spyguy

Non, je ne regrette rien

Recommended Posts

locky82   

Fair play to them. Their total outgoing is £1200 - I'd assume their mortgage repayments are less than this. You guys pull figures out of the air that their payments will shoot to £2400 after a 1%. It is nonsense. Quick example If you borrowed 330K over 40yrs @ 3.2% you repay £1200. Your rate would have to jump to 8.4% before you get to £2400. Stop blowing fake news up each others backsides. 

Share this post


Link to post
Share on other sites
oatbake   
4 minutes ago, locky82 said:

Fair play to them. Their total outgoing is £1200 - I'd assume their mortgage repayments are less than this. You guys pull figures out of the air that their payments will shoot to £2400 after a 1%. It is nonsense. Quick example If you borrowed 330K over 40yrs @ 3.2% you repay £1200. Your rate would have to jump to 8.4% before you get to £2400. Stop blowing fake news up each others backsides. 

We may get there (8.2%) yet! Maybe not base rate, but I can imagine mortgage lenders piling on the misery when these kinds of loans start to look toxic again...

Edited by oatbake
Spellung

Share this post


Link to post
Share on other sites
spyguy   
16 minutes ago, Venger said:

So many of the BTLers and HPIers think those on HPC who have been renting for years vs HPI+++++++++ are idiots.

And they have a good point, vs their housing positions over all the years, even just since 2009.  Even from 2014.

 

How many times have we had the threads of buyers being idiots and uninformed, over the past 9 years?

We can't have a housing market where there is no downside to paying too much, to taking on too much debt, or from "I regret nothing" very long mortgages which means some (not those who inherit in future and pay it down) pay a lot more over the longer term.

Spyguy, you even suggest this guy may have been clueless about what he was doing, with 20+ properties bought down 20+ years.  Loaded with, until recently (S24), not much care in the world with all those properties bought down the decades and renters kicking up rent.   And he thinks S24 will be reversed anyway.  Adult man. 

People have agency for their own individual market decisions.  We can all see asking prices.  We can all run numbers.  No one has perfect reading of the market, but we call all practice caution.  We make choices.  It's true your choices spyguy, may have put you in a very solid financial position; I remember some of the numbers you told about size of your SIPP/Pension !  And to get in that position you may have worked hard (accountant's mind) and saved and invested wisely.  It's a market.

Some people choose to buy because they think it's best for them, others refuse to buy and rent, others have no option but to rent and have to rent or live in vans etc.

I'm on the side of those who refuse to overpay, and those who have no option but to rent.  Not telling the buyers (over all these years) they are innocents/victims.

 

If the idiot-callers were so right, there would be far many more sellers trying to cash in on the value of their homes at these prices levels.  Millions of people think these prices are stable and solid, and indeed many people think they're set to double again.  Market.

Oh, I think they are clueless.

But they are afults, whether they like it or not.

I have dome sympathy fir the idiot with a 40 yo mortgage in Bracknell.

I have zilch for a cretin buying 20 io btl. None, i hope - and expect - hell lose the lot and spend his retirement blowing off tramps in the park for loose change.

Share this post


Link to post
Share on other sites
spyguy   
11 minutes ago, locky82 said:

Fair play to them. Their total outgoing is £1200 - I'd assume their mortgage repayments are less than this. You guys pull figures out of the air that their payments will shoot to £2400 after a 1%. It is nonsense. Quick example If you borrowed 330K over 40yrs @ 3.2% you repay £1200. Your rate would have to jump to 8.4% before you get to £2400. Stop blowing fake news up each others backsides. 

Theres a chunky spread over BoE base rates and an 80% ltv mortgage - about 3%-4%.

You can expect that spread to stay, probably get worse. Raising rates to 3% is going to see pretty expensive mortgaes.

Esp. With anaemic wage growth.

Share this post


Link to post
Share on other sites
Digsby   

Nutters. They really haven't thought about how much interest they are going to pay, have they? What''s it going to work out as, 30, 50% of purchase price? Could be after 40 years. They'll need to be massively overpaying, probably by more than the mortgage allows.

I'm going to exchanging on my first house in days. I'm worried whether my total interest is going to be £5,000 or £12,000. I can't imagine being faced with the prospect of £30,000 or £60,000, maybe more.

