Should You Buy a House Now, Or Wait Until 2024?

[@MattBrighton]

Are you on a fix at the moment? When does it end and what's your current plans?

[@Puzzleofflesh_UK]

How about investors who can buy cash ? Isn’t next year a good time to buy ?

[@MattBrighton]

@@Puzzleofflesh_UK 100%

[@discophil6726]

I'm on a 5 year fixed, which runs out in 3 years. 1.39%. Hoping that in 3 years there'll be no cost of living crisis, no war and interest rates have flatlined lol.... yep... i'm confident this will happen ...hmmm....🤔

[@RobinHood-us7sg]

Fixed for 5 years in June as I suspected this was going to happen. Been reducing term of mortgage every time the fixed rate term ended so another way of overpaying. Bought for £195k in 2013 and current value is £400k. Will pay off in 2027. Will be 47 at that point so my wife and I will be FI - also been drip feeding into S&S ISA for a while and other investments. We both have DB pensions and I also have an old work DC pension. Prob retire at 55 🤙🏻

[@sshahzad2402]

No I haven't fixed it yet

[@syproductions456]

As a first time buyer, waiting to buy, I really don't mind the interest rates going up, screw the high mortgage rates, it's what's needed, I'm personally rooting for a housing crash, I'm sick of everyone piling in, treating houses like investments, everything being way way overvalued.

[@yessalady5003]

Agree, especially having to go wayy over the asking price. When the house is not worth nothing near that

[@andreeaiobi8926]

why do you not find rates going up? unless you're a cash buyer, that would also affect you. and I don't think a crash similar to 2008 would happen, at most reductions of 10-15% on already very inflated house prices. that still won't help unless your deposits are, like, half of the property value so you don't repay with the majority of your salary?

[@syproductions456]

@@andreeaiobi8926 because after the fall in house prices (due to high interest rates). Eventually interest rates will come down again, there will be a brief moment in which house prices and mortgage rates are actually affordable. It may be some years before this scenario plays out, but it will happen.

[@2toneguy]

House prices are increasing because of the lack of housing, thanks to the Conservative government.

[@SA-nk8sc]

@@tristarknights it's interesting where people see 20% drop. In NY we don't see

[@darnellcapriccioso]

Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@maiadazz]

@Craig Daniels Given current recession pressures, it is unlikely that the stock will yield substantial returns in the near term. However, it may be a suitable investment opportunity. I will monitor market conditions and consider purchasing when there is an improvement in the relevant economic indicators, any idea which stocks this may be, I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[@tatianastarcic]

@Craig Daniels You're right it is still possible to hire one. I am a project manager and my personal portfolio of approximately $1.5m of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $750k since then.

[@richardhudson1243]

@@tatianastarcic I’m in dire need of need guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?

[@tatianastarcic]

@@richardhudson1243 Laurel Dell Sroufe is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@arthurwilson1066]

Laurel has been caught dealing drugs. She was a cocaine dealer out of Barking. Please avoid her, she is gang affiliated and carries a knife

[@alicemendoza5269]

It all depends on the knowledge and strategies employed, but I've seen people make seven-figure profits in declining markets just as easily as they do in rising ones. There is no denying that some people have benefited significantly from the recession and crisis.

[@patrickperez7387]

Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.

[@harod033]

Given that the US stock market has been on its longest bull run in history, the general concern and excitement is reasonable given that we are not used to such volatile markets. As you mentioned, it was not difficult for me to earn over $780k in the last 10 months, so there are opportunities if you know where to go. I engaged a portfolio adviser because I knew I needed a solid and trustworthy plan to get through these hard times,

[@godof-ou1dw]

@@harod033 Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful

[@Igorstravinsky788]

@@harod033 I'm grateful beyond words. I'm fortunate to have stumbled across your message because investment intrigues me a great deal. I'll do a search for her and message her. I'm really inspired by you. Best wishes from God to you

[@Natta44]

So I've bought a cheap house on my own with a high interest rate. It's a shite situatuin as a ftb, but I'm sick of being told to wait around. I was told this in 2020, then again in 2021 and now people are saying wait til 2023/24. I'm not treating it as an investment asset but as a house to live in (i've accepted im never gonna be rich with a 5 bed detached house in the country). My payments are affordable and I've stress tested to see if I can afford 3% higher in 2 years time which i can. I put down a 20% deposit too, so even if I might lose money in the short term (house crash), I'm less likely to lose the property unless I lost my job and can't find a new one which i doubt as im always getting head hunted. I have emergency savings too, so I've done everything in my power to mitigate repossession. I'm not putting my life on hold because of our stupid house buying system which only benefits the rich and makes the rich richer. I'm excited to finally start a life with a house with a drive and a garden and have my own space! 🙌 So for those who can afford to buy, do your research and calculations for future rises! Find a cheaper house, maybe not be your dream area but it doesn't have to be forever! And always have back up savings to mitigate for the worst. At least 3 months of salary saved or more. Don't overpay, get a proper valuation not desktop from bank. Work out how much the house could be worth in the crash and how much its likely to be when things go up again.

[@juliejets7682]

Same strategy. Thank you for sharing and congratulations on your new home

[@tomvarcoe3100]

Least your buying it for you and not paying rent to buy it for someone else

[@DAZZLLVILLE]

@nanananatta Congratulations on your new home. Wise decision you've made. I always tell people this. Yes, house prices are going to fall, but as far as you're not planning to sell it immediately, then you're good because house prices will definitely rise again.

[@Dr23rippa]

Stay at home there's no rush.

[@jonp6798]

I'm glad to see someone made the right decision instead of constantly waiting. Your words sound exactly like something I would say and you'll be saying it in 10 years when you're proven right just like the person who was saying it 10 years ago who has already been proved right who I would suggest the people worrying speak to now. Even those who were gazumped or lost property value due to a crash have made it back over time. Especially when compared with staying in their previous situation.

[@kollykolly]

A lot of folks have been going on about a January rally and said stocks that would be experiencing significant growth these new year season, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?!!

