@swhiting100 The us will cut .5% straight away when they cut, I posted on here 3 to 4 weeks ago saying they would, the dxy is in the 1.2s now which I also said a month ago would happen. 1.2 dxy means the us will cut guaranteed. Mark this post.
I’m on tracker, I was hoping for the interest rates to go down since the last BoE announcement, but instead, it has gone up .25 Is that right and fair? Shouldn’t going down? How come is going up? I don’t get it. 😢
@@propertyaccelerator I've contacted the lender. They said it takes a few weeks for the change to reflect, and it will be backdated from the time it was announced. I can see the current interest rate has gone down (0.25%) from its original level, but the monthly takeout is the same as it was. I guess it will come down on the flip side of the month; we shall see. Thank you for the massive value you provide for us all. Keep up the good work.
Thanks for the insights as always, great channel. It would be good to see what you think interest rates are likely to be next year (as an estimate) most people will be coming off a five year fix having mortgaged in 2020 when rates were low, what do you think lenders are likely to offer as an average in 2025 with the BOE reducing rates already!!
I would expect the majority of people downsizing is more to do with empty nesters/people retiring rather than changes to interest rates. Accept the volume of larger properties bought (& built) will be reducing though due to cost of financing for new deals.
You can release the equity later. I don’t think it’s a bad idea to pay down mortgages. I don’t pay mine down because I can offset the mortgage interest against tax. I despise this government so much that I’d rather pay money to the bank than to the government.
Do you know if coventry are dropping rates on the 5year fixed, hopefully completing soon. Also... Great channel. You have helped me so much these last few months as I started my journey as a 1st time buyer. I Had a lot of doubts, questions about house prices, mortgage rates etc, you have covered alot and gave alot of useful info and foresight, I really appreciate all the effort you put into you content. Great work.
Thanks Tom, they cut their rates about 2 weeks ago I believe. What could cause more rate cuts is the stock market crash, if they continues this week rates could go down.
I made a comment several months ago that the BOE had over tightened and we could even see deflation! Deflation is not good because yes interest rates will come crashing down but many people will lose their jobs. So yes your mortgage will be cheaper but that is no good for you if you lose your income!
@@Paul-zu2hf You clearly do not understand why deflation is bad. If a company has to lower its prices to sell a product the profit margins are reduced, this causes job lay offs and even companies going bust. So deflation increases unemployment.
@@beefy32 not if their suppliers have lowered their prices. Deflation would be a good thing in this country. I'm pretty sure you don't understand what deflation is anyway. Deflation is a reduction in the money supply, nothing more.
Bad times for house builders. It costs them more to borrow money , it costs them more for materials, it costs them more to pay for labour and services and on top of this they’re expected to absorb a 35% drop in house prices.
One of the other reasons developers won’t build at the rate dictated by government is because they’ve land banked sites and drip feed the market when conditions are right and they can get max returns. If they flood the market with houses, the prices will go down so they drip feed to keep demand high and prices high. Government can look at compulsory purchase but that isn’t quick and incredibly expensive meaning most sites wouldn’t be financially viable to built out. Like you say, it’s not as simple as making the planning process easier which usually just results in poorly designed schemes
They will cut earlier .5% will be there first cut, us treasury bonds have spoken last week, yeilds plummeted and coupon price went up, that tells you big banks loaded heavily on bonds because there scared of incoming decline.
The us will cut .5% straight off the bat, mark it, if you follow the stockmarkets this is were big money is made now. My put options are printing money today.
Hi great channel watching every day at the moment, we are buying a flat in the uk south east, do you think hsbc will cut rates again this week? (5 year fixed) as they are not in the top lending market deals at the moment, thanks
All your analysis does not take into account global fundamental risk. We are not immune to any global events. Chinese real estate and economy has collapsed and their banks are defaulting too. Stock markets are crashing. Israel-Iran war will escalate and involve other countries too. Who is going to think about buying a house which are not war insured? Oh, and we are already seeing civil unrest here in the UK.
Houses are usually more affordable if you work and make some sacrifices 🤷♂️ if you rushing to pub every weekend it is not affordable 🤔 but it looks like it is too hard to figure out.
You can pick out evidence to create a positive story, you can also pick out the evidence to create a negative story, but the facts are that global markets lost between 1.4 and 12.7% today. The BoE will be prudent in its response and lenders more so, as they will have lost money. As markets have rebounded knee jerk rate reduction reactions are less likely. Both will also have an eye on the budget at the end of October and those delightful tax rises Rachel Reeves has promised us all.