Share this post


Link to post
Share on other sites
locky82   
23 minutes ago, oatbake said:

We may get there (8.2%) yet! Maybe not base rate, but I can imagine mortgage lenders piling on the misery when these kinds of loans start to look toxic again...

Why would lenders do this? They would want that money back, first and foremost. They wont want to 'pile on the misery' because its their money that goes up in smoke. 

Negative equity is their main worry - being stuck in that house with a growing family. But to be fair their rental options on the same money was probably worse/insecure/and will always belong to somebody else. 

Share this post


Link to post
Share on other sites
locky82   
10 minutes ago, Digsby said:

Nutters. They really haven't thought about how much interest they are going to pay, have they? What''s it going to work out as, 30, 50% of purchase price? Could be after 40 years. They'll need to be massively overpaying, probably by more than the mortgage allows.

I'm going to exchanging on my first house in days. I'm worried whether my total interest is going to be £5,000 or £12,000. I can't imagine being faced with the prospect of £30,000 or £60,000, maybe more.

Congratulations 

Share this post


Link to post
Share on other sites
oatbake   
1 minute ago, locky82 said:

Why would lenders do this? They would want that money back, first and foremost. They wont want to 'pile on the misery' because its their money that goes up in smoke. 

Negative equity is their main worry - being stuck in that house with a growing family. But to be fair their rental options on the same money was probably worse/insecure/and will always belong to somebody else. 

2

I do not think they'd do this deliberately to cause misery... but nothing encourages borrowers to switch their dodgy negative equity loans to a new lender like an extortionate SVR.... Plus, how many of those homes were bought with Help to Buy? After five years interest becomes due on the government-backed bit, which, as I understand it could be as much as 20% of the overall cost

 

Edited by oatbake
clarification

Share this post


Link to post
Share on other sites
spyguy   
2 minutes ago, locky82 said:

Why would lenders do this? They would want that money back, first and foremost. They wont want to 'pile on the misery' because its their money that goes up in smoke. 

Negative equity is their main worry - being stuck in that house with a growing family. But to be fair their rental options on the same money was probably worse/insecure/and will always belong to somebody else. 

The banks have to fund their loan book.

Banks capital requirements are going to go a lot higher - its not seen as extreme to see mortgage banks having to  retain capital for 20%. It was fckall in 2008.

 

 

Share this post


Link to post
Share on other sites
8 minutes ago, Digsby said:

Nutters. They really haven't thought about how much interest they are going to pay, have they? What''s it going to work out as, 30, 50% of purchase price? Could be after 40 years. They'll need to be massively overpaying, probably by more than the mortgage allows.

I'm going to exchanging on my first house in days. I'm worried whether my total interest is going to be £5,000 or £12,000. I can't imagine being faced with the prospect of £30,000 or £60,000, maybe more.

The reasoning probably went more like...

Can I get the mortgage? (Seems so)

Can I afford the monthly payments? (Yeeah)

Its a bit more than renting, but I will own it at the end. (Visualises cardigan and nice cup of tea in retirement and no housing costs)

Will everyone stop thinking I am a loser because I rent? (You betcha!!)

It is a bit longer then everyone elses mortgage. (Shut up loser! You have already missed out on years of HPI just get on with it or you will miss out on more. When it has doubled in price in five years you sell it and pay off the 40 year mortgage. You will be loaded then and get a 25 year mortgage like proper people do.)

How much interest is that? (Why bother looking, you have no choice. Its that or loser renter missing out on HPI matey)

Sorted.

Share this post


Link to post
Share on other sites
Barnsey   

That was far more sickly than anything in the Torygraph, hilarious!

That first house looks like a HTB, so 20% equity loan and a max 40 year mortgage for a box. Given prices in Bracknell levelled out around then too...oops.

In 2020 those HTB interest payments start too, whilst the possibility exists of negative equity and thus reverting to SVR, possibly imminently if they went for the cheapest 2 year fix option.

Peak prices, peak props, record low rates. Inverse swing of trends anyone?

Share this post


Link to post
Share on other sites
thewig   

you've got to hand it to the disgusting beeb / #vileBBC 

their programming of the masses is relentless and pretty unanimous, how many people do you know who don't get their real world views from the harmless black screen in the corner of their living room (aka THE BBC NEWS)

in my real world experience most people I speak to STILL see them as 'impartial'

 

they are known as auntie for a reason, reminds me of 1984 and big brother, its funny yet tragic at the same time

 

Waking up / breaking the programming is one thing, but then you realise the programme is still running and most are still locked in. :ph34r::o

 

Share this post


Link to post
Share on other sites
spyguy   
1 minute ago, Barnsey said:

That was far more sickly than anything in the Torygraph, hilarious!

