I recently got a new mortgage with Halifax and they won't lend beyond 70 but obviously will beyond 65
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I recently got a new mortgage with Halifax and they won't lend beyond 70 but obviously will beyond 65
It all depends on the lender. My offer in principle is with First Direct, it is a 40 year mortgage which assumes I retire in my 70s. I am looking at a 5 year fixed with unlimited overpayments, so my plan is to bring the term down as and when I can but fix to a lower monthly payment in the first instance by taking a 40 year term.
I have just started to talk to a couple of Estate Agents to do valuations on my Dad's property who died about 6 weeks ago.
I haven't got probate yet but thought I would start the ball rolling.
I took a look at this thread as I thought I might get some idea of how things are in the market, good to see that no one here has much of an idea either :tennis:
We have 2 properties for sale, one was due to exchange/complete as lockdown hit. We have been on hold for 2 months and today have agreed a £10k reduction if completion happens in a week. We will see if it happens.
Property on the market pre-corona for £400k with two agents selling (was overpriced). Checked today and one of them has reduced to £350k. Id still be surprised if someone pays that, I think £320k would be good considering its location, pretty sure its a leasehold because the house is on the land of a block of flats (ground masters lodge or something), also it doesn't have its own parking space outside, you have to park in the communal outdoor carpark and walk it to you front door, plus you cant alter any part of the outside as the garden is not yours, its communal ground.
Update: second agent has just dropped price to £350k too.
After the late 1980s when the housing bubble burst, it took 6+ years for the market to find its nadir.
If the house market is going to fall, it will not happen overnight. It will be death by a thousand cuts. If the housing market stays stable it will likely require a stronger economy. Everyone can have their own view on this.
Nobody can tell what’s going to happen one week after the housing market re-opens.
But I’m personally bearish given the economy is going to rat sh1t.
I was interested and surprised to see a property I was interested in back in Jan/Feb (and was tagged on rightmove as ‘sold’ quite quickly) reappeared back on the market today with an 8% reduction. That, to us, brings it into a more comfortable range financially (even if our place has fallen by a similar percentage).
Could be an interesting few months with some opportunities for the brave
There’s a couple of properties come back on the market at higher prices than pre-lockdown in our village and another that is being priced very punchy... that said they‘ve not sold yet so time will tell.
We’ve exchanged today with a completion in mid June, no changes in offers thankfully but it’s been a painful process.
The market was getting really buoyant just before lockdown as people waiting for Brexit finally took the plunge... I wonder whether that sentiment will prop things up for a little while until the economic situation starts to bite? With so many moving parts, no one knows.
Do you mean unmodernised homes? I would assume a "modernised" home wouldn't be a fixer upper!
If so that is interesting as I posted on a recent property thread about how homes to modernise seemed to be offered for almost what they would be worth if renovated so perhaps that aspect of the property market is correcting even if other prices are static.
Ours goes on the market today...10k above lockdown price...bungalow(always a good seller in a nice area)
Estate agent we have used before said supply and demand is forcing prices up on certain properties.
As always let's see if it sells.
Best of luck, at the right price it will sell.
All depends on the right buyer - some will believe the chatter that prices will drop, and some will believe the chatter that there are less houses available so expect to pay stronger prices.
From 1st June we will reopening hairdressers etc. So things are opening up again slowly, and lots more industries are going back to work, which after some government support should protect a little from what could have been an otherwise disastrous financial situation for many.
I’m interested to see how this plays out elsewhere.
An estate agent talking prices up, surely not?
This combined with when the furlough payments cease to be entirely government funded should give you a pretty clear idea of when it will all go "pop".
https://www.theguardian.com/money/20...onths-covid-19
The deal was on ice for 2 months, on Monday I went back and said agents are trading the market is restarted either buy it or we are going to start remarketing ...the buyer squirmed made a revised offer ... too low so we then negotiated.
I’m disappointed to drop the £10k but this sale is to fund my father in laws care so we couldn’t risk the capital. Time will tell if this has been good business ... assuming it gets over the line.
Ones I know of personally since lockdown. Agreed at 995 now 945, 485 now 465, 250 still 250, 159 still 159.
We’ve got loads going through at work and most of them the prices have stayed the same at the moment.