[@stellaadams593]

yes, transportation, e-commerce among other sectors are expected to experience growth, but who knows, the market has been a basket of surprises.

[@gowonjake]

@@stellaadams593 Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.

[@patriciacarlos]

@@gowonjake True, we’re only just an information away from amassing wealth, I know alot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

[@gowonjake]

@@patriciacarlos The investment-adviser I use is actually CLAUDIA TRINIDAD RIVAS, I’m not sure if she’s currently accepting new clients, but you can give it a shot, she’s a popular advisor, so you can just search her name online to get in touch.

[@brendazvandasara]

@@gowonjake Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start 2023 on a woodnote financially.

[@sharilondon9134]

For someone who is in their 20s and trying to understand all this! You explained it all so well. Thank you xx

[@MattBrighton]

Glad it was helpful!

[@5mattcolour]

We were first time buyers 7 years ago, at that time a lot of our friends stretched their budgets and mortgages as far as they could to afford the biggest houses they could get in the nicest areas. Subsequently, I know a lot of them are really struggling now as they simply cannot afford the mortgage repayments since they’ve come off their first or second fixes. Several have had to sell up and downsize or move back in with parents. We’re coming off a fix at the start of 2024. However, when we bought our house we took out a mortgage that was well within our means, so whilst the anticipated increase isn’t going to be ideal, our monthly incomes should cover it comfortably.

[@andreashessler838]

@Penderyn Nope! He's done exactly the same as me. It's called 'living within your means'. If I lost my job tomorrow, I could get another even at minimum wage and still afford my mortgage at current interest rates for an extended amount of time until I got another higher paid job. It's about being sensible as opposed to overstretching yourself.

[@KayshaHughes]

If you live in the south east, your only choice is to buy a place at the highest end of your mortgage allowance because you’re probably already not even getting ‘the place of your dreams’ but literally the cheapest place around

[@TheSmokingGunmen]

Finally someone who converts the % change into an actual cost increase. This was a very informative and interesting video. Good stuff

[@antnam4406]

You can’t convert by yourself.

[@dinogt8477]

cry

[@boabm6522]

@@antnam4406 🤣🤣🤣

[@Cheesieshorts]

Absolutely amazing video Matt! Me and my brother invested in a house over 4 years ago now when finishing uni and our 5 fixed rate is about to end this year. Great to be informed about sitting tight right now and pulling our saving together to reduce the mortgage when we go to the bank this summer :D You have earned yourself a subscriber

[@Ashtarot77]

I'm in the same position. My 5 year fixed rate is coming to an end in July.

[@makhan4908]

You can still get BTL mortgages at around 3% fixed for 2 years.

[@heard6319]

House prices go down demand increases house prices go up

[@amjadmalik7285]

​@@makhan4908 Where?

[@matthewhiggins9753]

First time buyers: Something to consider is a Discount Rate Variable Mortgage. Many building societies offer them for a 2 year discounted period (sometimes 3). You’ll get roughly 2% off the variable rate eg instead of 5.5% you’d pay 3.5% - the rate can go up or down, but ultimately you’ll save a lot of money, because the variable rate would have to go to 7.5% before you were paying more than 5.5% interest - your payments would have been much lower in the period leading up to this. If you can afford a fixed rate right now then this kind of product could be suitable for you. Best of luck

[@richardmunday2608]

I think that makes sense for people remortgaging but not necessarily for ftb’s. Currently the best variable rates also known as tracker rates are at around 4% and you need a very decent LTV of around 75%. The best two year fixes as the moment are around 5% so the bank rate would only need to go up by 1% for the payments to be higher than they would otherwise have been.

[@flynnjp19]

Why would anyone try to catch a falling knife? Just wait this one out on the sidelines.

[@specialstone9153]

Variable rate has been fraudulent that has worked against borrowers!

[@grahamh8328]

Been looking for a channel like this. Clear, factual helpful and based on the UK - thank you 🙏🏼

[@michaelsmedley7519]

Who'd of thought that making basic human needs such shelter and warmth an investment vehicle for the rich would ever cause any problems 🤔

[@sjonit1]

Bore off with your chat. Land, and property have always been money makers. Nothing new here. Next?

[@gavloft]

@@sjonit1 And the Vikings seized property bf force...were coming for yours.

[@sjonit1]

@gavloft Ooo00ooo. The vikings these days are being over run by all the immigrants they love.

[@dontreadtoofarintoit1868]

I opened the video, I looked at the big tired eyes staring back at me and I didn't need you to tell me anymore, we waiting until 2023 and possibly beyond.

[@tomase2]

😂

[@monikal.7998]

😆😂

[@ep1929]

😂😂😂😂😂😂

[@zenouxbeauty]

That’s mean. Look in the mirror

[@danh2310]

Yep happy paying the bare minimum to live at parents I've got a deposit ready to buy. But them greedy c***ts aren't getting my money the rates there charging..il sit back and wait.

[@Azmodian]

I work in the mortgage team of a challenger bank and work on a weekly basis with valuation reports. I was surprised to hear that many lenders are asking the surveyors to just list the FMV as whatever the purchase price is, we have always specifically wanted their own valuation figure based on condition and comparables so hopefully we've lent more responsibly and not contributed to this issue?

[@boombustinvest]

did Sunaks SD holiday cause a temporary 'sub-prime' market with lender greed clouding their better judgement o the consequences?

[@luiscrawford1249]

Me and my wife's budget was £170k pre Liz. Now we are looking at £120k max. The difference is a 1/2 bed flat rather than house. It's a shame. But considering were renting a room it'll be a step up either way. It's hard to tell who is selling for a reasonable price and who's still thinking it's peak house prices.

[@Yos115]

I'm looking to get a 1-2 bed flat too. I think April 2024 is looking good. I think that's when prices will be at their lowest+ I will get the free £1000 from my government ISA. Good luck to you too!

[@SimpTechMedia4D]

This was an excellent 5* video. Great job. Incredibly informative, very well structured, easy to understand and follow. Very clear in how you communicated the message. Exceptional. Please continue to work hard you deserve millions of subs bro.

