House Prices #3 Property market, buying and selling

[Yel]

Developers shares have gone up significantly in the last month so I wonder if something is in the works…

More "help" on the way

The only people this help helps is the house builders and financial institutions. Got to prop up those high prices.

 

[whoareyouu]

More "help" on the way

The only people this help helps is the house builders and financial institutions. Got to prop up those high prices.
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Knew it! I mean, I work for a developer so good for job security but it’s not the right answer overall.

 

[Yel]

Knew it! I mean, I work for a developer so good for job security but it’s not the right answer overall.

Absolute lunacy, in a high inflationary period to even think of introducing something that will increase inflation even more. But this is the world we live in

Rishi is clearly thinking about stuff to help him in next year's general election, I hope this backfires massively.

 

[Folkevermore]

I bought a house using the first home scheme and it seems like a much better alternative to help to buy. I’m not sure what bringing help to buy back would achieve other than encouraging first time buyers to take on even more debt than they can really afford

 

[epl000]

Honestly, I'm shocked Help to Buy is even being considered. Surely it would just fuel further price inflation, and lead to first time buyers taking on more debt, which surely is not the answer?! The only positive thing would be stimulating demand, but ultimately that just makes prices increase further if you don't also make more supply available.

 

[Folkevermore]

Honestly, I'm shocked Help to Buy is even being considered. Surely it would just fuel further price inflation, and lead to first time buyers taking on more debt, which surely is not the answer?! The only positive thing would be stimulating demand, but ultimately that just makes prices increase further if you don't also make more supply available.

It’s the easiest way for the government to keep the housing market pyramid scheme going. They don’t give a shit about the long term effects. They want the prices to increase further

 

[nicalibres]

It’s the easiest way for the government to keep the housing market pyramid scheme going. They don’t give a shit about the long term effects. They want the prices to increase further

I’m clueless when it comes to how this sort of thing works but surely it can’t go on for much longer? Are the government trying to squeeze as much money out of us as possible (and prop up developers and other big companies) until it all comes crashing down and we’re in a full blown recession? Cos this can’t be sustainable.

Houses in my area aren’t selling and loads have been reduced in the last few weeks.

 

[Folkevermore]

I’m clueless when it comes to how this sort of thing works but surely it can’t go on for much longer? Are the government trying to squeeze as much money out of us as possible (and prop up developers and other big companies) until it all comes crashing down and we’re in a full blown recession? Cos this can’t be sustainable.

Houses in my area aren’t selling and loads have been reduced in the last few weeks.

Conservative voter base is mainly older people. Older people want their property to increase in value. So the government props up the housing markets for votes.
Also because a lot of them own a shit ton of property and have that as an ulterior motive too.
Property is already unaffordable for a lot of people. There’s where help to buy/shared ownership/40 year mortgages etc come in. It helps reduce the monthly payment to a point where people can afford it again.
In most places there’s an upper limit based on income for house prices, but this scheme helps push that upper limit 20% higher.
There’s talks about the new help to buy being on older houses too - this will help keep the market moving

 

[nicalibres]

Conservative voter base is mainly older people. Older people want their property to increase in value. So the government props up the housing markets for votes.
Also because a lot of them own a shit ton of property and have that as an ulterior motive too.
Property is already unaffordable for a lot of people. There’s where help to buy/shared ownership/40 year mortgages etc come in. It helps reduce the monthly payment to a point where people can afford it again.
In most places there’s an upper limit based on income for house prices, but this scheme helps push that upper limit 20% higher.
There’s talks about the new help to buy being on older houses too - this will help keep the market moving

So can this just continue indefinitely? Sorry for asking so many questions but I just always assumed the bubble would burst at some point.

 

[Folkevermore]

So can this just continue indefinitely? Sorry for asking so many questions but I just always assumed the bubble would burst at some point.

It can to a degree when the government encourages people to borrow more than they can afford. Help to buy does that.
It’s harder now that interest rates are higher though because it makes it hard to justify overpaying when the monthly cost is so high

 

[Poppysmimi]

My husband and I have saved for 6 years using a Lifetime ISA each. We could put £4,000 each in a year which tops it up under the government scheme to £5000 each. We saved £60,000 by doing 2-4 extra shifts each a month and putting that money away. (Roughly £650 a month)

we’ve now just been accepted for a mortgage on a £300,000 house in Essex with repayments being £1300 a month. (£200 more a month than our rent)

 

[whoareyouu]

My husband and I have saved for 6 years using a Lifetime ISA each. We could put £4,000 each in a year which tops it up under the government scheme to £5000 each. We saved £60,000 by doing 2-4 extra shifts each a month and putting that money away. (Roughly £650 a month)

we’ve now just been accepted for a mortgage on a £300,000 house in Essex with repayments being £1300 a month. (£200 more a month than our rent)

Amazing! Well done guys.

