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frugalista

Ftbs, Do You Want Interest Rates To Go Up Or Down?

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Only answer this poll if you are an FTB looking to buy in the next couple of years.

It would be interesting to know if your answer would be affected if you had a different size of deposit.

frugalista

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Bit of a narrow question - I'd like interest rates to go up so my savings are earning more. Whether prices come down or not doesn't bother me that much. The artificially low IR do nothing but reward cash spunkers.

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Guest Guy_Montag

Up to increase my deposit. I would rather stretch to buy with IRs at 15%, knowing that they are more likely to come down, than stretch to buy at 4% knowing they are likely to go up.

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Up to increase my deposit. I would rather stretch to buy with IRs at 15%, knowing that they are more likely to come down, than stretch to buy at 4% knowing they are likely to go up.

Bit of a trick question. Do you priced-out FTBs, who have been feverishly awaiting IR rises as the most likely trigger to cause big price falls want:

1) rises because I want a HPC or

2) falls because I don't want a HPC

I think you'd get a different answer from a random cross-section of FTBs than you will here.

Edited by Magpie

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Up, obviously to give us the well needed trigger but also so that my deposit in the bank isn’t eroded by ever increasing inflation :(

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UP - and the quicker they go up, the quicker those stupid enough who overstretched themselves and then started making comments of "you've missed the boat" etc (as some of my "friends" did) will then get repossessed and I'll be able to buy an affordable property from the bank.

and hopefully with all the "fix up your home to sell" type of TV shows that are currently being aired, that must be really stretching the First time seller. So not only will it look quite nice but hopefully have minimal work required to it as well.

The future's bright

:D

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Up.

I'm a saver and aim to continue to be one even when I have a mortgage.

Using your own home as your only form of investement or saving is as dumb as it gets in my book.

(if you cant afford to save outside of your mortgage repayments/servicing your house then you have overstretched yourself).

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Its a myth that low rates make houses more affordable. In fact they make them less affordable for those not on the ladder already. Prices go up even more and you end up having to borrow lots at a low rate, also deposits don't go very far. It's a nightmare scenario for non homeowning sensible people like me.

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I bet if you ask a random non-FTB, they will think that lower rates are good for FTBs.

I take the point that FTBs on this site are not very typical.

Maybe someone should post this question on Channel 4 homes, to get a more typical FTB response.

frugalista

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To be fair I haven't got that much for a deposit, though I could have saved considerably more were I to have become a hermit. To be honest, wanting rates to go up has been solely so it would burst the bubble. The whole concept of how homes have now become cash cows for everyone down to an Essex hairdresser, instead of places to live makes my blood curdle. A friend of mine predicted the boom way before it happened when he saw the first thing on TV hyping BTL and was harping on about the problems it would cause in the pub.

Many bearish posters on these forums have been criticised for "whining". When this unravels however, it will be difficult for me to suppress a smile in some instances. One thing I can assure all of you though, as sure as the sun will rise tomorrow: The ones who criticise people for whining, are always, and I mean always the ones who are whining twice as loud over half as much when they are the ones on the sharp end.

I hope you guys are going to throw a party when judgement day has passed-I'm up for it.

Feel smug everyone. We're ahead of the game.

B)

Edited by Mrliberty

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I bet if you ask a random non-FTB, they will think that lower rates are good for FTBs.

I take the point that FTBs on this site are not very typical.

Maybe someone should post this question on Channel 4 homes, to get a more typical FTB response.

frugalista

I would have to say I consider myself a typical first time buyer and I wish interest rates would go up.

I'm nearly thirty living in my parental home with my partner.........and all I want is to have my own modest home and a quality of life.

Only today we have walked away from a house we were close to signing for (started all this 11/02/06). It is a reasonably priced house for the condition, every room and the garden needed upgrading. We went for a full survey and found that there was a lot more to do than cosmetic stuff, costing upward of £10,000. We revised our offer price reducing it by £10,000. As house prices are rising in London, where I am, the vendor wouldn't budge and the estate agent thought we were mad (as they would) and tried every delaying, subtle pressure, not so subtle pressure tactic in the book.

