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(BBC-US)   UK housing prices dropping like Andy's pants   (bbc.com) divider line
    More: Followup, Money, Supply and demand, Mortgage, Foreclosure, Economics terminology, Real estate, mortgage rates, Economics  
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470 clicks; posted to Business » on 01 Dec 2022 at 6:08 PM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



8 Comments     (+0 »)
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2022-12-01 6:14:33 PM  
Why are there no Americans offering fixed rate mortgages in the uk?
 
2022-12-01 6:39:27 PM  
Looks like the greedy corporations are deciding to be magnanimous. Eventually, I bet they will stop raising prices.

We need to be sure to thank them when this happens.
 
2022-12-01 7:08:46 PM  
See, kick out all the immigrants and the housing market drops. Which is handy, because nobody has any money.
 
2022-12-01 8:36:37 PM  
"Hey, we all going to Portugal before they close the borders."
 
2022-12-01 9:40:43 PM  

hoodiowithtudio: Why are there no Americans offering fixed rate mortgages in the uk?


Fixed rate mortgages have never been a thing in the UK. The longest fixed deals were three or five years of a twenty five year mortgage, with the fixed term ending and becoming a standard variable rate for the rest of the term.
Rates have fallen in the last month after shooting up after the budget, so they should help the market.
There are also some new laws, like all properties rented out will have to meet high insulation standards, which older properties will struggle to do meaning if they can't be rented out the landlord will have to sell them. This could drive rents up and make buying more attractive, which might increase prices. Or the cheap properties hiatting the market could make prices fall. Who knows?
 
2022-12-01 9:47:49 PM  

Carter Pewterschmidt: hoodiowithtudio: Why are there no Americans offering fixed rate mortgages in the uk?

Fixed rate mortgages have never been a thing in the UK. The longest fixed deals were three or five years of a twenty five year mortgage, with the fixed term ending and becoming a standard variable rate for the rest of the term.
Rates have fallen in the last month after shooting up after the budget, so they should help the market.
There are also some new laws, like all properties rented out will have to meet high insulation standards, which older properties will struggle to do meaning if they can't be rented out the landlord will have to sell them. This could drive rents up and make buying more attractive, which might increase prices. Or the cheap properties hiatting the market could make prices fall. Who knows?


If it's anything like America, those properties may burn.
 
2022-12-01 10:09:18 PM  
Weird how kicking mortgage rates into orbit has that effect in a country where everyone is on 5/1 ARMs
 
2022-12-01 10:14:37 PM  

hoodiowithtudio: Why are there no Americans offering fixed rate mortgages in the uk?


The US has 30 year fixed rate mortgages because through the FHA and Fannie Mae and co the banks writing the mortgages can sell them on to government backed entities who absorb the risks of future interest rate hikes.

They will only do this for qualifying mortgages for US properties, so US banks can't make such offers overseas.

Prior to this setup (pre New Deal) the US was on the same system as the UK, which led to unstable house prices and a property crash bad enough the government stepped in.
 
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