 

[Clover123]

My husband and I have saved for 6 years using a Lifetime ISA each. We could put £4,000 each in a year which tops it up under the government scheme to £5000 each. We saved £60,000 by doing 2-4 extra shifts each a month and putting that money away. (Roughly £650 a month)

we’ve now just been accepted for a mortgage on a £300,000 house in Essex with repayments being £1300 a month. (£200 more a month than our rent)

Congratulations, all your hard work has paid off! Enjoy

 

[LifeOfMog]

Guys without sounding stupid, can someone explain remortgaging please?

 

[pommobear]

Guys without sounding stupid, can someone explain remortgaging please?

When you've come to the end of your original mortgage deal and you want a new one - ie you don't just want to transition onto the standard variable rate which is usually very high.

 

[LifeOfMog]

When you've come to the end of your original mortgage deal and you want a new one - ie you don't just want to transition onto the standard variable rate which is usually very high.

So for most of us, that will be the end of the 20/30 years yeah?
Only asking as a couple I know have had their house for about 2/3 years, and are already talking about re-mortgaging so I'm really confused !

 

[pommobear]

So for most of us, that will be the end of the 20/30 years yeah?
Only asking as a couple I know have had their house for about 2/3 years, and are already talking about re-mortgaging so I'm really confused !

No, because your initial mortgage deal will be 2-10 years, usually 2, 3 or 5. It won't be 30 years. That's your mortgage term. So say you take out a mortgage for 350,000 for 30 years, your deal might be something like 3% interest for the first five years the standard variable rate for the rest of the term (so then you'd remortgage to another fixed term or other deal).

 

[Megansnarkle]

No, because your initial mortgage deal will be 2-10 years, usually 2, 3 or 5. It won't be 30 years. That's your mortgage term. So say you take out a mortgage for 350,000 for 30 years, your deal might be something like 3% interest for the first five years the standard variable rate for the rest of the term (so then you'd remortgage to another fixed term or other deal).

This. There are usually two benefits to remortgaging, the first is that you can get another fixed interest rate period, the second is either that you can often borrow more because you've usually built some equity either from money paid in or increased value that you can effectively take out of the property (this is often helpful if you have plans to extend, for example) or you can keep your borrowing as the amount you have outstanding and often you will have built equity or your house has gone up in value and that allows you to benefit from better rates for people with lower loan to value percentages.

you can often take advantage of the fact that you've built equi

 

[hydeist]

So for most of us, that will be the end of the 20/30 years yeah?
Only asking as a couple I know have had their house for about 2/3 years, and are already talking about re-mortgaging so I'm really confused !

When you get your first mortgage, it's for 20/30 whatever years but REALLY it's just for the 2 or 5 years you "fixed" the rate at. So you are promised the rate for say, 5 years, but after 5 years your deal runs out. So you remortgage - basically you go get another deal for 2 or 5 years.

You know how if you have a bigger deposit, you get a better rate? Well that applies to your remortgage too, so the more % of your house you have paid off, the better your new mortgage rate. You do NOT have to keep your mortgage for the entire 30 years or whatever, you are only locked into the 2 or 5 years you agreed to in the beginning.

 

[margaretta]

When you get your first mortgage, it's for 20/30 whatever years but REALLY it's just for the 2 or 5 years you "fixed" the rate at. So you are promised the rate for say, 5 years, but after 5 years your deal runs out. So you remortgage - basically you go get another deal for 2 or 5 years.

You know how if you have a bigger deposit, you get a better rate? Well that applies to your remortgage too, so the more % of your house you have paid off, the better your new mortgage rate. You do NOT have to keep your mortgage for the entire 30 years or whatever, you are only locked into the 2 or 5 years you agreed to in the beginning.

that’s just negotiating your mortgage rate.

A remortgage in the true sense is when you need to borrow more money on your property- maybe for building an extension. You are able to do so because the value of the property has gone up (confirmed by an official valuation) since your original mortgage and you have equity to tap into. Eg original mortgage £100k on a £150k house
house current value £200k, providing you can afford to pay, you could increase your mortgage to £150k.
It’s often done as an additional mortgage, thus the phrase remortgage.