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the end is a bit nigher

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I would like one of these 10 year fixed rate mortgages at 4.89% but don't want to buy for a couple of years until rising interest rates have battered prices a bit - anyone got any ideas?

yup catch 22 that :)

I know commodity producers effectively place a bet on commodity prices, to hedge the position, and lock in the current price -

Any financial genius that can work out how to do that with an mortgage interest rate?

My experiences of spreadbetting demonstrate that I shouldn't even be thinking about such things.

Edited by Flick

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I would like one of these 10 year fixed rate mortgages at 4.89% but don't want to buy for a couple of years until rising interest rates have battered prices a bit - anyone got any ideas?

Don`t fret, interest rates will not go up by more than 0.5% in the next couple of years and these deals will be here for the duration, all IMHO ;)

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I would like one of these 10 year fixed rate mortgages at 4.89% but don't want to buy for a couple of years until rising interest rates have battered prices a bit - anyone got any ideas?

A contrarian writes...

High house prices are keeping interest rates low.

When prices get more affordable the loans will be more expensive but you'll need to borrow less.

And remember that the wind is caused by trees shaking their branches about.

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I would like one of these 10 year fixed rate mortgages at 4.89% but don't want to buy for a couple of years until rising interest rates have battered prices a bit - anyone got any ideas?

Buy now with the 10 year fix, but at the same time open a large spread betting position on house prices falling.

frugalista

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I would like one of these 10 year fixed rate mortgages at 4.89% but don't want to buy for a couple of years until rising interest rates have battered prices a bit - anyone got any ideas?

I was thinking that the other day too. Its a shame no bank offers a foward agreement to have it upto 5 years in the future.

Come on Nationwide and Halifax you know you want to :lol:

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Housing market is looking toppy as it is without interest rate rises. I struggle to see how interest rate rises would not bring about/accelerate house price falls.

If you are planning to put down a hefty deposit (25% or more of the value of the house) then any % fall in house prices will mean you should be able to reduce your exposure to debt by an even greater percentage. So even if interest rates have risen you will be paying interest on a smaller loan, your capital repayments will be less, and you will have the satisfaction of knowing that the bank's share of your home is smaller.

Scenario 1 - Buy house for £100 with deposit of £25 and debt of £75. House prices fall 20%. Now buy house for £80 with deposit of £25 and debt of £55. Debt has fallen by 27%.

Scenario 2 - Buy house for £100 with deposit of £50 and debt of £50. House prices fall 20%. Now buy house for £80 with deposit of £50 and debt of £30. Debt has fallen by 40%.

If you are not planning to put down a hefty deposit then you risk negative equity.

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  • 301 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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