Dave Posted April 17, 2009 Share Posted April 17, 2009 Is it a good time to buy now or what? House prices low, but banks unwilling to lend? Would a fixed or variable rate be best at the moment? How much can/is sensible to be borrowed, and does the calculation include things like car allowance? Interest-only or repayments? Link to post Share on other sites More sharing options...
cp40 Posted April 17, 2009 Share Posted April 17, 2009 been watching the market myself. heard the current slight improvement in the market as a suckers rally, with a further drop of 5-10% predicted over the next year...of course people who have big morgages will dispute this, but im playing a wait and see game. Link to post Share on other sites More sharing options...
GG Posted April 17, 2009 Share Posted April 17, 2009 It's not an awful time to buy (house prices expected to drop further), it's just that you'll find it rather difficult to buy. I doubt that you'll be able to get variable rates atm, if you do it'd be 2/3% over the base rate, you'd be best off with a fixed rate what with the whole quantitative easing crap, I'd wager that 12 months from now we'd be looking at a sharp increase in both inflation and interest rates. Wouldn't bother with interest only, with house prices expected to drop and there being a lot of fears regarding negative equity at the moment. Link to post Share on other sites More sharing options...
Northerngimp Posted April 17, 2009 Share Posted April 17, 2009 2 more years for us on our fixed rate then we are on the move. Link to post Share on other sites More sharing options...
iklgizmo Posted April 17, 2009 Share Posted April 17, 2009 You need to have at least 10% deposit and obviously the more you can get, the better rate you will get. Banks are being a lot tighter than they used to be so you would have to have a pretty decent credit rating and a secure job. I would say a fixed rate is better right now because its not like th BOE rate can go any lower, but again, it depends on the size of your deposit aand your financial state as to what banks will give you. Link to post Share on other sites More sharing options...
Liam Liam Liam O Posted April 17, 2009 Share Posted April 17, 2009 It's probably a reasonable time to buy if you're looking to buy somewhere you plan to stay in the medium term. That way if the market does drop further, you'll not be losing as you'll have the opportunity to ride it out. So long as you have a reasonable deposit, the banks are slowly coming round to the idea that to get themselves out of the shite they are in they are going to have to start lending people money again. They certainly can't continue with the closed shop mentality they have been. In terms of how much they'll lend you, you need to be borrowing on whatever you can afford to pay back, rather than what they'll lend you. Bear in mind that if the rates change now they can pretty much only go upwards, which means higher repayments. Also, personally I wouldn't be paying a massive arrangement fee to get yourself a longer term, low rate deal. Hope some of that is useful. Link to post Share on other sites More sharing options...
cp40 Posted April 17, 2009 Share Posted April 17, 2009 It's probably a reasonable time to buy if you're looking to buy somewhere you plan to stay in the medium term. That way if the market does drop further, you'll not be losing as you'll have the opportunity to ride it out. So long as you have a reasonable deposit, the banks are slowly coming round to the idea that to get themselves out of the shite they are in they are going to have to start lending people money again. They certainly can't continue with the closed shop mentality they have been. In terms of how much they'll lend you, you need to be borrowing on whatever you can afford to pay back, rather than what they'll lend you. Bear in mind that if the rates change now they can pretty much only go upwards, which means higher repayments. Also, personally I wouldn't be paying a massive arrangement fee to get yourself a longer term, low rate deal. Hope some of that is useful. sounds about right. in terms of how much they will lend you....its this factor that will drive prices down further, as property values are still very high in relation to Annual earnings, the banks wont lend at these multiples, so people will have to drop, to sell. Link to post Share on other sites More sharing options...
Mowen Posted April 17, 2009 Share Posted April 17, 2009 Depends how much of a deposit you've got really. Crucial at the moment. Banks are looking to lend where possible, but only to "good" customers. I reckon you'll be fine David, although prices are still on the way down by the looks of it. Having said that, it's basically a lottery, no fucker actually knows what's going to happen. Link to post Share on other sites More sharing options...
Dave Posted April 17, 2009 Share Posted April 17, 2009 Thanks all, interesting stuff. How does everyone see the market being in a year or 18 months? Will it be similar to now or what? I realise this is a bit of a stupid question btw. Link to post Share on other sites More sharing options...
