Any guesses where interest rates are going

[rosieposiedrops]

Wow I have been looking to buy a house for a year it's been a struggle stock is so bad in our area.
With the interest rates going up it's made me realise my budget for a house just got smaller because the repayments have gone up so much now since i first started looking.

Not sure if to try to balance this by getting a tracker but even then the interest rates are so high. Sigh. So difficult at the moment. Anyone know anything more about these things than I do?! I'm feeling like if I can't afford the repayments then surely others won't and something has to change with these extraordinary house prices that are happening right now!

@rosieposiedrops - I doubt prices in the SE will continue to rise. Demand is chiefly based on what people can afford and that is chiefly based on the cost of borrowing and the willingness of the banks to lend. Hence, as these things become less favourable, as they are already doing, 'demand' will fall. In certain parts of the country there are lots of wealthy foreign buyers but not in every part of the SE by any means.
I totally agree that conditions for tenants and the prices are ridiculous and a good reason why people prefer to buy.

@rainingsnoring I think growth will slow but not go down or at least in my area of the SE for detached houses that we are looking at. We are still fighting for viewings of some properties. Phoned up earlier to see a property and by this afternoon it's had too many offers for us to view it.

I would agree that prices should go down but things keep being put in place to prop it up (buying schemes, the stamp duty relief etc, lots of wealthy people coming in from places like Hong Kong, in my area anyway) and housing stock will become less available as people choose not to sell so prices stay or grow not go down.

Very annoying for us! My pay hasn't gone up in 3 years because my company is right so as a result I'm also on hold before moving jobs for more pay because the banks are checking how long I've been at my company as well and I don't want to scupper my chances of getting a mortgage asap with these rates rises.

@rosieposiedrops good luck with whatever you decide to do.