long time lurking Posted April 22, 2011 Share Posted April 22, 2011 No no no, this is simply incorrect. Banks are starting to lend to each other again. 2 have dropped their mortgage rates only this week! Why? When the BOE have stated they will HAVE to increase interest rates later in the year? 95% mortgages are coming back most definitely in the VERY near future. I have a reliable source about this and even some Estate Agents have gotten wind of this and told me this week, that the market will be going crazy again with FTBers as soon as they are announced. I am a bear very quickly turning bull. 95% mortgages are already available ,but you need to look at the IR on them ,Interest only would be the only option for most FTBers And as for the estate agent telling you the market is going to go crazy again ,do you really believe them or have I got my sarcasm filter on to high a setting? If it is not sarcasm you best go and by a place before you miss the boat Quote Link to comment Share on other sites More sharing options...
payback period Posted April 22, 2011 Share Posted April 22, 2011 People who would have lived in Hampstead 20 years ago based on their incomes had to live in West Hampstead 10 years ago doing the same work and have to live in Kilburn now. If house prices normalise, the demographics catch up with the market and leveraged punters go bust, high income, house poor youngish people who live in Kilburn now will be able to move back to Hampstead. People doing the same jobs as their grandparents will be able to live in the same areas and types of homes as two generations ago. You haven't considered all the immigrant cash buyers in London. They've permanently changed the market's dynamics so prices in Hampstead are unlikely to "normalise". 95% mortgages are coming back most definitely in the VERY near future. I have a reliable source about this and even some Estate Agents have gotten wind of this and told me this week, that the market will be going crazy again with FTBers as soon as they are announced. Which FTBs? The ones who are already unemployed or the ones (public and private sector) who realise they may be made redundant at any moment? Quote Link to comment Share on other sites More sharing options...
_w_ Posted April 22, 2011 Share Posted April 22, 2011 No no no, this is simply incorrect. Banks are starting to lend to each other again. 2 have dropped their mortgage rates only this week! Why? When the BOE have stated they will HAVE to increase interest rates later in the year? 95% mortgages are coming back most definitely in the VERY near future. I have a reliable source about this and even some Estate Agents have gotten wind of this and told me this week, that the market will be going crazy again with FTBers as soon as they are announced. I am a bear very quickly turning bull. If the estate agents say it it must be true. They're telling you you should rush to buy now before all those FTBs push prices out of your reach and you are left behind for ever and ever. Quick, buy now. Quote Link to comment Share on other sites More sharing options...
mattyfc Posted April 22, 2011 Share Posted April 22, 2011 Even the LSE are saying it: http://www.londonstockexchange.com/news/personal-finance/newsbespoke-budgeting/066-uk-house-prices-could-fall-by-25pc-in-2011.htm A glimmer of hope at last with all these admissions.. Good news, I would be very surprised to see prices fall this fast though. The only way it could happen is if the economy other than housing / consumption (trade etc) starts booming. Interest rates would get forced up as the BOE would no longer have reason to depress rates. If rates were pushed up 2-3% in the next couple of years big falls would be possible. Could panic vendors leading to a big correction in prices. Looking forward to Wednesday Q1 GDP to see if there is a chance in hell of this happening. Quote Link to comment Share on other sites More sharing options...
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