House Prices #3 Property market, buying and selling

[Yel]

I spoke to my mortgage advisor today to get up to date figures for what interest rate I would pay now with all of the changes. If I went with Halifax who I have my agreement in principle with, I’ve been quoted the following based on the interest rates available today

5% deposit -4.8% interest rate
10% deposit - 4.37% interest rate

Is your broker up to date or is this a lower rate for those already agreed in principle? The Halifax themselves announced the increase yesterday:

The interest rate on Halifax’s two-year fixed deal for buyers with a 40 per cent deposit rises from 4.56 per cent to 5.84 per cent, lifting monthly bills on a typical £300,000 mortgage in London from £1,677 to £1s,903.

Those with a 10 per cent deposit will see their rate go up from 4.7 per cent to 5.99 per cent. Buyers with only a five per cent deposit will have to pay 6.39 per cent.

New mortgage pain hits home as Halifax puts up rate to 5.8%

Halifax says the raised rates “reflect the continued increase in mortgage market pricing”

www.standard.co.uk

Average two-year mortgage rate highest for 14 years

A typical two-year fixed rate deal has breached the 6% mark for the first time since November 2008.

www.bbc.co.uk

 

[Folkevermore]

Is your broker up to date or is this a lower rate for those already agreed in principle? The Halifax themselves announced the increase yesterday:
View attachment 1629975 q

The interest rate on Halifax’s two-year fixed deal for buyers with a 40 per cent deposit rises from 4.56 per cent to 5.84 per cent, lifting monthly bills on a typical £300,000 mortgage in London from £1,677 to £1s,903.

Those with a 10 per cent deposit will see their rate go up from 4.7 per cent to 5.99 per cent. Buyers with only a five per cent deposit will have to pay 6.39 per cent.

New mortgage pain hits home as Halifax puts up rate to 5.8%

Halifax says the raised rates “reflect the continued increase in mortgage market pricing”

www.standard.co.uk

Average two-year mortgage rate highest for 14 years

A typical two-year fixed rate deal has breached the 6% mark for the first time since November 2008.

www.bbc.co.uk

They’re up to date based on a call she had yesterday afternoon. There are a few variables to consider though; firstly I’m looking at a 5 year fixed rate, and secondly my partner and I have excellent credit scores which has an impact on what rates are available to you

 

[Yel]

Interesting, that's a fair bit lower lower than the rates they're advertising on their site.

Standard rate as of now is 5.74%

Halifax rates as of today, saying I want to borrow 180k and put down 20k.

 

[a.pain]

West of Scotland housing market is insane. I'm just outside Glasgow, in a commuter town. Saw a house offers over £120k, sell for £162k. Another one they viewed was also over 120k,needed a fair bit of work done. We found out it sold for 151k. It's absolutely madness around here and it's been like this way for a good year and a half

We are central Scotland, a friend of ours told us they offered £150k above home report value for a house in their town (an affluent area) and they didn’t get it! Wtf

 

[judgejohndeed]

Has anyone made an offer recently and pulled out due to the financial circumstances now? The prospect of negative equity is worrying me, really unsure whether to press ahead with our sale or rent for a while

 

[churro]

Most of the properties added to rightmove locally to me the past 24h are properties already for sale but now being reduced.

 

[Megansnarkle]

Has anyone made an offer recently and pulled out due to the financial circumstances now? The prospect of negative equity is worrying me, really unsure whether to press ahead with our sale or rent for a while

How much of a deposit are you planning on putting down? How long do you intend to be there? Can you afford higher rates if necessary? What would you otherwise be spending in rent?

All information needed before anyone can advise.

 

[judgejohndeed]

How much of a deposit are you planning on putting down? How long do you intend to be there? Can you afford higher rates if necessary? What would you otherwise be spending in rent?

All information needed before anyone can advise.

10%, 2-4 years, yes, rent on similar would be about £1200 and the monthly payment on the rate I've got (pre-offers being withdrawn etc) is around £950. I'm unsure if I should've locked in for 5 years which was a lower rate, but also if I only want to be there a couple of years I'm not sure if it's too risky now. I could stay longer it just wasn't the plan. Thank you

 

[Yel]

About half of the properties that show up for my searches are reduced rather than new.

For me I'd rather not risk the gamble to buy now, would rather wait until things settle a bit. There's no chance of them going higher.

Every time the mortgage burden has risen like this prices have fallen, and we're not even at the peak yet. This is nothing like 2008 as food, energy and everything else has also massively increased.

