economy..

[G]

We bought just over a year ago on a 5 year Fixed rate of 5%. So we got a very good deal. I dont consider us to have a very big mortgage mind as we had a decent deposit. I think our mortgage alone including insurances etc is only £1100 a month.

House prices would have to drop alot for us to be in negative equity and they would have to drop even further for us to make a loss on the house.

At the end of the day people are not stupid and wont slash the price of their house unless they have to. So prices wont drop that much people will just up staying put.

The only cheap houses coming on the market will be repo's and very desperate people.

Originally Posted by DanDare

With the risk of turning this into a political debate, I spoke to my grandmother over the weekend who has been on this planet alot longer than most here ( she's 91 ) She still has all her marbles.

Anyway she said throughout her lifetime, she noticed Labour Governments spend spend and keep on spending till there's nothing left and were in poo.
Tory's come along in charge and oh sh*t no money in the kitty. Everyone gets hacked off as tax is increased to claw some money back and everyone then hates the Tory's. Eventually money is built up just in time for Labour to come into power and blow it all again.

Makes sense to me

Well twice since the war they've managed it!
I don't think that the tory party could do any better though; they're both as bad as each other.

[Gazza77]

Originally Posted by lukemillar

I'm so close! (touch wood) survey was done last week. Can't be long now. This isn't just a house sale; it's my new bike we're talking here!

I'm buying with my gf, and things are moving along fairly steadily at the moment. We can buy without selling mine, it will just be a struggle to complete the renovations without freeing up the capital a sale would bring. Worse case scenario is mine doesn't sell and we run out of funds for the work; I'll just remortgage mine and rent it out instead. Still all a pain though, not like last time I sold within 48 hours of it being on the market!

Nothing was standing in the way of my new bike though!

hmmmmm makes me glad me and the Mrs are in a ressesion proof carrer!! and i would rather rent than buy in the curent climate!

[anna]

Ed i would be very interested in reading your letter..

those that are currently on fixed rate's are safe for now but when the term of this is up then then deals out there may not be available again and then the increase i mortgage payments diffcult to keep up. I think this is the main worry of many people I have spoken to so far.

slashing prices of the houses generally arent the decision of the seller if their house has been valued by the mortgage provider by the mortgage indecies they have sellers may not have a choice??

[anna]

Originally Posted by Fizzy Fish

The house price changes are symptoms of a bigger problem relating to issues in the credit markets, and people having overstretched themselves with credit/mortgages. That's what is affecting the economy at a wider level, and what we should be more concerned about.

IMO the economy is more stable than it has been in past periods of trouble, and with interest rates lower than say the 1990 era the downturn is unlikley to be as bad and many people will be able to ride this out.

I think your absolutely right but I also dont think we have currently seen the full extent as to what is going on.

[timwilky]

I own my house outright so in theory any overall fall in house values does not really effect me.

I have however see the effects of house price crashes/negative equity etc. in the past, When my brother found himself redundant, 2 months into a new job, so one weeks statutory minimum, negative equity and an unsympathetic lender. He did not tell anyone about his plight until the morning he knocked on my door with his possessions in the back of a van.

Then he had the fun of trying to find social housing. he and his wife were living on my settee. Local council did not consider them in urgent need. In desperation he accepted an offer of a 1 bedroom flat in a nearby town and was then told he was no longer eligible for housing by the council he had always lived in and paid his rates to as he did not live in their area.

My son is mortgaged to the hilt at present. He works in building and has seen the repressed market reflected in his take home. Now the utility bills have gone up 15-20% and I am finding myself slipping him £50-100 a month just to keep his head above water and buy in a bit of food.

Originally Posted by DanDare

Its gonna affect everyone in different ways due to their circumstances.

I'd agree with that. I think it would be quite a misconception to base one's opinion on house prices on your own circumstances i.e whether you can/can't afford one or are trying to buy/sell.

With such a high rate of home ownership in the UK, and with house prices being arguably much more valuable than they are actually worth in bricks and mortar, it has a higher proportional impact on the economy than in some other countries. So just because a house crash might help one get on the ladder doesn't mean that the resulting (massive) impact on the economy will not hit you equally hard in other areas.

BOE just cut the interest rates from 5.5% to 5.25%. Hopefully it will go down another 1/4 or so before I have to renew my mortgage in June.

[Biker Biggles]

It matters not a jot really what you think about Labout or Tory,or even what level interest rates are this month.Theres an ultimate bottom line that transcends all that,and its that this country has been living well beyond its means for over two decades.We produce very little wealth or products that others want to buy,yet we consume vast amounts of goods that others sell to us.Try running your personal life like that,cos the national economy is ultimately no different.