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Margret Thatcher

Rate Rise = House Price Rise?

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With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

I do not think so, its all about sentiment and its turning for good (for Bears)

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These recent rate rises are a bluff - one or two more hikes at most to surpress borrowing/spending (wage surpression through immigration hasn't worked)

I just hope the public don't call it or GB/BOE will go back to redefining/hiding inflation in the CPI/RPI figures and real inflation will continue upwards

It's going to be uncomfortable if people cut back borrowing/spending - it's going to be even rougher if they don't in the form of stagflation/hyperinflation...

Edited by dnd

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Lenders have been raising their rates as well. So there arent many low rate fixed deals around.

My point is that although lenders have been raising their rates, there is an incentive not to delay a purchase and to get a deal now if you believe they will go up again soon.

I watch the haart reductions numbers closely and they point to a spurt of purchasing activity recently.

Of course if this does happen it won't be sustained and we will get a more pronounced drop than we would otherwise later down the line.

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Guest grumpy-old-man

With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

How do you top the top prices.....how do you top a triple top :o

is it like those adverts where you start off with 2in1, then 3in1 triple action, 4in1 then 5in1........

so everything, & I mean EVERYTHING is at an historical high, but you think things will go up even more :ph34r:

I bet you work in sales of some sort ;)

Edited by grumpy-old-man

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With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

Bizzare reasoning! :lol:

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Bizzare reasoning! :lol:

Maybe an attempt at lateral thinking but it reminds me that people do probably have more options for restructuring their loans these days so many more people (especially B2Lers) may be able to ride this out than some people expect

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Guest grumpy-old-man

Maybe an attempt at lateral thinking but it reminds me that people do probably have more options for restructuring their loans these days so many more people (especially B2Lers) may be able to ride this out than some people expect

I bet that's what people said in 1992,93,94 as well ;)

There is a difference in every crash & this time it's MEW credit as has been said by many on here. I think that with increased utility bills & just a few small risies will have a devastating effect. Add sentiment on top of that via the web, email, msn & word of mouth.........they will be running for cover like a herd of panic stricken idiots in 6-12 months :ph34r:

History WILL repeat itself I am sure.

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does anyone know if we'll all be stuck with a 15% mortgage on a cheaper property and is it possible to fix a mortgage deal then take your time to find a place e.g. fix credit now and then wait for the drop?

It would be interesting to see what interest rate on a loan would cancel out a fall of say 20% in property.

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Bizzare reasoning! :lol:

It may appear bizarre to some (but it’s what I would do if I needed to make a house purchase) so I think we will see an overall increase in HPI when the surveys come out in September.

As this is effect is an acceleration of a decision to purchase it will mean later months HPI will drop more markedly.

If I'm wrong then we will see a fall in HPI in September’s figures, guess we will have to see if my theory is as bizarre as you think.

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does anyone know if we'll all be stuck with a 15% mortgage on a cheaper property and is it possible to fix a mortgage deal then take your time to find a place e.g. fix credit now and then wait for the drop?

It would be interesting to see what interest rate on a loan would cancel out a fall of say 20% in property.

When we got our mortgage, it was a fixed deal, we lost the house that we were going for but the bank let us keep the deal as long as we found another house quickly, I think we had up to 6 months to complete everything from agreeing the rate, I doubt that they will agree a rate with you unless you found the house you wanted and set the ball rolling, worth an ask though.

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QUOTE(Margret Thatcher @ Aug 14 2006, 07:52 PM) *

With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

Bizzare reasoning! :lol:

Nothing bizzare about that reasoning. Seems perfectly logical to me.

Edited by Bucephalus

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Guest wrongmove
(Margret Thatcher @ Aug 14 2006, 07:52 PM) *

With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

Nothing bizzare about that reasoning. Seems perfectly logical to me.

Bizarre seems to be the order of the day for HPs !

The first indication will be Rightmove asking prices on Monday. Sellers will have had some time to digest the rate rise (Rightmove figures are for mid July to mid August). Will it make them more cautious or bullish ?