That first house looks like a HTB, so 20% equity loan and a max 40 year mortgage for a box. Given prices in Bracknell levelled out around then too...oops.

In 2020 those HTB interest payments start too, whilst the possibility exists of negative equity and thus reverting to SVR, possibly imminently if they went for the cheapest 2 year fix option.

Peak prices, peak props, record low rates. Inverse swing of trends anyone?

Going by how i reckon the thames valley will go, i think thryll need to worry about the hirdes of rampaging doleys.

Share this post


Link to post
Share on other sites
Digsby   
2 minutes ago, locky82 said:

Congratulations 

Thank you, but I'm not sure it's in order, I'm thoroughly cheesed off it has come to this, but I suppose you've guessed that the fact I'm fretting over £6k interest means I'm in a pretty solid position given the circumstances. That can all change quickly though. If I'm worried in my position then I'd be having sleepless nights in that of those in the article.

I think on balance, congratulations are not warranted. Not everyone who bought into the market came out smelling of roses, my best hope is that I don't smell of shite. The automatic congratulatory tone that others take on anothers announcement that they are buying is part of the problem - it's not always good news in reality.

I understand you're just being nice though and appreciate that. I'd appreciate a warning more, though.

What do you think about the fact I'll be on a 3 year discount variable rate? 

Share this post


Link to post
Share on other sites
spyguy   
1 minute ago, thewig said:

you've got to hand it to the disgusting beeb / #vileBBC 

their programming of the masses is relentless and pretty unanimous, how many people do you know who don't get their real world views from the harmless black screen in the corner of their living room (aka THE BBC NEWS)

in my real world experience most people I speak to STILL see them as 'impartial'

 

they are known as auntie for a reason, reminds me of 1984 and big brother, its funny yet tragic at the same time

 

Waking up / breaking the programming is one thing, but then you realise the programme is still running and most are still locked in. :ph34r::o

 

Depends.

One of my Aunties did 5 years for gbh/attempted murder of my uncle.

Share this post


Link to post
Share on other sites
spyguy   
3 minutes ago, thewig said:

holy sh*t

 

Hey. 1200+ x 12 x 40.

There was a happy ending - he took her back then sha gg ed her best mate.

Revenge is a dish best served horizontal.

Share this post


Link to post
Share on other sites
thewig   
3 minutes ago, spyguy said:

Hey. 1200+ x 12 x 40.

There was a happy ending - he took her back then sha gg ed her best mate.

Revenge is a dish best served horizontal.

wait a minute, are you in EastEnders? :huh:

 

Share this post


Link to post
Share on other sites
Just now, spyguy said:

Hey. 1200+ x 12 x 40.

There was a happy ending - he took her back then sha gg ed her best mate.

Revenge is a dish best served horizontal.

If my memory serves me right, your posts about your family/extended family are either terrifying and/or hilarious in equal measure 

No offense SpyG

Share this post


Link to post
Share on other sites
Digsby   
17 minutes ago, Sawitcoming said:

The reasoning probably went more like...

Can I get the mortgage? (Seems so)

Can I afford the monthly payments? (Yeeah)

Its a bit more than renting, but I will own it at the end. (Visualises cardigan and nice cup of tea in retirement and no housing costs)

Will everyone stop thinking I am a loser because I rent? (You betcha!!)

It is a bit longer then everyone elses mortgage. (Shut up loser! You have already missed out on years of HPI just get on with it or you will miss out on more. When it has doubled in price in five years you sell it and pay off the 40 year mortgage. You will be loaded then and get a 25 year mortgage like proper people do.)

How much interest is that? (Why bother looking, you have no choice. Its that or loser renter missing out on HPI matey)

Sorted.

That's about the measure of it. Have they calculated the risk and cost of being stuck on an SVR when the introductory period ends? Have they f*ck. With a 10% deposit and 40 year repayment terms, a 5% fall in prices will possibly get them stuck on SVR for 5 years unless the payments are less than 30% of income (no calculations involved).

As far as I'm concerned, right now anything more that 75% LTV with more than 25% income payments is pretty much financial suicide.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.