House market - how low will it go?

[Whorty]

Perhaps what I mean was fortuitous? Is that okay?!

I can't speak for ScooBos, but if you think I was fortuitous, I'll give you a little background ..... I was brought up in a council house in a very underprivileged part of the UK. My parents split when I was in 6th form college just before I went to Uni. They were both given 1 bed council flats as they were told they had no dependent children to warrant a 2 bed house/flat, so my sleeping arrangements were my parents' sofas, or dossing with friends. I was like this all through my student days. I guess, at times, I was technically homeless.

I worked damn hard for this fortuitous life

[rogerfederer]

That's the clincher:
5 year mortgages do not require the stringent checks of 1, 2 and 3 year mortgages. I'm not joking. If someone can't get a 2 year mortgage there is a likelihood they can get a 5 year mortgage - or at least they could until last month.

The increase in duration also means if they bail out early the early cancellation charges are higher. The banks weren't stupid.

Update:

"PRA regulations require lenders to stress test the affordability over 5 and, if fixed at 2% for 5 years, the stress was always deemed less than 1.75% for 2 years followed by the increased variable rate assumed at 5% for a further 3 years."

A fudge, but a fudge by the banks to hand out 5 year mortgages much more easily than 1, 2 or 3 years mortgages.

[The Janter Effect]

No chance of selling, yet he bought another property at the same time.

Messy separation. His ex moved in with a bloke 2 doors down - he was cut up & needed to move. Maybe buying again wasn't the best option....

[The Janter Effect]

err... I seem to be getting constant negative reputation notifications from this Brillo Pad character.

Is there any way I can turn him off?

[eek]

Update:

"PRA regulations require lenders to stress test the affordability over 5 and, if fixed at 2% for 5 years, the stress was always deemed less than 1.75% for 2 years followed by the increased variable rate assumed at 5% for a further 3 years."

A fudge, but a fudge by the banks to hand out 5 year mortgages much more easily than 1, 2 or 3 years mortgages.

Never knew that - I'm slightly surprised.

[eek]

Messy separation. His ex moved in with a bloke 2 doors down - he was cut up & needed to move. Maybe buying again wasn't the best option....

Yep, he clearly isn't thinking rationally - I mean Swindon? And that's before Honda closes in 16 months time (if not now).

[Scoobos]

Many billionaire's say the same. They are not worth as much as proper billionaires.

Personally I am grateful to be born in a Western Country where I have enough to eat and a roof over my head. Anything else is a bonus.

Which is fine, but you cannot change where you were born, so that shouldn't invalidate mental health issues that you have as being any less significant. That's the danger of using words like priviledged, lucky, ungrateful etc. Just because it "could" be worse, doesn't lessen the situation people find themselves in. Conversely, people in what we deem to be "tulip backgrounds" are actually happier than some people assume. Less can be more.

I'm coming from the angle of someone who was homeless at 15 , more recently diagnosed with PTSD and is still unable to live a 'normal' life. This condition has actually driven me to work on 'panic stations' for long enough in my life that I could amass wealth - but its a side effect of a serious mental illness and history of trauma - that is not privileged in any way; and the word itself is horrifically assumptive.

I thought buying a house outright would actually put an end to fear of a lack of security etc, but it's not changed a thing :/

All that said, if this sounds personal to you - it's not! It's personal at the way the use of that word has actually been used to kind of prejudice people like me.

[d000hg]

Will we definitely see a crash? Or would we see the whole market simply shut down - nobody in their right mind is going to buy in the next few months?

There is of course going to be recession but IF companies retain staff maybe we'll see lots of people wanting to move after being stuck in their houses for 6 months

[The Janter Effect]

Yep, he clearly isn't thinking rationally - I mean Swindon? And that's before Honda closes in 16 months time (if not now).

Actually, Cricklade so not quite as bad as Swindon!

[eek]

Will we definitely see a crash? Or would we see the whole market simply shut down - nobody in their right mind is going to buy in the next few months?

There is of course going to be recession but IF companies retain staff maybe we'll see lots of people wanting to move after being stuck in their houses for 6 months

I suspect a lot of people are going to see that working at home is fine but you need your own space / room to work in.