I would expect the base rate to stay below 2% for at least 2-3 yrs. The banks rates will probably stay around the 5-6% mark. Any higher and property prices will stagnate or fall due to the prices of the repayments. IMO of course.
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I don't think that's a bad thing ... house prices at the moment still mean that your average Joe has a mortgage of 5 or 6 times annual income. We need house prices back to a max of 3 times annual income .... besides, getting a return on savings will encourage investment.Originally posted by Mailman_1 View PostThe close proximity of the letters 'G' and 'T' are the reason I'll never again send an important email and end it with "Regards" ....Comment
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Your never going to get prices down to 3x annual income. Investors will snap the properties up when they reflect a decent yeild on the investment. Properties are reflecting 10%+ yeilds at the current prices. They have been happy with a 3% yeild and capital gains over the last few years. Its still better than money in the bank. If people wait for 3x annual income mortgages / house prices, we will have a country full of investor owned properties.Originally posted by TriggerHippy View PostComment
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3%
3% = 5-6% mortgage ratesComment
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Current variable rates are around 3.75% above base.Originally posted by orac View Post
The deal you get will largeley depend on how much deposit you have.
25%+ will at best get you around 3.5% above base (As long as you can adhere to all of the other conditions). So a 3% base rate will put you at a 6.5% mortgage rate if the banks stay on the same course.
A 10-15% deposit will get you around 5% above base.
These figures are current of course and may change.Comment
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