Caporegime
Which is why I said its completely meaningless. House prices up to a point are irrelevant. Affordability is what matters to 90% of people.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Which is why I said its completely meaningless. House prices up to a point are irrelevant. Affordability is what matters to 90% of people.
Soldato
In the short term, because thats about liquidity and liquidity rules in the short term.
Once you think longer term, into retirement etc, then the value of the property in relative terms to everything else matters.
Soldato
Affordability is what drives house prices.
The data for house prices is variable zoopa vs ons vs some other stuff.
To say house prices fallen relative to inflation, depends what date you start, @200sols what date does the FT article say because im not paying for it and 12 foot ladder doesn't work.
We should start January 2020, very quickly after that we have, a drop in rates and inflation expectations which drove house prices up 25% in 2 years to a peak towards the end of 2022.
At which point it began to decline, if you talk about the last 2 years then certainly house prices have fallen relative to inflation, but when calculating from jan 2020, no, they should be flat vs inflation.
Prediction wise, i think house prices should be flat for the next 5 years tbh.
Use archive.ph
We dont usually show house price falls by starting on a random date, usually its measured from peak.
Anyway there is a handy graph here https://www.housepricecrash.co.uk/indices-nationwide-national-inflation/
Anyway there is a handy graph here https://www.housepricecrash.co.uk/indices-nationwide-national-inflation/
Soldato
The relevant point is per individual not a selected point in time in all honestly.
Although for conversation points its normally from a peak i believe.
Eg people who move into the market when its most depressed will see better house price inflation than those who manage to buy on a peak.
That cheap purchase is always with you, it affects trading up, or even the money in the bank when you maybe cash out for some reason and buy back in later on.
Although for conversation points its normally from a peak i believe.
Eg people who move into the market when its most depressed will see better house price inflation than those who manage to buy on a peak.
That cheap purchase is always with you, it affects trading up, or even the money in the bank when you maybe cash out for some reason and buy back in later on.
This is why I say surveys and stats aren't really useful as it always depends on what data is used. If you look at the housing market in a very simple way it has been going up to a peak then it falls a bit then climbs again, gradually increasing the property value.
As you say affordability is a driving factor, someone in London who is struggling there, will find a cheaper property elsewhere. (We had our our first house bought by a couple from London). The trouble is they can pay out more for a property than the locals so that can push the value of housing up in the area.
Soldato
2 years from now till my (5 year) 1.64% is up :X
Caporegime
I would be paying off the bare minimum and potentially seeing if I could take a payment holiday on that rate. I have a savings account giving me 4.35% or you could stick that in the markets for a nice return.
Soldato
Don't think it's worth seeking payment holidays bank will probably flag you as a risk as you can't pay it etc.
I'd just pay min and not overpay.
I'd just pay min and not overpay.
Caporegime
Soldato
Thats why I'm not a mortgage adviser
It's probably a card I'd save until I actually needed it tbh.
Think you're better off trying to max out cheap debt such as interest free instead for this type of game.
Something I have considered but not sure I can be bothered as it's another account etc. You take out an interest free spending CC and then you buy everything on it. Money you would have spent you put into 5% odd interest savings instead.
At the end you just pay it off and do it again if you can, it's small gains though depending on how much you usually spend.
Soldato
I am paying on a 35year and minimum rate. Yep the rest is on savings.
Also have about 45k credit card debt (0%)
Offset by 50+k in the bank earning interest..
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I am definitely looking to bolster my CC debt. It is only about ~£6k at the moment. I've also pushed my mortgage to 35 years (both the 4.9% half and the 2.3% half) so topping up Zopa with the cashflow benefit. Come September half 2 will hit 4.9% though 
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Caporegime
Bloomin heck! Thats impressive to be able to even access that amount of CC debt!
Soldato
I think about 10k is on the mrs but aye 35k is on mine.... Ive got access to 80k which is mental as that is more than my yearly take home pre tax
.They like you to keep under 50% utilisation.
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Soldato
I think balance transfer credit cards etc have reduced a bit recently. (more/all start incurring small fees or shorter terms. But as long as the fee is less than I could gain in interest I will probably balance transfer mine.I am definitely looking to bolster my CC debt. It is only about ~£6k at the moment. I've also pushed my mortgage to 35 years (both the 4.9% half and the 2.3% half) so topping up Zopa with the cashflow benefit. Come September half 2 will hit 4.9% though
It means I have an easy cash buffer if I want to buy a car for example at effectively 0%. Surprised more people don't do it but you have to keep an eye on the end dates.
Soldato
With such volumes it makes sense I'd just get cagey about having so much debt I think! lol.
I'd also struggle to spend so much in replacement expenses, mainly spend on necessities like food/fuel etc, so my monthly spend on these isn't insane. It would take me a while to spend probably even £5K interest free.
I'd also struggle to spend so much in replacement expenses, mainly spend on necessities like food/fuel etc, so my monthly spend on these isn't insane. It would take me a while to spend probably even £5K interest free.
The sweet spot is work expenses
A few new things for my HiFi could blow through thousands easily
But yea, I don't run much credit card debt anymore, usually under 1k on about 25k available.
45k on C/cards is
Hell, my mortgage wasn't even that much when I took it out! 
But yea, I don't run much credit card debt anymore, usually under 1k on about 25k available.
45k on C/cards is
Hell, my mortgage wasn't even that much when I took it out!
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