Interest rates – if they drop to 0.5% today
A few people investing a fraction of the nation’s wealth in property investment has nothing to do with the mess the world is in right now FFS. The combined wealth (on paper) of every individual in the UK with investment homes will be a tiny blip in the overall economy.Posted 8 years agomudsharkMember
A little bit of upward pressure on house prices would help stabilise house prices more quickly.
In a similar vein some people with a bit of spare cash might think about getting a 2nd home; I’ve always been a bit anti that as reduces available housing stock but is it worth worrying about? In some small desirable areas I think it’s an issue.Posted 8 years agomolgripsSubscriber
But it was only worth it because people were doing it, thus limiting the supply of housing so pushing up the price.
Very few people really bought second homes. Most bought to let out, which didn’t diminish the supply of housing. In rural beauty spots the problem was severe, agreed tho.
Housing stock is limited because there are more households than properties. That’s still the case, even more so now because building’s slowed to a crawl. Having said that, a lot of migrant workers are leaving so that might help supply.Posted 8 years agoAdamWMember
The housing market may soon receive a boost due to falling prices. Here in Nottingham there are absolutely shedloads of trendy flats etc. on the market that can’t sell because they are asking too much and the prices have been dropping recently quite a bit, even out in the suburbs. In a similar vein a number of buy-to-let people are finding it hard to recoup the money for the mortgage and are starting to sell-up. They may make a loss, but investments can go *down* as well as *up*.
That will be at least good for the young first-time buyers who have a little money tucked by to get onto the housing ladder. Unless, of course, other people start that cycle again and snap up houses when they are at the bottom of the market and cause the prices to rise significantly, pricing them out of the market again. I guess it means that they will just live with their parents until they are old-aged. I’m hoping that mortgagers will be sensible the next time around and the market stays sensible as opposed to stratospheric.Posted 8 years agoAdamWMember
95% doesn’t concern me too much; what would do is the criteria that the lender uses for eligibility. Making sure that the borrower can reasonably afford to pay back the loan without dodgy investment vehicles (usually with a fee/commission attached, natch) may sound boring but sounds a lot safer.
And, obviously, making sure that those monstrosities called ‘MIPS’ are consigned to the bin of history.Posted 8 years agojonbMember
I think prices have to fall a way yet before most people are interested. Banks are reluctant to lend even now. If they offer you a 95% mortgage they’ve got to value the house at the price offered. Seems to be catching people out where they have the deposit but the banks don’t lend them money as the house isn’t worth what they were trying to mortgage.
Also, current house prices have dropped due to a shortage in credit. The bigger falls haven’t started yet, we’ve only just entered this recession officially and job losses are only just starting and show no sign of stopping.
They’ll blip then go back down again.Posted 8 years ago
The topic ‘Interest rates – if they drop to 0.5% today’ is closed to new replies.