We've walked away and it is for various reasons;

1. The house is not worth what they want for it. (£230,000)

2. As much as we wanted it we are not prepared to fuel the ridiculous rises in London. (After a lot of research these estate agents have a monopoly on the area and are artificially raising prices by overpricing.... Grrr)

3. To much economic flux is happening (when trying to educate myself I came across this site, I studied economics 11 yrs ago and have lost touch).

4. Although we have spent the last 3 years cleaning up our finances and saving, our money is pretty worthless when buying at these prices. I want my cash to go further.

They are the main reasons we are not going for it.

But I still feel deflated as when I went around the local agents to see what else was out there they told me a house of the same slightly better standard but same spec and location is coming on the market for £20,000 more. It just seems house price increases are relentless.

We have been offered £309,000 by the mortgage companies, but that figure scares the bejesus out of me as that is stretching to contortionist levels (very painful and hard to get out).

There is very little decent quality housing out there at the affordable end and I am fed up waiting to have a quality of life. I want interest rates to rise, so my saved money is worth more, I can finally move out of home and all the glut of greedy people buying up housing stock, making it smaller and selling it on for more get out of the market majority.

I know walking away was the right thing...but I'm still gutted. Roll on the Crash!

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I would have to say I consider myself a typical first time buyer and I wish interest rates would go up.

I'm nearly thirty living in my parental home with my partner.........and all I want is to have my own modest home and a quality of life.

Only today we have walked away from a house we were close to signing for (started all this 11/02/06). It is a reasonably priced house for the condition, every room and the garden needed upgrading. We went for a full survey and found that there was a lot more to do than cosmetic stuff, costing upward of £10,000. We revised our offer price reducing it by £10,000. As house prices are rising in London, where I am, the vendor wouldn't budge and the estate agent thought we were mad (as they would) and tried every delaying, subtle pressure, not so subtle pressure tactic in the book.

We've walked away and it is for various reasons;

1. The house is not worth what they want for it. (£230,000)

2. As much as we wanted it we are not prepared to fuel the ridiculous rises in London. (After a lot of research these estate agents have a monopoly on the area and are artificially raising prices by overpricing.... Grrr)

3. To much economic flux is happening (when trying to educate myself I came across this site, I studied economics 11 yrs ago and have lost touch).

4. Although we have spent the last 3 years cleaning up our finances and saving, our money is pretty worthless when buying at these prices. I want my cash to go further.

They are the main reasons we are not going for it.

But I still feel deflated as when I went around the local agents to see what else was out there they told me a house of the same slightly better standard but same spec and location is coming on the market for £20,000 more. It just seems house price increases are relentless.

We have been offered £309,000 by the mortgage companies, but that figure scares the bejesus out of me as that is stretching to contortionist levels (very painful and hard to get out).

There is very little decent quality housing out there at the affordable end and I am fed up waiting to have a quality of life. I want interest rates to rise, so my saved money is worth more, I can finally move out of home and all the glut of greedy people buying up housing stock, making it smaller and selling it on for more get out of the market majority.

I know walking away was the right thing...but I'm still gutted. Roll on the Crash!

Welcome Jitters, that's a great first post.

At the end of the day, you made a considered decision. Nobody should be criticised for that even if it turns out to be the wrong decision.

I have to say, I think you've called it right. Hang in there, you've waited this long and you know how the saying goes about good things. :)

NDL

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I would have to say I consider myself a typical first time buyer and I wish interest rates would go up.

I'm nearly thirty living in my parental home with my partner.........and all I want is to have my own modest home and a quality of life.