Very very interesting thoughts everyone, - thank you so much. "interesting" times ahead... I am going to sit, wait & watch for a while..
Personally i haven't even thought about this stuff, reality is that unless you are managing a portfolio or looking at property for profit, then it's a house, and as long as you have the funds to keep up the mortgage it should be fine.
Yes there will be a drop, but that'll be due to job losses coming up, the inevitable recession and potential increases in inflation and interest rates, the government are looking to stop a domino effect occurring, i doubt even they think they can keep the market going up, they did that with help to buy and so on, but that wasn't going to last forever either.
Wait a few years and we'll see another bubble forming, if this whole Covid issue proved one thing, it's that the western world's finances is a lot of smoke and mirrors.
Well you could be going through a divorce, and be looking at giving half the value of the house to your no-longer dearly beloved. In which case you would want the price to fall a long way and as soon as possible. As you say though, house prices only really matter if you have to get out of or into the market.
Just remember that the UK is a tiny little island with 66 million people in it. Green land is bloody difficult to build on and basically there are not, presently, enough houses to accommodate us all.
In the long term, which is what you have to think about, prices are only going to go one way and that is upwards.
Also it tends to be self serving, when prices inch up, more people jump in which pushes prices up all the more and if price stabilise or even drop, the investors come in which, as always, starts to push prices up.
With an ageing population and likely less immigration(AI replacing some jobs) long term, so there is likely less demand in the future. Also less hot money inflows from overseas investors long term . I really do see a levelling out between east and west over the longer term and that will reflect in asset prices.
Likely a lot of ex retail units and commercial properties will get converted to residential properties over the medium term.So much for “under supply”.
I have always wondered why successive governments are keen to either encourage or not discourage property prices to rise.
I would assume that a significant number of property "users," those looking to buy, those renting and those looking to upsize their property would rather property prices were static or reducing as costs for these groups would be lower.
As one of the above posters said, another large proportion of people are not at all affected by the value of their property as they are living in it and have no intention of selling it or at least downsizing.
Of course, those investing in the expectation of a capital gain or those selling following a death or to downside would be less pleased but I would have thought they represent a much smaller proportion of the population.
"Storing" wealth in property doesn't seem particularly beneficial to the wider economy as people end up having a lot of their assets in their home rather than equities/bonds etc (where it could be employing people/generating growth) and also spending a large proportion of their income on paying for their home rather than on goods/services instead.
I assume the answer to my original question is that if people's house value goes up it makes them feel more wealthy and it is easier to release capital via increasing or remortgaging and so more likely to support anyone facilitating that!
Good points I know a guy got pretty Much zero pension 10k ish at 45 . He has 5 btl in a a big student town. Few large ish mortgages and he does not have a fixed job( He quit working for a corporate after 20 years and now works on fixing up properties etc). He always says my properties are my pension etc. He also has 2 young kids and all the costs they incur.
Now Covid has hit He is in big trouble but still don’t recognise it.
Waaaay too early to draw any conclusions. Deals that are happening now reflect those that need to do something and feel secure in their jobs.That is the exception, not the rule, if the current activity is perpetuated up to December then maybe there are grounds for feeling there is stability...
OK...house went on market at 300k on Monday and pre Covid price was 285/290.
First viewing Friday from a couple who sold before lockdown and are in rented.
Yes there might be a low offer and it might be the only viewing we get in the next 6 months BUT will people stop being so negative about house prices...they are not going to crash.
Will keep this thread updated.
Lets see say in 18 months ? Want a little punt in the fund raiser?
https://www.bbc.co.uk/news/business-52888991
I am going to go 20% down in 18 months using Nationwide's index.
I get your sentiment and I do think a huge crash is unlikely but they are falling, there is no doubt. We currently have a UK wide ban on repossessions and payment holidays all over the place. You don't do that when things are "just about ok" let alone "fine". You can call your agent and tell him to edit the price on Rightmove to £10m, it won't change the actual value.
I hope it goes well for you and you get a fair price, there are always areas which do better than others, but I would brace for offers.
I sold in Oct and wanted desperately to buy this year but I'm 100% not buying this year. Hoping for some certainty next year and to get a place by Sept but given the last 5 months anything is possible.