Ouch!
Hypothetical here:
I want a house worth £165,000.
(In above article) Halifax 2yr fix at 7.29% with 10% deposit!
£150,000 to borrow at 5% is £887. Say a few months ago this would have been the rate banks could offer.
Then came the credit crunch and banks take a bigger hammering than we realise.
So today:
£150,000 to borrow at 7.29% is £1,101 per month! Monster rise - never mind food/ petrol etc
To get to £887 per month you could only borrow £121,000. This puts house value at £133,000 with no real term reduction, i.e. saying it was not over valued in the first place!
Does that alone not suggest the crash is yet to come?