House prices to crash

[Uncle Spielberg]

Not for me, no. No chance of me paying early, the rate given would be dependent on my LTV percentage anyway and std variable rate wouldn't bother me either, I'd just move if it became uncompetitive and I'd gone past my lock in period.

Good point well made, I guess.

One of the things I said earlier was that I genuinely do have sympathy for brokers like you because as far as I can see, your market has been decimated. However, this is for a few reasons, not just because of house price suppression. You seem talk as if we're all spiteful because we don't want house prices to rise when it goes against all conventional wisdom. The fact is that house prices need to come down further because FTB flats are still not all that affordable.

This is a view that has been expressed on this very website for well over 2 years now in truth.

What if for whatever reason you were unable to re mortgage after the initital rate had ended ?.

My comments have nothing to do with House prices.

 

[Simster]

What if for whatever reason you were unable to re mortgage after the initital rate had ended ?.

My comments have nothing to do with House prices.

Tell you what, I'll answer your question when you've answered mine. You're pissing me off now. You act a like a stroppy 5 year old whenever a reasonable question or point of view is levelled at you, but then immediately choose to answer back when you think you have a chance to act like a smart arse.

 

[J2 BHA]

Surely location means a hell of a lot in terms of house prices? Before I start, i appreciate that those who have family heritage in Brighton should be able to afford to live in Brighton. My family are from Brighton but my brother is currently looking at moving to Hereford (!! we have family there) as he can't afford a place in Brighton.

The reality is Brighton has an average salary and house price above the national average. This means that if you earn a relatively low salary for the area you will struggle to buy a property and just because you were born in Brighton sadly this doesn't entitle you to house prices that mean you can afford to live here.

If you were to think of areas around the UK and liken them to cars it's clear to me, in this example of my brother, that he wants a Mercedes (a la Brighton) when his salary will only support a Ford (a la Hereford) so he is moving to Hereford.

I'd like to live in Knightsbridge and drive a Ferrari but my salary won't stretch to that so i live somewhere I can afford and drive a car i can afford. Like I say, i'd much rather my brother (and other Brightonian's for that matter) be able to afford property here but i can't help think it comes down to basic economics.

What this means in terms of the towns ability to attract and retain labour for 'lower' paid jobs god only knows (my brother earns over £30k which until the last few years i'd always thought was seen as a half decent salary and probably relatively high amongst workers in the NHS, where he works, when you look at it as a whole).

 

[Bozza]

What if for whatever reason you were unable to re mortgage after the initital rate had ended ?.

No-one should go into a mortgage if they can't afford whatever the rate is going to revert to after the initial discount/fixed promotion ends. Why would they?

Oh - did mortgage brokers tell them to largely ignore the SVR (or whatever) because they'd simply be able to re-mortgage to get another decent locked-in rate? Did mortgage brokers think that gravy train was just going to keep on rolling?

 

[Mr Burns]

Can you tell me the best buy to let mortgage for a property with an HMO. You have 5 minutes. Also for a freehold flat.

Thanks in anticipation.

SOrry. Only just seen your message and the 5 minutes have expired.

You can make another appointment, but I'm fully booked for 10 weeks as trade is so swift

 

[Mr Burns]

You really do yourself no favours.

Why would I specifically need to know what an HMO is then?

HMO = Homes of multiple occupancy
. Not sure why that would apply to most people, but hay ho

 

[Uncle Spielberg]

No-one should go into a mortgage if they can't afford whatever the rate is going to revert to after the initial discount/fixed promotion ends. Why would they?

Oh - did mortgage brokers tell them to largely ignore the SVR (or whatever) because they'd simply be able to re-mortgage to get another decent locked-in rate? Did mortgage brokers think that gravy train was just going to keep on rolling?

Part 1 - so you are agreeing with me as Simster was not worried about the SVR and I said he should be.

Part 2 - Well actually mortgages arranged 2 years ago would have shown and svr now of over 7% and they are around 3.5% on average.

Brokers would have explained the svr. You can bet your bottom dollar Bank " advisors " would not.

So you have agreed in the importance of my role.

Thanks mate

 

[Mr Burns]

I think a small survey of Internet/financially savvy punters is hardly representative of the market as a whole. Agreed these things are possible, however they are completely beyond many people, who will otherwise go to their own bank for mortgage, insurance and a proper good shafting.

That's the point though, you don't really to be internet savvy anymore.

