What's the housing market like at the moment?

[Tony 10]

I wouldn't expect the lower end of the market to change.

 

A bigger issue for FTB's at the moment is credit availability. That will change before the year is out but anyone would be wise to save up in the old fashioned way rather than relying on a mortgage company to provide all the purchase cash, and more for furniture and a holiday in the Maldives.

[rustyfunk 10]

The tabloids play up the stories to make big headlines and sell more papers. They fail to mention that not all areas are suffering big price decreases and that not all mortgage providers are pulling every product they have. This doesnt make good stories though does it.

 

Yes there are credit problems at the minute but this doesnt mean that everybody should sell up and move on. People should just stop panicking. For the vast majority of people there is no need to worry and it shouldnt have any lasting effect on their finances. Credit may be more difficult to get hold of so stop spending like there is no tommorrow and live with in your means.

 

yes they do. I dont recall anyone moaniong about tabloids with headlines such as house prices increase by £500 a day though. Id agree that mortgage providers are not pulling all thier products, but the flip side of that is that the number of products available has halved in the last 8 months, with 100% LTV deals disappearing completely, and othe high LTV products cost for the privelidge, if indeed you are accepted. Against the backdrop of the last 10 years, and the national mantra that house prices always rise, id say it does make an interesting story. Anyroad, i was refering to real writings on the subject, not read top/daily diana/hate. I cant really comment on them because i dont read them.

 

Nowhere have i said everyone should sell up, and i agree that everyone should live within their means - sadly this should have been happening over the last few years but it hasnt. Many many people are living way beyond thier means (we have the largest consumer debt in europe). This living within your means must surely apply to mortgage costs too though? No?

 

Bear in mind the price boom in houses is a direct result of credit expansion, and the reverse will happen as credit contracts - it really is that simple.

 

Cyclone is right, its about inapprpriate lending (and over exubberant spending)

[Phylis 10]

yes they do. I dont recall anyone moaniong about tabloids with headlines such as house prices increase by £500 a day though. Id agree that mortgage providers are not pulling all thier products, but the flip side of that is that the number of products available has halved in the last 8 months, with 100% LTV deals disappearing completely, and othe high LTV products cost for the privelidge, if indeed you are accepted. Against the backdrop of the last 10 years, and the national mantra that house prices always rise, id say it does make an interesting story. Anyroad, i was refering to real writings on the subject, not read top/daily diana/hate. I cant really comment on them because i dont read them.

 

Nowhere have i said everyone should sell up, and i agree that everyone should live within their means - sadly this should have been happening over the last few years but it hasnt. Many many people are living way beyond thier means (we have the largest consumer debt in europe). This living within your means must surely apply to mortgage costs too though? No?

 

Bear in mind the price boom in houses is a direct result of credit expansion, and the reverse will happen as credit contracts - it really is that simple.

 

Cyclone is right, its about inapprpriate lending (and over exubberant spending)

 

People who have been living beyond their means are the ones in trouble. This counts for a small percentage of the population. It is idiacy to take out a mortgage which you know you can not afford. You should take into account when taking out a mortgage that rates go upn as well as down and not stretch to the limit. We were offered much more money than we took but were sensible about what we could afford. Living on credit isnt the way we should be looking at life. Living on what we earn is how it should be.

[rustyfunk 10]

People who have been living beyond their means are the ones in trouble. This counts for a small percentage of the population. It is idiacy to take out a mortgage which you know you can not afford. You should take into account when taking out a mortgage that rates go upn as well as down and not stretch to the limit. We were offered much more money than we took but were sensible about what we could afford. Living on credit isnt the way we should be looking at life. Living on what we earn is how it should be.

 

With those sentiments phylis, i couldnt agree more - however this doesnt apply to a small % of the population - have you seen the amout of consumer debt in this country? - its massive! credit had become the norm, because it was cheap and easy, and now those days are gone. I think you under estimate both the stupidity, and endebtedness of the populace.

[Cyclone 10]

So, today, base rate cut by .25%, and nationwide is increasing it's interest rate across ?all? it's products.

[Dave h-j 10]

Ouch - only a tiny tiny fraction of their products are lower than 6% - most are well past 6.25%. That's a whopping amount over the BoE base rate...

 

You can find more details here.

 

Kinda glad i'm currently in a BoE+.18% tracker ....

[Phylis 10]

So, today, base rate cut by .25%, and nationwide is increasing it's interest rate across ?all? it's products.

 

The BOE rate means nothing to the banks. They borrow and lend using libor which is still stubbonly high. If they cant get cheap credit then they wont give it to us.

 

Im just glad we took out a 3 year fixed deal. By the time that is up next december this should all be sorted!

[rustyfunk 10]

The BOE rate means nothing to the banks. They borrow and lend using libor which is still stubbonly high. If they cant get cheap credit then they wont give it to us.

 

Im just glad we took out a 3 year fixed deal. By the time that is up next december this should all be sorted!

 

 

I hope so phylis, but id say that was mighty unrealistic.

 

Are you aware of the theory of k-waves and more importantly Kondratieff winters? Theres a great piece about them and the current global predicament on the HPC forum entitled 'first snows of a k-winter'. Id be interested in your (and anyone elses) thoughts on this.

[Tricky 10]

http://www.sheffieldforum.co.uk/showpost.php?p=2587095&postcount=84

 

And had you?

[rustyfunk 10]

http://www.sheffieldforum.co.uk/showpost.php?p=2587095&postcount=84

 

And had you?

 

 

not so much at the time... but since? Yes

[rustyfunk 10]

Whats your take on the possibility of a 'soon to be here' K-winter, Tricky?

[Tricky 10]

I don't know. I don't know. I don't know.

 

My advice would be to take it on board and let it affect your decisions without dominating them. A lot of economic theories with a much greater wealth of evidence to support them are pure rubbish (most of JMK for a start). However, the signals here are so clear that to dismiss them out of hand is risky.

 

If we are in a Kondratieff winter, it started a few years ago when the dollar began to tank. The US economy is hurtling into recession in line with the theory, the general consensus is that it will pull itself up again, Kondratieff says it won't.

 

It's all about Planning Risk, something I've tried to broach before, unsuccessfully. I may try again.

 

Personally, I'm significantly wealthier for having read his theories a few years ago, but I'm not prepared to sell myself down the river on them either.