Only today we have walked away from a house we were close to signing for (started all this 11/02/06). It is a reasonably priced house for the condition, every room and the garden needed upgrading. We went for a full survey and found that there was a lot more to do than cosmetic stuff, costing upward of £10,000. We revised our offer price reducing it by £10,000. As house prices are rising in London, where I am, the vendor wouldn't budge and the estate agent thought we were mad (as they would) and tried every delaying, subtle pressure, not so subtle pressure tactic in the book.

We've walked away and it is for various reasons;

1. The house is not worth what they want for it. (£230,000)

2. As much as we wanted it we are not prepared to fuel the ridiculous rises in London. (After a lot of research these estate agents have a monopoly on the area and are artificially raising prices by overpricing.... Grrr)

3. To much economic flux is happening (when trying to educate myself I came across this site, I studied economics 11 yrs ago and have lost touch).

4. Although we have spent the last 3 years cleaning up our finances and saving, our money is pretty worthless when buying at these prices. I want my cash to go further.

They are the main reasons we are not going for it.

But I still feel deflated as when I went around the local agents to see what else was out there they told me a house of the same slightly better standard but same spec and location is coming on the market for £20,000 more. It just seems house price increases are relentless.

We have been offered £309,000 by the mortgage companies, but that figure scares the bejesus out of me as that is stretching to contortionist levels (very painful and hard to get out).

There is very little decent quality housing out there at the affordable end and I am fed up waiting to have a quality of life. I want interest rates to rise, so my saved money is worth more, I can finally move out of home and all the glut of greedy people buying up housing stock, making it smaller and selling it on for more get out of the market majority.

I know walking away was the right thing...but I'm still gutted. Roll on the Crash!

I walked past this house two days ago and there are already builders in there taking the place apart. I was going to ask who bought it but didn't (noted eastern european builders all of them).

How ever what does puzzle me is the following, the day I wrote the above is the day that we walked away, the house came off the market a week later and now there are builders in there 15 days later from ther day we walked. Something smells to me! As my understaning is that it takes at least 2 weeks for the legal process to take place.

Though if it was a "flipper" I'm not sure of the lead time from buying to owning it.

I was wondering what other people's opinion of the time it's taken for someone to buy it and start working on it indicates?

Edited by Jitters

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I walked past this house two days ago and there are already builders in there taking the place apart. I was going to ask who bought it but didn't (noted eastern european builders all of them).

How ever what does puzzle me is the following, the day I wrote the above is the day that we walked away, the house came off the market a week later and now there are builders in there 15 days later from ther day we walked. Something smells to me! As my understaning is that it takes at least 2 weeks for the legal process to take place.

Though if it was a "flipper" I'm not sure of the lead time from buying to owning it.

I was wondering what other people's opinion of the time it's taken for someone to buy it and start working on it indicates?

If the seller has their solicitor already primed and the buyer also has a good solicitor and doesn't require a mortgage it is possible to complete a sale in the time period stated. In theory it should be possible to complete a sale in 24 hours.

However, the vast majority (i'm talking 95% plus) take several weeks.

If it's a professional developer it's quite possible they could do things that quickly and they may have exchanged but not completed and agreed with the seller they can carry out work prior to completion.

May not be as suspicious as you think. But then again...

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I'd like interest rates to go up by 5% each month until December (when I buy my house) to drive down prices and force me seller into a firesale. Thereafter, I'd like rates to drop to -1% so that I can get a 0% I/O mortgage fixed for 2000 years so that I never pay it back.

But back in reality, a 0.5% rise followed by 0.25% rise to halt the speculation madness wouldn't be too bad. 0.5% this month to stave off inflation and give property speculators a wake up call wouldn't be a bad thing IMO.

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I'd like the IRs to go up. Range between 6 & 8% would seem a good balance to reach.

Many reasons for wanting this. Mainly so my deposit pot gets bigger, and the HPC should get well underway at these levels.

But also it would reduce the whole debt / cheap money ideology. I'd like a return to the times when debt was frowned upon, and people lived within their means. Those were happier times.

Edited by ETOPS773

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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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