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House Price Crash Forum

Mammon

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Everything posted by Mammon

  1. And you can bet all these posts will get deleted
  2. 20 year fixes were around a few years ago and maybe still around. The problem with fixed rates is that there is usually a penalty to get out of them early (if there was no charge then people would constantly switch to lower and lower fixed rate deals as they became available). So if you have to sell up early for some reason you will get hit with an early exit charge. Even if you move house you can probably take the mortgage with you but if you need extra borrowing to move up the ladder and your current lender wont give it to you then to switch lender you will have to pay the charge. So there is not much demand for very long term fixed mortgages and so not many products available.
  3. Sounds like the fix is for 5 years only. The SMR is probably the standard variable rate and currently 3.99%, in five years time it could be much higher than 3.99%, you will have to pay whatever it is at the time, although you will be free to find another deal else where or with the same lender. If you cant find another deal then you will pay the going SMR rate until the end of your mortgage and the rate will vary over that period.
  4. Both gold and house prices can go up, but the ratio can still go down if gold rises faster than house prices. Your graph is logarithmic so this obscures how cheap house prices are in gold today compared to a few years ago (almost 70% cheaper!).
  5. In london prices doubled between 1996 and 2000.
  6. Buy him one of these http://www.amazon.co.uk/Tap-Shower-Hose-Kit-90cm/dp/B002EP8HM2/ref=pd_cp_kh_3
  7. "The council's budget for 2008/09 set out a total expenditure of £360.89 million, with £75.29 million coming from council tax." The total wages for 8000 people must run in 100s of millions. So £26m for pensions isnt alot. Something in the order of 10%. Still it is a lot more than i ever got in the private sector.
  8. Sounds like the value of your house just dropped 20%.
  9. Most mortgages are portable. At least mine is.
  10. Thats good news. So everyone coming off a two year or longer Fixed rate deal with Nationwide in 2010, will enjoy 2.5% interest rates in 2010.
  11. The Halifax alone has six hundred thousand tracker customers. And they have less than 20% market share.
  12. Or perhaps house prices are not insane based on all the money supply/credit inflation over the last 10 years. Perhaps its the wages paid to the masses which are insanely low.
  13. That line reminds me of an article in the mail yesterday about classism replacing racism in the UK.
  14. There are several million life time base rate tracker mortgages in the UK. Contractually within 1% of the base rate. There an even higher number of informal SVRs (base rate + 2% or similar) for millions of existing mortgage holders (think Nationwide). These arent contractually designed to follow the base rate but they do. So it is hardly the exclusive club you make out, but it is closed to new members unless you have a huge deposit.
  15. The nationwide and halifax sample sizes are huge. 50% of a huge sample size is still a huge sample. You could probably get a very good idea of house prices changes by sampling a few hundred representative streets in the UK. Its like the pollsters, they only need to phone a few hundred people to get a good idea, phoning 10,000 wont improve things much, but sampling on a few dozen wont be enough.
  16. For a 15% deposit to turn into a 25% deposit will require prices to fall 40% from current levels. I dont remember the OP mentioning she wanted to buy a 4 bed place? Ideally prices will not rise this year and they can save up the other 10% needed. But if the OP thinks prices are going up from here, then she needs to act fast.
  17. I remember the 89/90 crash. My older sister got repoed in the early 90s due to divorce. She never been able to buy again. Bank still chasing her for the 20K negative equity 20 years on. She couldn't BK due to her job. The last crash was 30% off peak, this one should have been 50%. But i don't think it will happen. Sort of hope it does. I would like to upgrade from my 3 bed house to a 5 bed detached.
  18. The asking price of their house must be going up each year. Three years ago the exchange rate was around 2.5, today its nearer 1.65.
  19. Vested interest. That is what some people on here call EAs and other parties that interested in talking up the market. I used to be an IT contractor, i still sometimes post on contractoruk.com, i know a few other HPCers post on that forum also. I gave all that up to speculate full time on the financial markets. I only own one home, dont even have any BTLs.
  20. Im not a VI, although for some reason people think i am, im just an ex IT guy, java programmer who now speculates for a living.
  21. If you can afford it and the interest rate is low enough. If you can get 8% then that is only a few percent above the mortgage rate you would have been paying anyway had you manged to get an 85% mortgage. However the payments will be higher because the repayment period is likely to be much shorter. Only you will know if you can afford it. The other issue will be the bank will ask you where you got your deposit from. You might have to keep quiet at this point, although that could be classed as mortgage fraud, however as Peter Mandelson once borrowed his house deposit and did not declare it and later got caught but nobody cared.. You maybe able to tell the truth, your mortgage lender might not care as long as you pass their credit score while carrying that existing debt.
  22. Borrow the other 10% with an unsecured loan.
  23. Your quote doesnt say if that % based on joint income or highest earners income for cases when there is joint mortgage. £2600 a month is the combined take home of two average wages.
  24. Why so rigid 3x income? We seem to be an era of low interest rates so 5x is acceptable. Likewise if interest rates were going be 15% for the next 10 to 20 years, then 1.5x multiple would be more appropriate. I think if you have a 35% deposit you should be allowed to borrow whatever multiple you want to.
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