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r thritis

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Everything posted by r thritis

  1. Yeah - a few of them are doing this. This means only one thing - they are expecting the stock market to head south.
  2. Yep - and therein lies the trick. However, these 'trickster' accounts do tend to offer the best rates, so only use them if you can leave the whole sum untouched. - And when you do withdraw get the lot out on the 1st, 2nd and 3rd of the month, depending on how many days it takes. I think A+L have a daily withdrawl limit of 25K or something like.
  3. I think there is a load of paranoid tripe on here about the bias of the BBC. They have a range of editorial views. Some editors and reporters are blinded to the economic reality by their own self-interest, some are not, just like the population as a whole. There is no conspiracy.
  4. I go for the e-saver accounts, keeping less than 30K in each in case the bank goes under. Current faves: Sainsburys HSBC A+L * Birminham midshires * HSBC * The (*) ones have tricks associated (e.g. no interest in the month you withdraw)- but if you work around these (e.g. when you withdraw, make sure you withdraw it all on 1st of month, subject to daily limit), the interest rate is decent.
  5. However much of a bargain it is this month, it will be a bigger bargain next month. Buy at the the point when your need to own outweighs the cost of not waiting.
  6. These people are preying on the vulnerable, just like doorstep con artistst and they must be stopped. Weird thing is, many of these leeches assuage their consciences by convincing themselves that they are genuinely offering a reputable service.
  7. I make it £906 per month. The way to do it in Excel is like this: A B C D E F 1 o/s amount Interest Monthly payment year 2 140,000.00 704.67 906.00 rate: 6.04 3 139,798.67 703.65 906.00 mthly payment: 906 4 139,596.32 702.63 906.00 5 139,392.95 701.61 906.00 6 139,188.57 700.58 906.00 7 138,983.15 699.55 906.00 8 138,776.70 698.51 906.00 9 138,569.21 697.47 906.00 10 138,360.67 696.42 906.00 11 138,151.09 695.36 906.00 12 137,940.45 694.30 906.00 13 137,728.75 693.23 906.00 1 14 137,515.98 692.16 906.00 15 137,302.15 691.09 906.00 etc... So in Cell A2 you have the total amount, F2 the interest rate (=6.04 in your example) and F3, the monthly payment (set this to 906 - trust me on this one). The interest in B2 is =A2*$F$2/100/12 This months payment in C2 is =$F$3 The amount outstanding at month 2, in cell A3 is =A2+B2-C2 Now copy cell A3 down into all cells from A4 to A301 (just highlight it and drag it down by grabbing the bottom right corner). Similarly, - Copy cell B2 down to all cells from B3 to B301 - Copy cell C2 down to all cells from C3 to C301 In cell A301, you now have the outstanding amount after 300 months (=25 years), so you can mess about with the monthly payment in F3, so the outastanding amount after 25 years is zero (you will see that a monthly payment of 906 achieves this more or less). So after you've done all this, you can mess about with A2, F2 and F3 to try different figures (set these 3 cells to a red font or something). Enjoy! Edit: I did my best with format above, but you'll have to use your imagination a bit to figure out the columns! Edit2: And to actually answer your question, to get the capital paid off, you would then subtract the outstanding amount after month 12, 24, 36 etc from that at month 1
  8. There is a god! I had no idea you could do this!
  9. No, the way I read it, you owe 25% of the market value, whatever that happens to be in 10 years time. I have a sneaking suspicion, that they are attempting to get around the mortgage log-jam by conning the lenders into thinking that they are lending at 75% LTV.
  10. http://www.northland-developments.co.uk/newsdetail.cfm/nk/29 A cunning plan indeed. Seems you pay the final 25% of the 'open market value' in 10 years time.
  11. You may be right, but the ones that don't shift aren't the ones that define the prices, its the ones that DO shift (regardless of volume).
  12. The house I rent was previously occupied by a bbc radio DJ. I don't think it affected my rent.
  13. There will be no feeding frenzy at the trough. This is the popular myth oft quoted by the "supply and demand will keep prices up" brigade. We were told that there were hoards of FTB's waiting in the wings who would jump in as soon as prices dropped to affordable levels. You only have to look at the previous crash cycles to see that the trough is typically very long and drawn out (check out 1992 - 1996). This time around it will be no different - we wont see the trough until 2011 and rising prices before 2015? Do youself a favour, don't buy something this month that will be cheaper next month and the month after...