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does anyone know if we'll all be stuck with a 15% mortgage on a cheaper property and is it possible to fix a mortgage deal then take your time to find a place e.g. fix credit now and then wait for the drop?

It would be interesting to see what interest rate on a loan would cancel out a fall of say 20% in property.

If they got to 15% then I wouldn't worry about it you will be able to pick up a house for next to nothing. At 15% all hell would break lose, it would double peoples mortgages and BTL brigade would go bust.

Edited by gilf

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I bet that's what people said in 1992,93,94 as well ;)

There is a difference in every crash & this time it's MEW credit as has been said by many on here. I think that with increased utility bills & just a few small risies will have a devastating effect. Add sentiment on top of that via the web, email, msn & word of mouth.........they will be running for cover like a herd of panic stricken idiots in 6-12 months :ph34r:

History WILL repeat itself I am sure.

The point is that we don't know yet how bad it will be - I'm just pointing out there are more options for people to restructure which will probably help many in the short to medium term - After that we'll have to wait & see

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This article (although probably written by a VI trying to flog a mortgage) seems to illustrate my point that some peoples mentality will be money will start to get more expensive soon, so better get some whilst its cheap.

Why now is the right time to remortgage

http://money.uk.msn.com/Mortgages/Insight/...cumentid=756223

Is this the beginning of the end of easy credit?

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Although my theory got a lot of criticism there was a definite rise in HPI which I believe was due to a rush to fix.

I think there will be a last minute rush at the end of October to find fixed deals in anticipation of a rate rise this week. This will translate into further rises in house prices indices.

Longer term, a rise this week (assuming we get one) will slow the market and another 0.25% in the next few months would really start to bite.

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With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

This could of been true, but I reckon we've already been through the "phase of panic".

With the media now turning bear, its all downhill from here.

The big question is how fast. I want to buy but I don't want to wait a decade (but I will if I have to!).

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This could of been true, but I reckon we've already been through the "phase of panic".

With the media now turning bear, its all downhill from here.

The big question is how fast. I want to buy but I don't want to wait a decade (but I will if I have to!).

I agrree that the media is key. It could be that just this one IR rise will tip the balance, when enough good stories about the pain start to appear. The media love these human interest yarns, especially when they can be painted as representing a trend.

lazy journalism, but with a devastating effect on sentiment. :)

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I agrree that the media is key. It could be that just this one IR rise will tip the balance, when enough good stories about the pain start to appear. The media love these human interest yarns, especially when they can be painted as representing a trend.

lazy journalism, but with a devastating effect on sentiment. :)

Amazingly enough the Guardian seems to be taking a front line position in beariness, and if gets the PC brigade behind it.......well you know what they are capable of.

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With the threat of one or more rate rises in the next few months I think we will see a spike up in lending figures and possibly house prices as people rush to lock themselves into fixed interest rate mortgages.

EXACTLY!!!!!!!!

5.97% Fixed to 31.05.2031 with £595 Arrangement Fee

http://www.thecheshire.co.uk/online-mortga...ortgage-FCJ.asp

Admittedley you would be paying for a house at the very top of the peak, however you would be safeguarding any nasty 5%, 10% or even 15% rises in the future.

If I wasn't fortunate enough to be living in social housing and I happened to be renting from some private BTL Nazi landlord (God forbid!!!), I know what I would be doing!!........against all my better judgement.

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EXACTLY!!!!!!!!

http://www.thecheshire.co.uk/online-mortga...ortgage-FCJ.asp

Admittedley you would be paying for a house at the very top of the peak, however you would be safeguarding any nasty 5%, 10% or even 15% rises in the future.

If I wasn't fortunate enough to be living in social housing and I happened to be renting from some private BTL Nazi landlord (God forbid!!!), I know what I would be doing!!........against all my better judgement.

Are you saying you agree that interest rates are going to rise, you agree that house prices are going to fall, so it is best to get out and buy?

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Are you saying you agree that interest rates are going to rise, you agree that house prices are going to fall, so it is best to get out and buy?

i reckon the average house price will come down to 80-95k.

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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% +
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