Cost of living crisis

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sendô
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Re: Cost of living crisis

Post by sendô »

The covid stamp duty holiday saved me ~£11k.
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Re: Cost of living crisis

Post by mumbles87 »

sendô wrote: Tue Sep 27, 2022 2:50 pm The covid stamp duty holiday saved me ~£11k.
Depends entirely on your situation. If you were doing the move anyways then it's a benefit

Like when we moved and was completing just as Osborne cut stamp duty and saved 3k on our house (hello better sofas)

But it's the sheer amount of people who moved just because of this and now have even bigger mortgages that they took 2 year deals on due to expire next summer .. sitting on a time bomb
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Re: Cost of living crisis

Post by kenthammer1984 »

mumbles87 wrote: Tue Sep 27, 2022 3:10 pm Depends entirely on your situation. If you were doing the move anyways then it's a benefit

Like when we moved and was completing just as Osborne cut stamp duty and saved 3k on our house (hello better sofas)

But it's the sheer amount of people who moved just because of this and now have even bigger mortgages that they took 2 year deals on due to expire next summer .. sitting on a time bomb
that was almost us! we were looking for something bigger to move to as we would have saved circa £12k on stamp duty (and that is a "real" saving - not the same as asking for £12k off the price of a house to cover it).

however the market where we are was dead, nothing was coming up, so we stayed put. It was going to be a nicety to be in a bigger place, but i dread to think what the mortgage on some of the places we were looking at would be in july next year when ours would have been up!!
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Re: Cost of living crisis

Post by mumbles87 »

kenthammer1984 wrote: Tue Sep 27, 2022 3:15 pm that was almost us! we were looking for something bigger to move to as we would have saved circa £12k on stamp duty (and that is a "real" saving - not the same as asking for £12k off the price of a house to cover it).

however the market where we are was dead, nothing was coming up, so we stayed put. It was going to be a nicety to be in a bigger place, but i dread to think what the mortgage on some of the places we were looking at would be in july next year when ours would have been up!!
I was speaking to my boss last night he took advantage he was saying his mortgage is 400k now. I almost spat out my tea

To think in 2014 when I got on the ladder people thought my 250k was high
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Re: Cost of living crisis

Post by Prob »

Going through the process at the moment, the lender has come back to us and down valued the house we are buying by 20k, we went in at asking price, so it's not like we went silly over like have done. Both the lender and the broker have basically said the past few weeks all they have seen in homes being down valued. The seller isn't too happy that it's been down valued and for us, we don't want to pay more than what the lender has valued it at. Any change from us now means a new product and application, which at the current time is taking 4 weeks on average, also means higher rate increasing our LTV. Looks like they are going to put it back on the market as they think they can get more. The agent is trying the normal bull**** on us, telling us this area is its own special bubble, it's not like Romford where value has dropped a bit now. It's their risk of spending another 2 months looking for someone new, in which the value will drop more or the new buyer won't be able to get a mortgage. They already had 1 buyer pull out the last minute from them, and they wanted a far quicker sale from us which we are giving, otherwise they will lose the house they are buying.

The sold prices in June and July actually match the lender valuation. And houses that have come on the market in the last 2 weeks only 2 roads away from this place are hitting the market 10k lower than the lenders value. Same house, same level of maintenance and condition.


Others who work in and around it have said the market is ****ed. Trouble is, estate agents are still pushing prices higher and most homes that go on the market still have 100+ viewings. And agents are pushing everyone to go higher and higher.

But it is very telling the amount of houses that are coming back on the market after a month or two as the buyer basically pulls out because they can't secure the mortgage. A lot of buyers only have small deposit. Even 2-3 months ago, we were viewing a high number of places that had come back on the market due to the buyer pulling out because they couldn't get the mortgage.
Last edited by Prob on Tue Sep 27, 2022 4:40 pm, edited 2 times in total.
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Re: Cost of living crisis

Post by delbert »

Similar happened to my mates boy, the new build flat he was after was valued down by the lender, this had a ripple effect on the other buyers. As far as I can see (not having spoken to him for a while) the flats are still empty......
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Re: Cost of living crisis

Post by btajim - mcfc »

sendô wrote: Tue Sep 27, 2022 11:40 am No-one selling would probably drive down prices Jim. Us people with mortgages can see that at least.
I had a mortgage for years. I cleared it after selling E6 house.

