pslewis

Abbey starts the ball rolling .............

This is it - coupled with the HIPs and a Bank Base Rate rise next month - the start of the house price collaspe????

fast bloke

What the fek are you talking about

pslewis

BBC NEWS | Business | Abbey blames rate rise on markets

unclebuck

bla bla bla...

Gear Head

iTrader: (2)

When did Pete first worn of house price crash? ............. Was it 5 years ago? Surely not.

pslewis

Usual constructive post ................

PeteBrant

Completely irresponsible move on the part of Abbey.

fast bloke

Pete - new customer rates and deals change every day. Most lenders will review their portfolio every two weeks. It would be newsworthy if they decided to change their SVR (the rate existing customers borrowing is based on) without a change from BoE, but as yet this hasn't happened

Devildog

He either doesn't have a clue how it works FB, or he's trolling again

VoteConservative!

Why is that mate?

Devildog

I know, what bast@rds, I mean imaging trying to maintain levels of profitability to keep your shareholders happy

Skoobie Dhu

iTrader: (3)

Pete,

Suggest you read this, this is why the Abbey have raised their rates for new customers.

I arranged a new tracker late last week after much research and fingers crossed it seems to have been the right move after reading below and the Abbey move.

Act now to beat mortgage squeeze - Times Online

Paul3446

It's only for new customers, not existing ones, so it's unlikely to have a dramatic impact on the housing market.

Gordo

And, of course, you won't listen to any criticism of New Labia in relation to this.

john banks

Mortgage rates hit nine-year peak - Telegraph

"Although the Bank of England's official rates are still at 5.75 per cent, the average standard variable rate (SVR) paid by millions of households rose by almost a quarter percentage point to 7.69 per cent last month. This is the highest level since the end of 1998, when the official interest rate was a full percentage point higher than now at 6.75 per cent."

FlightMan

We're doomed I tells ya!

Petem95

Whats this, yet another nail in the coffin for the UK housing market?.. and the usual culprits are still in denial?...

fast bloke

John - That is a play on words. BoE rate went up in July. Most lenders phase in SVR changes at the beginning of the following month, so what it should really say is SVR went up last month as a result of BoE increasing base rate in July

If we get to the point where several lender decides to increase SVR's at the start of a month where there has no previous increase on BoE rates, then it will be time to start agreeing with Pete and Pete. Three month LIBOR is unusually high, but long term LIBOR is fairly much where it has been and swap rates are dropping slightly. If the long term LIBOR increases in line with the three month rates and CPI comes in above forecast for August then we could be in for some stormy times.

fast bloke

Have you got round to defining what a crash is yet?

The Snug Rhino

This the same coffin you have been nailing for 10 years? You sure its the housing market you have in there and not the terminator? It seems rather undeterred by your attempts to kill it.

fast bloke

Maybe he needs bigger nails

Petem95

Yeah I would define it as a fairly dramtic decline in prices across a signifiicant cross section of the market. To me this would be annual (average) falls of 10%+ (not adjusted for inflation)

Hey I see your backup has arrived fast bloke

fast bloke

10% annual fall meaning prices falling to 10% below the level of 1 year ago,10% below the peak price, or 10% below the price when you first predicted a crash?

A 10% fall in Doncaster would take prices back to 2003 levels, while a 10% fall in Belfast would take prices back to last Thursdays levels.

p.s. - I dont need backup - I have a bouyant housing market to help me out

Petem95

lets pick this one up in 3-4 months fast bloke

jjones

BBC NEWS | Business | Home price inflation 'picking up'

BBC NEWS | Business | Average house price near £200,000

The Snug Rhino

i am a fellow professional, not back up

dont these people get a bit embarrassed by saying "lets talk again in X months" EVERY time they post this? Its like a cheap Darren Brown show where the bloke keeps guessing peoples names until he gets one right then declares himself a mind reader!

fast bloke

Pete - I never said that house prices won't fall/crash. I have just pointed out that the reasoning you use to predict said crash is flawed

PaulC72

I predict that sometime in the next 1,000,000,000,000,000 years there will be a house price crash

fast bloke

I've been called many many names on here, but I am nearly tempted to pay a tenner to infract you for that.

If that sort of name calling gets out it could drastically alter my reputation. People would be wanting me to do stuff for them then

Suresh

Anyone stupid enough to finance at variable rates and then go on to winge when said actually have the cheek to vary, deserves everything they get IMHO. Especially given that the fixed interest mortgage market is now well-developed. Lets not forget the 15% variable rates seen when the other lot were last in power in the early 90s.

That said, I took out an additional small mortgage for a new kitchen a year ago, and punted on variable rates remaining the same . I'm not complaining though, as I fixed my main mortgage for 10 yrs around 18 months ago . The net rate on the big loan will only get me accused of ***** waving if I disclose it, so I 'm keeping mum this time.