Interest Rates to rise this week?



This is going to have a massive impact on the new build sites springing up everywhere. I’d expect the majority of buyers are relatively young, either getting on the ladder with a smaller place or upgrading to the big family home, typically these buyers will have a poor LTV. I can’t see it being affordable for many. I presume a 90% LTV must be around 6% easy.
 
Select coaches said:
Just interest rates, I googled it out of interest, it’s quite scary. Over 10% was the norm all through the 80s
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Mortgages then were smaller in real terms and lenders received mortgage tax relief. First time buyers tended to buy cheap properties eg flats and move up the ladder without overstretching. Those properties are now private landlord territory. First time buyers are now more likely to enter the market with a brand new ' house for life ' eg a detached property with a subsidised mortgage through help to buy and a deposit through parental help. Times have changed. It is not relevant to liken the double digit interest rates of then with the current situation.
 
Lo Ursem said:
Mortgages then were smaller in real terms and lenders received mortgage tax relief. First time buyers tended to buy cheap properties eg flats and move up the ladder without overstretching. Those properties are now private landlord territory. First time buyers are now more likely to enter the market with a brand new ' house for life ' eg a detached property with a subsidised mortgage through help to buy and a deposit through parental help. Times have changed. It is not relevant to liken the double digit interest rates of then with the current situation.
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Totally agreed. I wonder if these rates are here to stay it might revert back to the old ways. To be honest I think it would be great for places like pallion and mill field if you got young working couples moving in to dilute down the shit heads.
 
I still think there's a viscous circle going on. Some people believe they can borrow their way through all of the price rises and are using credit cards and overdrafts for food, petrol and clothes. In turn that means people are still spending which is helping to drive inflation. I fear there's a massive bubble to burst in this country when it comes to personal debt, there's far too many weekend millionaires who have to try and keep up with the Jones' too.
 
Botchie said:
I still think there's a viscous circle going on. Some people believe they can borrow their way through all of the price rises and are using credit cards and overdrafts for food, petrol and clothes. In turn that means people are still spending which is helping to drive inflation. I fear there's a massive bubble to burst in this country when it comes to personal debt, there's far too many weekend millionaires who have to try and keep up with the Jones' too.
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Maybe, but debt is much harder to get these days, generally, compared to 10-15 years ago. And that includes housing debt.

Having said that, I could bankrupt myself very quickly if I wanted to, if I blew a fortune with the total available credit I have on credit cards.
 
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