Mortgages - Help!

Started by Tony Baloney, May 20, 2008, 05:55:48 PM

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Minder

Another plus point is not having to listen to the dumb b*tches in our office checking property prices in their area on a daily basis, ignoring the fact they had overpaid on their house by 80-100%..........
"When it's too tough for them, it's just right for us"

Sideshow Bob

Quote from: Uladh on September 24, 2008, 11:25:35 AM

Whats happening with the housing market at home anyway? is it as bad as the media make out or is there still buying and selling going on? how much has property dropped?

from breakingnews.ie

House prices are falling globally and Ireland is near the bottom of the pile, new research showed today.

During the year to the end of June, the cost of property fell in 21 of the 33 countries across the world for which there is reliable data, according to property research group The Global Property Guide.

Ireland has seen a slide of 13.72% in inflation-adjusted house prices in the last year, the third-worst performer in the survey.

The group said the Baltic states, the United States (18.93%), the UK (9.77%) are also doing badly.

House prices have dived by 33% in real terms in Latvia's capital Riga, during the period, while in Estonia's Tallinn they have fallen by 14%.

The group said quarterly data suggested the situation was getting worse, with inflation-adjusted house prices dropping in all but nine of the 33 countries during the second quarter of the year.

The Global Property Guide said: "Since last year, there has been a dramatic turn-around in the world's housing markets.

"Only five countries out of 33, at this stage last year, had seen year-on-year declines in house prices in real terms. This year's total is 21."

It said that even in countries that continued to record house price rises during the past year, such as China, transaction volumes had fallen sharply, suggesting that buyers were now nervous.

The group added that while property markets in some regions, such as the Middle East, apparently remained in boom, it was hard to confirm this by reliable data.

Spain has recorded house price falls of just 2.49% for the year to the end of June, despite widespread reports of the problems the country's housing market faces.

However, The Global Property Guide said Spain's official housing statistics were widely believed to understate the problem.

pintsofguinness

Quote from: blast05 on September 24, 2008, 12:36:28 PM
QuoteUse an Independant Broker as they can source from the whole of the market. If you use say a bank of specific building society they can only offer you their products which might not be the best!!! It'll save time also running about different banks etc as the broker can view ALL lenders automatically....

I'm sorry , but why anyone goes near a broker is beyond me.
It takes about 15 minutes of research on the web to find out what rates are available in all companies that provide mortgages in Ireland.
Add to that, once you talk directly to the banks you are more likely to get an even better deal. For example, i was in AIB last Monday looking to switch a mortgage from my 'principal primary residence' to a holiday home which i may rent out for a week here or there. If i had gone through a brokers, this would have been considered as an investment property ( i checked this before when i was moving mortgage 2 years ago) ... however the guy i was dealing with said there would be no problem with the home owners rate ("once you are straight up with the revenue if you rent it but thats your own business"). The difference in rates is 5.95% versus 5.2%.
That's alright if you have the brains to do that yourself blast but a lot of people dont and f**k it up.
Which one of you bitches wants to dance?

passedit

http://news.bbc.co.uk/1/hi/business/7641535.stm


Mortgage lending slumps says Bank
Houses for sale
The property market hit an unprecedented slump in August

New mortgage lending collapsed in August, according to the latest figures from the Bank of England.

Banks and building societies lent an extra £143m in home loans last month, just 5% of July's lending figure and only 2% of the lending in August 2007.

August is traditionally the quietest month for house sales.

But house buyers may have been put off buying properties because of the continued fall in prices and widespread predictions of an imminent recession.

"The dire Bank of England mortgage data shows that housing market activity is being decimated by the highly damaging combination of stretched buyer affordability and tight lending practices," said Howard Archer, of Global Insight.

The Bank's figures mean that for the first time since records began in 1993, the nation's mortgage debt actually fell, from £1,216,728m to £1,216,330m.

Higher mortgage rates

The Bank of England's data shows that 32,000 new mortgages were approved in August, a new record low and 70% fewer than a year ago.

This suggests that the fall in sales and prices will continue into next year.

"It is significant that net mortgage lending during the month actually stagnated, reflecting the recent precipitous decline in approvals," said Simon Rubinsohn of the Royal Institution of Chartered Surveyors.

"Subsequent turmoil in the financial markets is already having a direct impact in raising some mortgage rates," he added.

This was seen in the actions of several of the biggest lenders.

Lloyds TSB, which includes the Cheltenham & Gloucester brand, has pushed up the cost of its two- and three-year fixed rate deals by up to 0.26% from this evening.

Northern Rock will raise the cost of its entire range of residential fixed and tracker rate deals tonight.

