Frozen U.K. Home Market Leaves Buyers Wondering Where to Go

[DealorNoDeal]

Er, no they would not, just the interest component of the repayment increases (unless you're one of the very few who in on an interest-only deal).

It shows how out of touch I am with the mortgage market. Last time I had one, interest-only was all the rage.

[rootsnall]

Reback’s problem is that he agreed to complete the sale of his existing five-bedroom home on April 6, but hasn’t exchanged contracts on the purchase of the new one. The sellers have now decided they don’t want to commit to moving because of the pandemic, he said.

Surely he's pulled a blinder financially if that is the case !? Or am I missing something. He's got a pre recession price for his and will be able to pick up a distressed sale somewhere along the line.

[Whorty]

Er, no they would not, just the interest component of the repayment increases (unless you're one of the very few who in on an interest-only deal).

A £200K outstandling mortgage with 20 years term remaining is around £965 per month at 1.5%, jumping to around £1,200 at 3.86%.

I'd caution anyone taking advice (or even notice) from some on these pages who state with certainty where the market is going. They have a 50% chance of getting it right.

Now here's someone who hasn't seen Scooter's graphs! They're great - one look and you'll be hooked on his expert advice

[ladymuck]

It shows how out of touch I am with the mortgage market. Last time I had one, interest-only was all the rage.

My first mortgage was interest only with an endowment policy. Those dropped out of favour pretty sharpish.

[scooterscot]

Er, no they would not, just the interest component of the repayment increases (unless you're one of the very few who in on an interest-only deal).

A £200K outstandling mortgage with 20 years term remaining is around £965 per month at 1.5%, jumping to around £1,200 at 3.86%.

I'd caution anyone taking advice (or even notice) from some on these pages who state with certainty where the market is going. They have a 50% chance of getting it right.

Warns about taking advice and then gives it in the next sentence

As I understood it the 'doubling overnight' was figurative, and not taken to mean a doubling of mortgage payments with a doubling of interest rates, I'd hope that was obvious.

[scooterscot]

Now here's someone who hasn't seen Scooter's graphs! They're great - one look and you'll be hooked on his expert advice

They are hypnotic.

[Whorty]

They are hypnotic.

They are something

[MrMarkyMark]

UK housing market will crash within 6 months, so if cash rich hold tight till then.

I have no graphs readily available to illustrate this unfortunately.

[BrilloPad]

Surely he's pulled a blinder financially if that is the case !? Or am I missing something. He's got a pre recession price for his and will be able to pick up a distressed sale somewhere along the line.

With nowhere to live until then....

[scooterscot]

UK housing market will crash within 6 months, so if cash rich hold tight till then.

I have no graphs readily available to illustrate this unfortunately.

The market will also be in a downtrend for 3-4 years.