Jump to content
House Price Crash Forum

T M

New Members
  • Posts

    8
  • Joined

  • Last visited

About T M

  • Rank
    Newbie
    Newbie

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. not much "help" though is it ? I read that as: "we will slap on additional interest and late payment fees and collect in a year's time"
  2. Http://www.bbc.co.uk/news/business-35879180 'The company blamed a "high and inflexible cost base" and "volatile market conditions"' Funny how it's not being referred to as high property prices. Because that would have been good right?
  3. Having already bought in 2012. A place which took me 5+ years of working with 20% deposit, and which by now has magically pushed me to the 65%+ LTV bracket (due to the further inflation of the bubble, more than my own repayments). A place which was at a discount due to needing lots of work (approx 15% compared to the next door neighbour ..) And even believing in the "buying is better than renting" thing, especially as renting is equally silly money, and you get treated as a second class citizen on top of that... (the key assumption to this is that you absolutely *must* stay in the same area for 20+ years -- then it is always better to buy than rent I suppose since both are expensive..) .. I am still voting NO. Even if I had a crystal ball back in 2000 when I moved to this country and bought then (because of the "foresight")... and probably would be mortgage free by now, I would STILL not buy in 2016 (second property or whatever). If I had to move here in 2016, I'd be renting and trying to get out of the country as soon as ... (probably to the USA). .. (back to reality) Even having bought now, I am still thinking about leaving. After all I now have a son and.. how is he supposed to have a place to stay in 18 years? At least if I cash in that 40% now, I may be able to buy something outright or with a small mortgage, and enjoy my life with the salary instead of throwing it to the never ending debt hole ..
  4. OK 3% is significant but it will not kill Bill.. Think of it this way:btl didnt die when prices went up 60+% over the past 14? years. Assuming 25% deposit / that's an up front cost increase of over 15% of the total price.. What's another 3%? They will squeal, moan, complain that the government takes another 3% up front but don't forget - they don't know how to do anything else..
  5. Just noticed a slight error - above should be +9.50 base rate - rest is correct I think .. Anyway it doesn't matter as the + would change anyway! I also just realised I didn't re-do the comparison with the lesser fixes the extra 8 years of peace of mind costs (compared to the Coventry 2.35% rate) : £3645.54 at the end of Year 2 (after that we have uncertainty..) and the extra 5 years at 2.95% : £5776.87 by the end of Year 5 (again after that who knows..) Doing all these calculations - I feel rather exposed, having taken a 2 year fix myself (on a slightly larger loan)... but hey - its a problem for 2 years from now. ( la la la la laaaaa ) Hopefully 10 year fixes will still be at 3.99 in 2 years
  6. 20 years ! thats a lot of interest.. if the payment stays 658 throughout the 20 years then the calculation is based on SVR staying at +1.95% of base rate.. Fat chance of that happening if you ask me ! Of the 658 pounds - between 372.4 and 361.78 go towards paying interest for the first year. 234.05 at the end of Year 10. and you still owe 69967.62 .. I would really stress that overpaying is good in that case! (or saving separately to drop the principal using a lump sum when its time to re-mortgage) Anyway - you've already taken the mortgage out so there is no point in me trying to argue "10 year fix is too expensive". Enjoy 10 years of peace of mind And who knows maybe she can find 70k from now till then and not have to remortgage .. I could be very wrong and SVR on a mortgage might jump to 10% 5 years from now (8.05% base rate) ... in which case your monthly payment will jump to £925 a month for the last 10 years on SVR.. but you will have saved a *LOT* in years 5 to 10 ...
  7. Well - From what you've said I calculate the payment to be 1150.14.. you still owe 92961.79 at the end of Year 2. With the same payment and a 2 year fix from (for example Coventry at 2.35%) you will owe 89398.09 at the end of year 2 - thats a saving of approx 3.5k in 2 years. Or a 5 year fix at 2.95% -- 5k saved at the end of Year 5. (and only 56321.90 needed to bail her out if required then) Or you pay another product fee out of the "saving" and fix it for another 2 or 5 years if interest rates are still low.. but I understand the "helicopter cash" scenario .. I can totally see it happening to people with mortgages because it is the "right thing to do, to help struggling families in their homes" or something ... As long as you know how much thats actually costing you I guess its a perfectly valid option.
  8. Congratulations on your buy ! I think its a good idea, the only thing I don't understand is why you feel the need to pay an extra 1% (at least) in interest to the banks in order to fix for 10 years. I'd have gone for the short term fix and encouraged her to pay off as much as she can in 2 / 5 years... If and when interest rates rise you can then become her lender and she will pay you 4 / 5/ 6 % whatever the rate then will be then, I do believe this would have turned out to be much cheaper for the both of you than fixing for 10 years now .. And it keeps some money off the banks so it can't be bad
×
×
  • Create New...

Important Information