 

[Megansnarkle]

10%, 2-4 years, yes, rent on similar would be about £1200 and the monthly payment on the rate I've got (pre-offers being withdrawn etc) is around £950. I'm unsure if I should've locked in for 5 years which was a lower rate, but also if I only want to be there a couple of years I'm not sure if it's too risky now. I could stay longer it just wasn't the plan. Thank you

I wouldn't buy if you're only planning on being there for two years, with the associated costs of buying and selling and kitting out a place and the risks then you're unlikely to be much worse off off renting in the grand scheme of things. If you're going to be there four years you may as well be there five, in which case the chance of riding out any issues is bigger and makes buying more worthwhile.

 

[peekachu]

Has anyone made an offer recently and pulled out due to the financial circumstances now? The prospect of negative equity is worrying me, really unsure whether to press ahead with our sale or rent for a while

We had an offer accepted late August so I understand how you feel! It sounds like for your situation it might be best to pull out unless you plan to stay longer?

I admit I am worried about negative equity too, but we feel it’s the best option for us currently. We’ve been on quite a journey to get here, so it’s typical that the market is going to implode just as we finally buy!

Spoiler: Loooong boring story time!

We started house hunting at the end of 2019. Found a house but it fell through (no fault of our own) and then 2020 happened. I was furloughed and my partner was on a reduced wage, so everything was on hold.

We then started new jobs in 2021, increased our salaries and continued our search. The stamp duty holiday and high demand in the South-East meant we were outbid by crazy amounts on every house. Our landlord also decided to sell our flat around this time, so we had to find a new place and sign up to a year contract.

Last month, one of the houses we lost out to came back on the market as their chain collapsed. It was our favourite house out of all the ones we viewed, we haven’t seen another like it and it ticked all our boxes. So we went for it! We really just want somewhere to call home - we’d love to adopt pets and be able to decorate and to not worry about our landlord deciding to sell up!

Fingers crossed we’ll exchange this month (luckily our vendors are buying a chain-free property so it’s been fairly quick!) We opted for a 5 year fixed mortgage and we plan to overpay as much we can.

I’ve definitely acquired more grey hairs from the process and I’ll probably be completely grey by the time we ever move house! Hopefully I’ll be reincarnated as a snail so I never have to go through house buying again..

 

[Snowjoke]

Has anyone made an offer recently and pulled out due to the financial circumstances now? The prospect of negative equity is worrying me, really unsure whether to press ahead with our sale or rent for a while

If you can I would rent for a while. House prices are due to fall, you could find your deposit will just be absorbing the inflated house prices at the moment

 

[judgejohndeed]

@Megansnarkle @Snowjoke thanks both, we need to give it a serious think. We're happy to stay longer in the new property if we need to, renting would cost us more month to month than our current mortgage and the new one we applied for so it would be a bit annoying but it's so hard working out what to do right now

@peekachu fingers crossed everything goes smoothly for you!!

 

[Meg78]

I’ve reached a level of anxiety where checking rightmove every 5 minutes has become a nervous tick, I feel like our generation will all have some form of housing ptsd after this saga settles down

 

[Folkevermore]

My partner and I have now decided to hold off buying for a few months.

I just got a job offer that comes with an 11k salary increase, however it seems most banks don’t want to offer a mortgage unless you have at least one month of payslips from your new job.

holding off for now; I doubt we need to worry about house prices going up at this point, im just hoping interest rates don’t spiral out of control.

Hopefully this all works out and I don’t end up paying even more because I decided to take the job

 

[Anne1448]

I’ve reached a level of anxiety where checking rightmove every 5 minutes has become a nervous tick, I feel like our generation will all have some form of housing ptsd after this saga settles down

Oh my God same thing here!

I'm like "Is it crashing yet?"

 

[Bobbleowl90]

So when do people recommend somebody buys? Or is it impossible to say?

 

[Meg78]

So when do people recommend somebody buys? Or is it impossible to say?

My obsessive 2am redditing suggests a solid 12-18 months of bedding down and saving as much as possible before venturing back out into the wild, although personally I’m still keeping an eye on the market as some people will be desperate to move regardless and an opportunity might arise to sidestep the usual buyer scramble and do some actual negotiating like the good ol’ days!

 

[peekachu]

I absolutely cannot wait to yeet the Rightmove app into the bin!

(Knowing me, I’ll probably keep it just to inflict pain on myself.. watching prices drop whilst I rock back and forward, sitting in the dark with a hot water bottle in my overpriced house )

 

[Notworthy]

Atleast you'll get some decent rates on savings now. RE when to buy, it really does depend on circumstance, if you find your dream house buy it, if on the otherhand you're buying for the sake of it and your current situation is manageable then wait.