[@adamwest5625]

Just glad that remortgaged last year for 1.5%. Only have 4 years before I’m mortgage free with the balance by the end of 2023 small enough l might just to pay off. After that I’ll be completely debt free. I learned from the last financial crisis in 07-09 and sorted out my finances then. About to be financially independent in 2024 with plans to semi-retire.

[@kwilson5832]

Just a couple of thoughts about paying your mortgage off next year: 1) You will probably have to pay an Early Repayment Charge to the bank for paying it off before the fixed term expires. 2) You could almost certainly invest the money that you want to use to pay the mortgage off and get more than 1.5% interest on it, so you would be better off if you invest the money instead. I know that psychologically it feels good to be debt free, but if you have more cash than debt, then surely that's just as good?

[@adamwest5625]

@@kwilson5832 Yeah I do have to consider paying ERC, however by the of of 2023, as the balance is so low it’ll only amount to £600 - I’d be fine to pay that for peace of mind. I’ve been investing regularly for the last few years so will ramp up the amount of money I put into my investments.

[@tonydayton]

Yup for that small of fee good to pay it off and have that feeling of freedom. Worth its weight in gold

[@richlee509]

@@adamwest5625 well done. Pay the erc and get it done mate

[@Station9.75]

It’s not always about “being better off financially”. Pay off the damn mortgage, take your peace of mind and enjoy the rest of your days. All the best to you mate.

[@mcd3549]

2021 December l pay 3.5k fine broke my 5 year fix and move 10y fix %2.I have been told l shouldn’t do that but glad l listen my gut feeling 🙏

[@plan8plants418]

I am a first time buyer and have been very unlucky. I have been looking to buy since early this year but have lost few bidding wars. Houses have gone for ridiculous prices, way above valuation. I went to see a house today. Asking price 189k, valuation 210k but they expect around 250K. With rising interest rates the housing market is not where it used to be earlier this year. Expecting above asking price is not realistic. I did like the house but asking above valuation considering the current economic climate is insulting. Will just need to wait...

[@MattBrighton]

I'd imagine that house will linger on the market. I've seen the same with tonnes of vendors wanting way more than what the property is worth, my email notifications are full of rightmove property reductions. We're in the weird period at the moment where sellers refuse to accept that prices need to come down so it's a bit of a stalemate market at th emoment.

[@vijaya9242]

I'm in exactly same boat. Best of luck with getting property

[@TheFakeyCakeMaker]

I watched this because I'm selling my property so I thought you were going to give me bad news but actually it's not, it's good enough news. Really enjoyed watching, a very good breakdown and good advice. Will watch more 🙂

[@Lesley_Snipes]

Great video, you have a very easy to watch style. I remortgaged in October 2022 before my fixed rate at 2.5% percent finished. Ended up locking in for 5 years at 3.9% which i'm pretty happy with because a week later it had gone up to 5%.

[@MattBrighton]

Nice! I'm sat on a 5 year fix offer at the moment at 2.1% - Just hoping we can complete the sale in the next 3 weeks otherwise buyer will lose his mortgage causing me to lose mine 🥵

[@slashingbison2503]

I agree very watchable. thanks

[@1588chrissy]

Have just fixed at 3.09 for 10yrs,hoping it was the right decision…

[@AnandanSreelal]

Got mortgage at 6.15% 😢

[@DAZZLLVILLE]

@GrimeAsylum Brilliant, you got yourself a good deal. Happy for you. Many people had to pull out of buying and some developers had to do crazy deals to get the sales going.

[@Sam_Green____4114]

Good BTL investment in Bournemouth for existing Landlords ( or new ) . Two bedroom ground floor flat near railway station,beach and city centre . Already has sitting tenants paying 875 a month . Good tenants been there about 2-3 years been no trouble , always paid and look after the place . Purchased for 148,500 in 2005 . Rented out since 2014 . Valued last year at 200,000 / 200,500 .l now live abroad in Greece .and need some capital to purchase property here . Prepared to let go for 185,000 . New Bosch boiler about Dec 2014 . Short walk to station , beach , city centre . Fairly new build , about 1995 , purpose built block . Service charge of 107 per month pay to the housing association. Paid by landlord !

[@struancochrane753]

Matt, this impending residential property market correction has been a long time in the making. The government is currently speaking to lenders about having 50 year mortgages. They are also asking for the lenders to be tolerant of people who are struggling to pay. The can has been repeatedly kicked down the road on the debt/house value bubble. The banks aren't selling or buying houses. They are selling financial packages. It surely should be up to the creditor to not only do their due diligence as to if the debtor can repay, but also if the asset they are lending against is safe, not overvalued. Now, the government won't let the market correct because of the economic repercussions. Over the past 40 years, governments from all sides have offered schemes to help first-time buyers, loan guarantees, and bar the regulatory blip in 2008, easier access to debt on the whole.

[@pauljukes525]

The first comment ref the cost of houses in the 80s fails to consider wage levels. I was working a reasonable well paid job as an aircraft engineer at that time . 13% interest rates cost me 100 % of my take home pay . If the mortgage limit remained at 3.5 times income , then house price would stabilise lower .. the present market is ridiculous. I lost a house in the 2008 crisis. FTBs are in a bad place but it's driven by the lack of affordable housing. Modern property build quality is abysmal, the developers are not regulated properly . People are buying new homes that amount to being glorified sheds.

[@ML-wy8og]

This is very informative. I think you could've talked about rental prices more and how they can force first timers just to make that plunge to buy a place anyway. It's incredibly hard to get a decent rental and rents are high, The shocks to the economy - inflation, bank rate rises - started happening around 9 months ago and house prices have only seen a slight decrease. I don't think those coming off fixes are going to be the game changer. Also as you said a lot can happen in the next 12 months. It's very likely the bank will start decreasing rates quickly when inflation is under control. Supply is a major factor and there's still not a lot of choice out there. Quite a lot of people have also paid into their mortgages with the plentiful supply of cash and savings so they don't care so much.

