Havard Posted May 10, 2007 Share Posted May 10, 2007 As above, looks like they are going up to 5.5%. It is now six srtaight rises in a row and I don't think it is going to stop in the next couple of years! Feel so sorry for people who are trying to get on the ladder and even more so for the people who have bought in the last 2 years and stretched themselves already........ I can see reposessions galore if things carry on. I want to move house in a couple of years, looks like I'll have to stay put for the time being!! H. Quote Link to comment Share on other sites More sharing options...
DaveK Posted May 10, 2007 Share Posted May 10, 2007 I agree. I think the low rates over the last few years have resulted in a lot of people borrowing way over the odds. If they continue to rise, I think a lot of people will lose their homes. Quote Link to comment Share on other sites More sharing options...
tbourner Posted May 10, 2007 Share Posted May 10, 2007 Fixed for another 4 years, hopefully that'll be enough. I'm still not sure how high they'll go though, with the government move around especially whoever's in power will be trying not to let it get too high cos that upsets the people - but they need it to rise to reduce inflation. Quote Link to comment Share on other sites More sharing options...
SMiFFAD Posted May 10, 2007 Share Posted May 10, 2007 One of the few times im glad i rent! Funny situation though, bank of england controls public spending by tweeking interest rates. House prices have made it near impossible for first time buyers to purchace a house. This means the vast majority of people around my age and younger rent, which surly means the banks grip on the public is diminishing..... Also, with so many people buying to let, its a competative market which is why my rent hasnt risen in 5 years - id simply leave and go somewhere cheaper! With this in mind, and constantly rising house prices, surly the whole system is going to implode as people cant make enough money from letting to cover the mortgauge payments on the house Which will result in a shortage of lettings and and an abundence of over priced houses most cant afford.... hello council houseing, oh no you sold most of them off lol Quote Link to comment Share on other sites More sharing options...
Konrad Posted May 10, 2007 Share Posted May 10, 2007 Oh sweet, waiting for a crash on property market to buy, buy, buy Quote Link to comment Share on other sites More sharing options...
SMiFFAD Posted May 10, 2007 Share Posted May 10, 2007 Oh sweet, waiting for a crash on property market to buy, buy, buy *chants* crash crash crash crash Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted May 10, 2007 Share Posted May 10, 2007 Oh sweet, waiting for a crash on property market to buy, buy, buy Quote Link to comment Share on other sites More sharing options...
Havard Posted May 10, 2007 Author Share Posted May 10, 2007 I am lucky/clever enough to own my house but I want to move to a bigger property for what should be my final move. I am not borrowing £100K to upgrade and then get stiffed by massive rate rises. We may have to stay here for a couple of years. I will buy my next house just as interest rates start going backwards again... In the mean time I will put away the money I would have paid on a mortgage into an account and watch it earn some money for a change!! H. Quote Link to comment Share on other sites More sharing options...
neil tt Posted May 10, 2007 Share Posted May 10, 2007 I am lucky/clever enough to own my house but I want to move to a bigger property for what should be my final move. I am not borrowing £100K to upgrade and then get stiffed by massive rate rises. We may have to stay here for a couple of years. I will buy my next house just as interest rates start going backwards again... In the mean time I will put away the money I would have paid on a mortgage into an account and watch it earn some money for a change!! H. Suits me, if houser price drop, I will then be able to afford to move to a bigger house, a nice 20-30% drop would be good for me, but not for everyone Quote Link to comment Share on other sites More sharing options...
Stonkin Posted May 10, 2007 Share Posted May 10, 2007 Quite interesting reading this. I currently rent a flat with my brother, weve lived together for about 2 1/2 years. I'm 26 next month and am now starting to get itchy feet in the sense that i feel i should now be getting on the property ladder. Alot of people say i should but a lot say it will cost you a fortune compared to what you pay now. The 2 of us have seriously considered buying a house together, we get on great, so why not. Can be far less hassle than doing it on your own, with a lodger or perhaps with a girlfriend until the time is right, not just because, its an easy option. We currently live in my mum and dads flat, but pay the going rate for what we live in, but they will be selling this along with their own home in Feb next year to move away to the country to retire. Its very difficult to know where to go to get advise on what to do, but i think we have agreed to at least stay where we are until Feb, and re evaluate then. From what i read above, doesnt seem a good time to be wanting to buy a house right now Quote Link to comment Share on other sites More sharing options...
SMiFFAD Posted May 10, 2007 Share Posted May 10, 2007 Quite interesting reading this. I currently rent a flat with my brother, weve lived together for about 2 1/2 years. I'm 26 next month and am now starting to get itchy feet in the sense that i feel i should now be getting on the property ladder. Alot of people say i should but a lot say it will cost you a fortune compared to what you pay now. The 2 of us have seriously considered buying a house together, we get on great, so why not. Can be far less hassle than doing it on your own, with a lodger or perhaps with a girlfriend until the time is right, not just because, its an easy option. We currently live in my mum and dads flat, but pay the going rate for what we live in, but they will be selling this along with their own home in Feb next year to move away to the country to retire. Its very difficult to know where to go to get advise on what to do, but i think we have agreed to at least stay where we are until Feb, and re evaluate then. From what i read above, doesnt seem a good time to be wanting to buy a house right now I think the basic advise is, if you can afford to buy a house COMFORTABLY, then its not a bad idea. If however your going to stretch yourself and put yourself in a dodgy position, for now at least, dont bother. I could im sure if i did enough research, buy a small flat but it would be smaller and probably in one of the worst places in crawley (supra wouldnt last long!) and id be skint every single month, and probably unable to afford to fix anything that went wrong with the house. Add to that management fees etc for flats. Where as at the moment i can comfortably pay the rent on my nice one bed flat, and if anything goes wrong, landlord pays for it to be fixed. On the flip side im paying £7000 of someone elses motgage every year and have nothing to show for it. No easy streight forward answer Quote Link to comment Share on other sites More sharing options...
