Jump to content
House Price Crash Forum
Sign in to follow this  
Pebbles

Mortgage rates on their way down again

Recommended Posts

17 minutes ago, nothernsoul said:

Houses are overpriced and we have easily lowest interest rates on record. Sums it all up to me. 

They are way overpriced mainly because we easily have the lowest interest rates on record,  exacerbated by easy credit over the longest payment terms......  kick the can down the road, keep kicking.;)

Share this post


Link to post
Share on other sites

The whole economy has been gutted and hollowed out to save the money lenders/creators. Who knows how the next 10 years play out but there is certainly going to be a lot of very unhappy people about. 

Share this post


Link to post
Share on other sites

Everybody knows houses are overpriced, they also know this is only sustained by ultra low rates and government policy like HTB. The group that benefits from this are far more powerful than the group that loses out. Its like the open secret of corruption and bribery in corrupt states, a society with an elephant in the room is far worse than one that is merely ignorant of its problems. Politics in a decent country is supposed to be about balancing off interests as fairly as possible in a reasonable way. Unfortunately the government cant/wont do this any more. The best they can do is try to square the circle with policies like HTB, which try to overcome the fundamental economic facts(in this case too high prices makes a deposit impossible.) Basically the sittuation is homeowners saying we are genuinely sorry some people cant afford a house, we think this is unjust, the government should do everything possible to remedy this. Except letting prices fall. 

Share this post


Link to post
Share on other sites

The economy requires growth.......people do not spend if they think they are getting poorer, ie, their homes, shares and pensions are falling (having to wait another 6 or 7 years to collect).....the exchange rate is falling so items getting more expensive.....they borrow less so spend less......spending and borrowing less is as good as saving, if not better than saving.......buying less does not always mean feeling worse off, it often means feeling better off......saving on waste, up and recycle, sharing and borrowing, growing and making.....what is there not to like?;)

Share this post


Link to post
Share on other sites

“However, some specialist lenders like Paragon have decided to follow an opposite trend, with increased rates and decreased cashback amounts. Buy-to-let lender the Mortgage Works is also looking to increase rates.”

 

 

Silver lining.

Share this post


Link to post
Share on other sites

Nothing wrong with buying a house and eventually making a profit on it. It isnt good for individuals or society if homeowners are repossessed or struggle.  Unfortunately, we have reached the point for political reasons that house prices are not allowed to fall at ANY point. (Imagine if that was the case with any other asset, shares or gold, where at no point could the price of the asset be seen to fall.) This sittuation is made even worse because shelter is a human necessity. 

We have had housing crashes and corrections throughout history, as with all assets this is natural. Sometimes you win, sometimes you lose, if you are happy to take the gains on an asset, you must accept the possibility of losing money. The problem is even the thought of a correction( note not a crash) or any kind of negatives for homeowners has become taboo(the pain must always be felt by others) . So we have intervention to prop up prices to the long term detriment of the economy and society. 

 

Share this post


Link to post
Share on other sites
1 hour ago, nothernsoul said:

Nothing wrong with buying a house and eventually making a profit on it. It isnt good for individuals or society if homeowners are repossessed or struggle.  Unfortunately, we have reached the point for political reasons that house prices are not allowed to fall at ANY point. (Imagine if that was the case with any other asset, shares or gold, where at no point could the price of the asset be seen to fall.) This sittuation is made even worse because shelter is a human necessity. 

We have had housing crashes and corrections throughout history, as with all assets this is natural. Sometimes you win, sometimes you lose, if you are happy to take the gains on an asset, you must accept the possibility of losing money. The problem is even the thought of a correction( note not a crash) or any kind of negatives for homeowners has become taboo(the pain must always be felt by others) . So we have intervention to prop up prices to the long term detriment of the economy and society. 

 

Actually most single home owner occupiers have a debt that has been costing less and less over the years, so if prudent are now repaying more and more over the years, they would welcome a drop in prices......many people who buy (also who rent) have children, their children have children and so on, they do not wish them to be lining a landlords pocket forever, they do not what their kids to be dependent on others or 'help to sell' homes when in the past kids made their own way in life from their own hard work.....they saved themselves for the deposit and could buy a home in even the expensive places from the job that they did.

Growing house prices is out of control, it is not the people that bought them in the past fault, it is not their fault  that they keep going up over and above inflation, it is other powers that encourage and have enabled it, forces that need people to feel wealthy so that they keep on spending and borrowing more.;)

 

Edited by winkie

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 298 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.