[@timward3116]

We're experiencing something very similar in Arizona, one of the few epicenter balloons that popped in 2008 and helped to throw the US and some other countries into a recession; however, we are told that the causes back then were entirely different and not to worry about the current situation. My little place is now worth 50% more than it cost exactly three years ago AND interest rates have gone up considerably. Of course, wages have not increased that much, and it does not seem likely that anyone who doesn't already own something will ever be able to. The "American dream" is dead for many. And, unfortunately, rents have also increased as much. And food. And everything, really. The already-rich are doing well, though.

[@cgoldsmith111]

I very fortunately ran into some inheritance a few months back, never had money before. Even with the cash buying power, it’s still very difficult to know whether to hold off until next year or put it down on a property now. The market is completely in flux.

[@Alex-he8gx]

Bear in mind that inflation eats any cash you leave laying around. So if you decide to hold off, the best strategy is to open up several instant access savings accounts and an ISA, which will partially protect you from inflation.

[@VeggieBond]

@@Alex-he8gx yes but if house prices decline then he can get something for better value. I am in similar situation

[@francoispo1481]

london pretty espensive for first time buyers ! rate hike too, if you dont have help of family etcc young people wont be able to buy houses, sadly true

[@goodlookinouthomie1757]

I'm nobody to yltake financial advice from, but almost everything I hear suggests you're better off owning pretty much any asset other than money right now.

[@BRMCaptChaos]

@@VeggieBond "if" is a tricky problem. The banks won't want to see their asset books stripped of value on the mortgage books, I try and look at it from the Banker's perspective, they want to sell mortgages. I would personally consider anything with a decent discount rate on a tracker, inflation should ease later this year, and Int rates will likely follow in due course. Doing nothing has not been kind to me based on my experience.

[@mumihp]

I am looking to buy in 2023 Summer. I and my husband are earning a good wage and we will be able to secure a high mortgage. Even though the interest rates are high, house prices are dropping. We are willing to buy it now as we know, if the interest rates drop, house prices will go up and then there will be crazy bidding wars.

[@terryj50]

I would still say buy if you can afford it, renting is always throwing money away.

[@johnhawthorne4716]

Landlord fixes all the problems in the house I.e new boiler Electric user units Blah blah which costs alot and can hapoen any time

[@terryj50]

@@johnhawthorne4716 how often do these things go wrong. Not that often

[@aidanapword]

And 8 months later this makes interesting watching. Not least of which because interest rates have not come down. And the long term vision for the return to the "emergency" interest rates of 2010- has evaporated too.

[@AshyView24]

Buying a house is a dream I gave up on a long time ago. I'm in my mid 30s and will always be single so I don't even have two incomes to factor into an application anymore. It's over.

[@johnwoods7650]

No, it's not. It is never over until your last breath. I was 40 and single when I bought my first property - a flat in Central London. I missed the boat to get it cheaper when I lived there in my 20s, but a spell in the Middle East boosted my savings. I got a mortgage charging 16% interest, but I made sure it was one I could whittle down with lump sum payments from time to time. I paid it off in 9 years and went on to own a second and third property - all owned simultaneously. If you do become an owner, just be careful if you decide to let while you are way, as there are some lousy tenants out there.

[@jamescullenseniorcggeneral8898]

I'm on a 5 year fixed starting Jan 2020 (right before the Panny D!) 2.29% I'm hoping it's at a similar level when it ends. But to be fair I do want to move soon!

[@HD999]

Real talk, instead of talking heads with vested interests, that you get on so many channels. Good job!

[@smoggyben]

I’ve been in my first home for just about 6 years now. My fix comes to an end in January 2024. I’m really hoping that the interest rate has reduced by then.

[@ashleybeech5093]

you mention that interest rates are high, but isnt this more like interest rates have been artificially low, and are now just going back to a more normal range? The past 10 years seem to have been an aberration when i look at rates over the past 40 or so years.

[@MattBrighton]

I do wonder this as well. Problem is - houses are so darn expensive now, they can't possibly stay at the rates they were before (EG 4 - 6%) minus a few peaks higher than that. My (basic) knowledge is that if interest rates stayed high while inflation is low it cause cause deflation.

[@ambientsoda106]

The fact is the PM doesn't care, parliament could have standardised a new steel framed sound resistant and partly brick or fully made brick prefab system across the state...making new designer villages and inter city Tower blocks...on block made like one if the flash towers in London could house hundreds and with a reception and concierge system also create jobs

[@mrmeldrew693]

It'd got to be better in the long run to buy. I've been a homeowner for a decade at this point. People were loudly declaring that the almighty crash was just around the corner then. I have a decent amount of equity now - renting would have left me poorer if anything as rental prices are crazy.

[@thunderbug8640]

Renting is a fools game, it is the deadest of money.

[@jonp6798]

I wish more people thought like this. Just speak to someone who has owned a property for a while and they will not say 'my house is worth less than I bought it for' They don't exist.

[@dappadondadda100]

@Thunderbug ... Well, it all depends on how many properties you have. If you have one property, you will have to live in it or move back in to your parents. And unless you're renting out a room in the property, you're not getting any income from it. In order to get money from your single property, you'll need to sell it and for a bit of profit. Buying is great, but not just buying the one house that you live in.

[@thunderbug8640]

​@@dappadondadda100 No, you just buy one and then make your money elsewhere. Buying to let is an awful way to make money. Had I gone the buy to let route instead of the route I did I wouldn’t have been able to retire when I did. Beyond that I find the buy to let types to be nothing but parasites, damaging the future of many to extract very little because they are too stupid to find the good ways to make money.

[@laurieproctor3572]

We bought conservatively and fixed for 10 years at 2.34%. Ends 2031. A 35 year fix from Habito was 3.75%, that was a little too much of an increase in monthly payment for me. (At the time). 10 year was a good compromise with the intention of overpaying and clearing the balance in that time. I saw a video someone posted, mortgage was going up circa £100 a month since June, on a variable.

