Repossessions set for dramatic rise

[Moscow Mule]

....
The major factor is whether borrowers can service their loans.
As long as they can they wont have a problem.
Things that will stop them is a big enough rise in interest rates or if they lose thier jobs.
...
When you can counter that then we may be in trouble.

You're forgetting to factor in people coming off fixed rates from 2/3 years ago now not being able to get a decent mortgage deal, and payments going up.

Whilst I don't think we're in doom country, I think house prices will stagnate in the medium term which is an effective drop given the inflation we're living with at the moment.

[ferret]

You're forgetting to factor in people coming off fixed rates from 2/3 years ago now not being able to get a decent mortgage deal, and payments going up.

Whilst I don't think we're in doom country, I think house prices will stagnate in the medium term which is an effective drop given the inflation we're living with at the moment.

http://www.independent.co.uk/news/bu...rk-822851.html

What does seem to be falling off a cliff is the housing market. As everyone knows we now have a small year-on-year decline in prices, but that conceals six months of gains and six months of losses. Look at prices on a six-month basis and prices are falling at an annual rate of around 9 per cent. Look at them on a three-month basis and annualise that, and the number for the Halifax index is minus 15.7 per cent. Those of us who expected either a plateau in prices or modest declines look like being wrong.

Add high inflation to this and what do you think might happen?

Like bagpuss said, not that many people can afford much more than a flat with the new (return to the old) lending regimes and with all the media finally suggesting prices are too high people will hold off buying. So house prices sales will stagnate but this should in turn lead on to some hefty falls in price IMO.

And those who are coming off old cheap fixed rates are getting a double whammy of higher living costs plus higher mortgage payments. So this could lead to higher repossessions, more properties coming on to the market, BTL'ers who got in late going under, emigration growing, sounds like the perfect recipe for a sharp downturn in house prices to me, will be very surprised to see "stagnation" of house prices over the next 12-24 months.

Doomed.

[DiscoStu]

http://www.independent.co.uk/news/bu...rk-822851.html



Add high inflation to this and what do you think might happen?

Like bagpuss said, not that many people can afford much more than a flat with the new (return to the old) lending regimes and with all the media finally suggesting prices are too high people will hold off buying. So house prices sales will stagnate but this should in turn lead on to some hefty falls in price IMO.

And those who are coming off old cheap fixed rates are getting a double whammy of higher living costs plus higher mortgage payments. So this could lead to higher repossessions, more properties coming on to the market, BTL'ers who got in late going under, emigration growing, sounds like the perfect recipe for a sharp downturn in house prices to me, will be very surprised to see "stagnation" of house prices over the next 12-24 months.

Doomed.

Sounds good to me. At the moment we have this crazy situation where I pay £800 pm rent for a flat that would be costing me at least £1300 in mortgage payments if I'd bought it. Bring on the falls!

[BlasterBates]

http://www.independent.co.uk/news/bu...rk-822851.html



Add high inflation to this and what do you think might happen?

Like bagpuss said, not that many people can afford much more than a flat with the new (return to the old) lending regimes and with all the media finally suggesting prices are too high people will hold off buying. So house prices sales will stagnate but this should in turn lead on to some hefty falls in price IMO.

And those who are coming off old cheap fixed rates are getting a double whammy of higher living costs plus higher mortgage payments. So this could lead to higher repossessions, more properties coming on to the market, BTL'ers who got in late going under, emigration growing, sounds like the perfect recipe for a sharp downturn in house prices to me, will be very surprised to see "stagnation" of house prices over the next 12-24 months.

Doomed.

Great doom posting Ferret . Even has hardened doomster like me quivering in my boots.

[oracleslave]

Great doom posting Ferret . Even has hardened doomster like me quivering in my boots.

knocking one out

[Chugnut]

knocking one out

[Moscow Mule]

Sounds good to me. At the moment we have this crazy situation where I pay £800 pm rent for a flat that would be costing me at least £1300 in mortgage payments if I'd bought it. Bring on the falls!

Ditto ish - renting a house for £1350 a month, the mortgage payments would be over £3000 if I were to buy something similar.

[gingerjedi]

Doomed.

One mans doomed is another mans boomed... I have a small mortgage and I'm looking for a larger house.

[Sysman]

Add high inflation to this and what do you think might happen?

That's bad in the short term but for those who can hang on until inflation inflates their pay, they should be OK in the long run. A series of promotions and pay rises which took real inflation into account certainly helped me in my early house owning days.