  14. You have to understand that the wider public do not study every detail and analyze every point reduction in the various indices like the HPC nerds on here do (self included). It takes a long time for these things to penetrate the national psyche. Even though we have passed the pivotal moment when the yoy measures have turned negative, people are still saying 1%? so what? It will be a few months yet before people start to think that maybe you were right all along, and even then they wont thank you for it. I gave up raising the subject long ago and I stay well out of it even if I hear it being raised by others. That said, a few weeks ago, just after the 2.5% drop in the Halifax index, someone said to me: "You're waiting for a crash before you buy aren't you? Well, you've had the crash, so buy!" My answer was "Well, you don't buy at the start of the crash, you buy at the end of it." Which went unchallenged, although I still felt that the air in the room was of sympathy for the poor deluded fool (me).
  15. A pampus grass outside is a kind of 'advert', I'm told.
  16. The best thing Gordon can do for affordable housing is nothing. Homes are becoming more affordable by the day. As ever, with this snivelling deceitful little man, his agenda is entirely different from his verbage.
  17. Yeah - I was surprised by that claim. What is the actual position on the amount of govt debt? I thought it was at a historical high or would he claim that it is low relative to some other point in the past?
  18. I really can't remember a time when when a government looked so incompetent. The interview was like a naughty school boy in the headmistresses office after he'd been caught with his trousers round his ankles in the girls changing room. He was set up beautifully at the outset as they replayed previous quotes from himself and Gordon and he was asked to justify the u-turns and his previous untruths. Where do they do from here? After the 10 year illusion of Gordon's economic miracle, he is exposed as an incompetent idiot. His twit of a chancellor ain't going to give him any help, thats for sure.
  19. Yeah - the RICS graph will look a bit daft over the next few months. Presumably it will flat-line at 100. I wonder if anyone will dare to spin that in the next months as "RICS indicator has levelled off" :-)
  20. The actuaries I've met had enough trouble predicting what they were going to have for lunch, let alone economic predictions. As one actuary said to me when describing their trade: "Accountants can do arithmetic. Actuaries can do long division as well."
  21. Nice analogy. In my humble, the main reason for the instability is that the practice of chopping up the mortgage into 300 equal payments (=monthy for 25 years) is fundamentally flawed. As we all know, in times of high wage inflation, this results in the payments in real terms being skewed towards the front, with payments tailing off quickly in subsequent years. In times of low inflation, the skew is less significant, with subsequent years payments being higher in real terms. The problem with this is that when you move from a high inflation world to a low inflation world, during the transition, the lenders are happy to lend more as their lending criteria is based purely on the 'affordability' of the initial monthly payment. i.e. in the lenders eyes, 6 times salary is 'affordable' in the low inflation world whereas only 3 times salary is affordable in the high inflation world. However, stating the obvious, the loan is still twice as big and overall, it still takes twice the amount of real salary to pay it off. The governor balls, need to be a mandatory weighting factor (positive or negative) that is applied monthly to the mortgages principal payment, in addition to the interest. This weighting factor would be based on one of the inflation indices. The mortage would still be 25 years, but instead of paying amount/300 + interest every month, you would pay amount/300 + W + interest. I don't know what the formular for W is, but it would be positive in low inflation times and negative in high inflation times. You wouldn't pay any more overall in real terms, it just means that you have to pay a bit more of the principal off every month in low inflation times. This would remove the inherent instability.
  22. Yeah they all do this, i.e. have an account with a fancy name where you pay a fee and get a few worthless freebies. They do the hard sell on these in order to reel in the gullable. But just like extended warranties, timeshares and the tin of spray-on stuff they always try and flog you when you buy some shoes, they are a waste of money.
  23. Made me laugh because years ago I was shown round a place by an agent. He was looking nervous when I met him outside and I started to get suspicious when he opened the door just a crack and peered inside. It turned out that the tenants had a pet python, and the previous time he'd been round, it was on the loose in the house and he was terrified of snakes. True story.
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