[@eddyjawed4871]

So lucky well done

[@laurieproctor3572]

@@eddyjawed4871 lucky with rates to an extent, not so lucky on the highest ever house prices 😆

[@steve00alt70]

You were stuck with a house for 10 years? Compare that to the flexibility of renting

[@eddyjawed4871]

@@steve00alt70 Yep flexible renting is always good too, swings and roundabouts

[@eatmycomments]

I was laughed at when I inquired about 10 year fixes! Wish I'd persisted now

[@yogibear3161]

Well i have been here and done this, when i got my first mortgage it was 17.7% interest rates, inflation was 25%. We still have more interests raises to come and houses with the interest rates going up, could well drop in price, there's no gains in this life without pain,

[@bobbybeans8294]

wish there was some law that you can only own max of 3 properties per person or something like this

[@scaredypicker]

My partner and I are first time buyers currently buying a property that we’ve been trying to buy since August. We’re currently locked in a boundary dispute on this property, and it’s looking like it might not get resolved before our mortgage offer expires… That offer was locked in at 3.7% fixed term for two years. If we had to re-apply for a mortgage to give the seller more time to sort it out, we’d simply not be able to afford it anymore. All the money we’d spent so far on legal fees, surveys and everything would be for nothing, and we’ll be right back to square one - looking for something way less than we wanted 😢

[@andrewkumra1098]

I watch a lot of these types of videos and I can say that based on this video your content and delivery are excellent.I will definitely be watching more of your presentations. Well done so informative and definitely good to have information based on the uk.

[@lukecinahgv]

My wife and I earn around 9k a month between us. We are looking to buy a house. Got 20k saved currently and saving around 2-3k a month. At the very least we’re waiting until April as 2/3 of our income is self employed and during the pandemic in 2020 our income was “lower” As they take an average of the last 2 years earnings it means we can’t borrow as much right now, but come April, they’ll take 21-22 and 22-23 into consideration and our allowed borrowing goes from something silly like 180k to 350k. House prices going down in price would be nice as we are looking at 350-400k but my god the monthly payments are shocking 😩 think I’d rather lower interest rates

[@21stcenturycaveman33]

Matt, of all the vids I've watched on this subject yours is without doubt the best explained, the most logical and the easiest to understand for the man in the street. I believe your analysis is also spot on. Well done . Des

[@anthonyburgess9921]

Our fixed finished in august as we were selling we went into variable for a few months, got a new deal at a relatively low rate, about to move in November and it all fell through with a week to go…. Now stuck on variable unless we transfer the fixed to our house, but we were moving for school, either need a buyer asap or we are stuck in current area, as new rates basically put us out of the area we want, unless we downsize. Which with two kids would be difficult!!

[@notatryhard1521]

Dont really have much of a choice, getting kicked out of my current house because the landlord cant pay for the damages he didnt tell us about (sewage pipes crashing, power plugs being busted next to the boiler, mould growing around all the rooms etc). Just going to have to tackle the increased prices and be on my way

[@hyperbeast8898]

Same thing happening to me also, I have 2 months to leave this house

[@oddities-whatnot]

A lot of property landlords are scum. They spend as little as possible on the properties they own, to leave some in very poor conditions bordering on the unsafe. Ive known a few in my time, they all had the same attitude. They couldn't care less about the tenants.

[@kofikofi4988]

Bonjour j'ai installé la douche électrique mira. Au premier essai j'ai bien eu l'eau qui commence à chauffer. Et maintenant ça ne chauffe plus. L'eau coule parfaitement mais froide.

[@ollyole4560]

'If you're a first time buyer, I'm really sorry but you are completely screwed' - Sums up exactly how I've felt as a FTB since 2020. Thought I finally had enough desposit to buy a house in April 2020, every house I bid on went for massively above asking price, making it unaffordable. Then prices increased so fast, that my deposit would no longer keep up. Now as I've caught out with prices again, mortage rates have made both repayments unaffordable and my rent increase.

[@THEJR-of5tf]

A tip for you If an Estate agent tells you they have a better offer for a property, tell them you are no longer interested. They will deliberately inflate the price to gain more commission.

[@nigelboom3943]

It will all come crashing down soon. No ones buying right now, no one can afford the interest rate. Think of the poor buyers who were on a fixed 5 year 2% rate and now they are coming off that rate into a 5-6% rate, they are fucked. Completely fucked. Forced to give up the house and the bank takes it back and they win.

[@95lal]

@@nigelboom3943 if they were that tight on their mortgage they could never afford that house anyway after the initial rate had finished

[@garyphipp6162]

@@95lal plenty of recent buyers did choose to go on the high end as they could afford the mortgage rates at the time, a 3-5% increase will be above any budget they conceived

[@nigelboom3943]

@@95lal alot of buyers usually go for more than they can afford. Big 3 bedroom houses with 2 garages. Most people are in bad financial situation, they may make 30-40k a year but at the end of the year left with nothing because it's all outgoings, mortgage, iPhone contract, 2 Mercedes on finance, expensive clothes, expensive restaurants, expensive nights out etc

[@gaffs82]

I’m from the UK but live in the US now. Have 2 properties in the US and one in the UK. Why is is that you don’t get 30 or 15 rate fixes rate mortgage in the UK? 5 year fixes give you a very low level of reassurance of future expenditure.

[@deest5068]

I was a firt time buyer and bought last year at 3.35%. I am glad i did, even if my rates go up this year, if i wasnt owning, I'd be renting so I feel / hope that this way, I am at least not throwing my money away and in a few decades, I will own my own place, no matter how small. Let's hope I am right 🙏

[@Coastpsych_fi99]

It’s hard for those of us living at home because you almost feel trapped. Good luck

[@normanpearson8753]

You will be right .Good luck !

[@jjefferyworboys8138]

It's never a good idea to overthink things. Everyone needs somewhere to live, everything else is secondary. This country has a housing shortage which will only be exacerbated as developers stop building and comfortable older people in larger properties stay put. Rents have already increased and as over borrowed investors sell to first time buyers the availability of rental stock will also reduce and rents increase further. Someone will always pay that bit extra. You either buy or rent and the stock for both sectors is shrinking !

