Originally posted by BlueSharp
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House market - how low will it go?
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I reckon the collapse in house prices will be long and drawn out over the next few years starting in the next 3-6 months. I think we're entering our 2nd ever depression in history. Which would put the bottom of the market equivalent to the bottom of the stock market. 40% seems right, but if the stock market drops another 30% - panic.
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Do we think the UK will continue to pursue self inflicted economic sanctions at the year's end with everything that's gong on? If so, I'd put a collapse in price closer to 60-70%. By 2023/4 you're going to be sweating bricks at that fixed rate mortgage you took out in 2020."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Originally posted by scooterscot View PostI reckon the collapse in house prices will be long and drawn out over the next few years starting in the next 3-6 months. I think we're entering our 2nd ever depression in history. Which would put the bottom of the market equivalent to the bottom of the stock market. 40% seems right, but if the stock market drops another 30% - panic.
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Do we think the UK will continue to pursue self inflicted economic sanctions at the year's end with everything that's gong on? If so, I'd put a collapse in price closer to 60-70%. By 2023/4 you're going to be sweating bricks at that fixed rate mortgage you took out in 2020.
That aside I must admit I do have to agree somewhat. Maybe not the figures you are quoting but most defiantly going to be a painful period.
Why do you think people will be sweating bricks about fixed rate mortgages though?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostWhen it drops by only 20% in 7 years you can re-post this saying you called it.
That aside I must admit I do have to agree somewhat. Maybe not the figures you are quoting but most defiantly going to be a painful period.
Why do you think people will be sweating bricks about fixed rate mortgages though?merely at clientco for the entertainmentComment
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Help To Buy 5 yr interest rate holidays will be expiring over the next couple of years.
New build houses bought with them will be in negative equity.Comment
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Not only that but a ton of folks increasingly moved to fixed rate products over the past few years - it is public record. This will create an event around 2023 (Watch the big short!) as they mature and folks will find themselves looking to borrow in a market where no one is lending on anything less than 40% LTV after a crash in prices. It is a nightmare scenario.
As of September 9th 2019, the number of mortgage sales (PSD) in the United Kingdom (UK) stood at just under 570 thousand for the year. As it stands, full year accounting of mortgage sales in 2019 is likely to be far below than that of the previous year. Of these, the vast majority were taken out with fixed interest rates. To see the up-to-date average interest rates in the UK, click here.Last edited by scooterscot; 3 April 2020, 09:35."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Originally posted by DodgyAccountant View PostHelp To Buy 5 yr interest rate holidays will be expiring over the next couple of years.
New build houses bought with them will be in negative equity.The Chunt of Chunts.Comment
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Comment
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Originally posted by DodgyAccountant View PostHelp To Buy 5 yr interest rate holidays will be expiring over the next couple of years.
New build houses bought with them will be in negative equity."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Originally posted by eek View PostBecause in 2023/4 the fixed rate will be coming to an end and a lot of people may not have the correct amount of equity if prices are lower to remortgage.Comment
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