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Average rate on a 95% LTV mortgage now over 4% (if you can get one)

 

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I can see a definite pattern here :lol: 

Look at that graph, that looks like the steepest increase since the 90s.

If only someone had predicted rates would be going up by 2020

Anyone will to hand the banks all their money can get a good deal.

If a deals too good to be true...

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Average rate on a 95% LTV mortgage now over 4% (if you can get one)

 

Image

 

I can see a definite pattern here :lol: 

Look at that graph, that looks like the steepest increase since the 90s.

If only someone had predicted rates would be going up by 2020

Anyone will to hand the banks all their money can get a good deal.

If a deals too good to be true...

We're doomed

Why don't you start a thread of your predictions for 2021? Then we can grovel on our hands and knees at your foresighted genius for another year. 

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We're doomed

Why don't you start a thread of your predictions for 2021? Then we can grovel on our hands and knees at your foresighted genius for another year. 

You can fault Count for bias, but in this case, you can't deny that this trend about interest rates is something major that can impact the market. Anyway good news. Weird they are showing 75% instead of 80%. 80% used to be the minimum to be considered safe lending.

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You can fault Count for bias, but in this case, you can't deny that this trend about interest rates is something major that can impact the market. Anyway good news. Weird they are showing 75% instead of 80%. 80% used to be the minimum to be considered safe lending.

There's a very, very clear long term trend there. In addition these are average rates being offered, not taken (correct me if I'm mistaken). The supply and demand issue comes into play too. This is really throttling by the lenders to reduce demand. Why create customer ill will by delayed applications when you can cream off those most keen to borrow (and pay for it). 

I agree it's short term impact but that's it. 

That £150billion of magic money was created to buy bonds to keep rates low. 

They aren't pricing in base rate IRs

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I can see 2.74% and 3.09% on Moneysupermarket - but I accept your trend.  Banks are pricing in IRs. 

How many props are left now?

Yes, it is really about risk. 

I've got a 5 year fix at 1.63%, but my LTV on that was only 29%

By the time I come to renew in about 4 years that'll be down to 18% assuming no price change. 

Of course, pursuing the HPC mantra means I articulate this amongst property speculators as being perfectly setup to survive an 82% price drop over 4 years without going into negative equity!!! 

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FTB MIRAS? 

The tories must be realising what a vote loser high House prices us becoming 

 

Labour should be all over the bubble, speaks volumes that they're not. 

 

If your look at the 2007 banking collapse you see a similar but less steap rise in rates 

 

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Yes, it is really about risk. 

I've got a 5 year fix at 1.63%, but my LTV on that was only 29%

By the time I come to renew in about 4 years that'll be down to 18% assuming no price change. 

Of course, pursuing the HPC mantra means I articulate this amongst property speculators as being perfectly setup to survive an 82% price drop over 4 years without going into negative equity!!! 

Optimist 😂

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The tories must be realising what a vote loser high House prices us becoming 

 

Labour should be all over the bubble, speaks volumes that they're not. 

 

If your look at the 2007 banking collapse you see a similar but less steap rise in rates 

 

If they do (they don't) they're doing an excellent job of hiding it. 

Help to buy

Underwriting FTB mortgages

Free money on furlough

SDLT suspension

While being the party of homeownership is at odds with high house prices they're attempting to satisfy both ends of the spectrum - those hardworking housewife widows in 6 bedroom houses that can't have the value drop and those lazy first time buyers needing additional support in order to buy the limited number of properties they've built. 

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Average rate on a 95% LTV mortgage now over 4% (if you can get one)

 

Image

 

I can see a definite pattern here :lol: 

Look at that graph, that looks like the steepest increase since the 90s.

If only someone had predicted rates would be going up by 2020

Anyone will to hand the banks all their money can get a good deal.

If a deals too good to be true...

hmm maybe my worthless fiat is worth at least 4% more than i thought it was. 

lets have 10% soon, we can use the previous owners as a boot scrapper on the way in to my new home. 

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"Expect more mortgage interest rate rises, warns Knight Frank"

https://www.mortgagesolutions.co.uk/news/2020/11/06/expect-more-mortgage-interest-rate-rises-warns-knight-frank/

Even a vested interest has no choice but to say the rates are only going to go up and that the Bank of England rate is irrelevant.

Interesting how they say most mortgage offers last 6 months.

No wonder someone I know is in a panic as they sold back in June, so the clock is ticking.

Despite selling to a FTB'er and buying an empty property, they are still waitng to complete because both parties had many hurdles (and £20k had to be bunged to them from Bank mum/dad) in order to get a mortgage. He works for a bank that he only started last December. She works for herself and was able to use old accounts for the mortgage application. But due to recently having a baby, and covid, she can't work now.

So they know it will be no go if the mortgage offer expires.

Makes you wonder how many sales are likely to fall through with change of   circumstances as time has passed due to covid?

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Interesting how they say most mortgage offers last 6 months.

No wonder someone I know is in a panic as they sold back in June, so the clock is ticking.

Despite selling to a FTB'er and buying an empty property, they are still waitng to complete because both parties had many hurdles (and £20k had to be bunged to them from Bank mum/dad) in order to get a mortgage. He works for a bank that he only started last December. She works for herself and was able to use old accounts for the mortgage application. But due to recently having a baby, and covid, she can't work now.

So they know it will be no go if the mortgage offer expires.

Makes you wonder how many sales are likely to fall through with change of   circumstances as time has passed due to covid?

20k ponzi handout you mean. Why is thr solution always more instead of telling the greedy sellers to accept less

I despair 

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"Expect more mortgage interest rate rises, warns Knight Frank"

https://www.mortgagesolutions.co.uk/news/2020/11/06/expect-more-mortgage-interest-rate-rises-warns-knight-frank/

Even a vested interest has no choice but to say the rates are only going to go up and that the Bank of England rate is irrelevant.

Expect lower prices 

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lol, better also offer them a large tent for a quick sale.

Whoooooooosh goes the point....

Being they won't be 50k because at that price someone will out bid you. 

The cost to build a modest 4 bed detached is around 200k to 250k in the southeast... ignoring land. That's your absolute zero if you will. 

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The cost to build a modest 4 bed detached is around 200k to 250k in the southeast... ignoring land. That's your absolute zero if you will. 

Not true. Lots of houses up north cost significantly less than their rebuild cost. 

Eg price of house in abandoned military bases. 

Question is ultimately  whether local population increasing or decreasing?

Rest is money printing (or disappearing)

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  • 439 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%



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