[@somehuman6300]

I think that often is important to think about things

[@richlee509]

Nonsense

[@Station9.75]

We have a housing shortage because the billionaires are allowed to horde properties and keep them off the market. It’s simple supply and demand. Ever notice that all these estates being built on green belt aren’t actually “affordable” even though they’re referred to as affordable housing? The whole thing’s a racket and it’s incredible that people can’t see it.

[@geoffs3310]

The older people in large houses is part of a much bigger issue with the UK stamp duty system that needs to be addressed. I read an article the other day that said there are 1.5 million empty bedrooms in the UK in the homes of older people whose children have flown the nest. A lot of these people would like to downsize but when it's going to cost tens of thousands in stamp duty then why would you. Even if your bills are a bit more expensive in a bigger house it's still going to be cheaper to stay than pay a hefty stamp duty bill. There are so many scenarios where stamp duty hinders social mobility the whole thing needs to be scrapped and rethought out properly.

[@goodlookinouthomie1757]

The housing shortage is nothing to do with adding half a million immigrants to our population every year I suppose? And that's not including the illegal ones prompting Serco and their like to remove social housing from the market in favour of juicy government "refugee" contracts. Too many people and not enough housing, simple as that.

[@nickname1812]

Having lived through all the recessions since the 70s...another signal is new car sales in the UK are currently starting to tank - badly. Particularly at the mid to lower price range. Consumers are starting to panic - 2023 is going to be a bloodbath.

[@jamesgrant3812]

Good everything at a discount

[@ep1929]

Lidl sales up 20.9% Aldi sales up 20.7% That gives a true picture of British "belt tightening".

[@nnglnd]

Supply and demand, if more people want houses then they will continue to go up ? Am I wrong? So how does the countries population affect mortgage prices ?

[@justinf1343]

I’d like to see a crash as we need to move closer to London, but I don’t see a crash happening. Too many people chasing too few properties. Lenders will most likely just allow fixed rate borrowers who are struggling, to simply switch to an interest only. That way they reduce the monthly interest payments and they reduce the risk of default.

[@lewmano7367]

3% 3 year fixed renewed a few months ago. House value has gone up 20% in the two years since I lived there… took extra cash I’ve saved and dumped it into mortgage bringing my payment down to the same level when I was on a 2%. Altered my monthly payments now to be much higher to pat down mortgage faster. Mainly because I don’t know To get my money earning for me elsewhere!

[@deromegadrei]

Randomly came onto your video. Although UK market is not applicable to me, still very interesting. You've gained yourself a subscriber!

[@MattBrighton]

Welcome!

[@counterleo]

If I were on a fixed term I'd make sure to overpay the penalty-free 10% every single time, to ensure that by the time it switches to variable the balance is as low as it can be

[@djellyt]

As a mortgage broker I can confirm there is NO mortgage crisis. The banks have plenty of money to lend and are willing to do so. You’re just going to pay higher interest. Just this last week Nationwide, TSB and Principality all reduced their rates!

[@allthingstravel8404]

I'm not sure base rate will go to 5.5% ? do you mean mortgage rates ? I have read base read should peak out at 4-4.5% ?

[@curtmank]

I have a mindset that I simply will never be able to buy my own home. Unfortunately Im not in a situation where ill inherit a house or a chunk of money from relatives. The only way I will ever own a home is if I win the lottery or marry into a rich family.

[@leabeauty837]

The only reason you will never own a home, is because of your mindset

[@martyscott1974]

@@leabeauty837 absolutely

[@johnstonlee]

Buy a house whenever you can. Tracker rates best option, can’t see rates going up much further and will have to drop in a couple years.

[@Bryansbrainblabs]

8m renting and rent is going up so I'm buying a house instead, I am happy to pay 6.1 percent interest rates. I'm just keeping a 2 year fix at this rate to see where things go In 2 years we will either have to keep paying high rates or hopefully interest rates will collapse and then roll on the good times :). We can't time the market. If I wait for a crash it would be harder to get a mortgage and lots of competition. I'm just going to bite the bullet and pay a higher rate for 2 years. :)

[@vijaya9242]

Am looking to do the same

[@kshk4051]

After 2 years the property price would increase anyway

[@RedRocket415]

All of this is good information in the mortgage context, but just considering prices would you say Central London (W2) is due to actually drop given the smaller buyer pool and historic ratio of salary to home price? Asking as an American just married into the market and trying to make a necessary life change. Currently in San Francisco market, which is also obscene.

[@nomingsendang2484]

I'm a first time buyer, looking to buy a house but I will wait little longer and see …

[@johnhawthorne4716]

Wise man

[@IRacarR]

Locked in March 2022 @ 2.5% for 5 years. 19 years left on mortgage well happy and lucky 🍀

[@gregorydefeo7369]

Here on long Island, NY people are selling homes in Autumn, hoping to sell before values decline & interest rates go up more, which will probably happen if they wait till next Spring or Summer to sell.

[@Shouldofknownbetter]

Very well explained👍🏻very interesting video😊Bravo sir😉these videos are normally hard to understand.

[@josefwinstone2754]

Hi Matt, I'm a first time buy with a 10% deposit. I've got a mortgage on a two year tracker at £730 per month on a £180k property - nowhere near the £1700 figure you mentioned. I would recommend going to a mortgage broker or shopping around to make sure you get a good rate, this was after the recent interest rate increase too. It'll no doubt go up again to 4/4.5% next year but very unlikely my mortgage will rise to over £1k p/m. Even at £1k a month it's still preferable to renting in my opinion. I'm quite lucky however and on a decent salary so appreciate it's not this easy for everyone but it's definitely not as catastrophic as people are making out.

[@Martyn_Wolf]

You got to factor in the area and the type of house (or a flat if you're going for that) that can affect the price to an extent.

[@-_-DatDude]

@@Martyn_Wolf Yep precisely, the location is the biggest determining factor. A Flat in Chelsea could be several times more expensive than a 5 bed in Grimsby.

[@matthewmicallef2458]

I don’t get the math behind interest rates going up by 3-4% on existing mortgages making monthly payments go up by 100-200%.