On Friday HBOS, which includes the Halifax, withdrew its entire mortgage range for borrowers and replaced it with more expensive deals.

"Borrowers now need a 25% deposit to access virtually all its fixed and tracker products," said Aaron Strutt of mortgage brokers Chase de Vere.

Low demand

Within the mortgage industry, building societies saw their lending shrink for the third month in a row.

   
It is hardly surprising that demand for mortgages is so low
Andrew Gall, BSA

The Building Societies Association (BSA) said in August its members' customers repaid £38m more than they borrowed.

"Activity in the housing market remains depressed," said Andrew Gall, of the BSA.

"With the Land Registry data showing a 4.6% annual drop in property prices, and with BSA's own property tracker survey showing that more than half of people consider the prospect of future falls in house prices a barrier to house purchase, it is hardly surprising that demand for mortgages is so low," he added.
Don't Panic

passedit

#34
From the Nationwide

Average house price in Northern Ireland now back below national average

"Northern Ireland continues to show by far the steepest correction in house prices across the UK. Prices in the Province were down another 10.8% from the previous quarter, leaving them almost 30% lower than a year ago. Even with this large fall, the price of a typical property in Northern Ireland is still only back to where it was in the third quarter of 2006. Between the end of 2005 and the end of 2007, house prices in Northern Ireland increased by nearly 80%, compared to only 17% for the UK as a whole. This meteoric rise clearly left prices in Northern Ireland even more vulnerable to a correction, and this is the context within which the recent price fall should be viewed. At their peak, house prices in the Province were above the average house price in England and 24% above the UK average house price. After the recent fall, the price of a typical property in Northern Ireland is 3% below the UK average. Confirmation that the neighbouring Republic of Ireland's economy is now in recession has certainly also not helped the property market in the Province.   

First Time Buyer House Price Earnings Ratios

Northern   Yorks & H   North West   East Mids   West Mids   East Anglia   Outer SE   Outer Met   London   South West   Wales   Scotland   N Ireland   UK

2004 Q4   4.1   4.4   4.4   4.7   4.9   5.0   5.3   5.3   6.2   5.6   4.8   3.4   4.1   4.8
2005 Q1   3.8   4.4   4.4   4.6   4.9   4.9   5.3   5.3   6.1   5.6   5.0   3.4   4.1   4.8
2005 Q2   4.0   4.4   4.4   4.6   4.9   4.9   5.4   5.3   6.2   5.6   4.9   3.3   4.3   4.8
2005 Q3   4.3   4.5   4.4   4.6   4.9   4.8   5.3   5.3   6.2   5.6   4.9   3.3   4.3   4.8
2005 Q4   3.9   4.3   4.3   4.5   4.7   4.8   5.2   5.2   6.1   5.6   4.6   3.3   4.5   4.7
2006 Q1   4.1   4.5   4.4   4.6   4.9   4.8   5.3   5.3   6.1   5.6   4.9   3.4   4.6   4.8
2006 Q2   4.2   4.5   4.4   4.6   4.9   5.0   5.4   5.3   6.2   5.6   4.9   3.6   5.2   4.9
2006 Q3   4.2   4.5   4.4   4.6   4.9   5.0   5.4   5.4   6.4   5.7   4.9   3.8   5.7   4.9
2006 Q4   4.3   4.6   4.5   4.6   4.9   5.1   5.5   5.5   6.5   5.8   5.0   3.8   6.2   5.0
2007 Q1   4.3   4.6   4.5   4.7   5.0   5.2   5.6   5.6   6.8   6.0   5.1   3.9   7.1   5.1
2007 Q2   4.4   4.6   4.6   4.8   5.0   5.2   5.7   5.8   6.9   6.0   5.2   4.2   7.7   5.4
2007 Q3   4.2   4.6   4.5   4.7   4.9   5.1   5.8   5.8   7.2   6.0   5.0   4.1   7.9   5.4
2007 Q4   4.3   4.6   4.4   4.6   4.9   5.1   5.7   5.8   7.2   6.0   5.0   4.1   7.5   5.4
2008 Q1   4.2   4.5   4.3   4.5   4.8   5.0   5.5   5.6   7.0   5.7   4.9   4.0   6.5   5.2
2008 Q2   4.1   4.2   4.1   4.2   4.6   4.7   5.3   5.4   6.6   5.5   4.6   3.9   5.7   5.0
2008 Q3   3.8   4.0   3.9   4.0   4.4   4.3   5.0   5.0   6.5   5.1   4.4   3.7   5.3   4.7
Don't Panic

fred the red

weres the best place in the world to buy property at the minute?

illdecide

Quote from: fred the red on October 02, 2008, 01:54:41 PM
weres the best place in the world to buy property at the minute?

