Skip to main content

Please shut up!


 

Extracted from the BBC web site reporting on today's reduction in Base Rate to 2%


 

'I am dead keen to buy a flat or house. This is all good news, surely?

The interest rate on your prospective mortgage will probably be lower.

But, frankly, paying your monthly repayments will not be your big problem, so long as you keep your job.

The main way in which mortgages are being rationed is by lenders demanding large deposits.

Most mortgage deals now require 15%, 20% or even 25% as a down payment. And the best deals require deposits of 40%.

There is a good reason for this, by the way.

House prices are still falling fast and some experts think they could fall another 20% this coming year.

How happy will you be if our home has lost a fifth of its value in 12 months' time?

Think before you buy. '


 

What I'd really like to know is who are the 'experts' and how do they calculate the 20%? Quoting it virtually makes it a self-fulfilling prophecy.

Well this 'expert' says prices will start to recover in early 2009. They will initially stop falling – even the Nationwide says that the rate of fall has slowed – then begin to bottom out. We have already had 14 months of falling house prices and difficult market conditions. Come on BBC, don't make it worse!

Comments

Post a Comment

Popular posts from this blog

House builders discuss 95% mortgages with lenders

So the house builders and the lenders have had a meeting to discuss how they can create 95% mortgages. Basically a good thing, as you would imagine most estate agents would say. But what proportion of the housing Market is represented by new homes sales to first time buyers? Also any first time buyer who purchases a new home is then a cost to the second hand Market of who knows how many sales! If I think back 30 years my wife and I as first time buyers were providing a deposit of 10%. To do this we sold her car, saved up by not going out as much and generally committed ourselves to the task of buying our first home together. Ah, you might say, but house prices were so much cheaper then. True but my salary was just under £2,000 per annum with the prospect of perhaps another £1,000 in commission from selling at lease 6 houses per month personally. The first 4 didn't count towards commission but were to cover my costs to my employer! I personally don't think 95% mortgages are ...
3 comments
Read more

Tory Minister Vows to End Era of House Price Booms

Tory Minister Vows to End Era of House Price Booms The latest nonsense to issue from the mouth of a Con-Dem minister has left me agitated, not to say irritated! The Daily Mail of 13th October reported Grant Shapps’, the Housing Minister, speech to the Housing Market Intelligence conference. Read in full here http://bit.ly/dpGL4K if you are suffering from low blood pressure. He stated: “...middle class families ... should not rely on their homes to fund retirement”. We have had a Labour Government mount a several billion pound raid on pension funds, a stock market lose our pension funds a fortune and now we have a Tory telling us that property as a pension is a mortal sin! I suppose if you are an MP or a senior civil servant then you won’t need to worry about the investment in your property as you have a gold plated, brass constructed pension that the middle-classes have, and are still being asked, to fund from their heavily taxed income, whilst paying into their poorly performin...
Post a Comment
Read more