UK House Prices -The next bubble waiting to burst ??

Same old arguments every year:

impulse123 - 3 Nov'03 - 09:35 - 306 of 807


Yes, Guro, good programme, 2 years too late but asked the right questions. The Building Societies know damn well it's going on, they turn a blind eye, then boast about house price increases...and the lemmings head for the cliff.

8%? We wouldn't need 8% to cause a crisis, this in the Sunday Business:

"An increase from 3.5% to 4% raises debt service costs by 14%...a rise from 3.5 to 5.5%...raises debt sevicing 57%...looked at this way, tens of thousands of home owners could be staring at bankruptcy"

tanners - 4 Nov'03 - 00:01 - 307 of 807 edit


impulse......for someone who once owned a chain of estate agents, and has owned a number of properties, you display a surprising level of ignorance as to the cost of mortgages.

A mortgage of £100,000 at 5% over 25 years gives a monthly repayment of £584, at 6% £644, 7% £706, 8% £771.

So, a raise of 2% is a real increase of £120 per month, an inconvenience yes, and if it happened overnight it would give people problems, but that's not gonna happen and even if it happened over 2 years (highly unlikely), I don't think it'd bankrupt tens of thousands like you claim.

Remember, alot of people have fixed rate mortgages these days, and therefore would have time to plan for the increase.

Interestingly, the Nationwide are still offering a 10 year fixed mortgage at 5.3%.........would they be offering this product if they thought that interest rates were going to be 2% higher next year, or the year after?

I have no problem with you presenting the bear side to this share, but if want to be treated with any sort of credibility then try for a bit more realism.

tanners



That was from the Ben Bailey thread......an ex estate agent who thought he was the next Governor of the Bank of England, and thought the markets were driven by sentiment.

Same doom and gloom, interest rates will go through the roof next year, everyone will be made bankrupt causing the market to be flooded with repossessions, then the crash will come, last one to leave turn the lights out blah blah blah, wheres the rope.