Mortgage Rate Rises

neocon said:
Surely it's slightly different to many markets because owners will have a good memory of what they have paid so will be very unwilling to sell at a loss. Only where the property is repossessed or their hand is forced would these reductions be realised.
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Yeah, it can be a bit sticky in that respect, also in some cases they can't easily sell if they don't have much equity to use as a deposit on the new property or indeed have gone into negative equity.

Of course if you've got plenty of equity and are looking to upgrade then a drop in prices might be useful, you take a hit on your current property but you're paying a much lower price for the new one too.
 
GordyR said:
It seems that the Resolution Foundation is predicting a -25% house price correction peak to trough by the time this is all over:

www.thetimes.co.uk

How far will house prices fall?

This week a think tank predicted that average house prices could fall by 25 per cent over the next five years. The Resolution Foundation said in its report
www.thetimes.co.uk www.thetimes.co.uk

Maybe I should revise my -20% forecast?
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Uther said:
Doesn't that pretty much put them back to where they were just before covid hit? The last few years of rises have been mental.
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A 25% drop would take it back to circa 2018 levels, well before the COVID increases.
 
I can't see it drop 25%, perhaps in certain regions for certain kind of houses, like muilti million mansions from £5mil to £4mil perhaps. I can't see a £200k semi detach in a smaller town to drop that much. More like 10%. There is still a shortage of housing afterall.
 
I a
Raymond Lin said:
I can't see it drop 25%, perhaps in certain regions for certain kind of houses, like muilti million mansions from £5mil to £4mil perhaps. I can't see a £200k semi detach in a smaller town to drop that much. More like 10%. There is still a shortage of housing afterall.
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Yeah, I can't see it. There is very very little for sale around where I'm looking to buy. Certianly not at the £200k mark.
 
Classic Blue Theme said:
This is great for those trying to move up the ladder.
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Yeah 20pc (let's say 20pc is everywhere) is no issue as this house has gone up. More than that. And it will bring next move right down.

Which may mean no need to put anymore cash in. Which means no need to get a second mortgage.

Feel For anyone who's bought at the peak.


Glad this is a detached.
If the new proposed train station (still going through planning etc!) gets built. That's when I'll sell! As it will shoot up the price.
 
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413x said:
Yeah 20pc (let's say 20pc is everywhere) is no issue as this house has gone up. More than that. And it will bring next move right down.

Which may mean no need to put anymore cash in. Which means no need to get a second mortgage.

Feel For anyone who's bought at the peak.


Glad this is a detached.
If the new proposed train station (still going through planning etc!) gets built. That's when I'll sell! As it will shoot up the price.
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Yes but they may have sold at peak too so..

I bought for 445k in 2019 and it was probably overpriced but I sold for 450k in 2022 to a FTB. I can see that FTB might be slightly screwed.
 
BongoHunter said:
Not sure if it's just a local to me thing in East Sussex - but feels like there are way more for sale boards up around here than there were a month ago.
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nope not just you .. loads round blackpool .. but there not staying up for long .. well not yet :) mostly the bigger houses 160k +
 
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Slam62 said:
Do you have a lump sum? Is there any sort of early redemption fee? What interest are you getting on the lump sum compared to the cost of borrowing?
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I don't have a lump sum, that was more out of curiosity. I overpay monthly on a 5 year fix, hoping to pay off as much as possible before it ends.
 
Slam62 said:
Yeah lots more for sale, people still keen to pay bonkers money though.
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People are still reserving new builds on the site I live at 2022 prices. I've seen two reserved this weekend 550k and 525k. The house builder just sits on the stock until people bite, and they are finding the money somehow. They offer things like flooring and stamp duty contributions but only on some of the properties they can't shift.
 
matt100 said:
*charge

If you're seeing them for sale nobody has bought it yet.

Got to say around me lots are starting to get reduced according to rightmove
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My friend is looking for his first house in Newcastle, we've been spending many nights on discord trolling through rightmove, looking at the stuff in his area.

He has a bunch saved, and one which he's had his eye on for about 6 months had been up at £220k for around 6 months, then it got reduced to £200k, then it sold for £155k last week..
 
  • Wow
Reactions: TNA
Takes ages to find out what they are sold for.
Land registry takes ages. Then Rightmove/zoopla etc take ages to Update.
Its often over 6 months until you can see what a house sold for.
 
JamesH85 said:
How many of you overpay, and did you chose to do it monthly or in a lump sum?
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Not overpaying.
I'd rather use the cash against moving up the ladder to avoid taking a second mortgage.

Savings etc are higher than my mortgage rate.
 
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