[@Cruzy1009]

we re-mortgaged at the start of 2022 and was able to keep a relatively low (3%) interest rate, fixed over 5 years. the problem we have is in that time period we would like to move to a larger home. The juggle is finding when will be best to sell to make a good profit on the house from we first bought in 2015, to also getting good deal on a larger home, especially because we want to avoid new builds if we can.

[@HorrorLadSteveo]

Just locked in an investment at 3.15% for 5 years back in September. Hopefully be in a better place in 5 years time

[@ryanryan439]

Spoke to a few people on 2/5 year fixes. Most were FTB also taking advantage of the tail end of HTB schemes. They’re getting absolutely hammered already. It’s only getting worse. Most I’ve spoke to were also buying significantly overvalued new builds with issues now arising, HTB payments needed and a high rate. Oh and they can’t sell as nothing seems to be selling.

[@sshahzad2402]

Quite comprehensive and easy to understand explanation. Thanks

[@H21-u8d]

So when would be the best time to sell a house?

[@maryfountain4202]

Bank of England advises a long recession. Two years isn't long, the real recession will look like 6% unemployment excluding self employed. It isn't possible to forecast the length of the war in Russia.

[@carlsimmons305]

I would be interested in purchasing an additional property, however with the additional costs incurred by Stamp Duty for additional properties it means I would be wasting money. I am not concerned by increases in mortgage rates. Ideally I would like a big crash or I would only offer well below the valuation.

[@willcasswell7141]

people thinking houses are going to fall buy 30% are dreaming. as a property developer we work on a lot less then 30% profit. soon as it’s not profitable we stop building, lay of a lot of people and wait for the demand to come back.

[@jjefferyworboys8138]

Agreed and of course very obvious to anyone with a property or financial background. Those who seem to be forecasting large falls probably don't actually own a property and are basically clueless !

[@andrewstate1155]

Bubbles about to burst and property developers and property owners can't handle it...all In denial. Fact is greed has finally caught up with reality and it isn't sustainable. Even the clueless can see that. You've hit the nail on the head saying when it's not profitable you "lay alot of people off" ..wait till that kicks in on top.

[@HIpigoRE1]

This is a global event....everywhere across EU prices did skyrocketed. In Bulgaria for example. Small country...not so significant....prices basically doubled for the past 1-2 years or since the start of Covid. Same in other Cities across EU. As comparison prices are starting from around 1k to 2k Euro for m2 and go beyond that based on the area. So if you do the math with average salary around 600-800EU for the capital cities in Bulgaria you can imagine when you would end pay up the loan. You are loaning 200k EU for s normal flat between 80-100m2 you need to return in the end to the bank above 300k EU. Long time slavery.... Probably people realized that life is short during the pandemic accompanied with the increased inflation and started to invest in property. Which is sad for young people with families. Hopefully prices would eventually start do decrease, but unfortunately they won't reach the rates prior the pandemic for sure. Also banks constantly keep increasing the loan fees so you are down from this angle too.

[@DaRkLoRd-rc5yu]

I bought my first house in December. Been wanting to buy all year but kept putting it off. Then when interest rates started shooting up that was my call to pull the trigger and I managed to get an relatively okay interest deal of 4% locked in. So far I don't think it's been a mistake. Rent costed me £11,000 a year. Buying even with the 4% interest rate I managed to get is going to cost me half of that a year to pay off the interest. The other 5-6k can then go into paying towards the value of the house(by paying off the mortgage). So I'm still better off than I would be if I waited. Unless housing prices fall enough to make it worth waiting then I don't think it would matter. For every year I waited the house prices would have to fall by over £6k for it to be worth it. And that might not happen and I could have been living and working on the house in that time. Also rent was likely to go up as well with landlords mortgage rates going up. But if house prices do crash by 30%( which I don't know if they will) next year then it is worth waiting. But I do think they will also go up again. But I would say of you find a good house for a good deal that you think you might be able to make on it if you resold after some work. Then I think you'll probably be okay going for it.

[@ohnoitisnt]

4:20 Its not the war, its the money printing. Also Interest rates are still very low compared to the historical average of 10%, and may overshoot this before stabilizing. People hgave gotten used to being able to borrow money for nearly free

[@poisonouscarnage2289]

if you want to recreate this graph 0:16 then put this symbol in trading view on % scale. its house prices / disposable income, i checked and its adjusted for inflation. GBHPI / ECONOMICS:GBDPI when you divide that by inflation it dosent correlate with the look of inflation in uk so im fairly sure its correct but let me know if im wrong

[@hairyjute]

This is the best video I've watched on this kind of thing, and I've watched alot! Thank you 👍

[@peacefamily212]

Totally agree with you!

[@huehuehuehu9429]

Everyone can predict house prices going down (and who knows, maybe they will) but I don't think people focus enough on the simple supple/demand imbalance. People need places to live, and the renter market shows just how out of whack that is right now. Houses can continue to be unaffordable for local people and still not actually drop in price (thanks to overseas investment or people unwilling to sell). My personal opinion is that we will see a slight decrease (5%?) but I don't think that we will see this huge crash that everyone is predicting.

[@martynfenton3814]

2025 at the VERY earliest if not 2030. If buyers did not budget for 5 to 7.5% then they were crazy and don't understand the difference between price and value!

[@laurieproctor3572]

From my position, I could see that not one person I know who bought a house accounted for 5-7.5%. The answer I got a few years ago when talking about unrealistically low interest rates. “It’ll never go back up, they won’t allow it. It’ll crash the economy” It was amazing the amount of pressure there was to borrow massive amounts, by mortgage advisors (obviously) and family. “You’ll never lose money in property, it’ll never go down”

[@martynfenton3814]

@@laurieproctor3572 because they are Muppets. Always budget on 7.5% as an AVERAGE 👍

[@mu11erandr31]

I have a 1.92% fixed which ends on 30th Sep 2024. I want to ride it out until then and sell immediately. Hopefully the variable rate won't sting by then.

[@tj9382]

The pandemic property boom was preordained make no mistake about that. Just before the pandemic struck, the founder of a well known used car buying business was advised to pull all of her investments from the stock market and invest in property. Go figure.

