House Prices #3 Property market, buying and selling

[Brian Butterfield]

Advice needed.

I've got two years left on my current fixed-rate mortgage (1.68%). We borrowed a lot. I already overpay it by £400 a month but I'm wondering whether I should increase the overpayment further over the next couple of years to bring the debt down faster - I'm nervous about what kind of interest rate we'll be looking at in two years.

Do you think this is a wise idea or better to keep that extra cash in savings?? I hate owing money so keen to get it down ASAP.

 

[Megansnarkle]

Advice needed.

I've got two years left on my current fixed-rate mortgage (1.68%). We borrowed a lot. I already overpay it by £400 a month but I'm wondering whether I should increase the overpayment further over the next couple of years to bring the debt down faster - I'm nervous about what kind of interest rate we'll be looking at in two years.

Do you think this is a wise idea or better to keep that extra cash in savings?? I hate owing money so keen to get it down ASAP.

You could beat that rate in savings.

 

[Brian Butterfield]

You could beat that rate in savings.

Yeah, I know. I just don't like the idea of a 6% plus interest rate on our mortgage in future. Debt scares me!

 

[HoGi]

Yeah, I know. I just don't like the idea of a 6% plus interest rate on our mortgage in future. Debt scares me!

You woukd probably be better off saving it, accruing a better interest rate on it, then paying a lump sum off your mortgage at renewal.

 

[Brian Butterfield]

You woukd probably be better off saving it, accruing a better interest rate on it, then paying a lump sum off your mortgage at renewal.

Good shout. Thank you x

 

[Megansnarkle]

You woukd probably be better off saving it, accruing a better interest rate on it, then paying a lump sum off your mortgage at renewal.

This. You can always put in a lump sum upon remortgaging or use the savings to help pay increased payments. You have more options than having it locked into the house.

 

[Yel]

Latest Halifax data out, small fall of 0.1% last month. But of course this is offers approved months before interest rate rises. Apparently lots of offers are being extended another 3 months so there's quite a lag.


House prices fall slightly as market shows
further signs of slowing

• House prices decreased marginally (-0.1%) in September (vs. +0.3% in August)

• Annual rate of growth fell further to +9.9% (from +11.4%)

• A typical UK property now costs £293,835

• Annual inflation slowed in all but one region during September

• Wales still showing the strongest annual growth in the UK

 

[Anne1448]

House hunting is killing me at the moment

Prices are lower but still nowhere near the average wage. I started to look at houses in different parts of the country but I have the choice between derelict homes or homes in need of 100k+ in renovation.

Last year I stopped enjoying life to save like a mad woman yet my downpayment is still not considered enough.

At this point I feel like I'm trying to trap smoke with my bare hands.

 

[Yel]

I saw this headline that the media is reporting on

House prices 'overvalued by around 30%'

Andrew Goodwin, chief UK economist at Oxford Economics, outlines a hit to prices from rising interest rates.

news.sky.com

Its analysis — based on the affordability of the average house, relative to mortgage payments and earnings since 2000 — will show that affordability has fallen over the past few weeks as underlying funding costs for lenders have risen. Swap rates, which are used to price fixed-rate deals, have been particularly affected by the financial turbulence that followed Kwasi Kwarteng’s mini-budget last month.

Oxford Economics’ conclusions will add to concerns about turmoil in the property market that followed the government’s announcement of plans for big tax cuts. Its analysis does not take into account households’ increased outgoings in light of inflation being at a 40-year high, so the true picture may be even worse. But the research nonetheless portrays a “powerful message”, Oxford Economics said.

House prices ‘overvalued by a third and likely to fall’ | Business | …

archived 10 Oct 2022 06:12:30 UTC

archive.ph

 

[Bobbleowl90]

Mortgage rates are so scary now so what position will buyers be in in 6 months time? Honestly think affording a mortgage is impossible unless it changes.

 

[Folkevermore]

Mortgage rates are so scary now so what position will buyers be in in 6 months time? Honestly think affording a mortgage is impossible unless it changes.

House prices are dropping though; so many reductions on right move in my area.
I’m hoping things balance out a bit. House prices can’t stay high when affordability has dropped so much

 

[Anne1448]

Fingers crossed, the prices will come close to wages.

If they don't, it means that investors and other rich people will buy them all and will rent it out to us.

 

[Yel]

It's unfathomable that prices won't correct now affordably has been so affected with mortgage rates, energy bills, food prices and just about everything.

The 20% price increases since covid was insanity brought on by all the easy money sloshing around and the lowering of interest rates.

 

[Yel]

This prediction of fixed rates peaking in a few weeks and then falling quickly seems optimistic.

 

[underwhelmed1985]

This prediction of fixed rates peaking in a few weeks and then falling quickly seems optimistic.

View attachment 1649961 q

Ooh I hope so. If I can refix on less than 5% next year I’ll be over the moon! I’ve budgeted to fix on 9%

 

[Notworthy]

Ooh I hope so. If I can refix on less than 5% next year I’ll be over the moon! I’ve budgeted to fix on 9%

Smart, always a good idea to have a bit of elastic in your budget.

 

[Bobbleowl90]

Going to view a house tomorrow tomorrow. Substantially under budget (but actually it probably is our budget per month now due to mortgage interest rates ) and photos look like it just needs a lick of paint to suit our taste. Anything we should look for or ask? Really like it from the photos so if it works we would like to go ahead with an offer. Always make the mistake of going in at above asking price as we worry about getting it - any advice? Thanks

 

[OnlyHereForTheLolz]

Going to view a house tomorrow tomorrow. Substantially under budget (but actually it probably is our budget per month now due to mortgage interest rates ) and photos look like it just needs a lick of paint to suit our taste. Anything we should look for or ask? Really like it from the photos so if it works we would like to go ahead with an offer. Always make the mistake of going in at above asking price as we worry about getting it - any advice? Thanks

I would offer asking price or below. It’s a buyers market and if you wait a few months you’ll get even better deals on property.
Be realistic. What should house prices in that area be and then imagine it will devalue over the next fee months.
Ofcourse the property at the end of the day is worth what you are willing to pay. So if you want to go in high then do it

 

[Bobbleowl90]

I would offer asking price or below. It’s a buyers market and if you wait a few months you’ll get even better deals on property.
Be realistic. What should house prices in that area be and then imagine it will devalue over the next fee months.
Ofcourse the property at the end of the day is worth what you are willing to pay. So if you want to go in high then do it

Thank you. Is Zoopla a good guide re house prices?

 

[OnlyHereForTheLolz]

Thank you. Is Zoopla a good guide re house prices?

It can give you a general idea of what expected prices should be.
Remember to ask if there are any issues with neighbours. And then if you don’t know the area I would do some drive-by’s at night, especially over a wkend, to see what it’s generally going to be like