Kenya
I can swim a little but i can't fly an inch

Doohicky

I'm actually quite happy about the way my house price is falling.
I bought through Co-Ownership and only bought 40% of my house. Renting the rest.
This put me in a position where I am paying well below what I can afford as I didn't want to risk something happening wher I was short ofn payments.

Now, with the falling house prices I am going to be able to (hopefully) increase the share in my house for much cheaper than I would have before.
Hopefully with the price I am buying at the increased mortgage costs will be weighted out by the decrease in rental costs. Before, buying more off my house at the original cost would have meant a steep rise in how much I have to pay each month. With it's new cost it will hopefully be a tiny rise, if a rise at all!  ;D

Sideshow Bob

Will the owners of the other 60% of your house want to sell it to you at a reduced rate?

pintsofguinness

Quote from: Doohicky on October 02, 2008, 04:32:39 PM
I'm actually quite happy about the way my house price is falling.
I bought through Co-Ownership and only bought 40% of my house. Renting the rest.
This put me in a position where I am paying well below what I can afford as I didn't want to risk something happening wher I was short ofn payments.

Now, with the falling house prices I am going to be able to (hopefully) increase the share in my house for much cheaper than I would have before.
Hopefully with the price I am buying at the increased mortgage costs will be weighted out by the decrease in rental costs. Before, buying more off my house at the original cost would have meant a steep rise in how much I have to pay each month. With it's new cost it will hopefully be a tiny rise, if a rise at all!  ;D

Ah Doohicky that shared ownership is a mugs game, try and get out of that.
Which one of you bitches wants to dance?

passedit

Quote
Auctions point to steeper fall in house prices


The average price of a property sold at auction dropped nearly 30% over the past 12 months leading analysts to predict that house prices in the general market have a lot further to fall.

The average price of the 4,796 homes sold at auction over the past quarter was £123,209, 29.6% below the average price of £172,470 in the same quarter last year, according to figures compiled by the property auction group EIG.

"House prices are falling much faster than the published house price indices suggest," said the Liberal Democrat Treasury spokesman, Lord Oakeshott. "Auctions are the real market where contracts are exchanged and a 10% deposit paid as soon as the hammer falls.

"The Halifax and Nationwide indices are well behind the average fall in house prices, because they include houses approved for a mortgage. With mortgage lending down to a trickle, the 28.6% average price fall of homes sold at auction gives a true picture."

The futures market also predicted further falls. A properties derivative price report by Tradition Property showed that prices are likely to fall by a further 23.5% over the next year and 32.5% over the next two years, with 10 years to wait before prices get back to today's levels.

Bank of England data out yesterday showed that mortgage approvals for September rose for the first time in a year. Several analysts believe that they may have hit bottom but could stay there for many months to come.

The Bank of England said that lenders approved 33,000 mortgages for new purchases last month, slightly up from 32,000 in August. They were still 67% lower than a year earlier and almost a quarter of their peak in late 2006.

Remortgages accounted for half of all new loans and, at 72,000, were 30% lower than a year earlier.

"Approvals are likely to remain close to rock-bottom levels for many months yet," said Seema Shah at consultants Capital Economics. "The sharp rise in unemployment that we expect, the contraction in economic activity, as well as the continued tightening in lending criteria, will all curtail housing market activity. In turn, this will bear down further on house prices. We expect house prices to have fallen by 35% by the end of next year."

Net mortgage lending was £2.2bn in September, well below the £3.5bn monthly average for the previous six months. August's mortgage lending figure was revised to show a net repayment of £691m - the first repayment since the series started in April 1993.

The Bank added that consumer lending through personal loans and credit cards increased by £0.3bn, the weakest rise since 1993.
Don't Panic

youbetterbelieveit

Bank of England have made another 1% cut in interest rates, down to 2% lowest since 1951.

The ECB have cut their's by 0.75%. so it so its down to 2.5%

Big changes, and good news for homeowners before xmas.

saffron sam2

Mortgage out of idscounted period at the end of the month.

What's the best option now then experts?
the breathing of the vanished lies in acres round my feet

Donagh

Same here. Standard Variable for my lender is 4.85%

saffron sam2

Best I have seen so far is this.

Northern Bank have a base rate tracker 1.49% above their base rate for the life time of the loan - (depending on your loan to value.) with an arrangement fee of £799.

http://www.northernbank.co.uk/en-gb/Personal/mortgages/Pages/mortgages.aspx

the breathing of the vanished lies in acres round my feet