Stonkin Posted May 10, 2007 Share Posted May 10, 2007 I know what you mean mate, since i have lived in my flat i have payed about £16k in rent, and thats just my half. Hence me getting itchy feet. Real tough choice to make. The difference with doing this with my bro is that in about 18 months to two years time he will be wanting to settle down with his woman and who knows what situation i will be in in two years. Perhaps renting suits the two of us, for now Quote Link to comment Share on other sites More sharing options...
neil tt Posted May 10, 2007 Share Posted May 10, 2007 I've lost money on houses before, and also made money, I think its a good idea to hang on for a least another 6 months and see what happens, I think they will go up again. I do hope its not to much as it will start to affect my work:) Quote Link to comment Share on other sites More sharing options...
tbourner Posted May 10, 2007 Share Posted May 10, 2007 House prices aren't the problem, it's interest rates, as mentioned: Suits me, if houser price drop, I will then be able to afford to move to a bigger house, a nice 20-30% drop would be good for me, but not for everyone If you buy a house and have a mortgage, it's irrelevant whether there's a crash or not - in fact if prices drop the difference between my current house and 'the next house up' will be less! The only problem is when the remortgage means my interest rate goes up! Basically, if interest rates are low now, get a mortgage and get a long term fixed rate - as long as you can survive through any rises in rates you'll ALWAYS make money in the end (or at least not lose money in rent). Quote Link to comment Share on other sites More sharing options...
Stonkin Posted May 10, 2007 Share Posted May 10, 2007 But interest rates are far from low right now though are they Trev? Quote Link to comment Share on other sites More sharing options...
grahamc Posted May 10, 2007 Share Posted May 10, 2007 House prices aren't the problem, it's interest rates, as mentioned: If you buy a house and have a mortgage, it's irrelevant whether there's a crash or not - in fact if prices drop the difference between my current house and 'the next house up' will be less! The only problem is when the remortgage means my interest rate goes up! Basically, if interest rates are low now, get a mortgage and get a long term fixed rate - as long as you can survive through any rises in rates you'll ALWAYS make money in the end (or at least not lose money in rent). That pretty much sums it up. If the interest rate continues to go up, its means that people will still be buying, however the increase in prices might slow down some. For example, if I want to spend £1500 per month on a mortgage, the only difference is that I am paying more interest. At the end of the day it will not cause the market to crash, it will just put a holt to the growth on the market. Might actually become a buyers market like they say it is... As right now its a sellers market, I believe. A long term fixed rate is a good idea... Especially if you are looking at buying now. Quote Link to comment Share on other sites More sharing options...
tbourner Posted May 10, 2007 Share Posted May 10, 2007 But interest rates are far from low right now though are they Trev? True, so get a capped rate mortgage (if anyone's still doing them!). I don't think rates will continue rising for the next 2 years TBH, I reckon they'll level off and won't go above 6. It's tricky if you're not in a safe position, it may be your only option to rent for a few years and see what happens - there's no way of predicting what will happen though so at some point you have to take a risk. Quote Link to comment Share on other sites More sharing options...
grahamc Posted May 10, 2007 Share Posted May 10, 2007 But interest rates are far from low right now though are they Trev? The rates here are much better than some places... In South Africa the interest rate is at 12.5%, and the market is still growing at about 10 - 15% per year. Quote Link to comment Share on other sites More sharing options...
AndyT Posted May 10, 2007 Share Posted May 10, 2007 Rates went to 15% here not very long ago... Watch out. Quote Link to comment Share on other sites More sharing options...
Mas Posted May 10, 2007 Share Posted May 10, 2007 I'm buying my first house now and managed to get a fixed rate for 2 yeras,will be moving in 3 weeks time if all goes ok Quote Link to comment Share on other sites More sharing options...
grahamc Posted May 10, 2007 Share Posted May 10, 2007 I have offered on a house now, just waiting to hear something back Quote Link to comment Share on other sites More sharing options...
Supragal Posted May 10, 2007 Share Posted May 10, 2007 there won't be a crash, they won't allow it. Besides it needs more than high interest rates to trigger a crash. My rate is fixed until march 08 so I'll worry about it then Quote Link to comment Share on other sites More sharing options...
tbourner Posted May 10, 2007 Share Posted May 10, 2007 As I posted elsewhere, see fool's website for handy writeups on crashes. Quote Link to comment Share on other sites More sharing options...
Stevie Boy Posted May 10, 2007 Share Posted May 10, 2007 I just got on Property Ladder back in Nov '06, it's no mansion but a nice 2bed with adjoining garage that comfortably fits the Sup! After throwing money away on rent for a couple of years and then moving back to parents waiting for a property crash that never happened, ! decided to bite the bullet and got mortgaged up, thank god i opted for Fixed Rate for 2years, as the interest rate's done nothing but go up since November! I'm glad I managed to clear most of my debts, cards and loans and such and didn't have to sell the Supe before I took the plunge, only downsides is a can't sp*nk money on my car like i used to! Still at least i've still got it and doesn't owe me anything, seems i'll have to save for any future mods although further than BPU is expensive territory so kinda feels like an "indefinate save" at the mo! Just hope things don't get as bad as 15% by Nov '08 or i could be in the sh*t, if it comes to it i'll have to get the naggin other half to move in! Quote Link to comment Share on other sites More sharing options...
Guest Nicholas Posted May 10, 2007 Share Posted May 10, 2007 I got on the property ladder early last year and managed to get a 5 year fixed mortgage all my friends told me that was too long who's laughing now Quote Link to comment Share on other sites More sharing options...
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