Liam Liam Liam O Posted April 17, 2009 Share Posted April 17, 2009 Thanks all, interesting stuff. No bother. Now I've convinced you it's a good idea, do you want to buy yourself a north east weekend retreat for when its your turn to have the ticket? Link to post Share on other sites More sharing options...
davy_fulla Posted April 18, 2009 Share Posted April 18, 2009 We're gonna get our place valued on Monday. It's a shame as we've lived here for 3yrs and have 2yrs left on a good fixed rate deal. It's just our smackhead neighbours are driving us nuts. I think we might lose a bit off what we paid for it but it's all relative isn't it? I mean we get less for this house but if we go for a new house that will also be cheaper. Is that how it works or am I oversimpifying things? Link to post Share on other sites More sharing options...
Guest elbee909 Posted April 18, 2009 Share Posted April 18, 2009 We're gonna get our place valued on Monday. It's a shame as we've lived here for 3yrs and have 2yrs left on a good fixed rate deal. It's just our smackhead neighbours are driving us nuts. I think we might lose a bit off what we paid for it but it's all relative isn't it? I mean we get less for this house but if we go for a new house that will also be cheaper. Is that how it works or am I oversimpifying things? Invest in a load of uncut smack and give it to your neighbours. Hopefully won't be long until the ambulances pull up. Link to post Share on other sites More sharing options...
indi Posted April 18, 2009 Share Posted April 18, 2009 End of the year is when I'm thinking of doing it. If you can get the finance then a recession is the best time to buy property. Link to post Share on other sites More sharing options...
ewerk Posted April 18, 2009 Share Posted April 18, 2009 It's a good time to buy a property if you've got a big deposit. Unless you've got at least 25% then you're unlikely to get the best deals. However, house prices are unlikely to rise by any great amount over the next couple of years so you've got time to raise a bit of money plus you'll be able to take your time in finding the right house. I'm in the process of buying a house at the moment and I've got 30% off what houses were going for in the same development at this time last year. Here in N. Ireland we have a thing called Co-Ownership which is a governement backed agency which will buy a percentage of your house with you and allows you to buy it back from them at any point in the future. The benefits are that I don't have to put down a deposit and the bank look at it as 65% LTV which means I can get the cheapest deals. Unfortunately I don't think there's anything like that available in England though there may be developers offering something similar. Link to post Share on other sites More sharing options...
Jill Posted April 18, 2009 Share Posted April 18, 2009 I'm in the process of buying a house at the moment and I've got 30% off what houses were going for in the same development at this time last year. Here in N. Ireland we have a thing called Co-Ownership which is a governement backed agency which will buy a percentage of your house with you and allows you to buy it back from them at any point in the future. The benefits are that I don't have to put down a deposit and the bank look at it as 65% LTV which means I can get the cheapest deals. Unfortunately I don't think there's anything like that available in England though there may be developers offering something similar. Shared ownership is pretty much like that. Some mortgage lenders won't lend on shared ownership properties, though the client I work for doing repossession sales allegedly won't, and I've come across 3 shared ownership properties so far this year. Basically what others have said is right - unless you have a large deposit it's a no go. There are a lot of bargains out there though in terms of property prices, so if you can afford it, do it. Link to post Share on other sites More sharing options...
Dr. TC Posted April 18, 2009 Share Posted April 18, 2009 We're gonna get our place valued on Monday. It's a shame as we've lived here for 3yrs and have 2yrs left on a good fixed rate deal. It's just our smackhead neighbours are driving us nuts. I think we might lose a bit off what we paid for it but it's all relative isn't it? I mean we get less for this house but if we go for a new house that will also be cheaper. Is that how it works or am I oversimpifying things? Sorry to piss on your BBQ, but unfortunately you're oversimplifying things, unless you bought for 100% cash. Say you bought a 100k house with a 20% deposit. You sell the house today for £80k, pay back the bank and have zero deposit left. With zero deposit you're unlikely to be able to find another mortgage. If you're in negative equity, the bank may well not let you sell your property unless you can pay back the difference immediately. Also, are there any early redemption penalties to which you'd be liable as you've still got some time left on your fixed rate? Link to post Share on other sites More sharing options...
