. Predicting reduced demand for mortgages in Q2, citing the end of the stamp duty holiday, there's a lot of astroturf being laid to justify an extension. https://www.thetimes.co.uk/edition/business/mortgage-war-threatens-to-put-a-ceiling-on-banks-revival-057vxkkqc
  18. In what way is the fact that it is scheduled to go back up at the end of March unexpected? "Home buyers face tax bill" is true, that it's unexpected is rubbish. Though many may have spent 5 times the 'saving' on higher prices as an 80% mortgage would allow them to borrow 4 times the stamp duty bill, the gazundering is going to be elephantine.
  19. In many ways it favours established stores, I know what size I am in Next so can order online accordingly. With a new brand I'd be less confident.
  20. Why would any surveyor have been furloughed since the start of July?
  21. High interest and inflation made the first few years of a mortgage pretty dicey, but after 5 years, your salary would have gone up sufficiently that the mortgage payment reduced as a % of it, so variations were less of a concern. Now, in a low (everything but houses) inflation environment, wages increase much more slowly, so if you sign up to pay 25% of your salary in mortgage payments, that number isn't changing much over the course of the mortgage.
  22. It's fairly inevitable, and in many ways better than fuel duty. Currently tax on petrol/diesel works out at something in the region of 10p/mile, depending on your car and driving style. With electric cars there will be a very small amount of 5%VAT on domestic electricity, but nothing of note revenue wise. Fuel duty costs you the same whether driving round the Highlands at night or London at rush hour. Road pricing could make the Highlands, West Wales and Northumberland (certainly outwith summer) cheap or even free, but charge £1.50/mile in Central London at rush hour.
  23. Nationwide is post survey approved mortgages, so yes, with the current backlog, it's most likely offers agreed in August and September, in these numbers. Though there are probably enough in the system to pad the November numbers as well, though the quality of borrower may be going down as the safer ones probably went through quicker.
  24. The rates are nothing that special, 85% LTV at 2.99% + £995 fee. Halifax have a lower rate (with a big fee) TSB are on the same rate + fee, First Trust seem to be the cheap outlier. Though I'm less concerned about borrowing from a bankrupt bank or building society, than saving with one.
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