Everyone knows the "Go Compare" annoying ads on the TV, most will see money supermarket. You ony need to check these out, and if you can use internet banking, you're more than quailifed to sort your own mortgage out via them.

Granted, if you need a HMO mortgage with cherries on, or you're looking to bend the systme, a mortgage advisor might offer good advise, but if you're after a mortgage to buy a property to live in, or a standard one to let, then DIY is simple enough.

As I said before there still will be brookers around for the few that cant do it for themselves or need something out of the ordinary, but as someone said, within a year or two most mortgage brookers will be gone.

Its a shame for the people that do it, and have trained to do it, a bigger shame for those who didn't encourge people to over borrow a few years back, but times change, and internet will all but kill of the trade, as most more and more people looking to mortgage will be internet savvy, and will be able to do it themseleves.

AS I said, I wanted and got a straight forward self employed persons mortgage. It took me less than 5 minutes to find the cheapest, and about 2 days to try and find something cheaper, but I couldn't, as the likes of moneysupermarket, and lovemoney have most of the market on their sites, so why bother looking elsewhere, unless you need something that is out of the ordinary, and I would say but to let HMO mortgages fall into the unusual catergory

 

[Uncle Spielberg]

Tell you what, I'll answer your question when you've answered mine. You're pissing me off now. You act a like a stroppy 5 year old whenever a reasonable question or point of view is levelled at you, but then immediately choose to answer back when you think you have a chance to act like a smart arse.

What question is that ?. Ok let me tell you your job is worthless and you are a waste of space and lets see how the boot fits.

 

[Uncle Spielberg]

That's the point though, you don't really to be internet savvy anymore.

Everyone knows the "Go Compare" annoying ads on the TV, most will see money supermarket. You ony need to check these out, and if you can use internet banking, you're more than quailifed to sort your own mortgage out via them.

Granted, if you need a HMO mortgage with cherries on, or you're looking to bend the systme, a mortgage advisor might offer good advise, but if you're after a mortgage to buy a property to live in, or a standard one to let, then DIY is simple enough.

As I said before there still will be brookers around for the few that cant do it for themselves or need something out of the ordinary, but as someone said, within a year or two most mortgage brookers will be gone.

Its a shame for the people that do it, and have trained to do it, a bigger shame for those who didn't encourge people to over borrow a few years back, but times change, and internet will all but kill of the trade, as most more and more people looking to mortgage will be internet savvy, and will be able to do it themseleves.

AS I said, I wanted and got a straight forward self employed persons mortgage. It took me less than 5 minutes to find the cheapest, and about 2 days to try and find something cheaper, but I couldn't, as the likes of moneysupermarket, and lovemoney have most of the market on their sites, so why bother looking elsewhere, unless you need something that is out of the ordinary, and I would say but to let HMO mortgages fall into the unusual catergory

Good luck trying to get a new mortgage or a re mortgage in the future.

 

[Mr Burns]

Good luck trying to get a new mortgage or a re mortgage in the future.

Don't need luck mate. Just need to fulfil the lenders criteria, and it they see you can afford what you are trying to buy, it's pretty easy really. Depiste the doom and gloom some are trying to peddle, if you borrow within your means, then their a number of lender willing to snatch your arm off for your business.

As I said less than 5 minutes to find my mortgage. It just took a couple of days to convice myself it was the best one, which for me it is, and also the cheapest with the best terms. It only took me a couple of days of looking because I couldn't believe how easy it was to find the right one!

 

[Uncle Spielberg]

Don't need luck mate. Just need to fulfil the lenders criteria, and it they see you can afford what you are trying to buy, it's pretty easy really. Depiste the doom and gloom some are trying to peddle, if you borrow within your means, then their a number of lender willing to snatch your arm off for your business.

As I said less than 5 minutes to find my mortgage. It just took a couple of days to convice myself it was the best one, which for me it is, and also the cheapest with the best terms. It only took me a couple of days of looking because I couldn't believe how easy it was to find the right one!

You haven't heard the FSA's proposals for mortgages for the self employed in the future then ?.

 

[Mr Burns]

What question is that ?. Ok let me tell you your job is worthless and you are a waste of space and lets see how the boot fits.

No one's telling it too you like that, they are just saying that your industry is dying out.

Its a fact, not a piss take.

 

[Mr Burns]

You haven't heard the FSA's proposals for mortgages for the self employed in the future then ?.

No. But if its a problem, I'll become employed. Not a great problem.