I want to upgrade the flat to a house which will require borrowing an amount of money. It clearly isn’t the right time to apply now so I’m biding my time.
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Re: Cost of living crisis

Post by Danny's Dyer Acting »

btajim - mcfc wrote: Tue Sep 27, 2022 4:43 pm I had a mortgage for years. I cleared it after selling E6 house.

I want to upgrade the flat to a house which will require borrowing an amount of money. It clearly isn’t the right time to apply now so I’m biding my time.
Really? You never mentioned that.
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Re: Cost of living crisis

Post by sendô »

btajim - mcfc wrote: Tue Sep 27, 2022 4:43 pm I had a mortgage for years. I cleared it after selling E6 house.
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Re: Cost of living crisis

Post by -DL- »

Play the post, not the poster.

Ta.
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Re: Cost of living crisis

Post by bonzosbeard »

Why do interest rates have to go up?

I would rather pay 4x the price of my eggs through inflation than pay double my mortgage.
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Re: Cost of living crisis

Post by westham,eggyandchips »

mumbles87 wrote: Tue Sep 27, 2022 3:35 pm I was speaking to my boss last night he took advantage
You should speak to your union about that.
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Re: Cost of living crisis

Post by btajim - mcfc »

Danny's Dyer Acting wrote: Tue Sep 27, 2022 4:48 pm Really? You never mentioned that.
He brought it up. Not me.
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Re: Cost of living crisis

Post by EvilC »

bonzosbeard wrote: Tue Sep 27, 2022 7:31 pm Why do interest rates have to go up?

I would rather pay 4x the price of my eggs through inflation than pay double my mortgage.
There are loads of reasons, but how would you feel if you lost your job because your employer couldn't operate in an inflationary environment?
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Re: Cost of living crisis

Post by chelmsfordhammer91 »

EvilC wrote: Wed Sep 28, 2022 10:30 am There are loads of reasons, but how would you feel if you lost your job because your employer couldn't operate in an inflationary environment?
Ironically, there will be egg on his face.
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Re: Cost of living crisis

Post by Clacton-ammer »

an expensive one at that.
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Re: Cost of living crisis

Post by chelmsfordhammer91 »

bonzosbeard wrote: Tue Sep 27, 2022 7:31 pm Why do interest rates have to go up?

I would rather pay 4x the price of my eggs through inflation than pay double my mortgage.
My understanding is that in periods of high inflation (especially when one of the causes of the inflation is excessive government borrowing/creation of a sh*t load of money), you need to basically take money out of the system to curb spending.

To do this, two of the main tools are an increase to interest rates (so mortgages and debt cost more to make them less appealing, whilst existing debt also costs more to service, in this case for us plebs mortgages), and an increase to tax rates (to reduce what we have in our pockets which in turn reduces demand for goods, avoiding a spiraling increase in prices).

However, Truss announcing tax cuts kind of negates the impact of the recent interest rate increases, which in theory should mean a further (and more significant) increase in interest rates.

I don't really understand what the economic supporting argument would be for her decision/plan, as it doesn't make much fiscal sense to me. My understanding is that we need a controlled increase of taxation in tandem with a controlled increase of interest rates. However, this approach is relatively traditional, whereas the position we are in this time doesn't really support that as we have the energy cost crisis going which is skewing the overall inflation figure.

I could be talking b*llocks here but that is how I understand it at a very very high level.
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Re: Cost of living crisis

Post by SammyLeeWasOffside »

I guess the problem with following the traditional play book is it ignores that inflation isnt being fired up by debt so much, it's coming because an everyday product is going through the roof.

It's almost as if they are acting out an essay on 'what I would have done in 2010' in a situation that is totally different.
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Re: Cost of living crisis

Post by EvilC »

SammyLeeWasOffside wrote: Wed Sep 28, 2022 11:50 am I guess the problem with following the traditional play book is it ignores that inflation isnt being fired up by debt so much, it's coming because an everyday product is going through the roof.

It's almost as if they are acting out an essay on 'what I would have done in 2010' in a situation that is totally different.
No, it's like they are doing it because it is the least worst option. What are the better solutions?
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Re: Cost of living crisis

Post by delbert »

How does a country increase its citizens wealth and standard of living without causing inflation?
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