Turnbull2000 Posted April 18, 2009 Share Posted April 18, 2009 I'm in the process of buying a house at the moment and I've got 30% off what houses were going for in the same development at this time last year. Here in N. Ireland we have a thing called Co-Ownership which is a governement backed agency which will buy a percentage of your house with you and allows you to buy it back from them at any point in the future. The benefits are that I don't have to put down a deposit and the bank look at it as 65% LTV which means I can get the cheapest deals. Unfortunately I don't think there's anything like that available in England though there may be developers offering something similar. Shared ownership is pretty much like that. Some mortgage lenders won't lend on shared ownership properties, though the client I work for doing repossession sales allegedly won't, and I've come across 3 shared ownership properties so far this year. Basically what others have said is right - unless you have a large deposit it's a no go. There are a lot of bargains out there though in terms of property prices, so if you can afford it, do it. Bargains? Compared to when? 2007? I don't see any bargains, only property that is overpriced rather than obscenely overpriced. If prices fall below trend and the average value is around 100K, then we can talk about bargains. Link to post Share on other sites More sharing options...
Jill Posted April 18, 2009 Share Posted April 18, 2009 I'm in the process of buying a house at the moment and I've got 30% off what houses were going for in the same development at this time last year. Here in N. Ireland we have a thing called Co-Ownership which is a governement backed agency which will buy a percentage of your house with you and allows you to buy it back from them at any point in the future. The benefits are that I don't have to put down a deposit and the bank look at it as 65% LTV which means I can get the cheapest deals. Unfortunately I don't think there's anything like that available in England though there may be developers offering something similar. Shared ownership is pretty much like that. Some mortgage lenders won't lend on shared ownership properties, though the client I work for doing repossession sales allegedly won't, and I've come across 3 shared ownership properties so far this year. Basically what others have said is right - unless you have a large deposit it's a no go. There are a lot of bargains out there though in terms of property prices, so if you can afford it, do it. Bargains? Compared to when? 2007? I don't see any bargains, only property that is overpriced rather than obscenely overpriced. If prices fall below trend and the average value is around 100K, then we can talk about bargains. "Average" values don't concern me. I've sold properties this week for £30-50k And they're really not as bad as you might think. Link to post Share on other sites More sharing options...
NE5 Posted April 19, 2009 Share Posted April 19, 2009 Is it a good time to buy now or what? House prices low, but banks unwilling to lend? Would a fixed or variable rate be best at the moment? How much can/is sensible to be borrowed, and does the calculation include things like car allowance? Interest-only or repayments? it's a good time, if you can afford it, it might improve a little more, but interest rates can't do down any further so remember that the only way they will go long term is up, and could go up quite a lot too. I made a mistake when I bought my house back in the 80's by taking an endownment mortgage instead of repayment, but at the time everybody did it. I honestly don't know how people can get onto the property ladder now such is the rise in property prices, whatever you do, the first few years are tough but over time it is worth it. Link to post Share on other sites More sharing options...
madras Posted April 19, 2009 Share Posted April 19, 2009 Is it a good time to buy now or what? House prices low, but banks unwilling to lend? Would a fixed or variable rate be best at the moment? How much can/is sensible to be borrowed, and does the calculation include things like car allowance? Interest-only or repayments? it's a good time, if you can afford it, it might improve a little more, but interest rates can't do down any further so remember that the only way they will go long term is up, and could go up quite a lot too. I made a mistake when I bought my house back in the 80's by taking an endownment mortgage instead of repayment, but at the time everybody did it. I honestly don't know how people can get onto the property ladder now such is the rise in property prices, whatever you do, the first few years are tough but over time it is worth it. good point NE5, prices may go down but now may be the time to get a tied in deal with ultra-low rates. Link to post Share on other sites More sharing options...
cp40 Posted July 21, 2011 Share Posted July 21, 2011 does anyone on here pay a standard mortgage c150k or have an idea what the repayments would be? Link to post Share on other sites More sharing options...
Northerngimp Posted July 21, 2011 Share Posted July 21, 2011 At a guess between 600 - 900 quid a month. Link to post Share on other sites More sharing options...
cp40 Posted July 21, 2011 Share Posted July 21, 2011 At a guess between 600 - 900 quid a month. aye ta, found a bbc calculator thingy. 150k @4%= 800 month. Link to post Share on other sites More sharing options...
Minhosa Posted July 21, 2011 Share Posted July 21, 2011 does anyone on here pay a standard mortgage c150k or have an idea what the repayments would be? Depends on the interest rate and the mortgage product (fixed, variable, interest only etc etc) CP. So, depending on when people took theirs out and what type of mortgage they have, payments will vary significantly. To give you an idea, £150k at: 3% = £711 (£375 interest only) 4% = £792 (£500 on io) 5% = £877 (£625 on io) 6% = £966 (£750 on io) All of the above are over a 25 year term. Link to post Share on other sites More sharing options...
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