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UK houses prices fall


drogon

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One penny then?

:neener:

OK I settle for a loan of a few thousand baht (gold)

:grin:

 

This must be terrible for some home owners or people on a mortgage (but like most borrowers they stupidely signed for a variable mortgage...)

 

Still, good opportunities to be found if you have money to invest.

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One penny then?

:neener:

OK I settle for a loan of a few thousand baht (gold)

:grin:

 

This must be terrible for some home owners or people on a mortgage (but like most borrowers they stupidely signed for a variable mortgage...)

 

Still, good opportunities to be found if you have money to invest.

 

Erm surely people who have variable mortagages are quids in as the interest rates have been slashed along with their monthly repaymanets, i.e. someone who was paying 6% is now paying circa 4%.

 

Its stupid people like me on a fixed 5 year at 6.2% who you should feel slightly sorry for :(

 

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chelseafan, yes recently some borrowers on variable mortgage got a very needed help but from what I read in UK newspapers it wasn't that much for some of them.

 

Some very few lucky ones got the full "discount" following the decrease of lending rates but others got only a few %.

 

On the other hand, how many got busted by their variable mortgage before the Bank of England did lower its rates?

 

Must have been the same as back here.

 

A few months ago if you want to by a condo (average price around 3OOK) then you could easily get a 1.75 - 2% variable mortgage...

 

When it skyrocketted -> many people saw their rapayments almost double...

 

You could be right about the variable mortgage now but I maintain that when you sign for a loan always take a fixed one....at least you know what you sign for. (but this is my opinion, you can disagree)

 

:beer:

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For the past few years the Bank of England rate (BOI) has remained pretty steady at around 5%ish.

 

People on variable mortgages knew roughly what they were paying back monthly.

 

Now that the BOI rate has been cut - and yes after a large nudge by the government - it seems both interest rates have been passed on in the main.

 

I dont think many people got "busted" because of the credit crunch as it took hold far too rapidly for the banks to start turfing people onto the streets. There are always going to be repossessions and this is defintely going to increase rapidly.

 

To be fair, the government has reacted pretty quickly (Well for them) in reducing interest rates. Their biggest mistake was cutting VAT though.

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Thus I am wrong about UK as I thought the same happe nedf to you as in the US-Spain-Ireland.

 

Good for you but you are not a dumbass at all to have signed up for a fixed rate mortgage....

 

Your ass is covered no matter what happens.

 

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