Everyone’s talking about the government’s ‘Green Deal’, but what does it actually mean? And, more importantly, what’s in it for us?
Why is the housing market not obeying the rules of supply and demand? Or is it?
House Prices, Mortgages 1 CommentHands up those who have sat through economics lessons at school or university? Those of you now with your hands up will certainly remember that the law of supply and demand is just about the first thing that you learn.
Let’s face it. For nearly every reader of this blog, the housing market has served up just about the least rewarding outcome we could have hoped for. First time buyers are in as sticky a situation as ever. Home owners are still nervous about shifting house prices. Buy to let investors haven’t seen the growth they were hoping for. But if we’re all losers, who exactly are the winners?
That’s when it occurred to me. Who exactly is this market pleasing?
There’s a popular belief about UK house prices, and it goes something like this:
House prices formed a bubble in the mid-2000s, which burst in 2007-2008
The resulting fallout nearly ruined some of our big banks
Now we’re in a post-bubble phase where house prices are back to normal
But if that sums up your view on the housing market, you’re probably believing a myth.
The Bank of England has again held interest rates at an historic low of 0.5% but fears are growing that mortgage borrowing costs will not stay down for much longer.
The base rate has been the same for about two years and those on tracker deals would have definitely benefited the most. I was one of those lucky people – signing up for a three year tracker in 2007 at a rate of 4.9% and then gradually seeing my payments get lower and lower until my mortgage company capped the rate at 2.75%. My tracker deal has now ended and my payments are worryingly starting to rise.
With Britain’s recession, tax increases, government budget cuts and an anticipated rise in interest rates, times are getting financially harder for a lot of us. If you’re struggling to pay your mortgage then don’t suffer in silence or risk losing your home – there is help available. One option you may want to think about [...]
