[Finance] The Mortgage Market 2022

[Paulie Gualtieri]

How many 1st time buyers pay £500,000 for a house. Typical rich knobs mini budget

Help to buy inner city innit

 

[Uncle Spielberg]

How many 1st time buyers pay £500,000 for a house. Typical rich knobs mini budget

Everyone in London

 

[HAILSHAM SEAGULL]

Everyone in London

Exactly, as the poster above said, Inner city budget

 

[LamieRobertson]

Exactly, as the poster above said, Inner city budget

So everyone in London is inner city?

 

[Charlies Shinpad]

So how much Stamp Duty will I pay on £340000 now.
Not a first time buyer either.
TIA

Sent from my CPH2195 using Tapatalk

 

[HAILSHAM SEAGULL]

So everyone in London is inner city?

No, I should of said "The City" budget

 

[HAILSHAM SEAGULL]

So how much Stamp Duty will I pay on £340000 now.
Not a first time buyer either.
TIA

Sent from my CPH2195 using Tapatalk

Same I think, £7000

 

[pasty]

So have I got this right? I am completing on a £360K purchase (not first time buyer) next Friday, and now the threshold has been raised from 125K to 250K, based on the below I should save £2500 as the circled bit will disappear?

 

[deletebeepbeepbeep]

So have I got this right? I am completing on a £360K purchase (not first time buyer) next Friday, and now the threshold has been raised from 125K to 250K, based on the below I should save £2500 as the circled bit will disappear?

View attachment 152092

Yes, that should be the case.

 

[WATFORD zero]

Everyone in London

My son is looking to first time buy in central(ish) London and he's not paying that. (I will be in touch )

 

[pasty]

So how much Stamp Duty will I pay on £340000 now.
Not a first time buyer either.
TIA

Sent from my CPH2195 using Tapatalk

I think, like me (see above) you will save £2500

 

[WATFORD zero]

I think, like me (see above) you will save £2500

Which concourse will you be in for the Spurs game ?

 

[HAILSHAM SEAGULL]

I must of misinterpreted it then, do we get that 1st £2500 off?

My purchase price is £419,950, stamp duty was £10,997

 

[cheesy77]

Depends what you class as normal levels, historically the mean is probably around 4%. Dropping back to normal levels is just what we're used to since the financial crash. Trouble is if other central banks raise rates and get their inflation under control, our currency loses value so it's not just about our own inflation.

The government are then countering the blunt instrument of interest rate rises with tax cuts and bail outs such as energy caps etc. so tackling inflation with one hand, but giving it back with another. It has the appearance of 2 competing stategies to me at least.

Crystal balls, fingers in the air = government strategy principles. [emoji38]ol:

Yes good points.

I saw this chart on Twitter. Seen a lot of comments about how interest rates are low still compared to historically and especially the 90s. But....the level of mortgage debt is incomparably higher now and even rates of 4-5% can have a horrible impact on many families, devastating really.

3% vs 7% on a £400k mortgage (not unusual for London or Sussex) is an increase of over £1000 a month in repayments. Who can cope with that alongside all the other cost of living rises.

Sent from my SM-G973F using Tapatalk

 

[Bold Seagull]

What are people's views on how high interest rates will go in the next 12 months?

Officially into a recession today, albeit 0.1% contraction. Raising interest rates is exactly what you do not want to be doing in a recession, as it further dampens the economy and deepens the downturn. But I realise the BOE are grappling to get inflation under control, which is clearly the priority right now.

Surely they'll have to play a very fine balancing game though, I can't see them going over 3-3.5% at the peak? Potentially to drop when inflation is back down to normal levels, otherwise this recession will be long and deep.

Appreciate this is all crystal ball stuff.

After today's mini budget I'd be looking at the UK base rate graphs of 1980 to 1992. As an analogy of the Tour de France, we've just finished some flat stages and we're heading into the Alps...

 

[pb21]

So have I got this right? I am completing on a £360K purchase (not first time buyer) next Friday, and now the threshold has been raised from 125K to 250K, based on the below I should save £2500 as the circled bit will disappear?

View attachment 152092

Could be more than that as the bit above £250k might be at 2%, rather than 5%, or less if that bit is >5%...

 

[pasty]

Could be more than that as the bit above £250k might be at 2%, rather than 5%, or less if that bit is >5%...

Looks like the percentage rates remain unchanged, just the starting threshold has risen. This is on gov.uk SDLT page

UK GOV SDLT

 

[Cheeky Monkey]

Took me an hour and twenty minutes waiting on hold to get through to Santander this morning.

 

[Uncle Spielberg]

Same I think, £7000

£ 4500

£ 90000 5%

I believe first £ 250000 is exempt of stamp duty now

 

[HAILSHAM SEAGULL]

£ 4500

£ 90000 5%

I believe first £ 250000 is exempt of stamp duty now

Yes I understand it now, I didnt realise they were taking away the 125k to 250k bracket.
Done me a favour to the tune of £2500