[@LJinx3]

Great video! I have a mortgage but I am prepared for rate rises (overpayment is the key to get to a better LTV!). I think there is also opportunity for those who want to move up the ladder (if you have some spare cash) - a 20% drop is a larger amount on a more expensive property relative to the one you own.

[@lorrenrochelle1061]

I currently have a right to buy on my housing association property. The £10,000 deduction will be classed as a deposit. I’m just wondering when the best time to buy would be? Houses on my street have sold recently for £200,000. Just want to know the best time to buy as I don’t want to put in the buy when house prices are at their highest

[@davidyip5557]

Nice video matt. I'm in a situation where I need to purchase our first family home. But are a bit worried about negative equity if things get really bad with the price drop. It's so hard to make a decision tbh. Payments have shot up

[@floatingino2200]

Its best to buy with at least the ability to afford 10% increase in repayments at the time of renewal and the option to rent out a room if you don't have children. Obviously nobody wants to share their personal space but it could be a safety net for a short period of time and getting a mortgage of 20 years from the get go, in the case that there is a drop and therefore increased interest rates when renewing then having an option to renew for a 20yr one again, since you would have paid some off by that time and therefore should balance any increase. If you wohld struggle with 20yr plan. Its best to lower the monthly repayment to something that would be 10% below budget at the time of purchase. There are a lot of things to consider/plan/budget. But it's always best to never purchase at your most upper limit of affordability. There will always be inflation and unless you have increasing income at a higher rate you'll be in trouble if you aren't careful.

[@tanyar2594]

We've also been put in the same position. We have to buy or face ever increasing rent payments that we can no longer afford. Even with the interest rates as they are - buying is more affordable than renting (as long as you have the deposit). Our worry is also being left in negative equity as we know this happened to the previous owners of the house we're buying so is a very real threat. But we've weighed up all the pros and cons and know we'll be here for many years to come, eventually house prices will change again like it has for the current owners and we'll sit on it for as long as we need to till there is positive equity again (if negative equity happens).

[@MoniiChanTheUnicorn]

@@tanyar2594 My plan exactly. Negative equity is only a problem if you're looking to sell. You could move in with friends/family and rent out your place if the worst came to the worst, there's still more options than the rent trap

[@bigphil5042]

I'm not sure I understood whether a first time buyer should buy now or later... Are you saying that we're screwed now and likely we'll still be screwed in 2024?

[@timmcconnon1537]

Nice video mate, well-spoken and an easy listen! I was looking to buy a second property next year, but the rising interest rates have halted that idea. Now I'll probably lump my savings on my current mortgage and see where we are in a couple of years.

[@gideondyton2025]

I am in the same position, however, I believe this market is a golden opportunity to get a bargain!

[@ljp206]

Hope the two of you treat your prospective tennants with respect and dignity, these are homes you are buying and some people aint got them.

[@dickydmcd]

These animals are precisely why the property markets screwed in the first place. Local first time buyers should have dibs rather than these parasites looking to feed off rentals. Bring in Labour, big up Mick Lynch and the working classes

[@ljp206]

@@dickydmcd my friend just because they're cunts doesn't mean we should be rude,

[@Edithae]

@willdawson I hate the Tories but you're deluded if you think Labour will fix things. This housing shortage is as much their fault as it it is the Tories. Labour deliberately encouraged mass immigration to massively grow our population, creating huge demand for housing and services, and driving down working class people's wages. This Uni-Party government is the root of all our problems, its time for new parties. I want to see Labour and the Conservatives collapse

[@bigtorrisi]

One thing has very much changed since the 80's and that is that more women are in high paid roles now, so now there are two people in a household bringing in two salaries to pay the mortgage not just one person.

[@sbcchartering4764]

We lived in a period of the lowest rates ever given due to other economic issues/crisis. In 92-97 people were paying 7% interest rates as the norm…the difference was properties had still value to gain…So back then people bought houses with high interest rates which kept values more near reality. Last few years people bought basis low interest rates, cheap borrowing which pushed prices to a bubble sky high demand….don’t buy basis interest rates , buy basis asset values…it wasn’t hard to see….Beacuse you are given the money it doesn’t mean you should take it…😢

[@NeonXXP]

I'm sat on £100k @ 2% fixed and it runs out this year. I used to be on 4% fixed and I can afford that, but if its higher I'll use the money I've been saving for an extension to pay off as much of the mortgage as possible.

[@yathprem]

Genuinely a super insightful video in simple plain English! Thanks Matt for this - helped answer my mortgage questions!

[@marksmall8692]

I'm a first time buyer. I have a budget and trying to keep to that when putting an offer in a house I like. Other buyers offer more and I don't stand a chance. The inflated houses prices are a complete joke. The government need to get a grip and pull their finger out and get the bloody houses prices down.

[@thecelt471]

Feel sorry for the young people just starting out.

[@Station9.75]

“They just need to work harder and save like I did” is the phrase I often hear now. I’m saving my arse off but the income to property value ratio is the worst it’s ever been in the UK. Literally. Just have to keep my fingers crossed for a crash, which I know sounds bad. But it’s the only way for us to get on the ladder.

[@mistercal]

I work for one of the largest building societys in the UK, we get free financial advice through work and as a first time buyer I can tell you we are getting exactly the same message as Matt has emphasised here, wait and be patient.

[@boabm6522]

Why would you steam in and buy now when you can potentially get more for your cash further down the line, with lower repayments to boot?

[@ricardosmythe2548]

It's quite simple. You have to live within your means. If you can't afford your mortgage at 8% interest you can't afford your mortgage. People shouldn't be borrowing the maximum a bank will offer them its irresponsible, your mortgage isn't a 3 month deal its a 30 year affair and it's obvious that over that period rates will rise.

[@Natta44]

It's sad but people are being educated in the risks of mortgages apart from the "Your house will be repossessed if you don't keep up your payments" statement. I'm glad I was told to stress test and have extra savings for the worst!

[@ricardosmythe2548]

@@Natta44 people are not told there deliberately made to be financially incompetent because it serves the interests of their overlords. That starts with basic education