Besides I have a mortgage, which when the fixed term is over, will actully be cheaper than I am paying at the moment (providing the rate stays low)and is fixed at I think 2-2.5% above base for the term, so the chances are unless I decide to go for another fixed term at the end of this one, I won't need to remortage, as I have a good deal from the start.

The FSA isn't going to suddenly exclude every self-employed person fom geting a mortgageSo if I do have a problem with being self-employed (which I wont because if the proposals exclude me, then I would imagine 99% of self employed would be excluded) then I'll just keep the mortgage I've already got.

Simple really.

 

[Uncle Spielberg]

No. But if its a problem, I'll become employed. Not a great problem.

Besides I have a mortgage, which when the fixed term is over, will actully be cheaper than I am paying at the moment (providing the rate stays low)and is fixed at I think 2-2.5% above base for the term, so the chances are unless I decide to go for another fixed term at the end of this one, I won't need to remortage, as I have a good deal from the start.

The FSA isn't going to suddenly exclude every self-employed person fom geting a mortgageSo if I do have a problem with being self-employed (which I wont because if the proposals exclude me, then I would imagine 99% of self employed would be excluded) then I'll just keep the mortgage I've already got.

Simple really.

Actually the FSA's proposals will make it very difficult for the 4 000 000 self employed in this country to get a mortgage again.

What if the Bank base rate is back to 5% in 3 years time and you are paying 7.5% and not able to re mortgage ?.

 

[jakarta]

Dips toe into water.....

Isn't the main issue with property prices that we live on a small island with a growing population (70 million plus predicted in my lifetime) and comparatively little house building going on in the places where people actually want to live.

If you accept the above as facts then isn't any 'crash' going to be merely a 2-3 year dip unless there are concerted efforts to massively expand the housing supply (with all the massive environmental impacts that will have)?

Or do you believe we will have shanty towns made out of corrugated iron with the occupants stealing municipal electricity a la RSA 'ringing' London?

As I have no intention of moving for ten years at least and I regard where I live as a home and not an investment hopefully none of this current nonsense about booms and crashes will affect me.

 

[mistahclarke]

People will have to get used to saving, just as they used to do.

This is the problem for most people who are first time buyers, myself included, I do not earn enough in Brighton to cover my rent, bills and food AND save the sort of money I'd need.

Basically I earn more than most at my level at work which is the bulk of the workforce, but yet what I have available to spend (and I don't even go out drinking anymore) would put me into a perpetual state of saving while the magic 25% barrier continues to rise and stay out my reach.

 

[Gwylan]

This is the problem for most people who are first time buyers, myself included, I do not earn enough in Brighton to cover my rent, bills and food AND save the sort of money I'd need.

Basically I earn more than most at my level at work which is the bulk of the workforce, but yet what I have available to spend (and I don't even go out drinking anymore) would put me into a perpetual state of saving while the magic 25% barrier continues to rise and stay out my reach.

Yes, I think that's a problem for Brighton in particular. And don't forget that graduates have the additional problem of student loans.

I saved in London but I had no loan to pay off and lived in a housing co-op for some of the time so I was lucky - and know it.

As I said, I do think that the cost of property should come down but we also should rid ourselves of this expectation that we can buy in our 20s. I bought my first flat at 36, the same age as my old man was - that seems about right to me.

 

[mistahclarke]

I did. I've been looking for a flat for my mother at around that price and RightMove has 51 properties at under £110,000, even filtering out the retirement homes, there are 25 flats for that price - including three 1-bed places for under £100,000.

My original point was that you don't need a £50,000 salary to afford a starter home in Brighton. You certainly wouldn't need that sort of salary to buy a one -bed flat, even at £125,000.

No offence mate, but would you put your mother in the area's or flats that have come up? Serious question.

 

[pintsawhiskey]

you can see by the replys this thread has it is a worry on every bodys mind!

i just bought a house outside leeds, for buy to let, 2 bed terrace £40,000 and i get £450 a month rent!!

compard to property in brighton, i own a 2 bed flat paid £315000 for it!!! big moregage!! so i for one am hopeing property doesent crash!!!

the market has continued to rise, over lasy 18 months, WITH NO MOREGAGES!!! so where is the money coming from i dread to thing how high prices would be if there banks were lending!!

Go to Doncaster, Bolton, Rochdale,Hull, Scunthorpe etc, on a summers day then you realise why prices are the way the are in Brighton and Hove!!

if rates go up fast a fith as quick as they come down were all f***ed!!!!