Redcellar Posted June 28, 2009 Share Posted June 28, 2009 seems so obvious, am sure many have realised but why is this not being discussed more? surely many here understand the implications or is it just that those who do are spending more energy preparing rather than talking houses? I thought the reason there were few fixed mortgages for greater than five years was because in less than five years there will be no 'fixed' houses due to flooding and global warming, they will all be bobbing about on the ocean? But the reason is not this??? Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 28, 2009 Share Posted June 28, 2009 I thought the reason there were few fixed mortgages for greater than five years was because in less than five years there will be no 'fixed' houses due to flooding and global warming, they will all be bobbing about on the ocean? But the reason is not this??? Bobbing along with everyone's pants..... Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 29, 2009 Share Posted June 29, 2009 I sometimes wonder how many would now swap their high indebted mortgage for rent-able freedom? Too dumb for that...... Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted June 29, 2009 Share Posted June 29, 2009 http://www.fsa.gov.uk/tables/bespoke/MortgagesPlenty of >5 year mortgages. As for getting them, that all depends upon people matching the bank's criteria. That's out of the bank's hands and is down to them. People can't bitch and moan if the bank won't lend them money because they've got other outstanding debts, or a few missed credit card payments. Bears appear to be wishing for lending multiples to be returned to 3x, as was the case before Gordon's miracle years. The sensible lending practices of these former times also included the requirement for an unblemished credit history, a proven ability to save and budget, and quite possible a grilling by a bank manager, where you had to prove you could afford the loan. If you want historic lending multiples, accept the criteria that come with them. i just had a look - if i was to buy we'd have around 25% LTV and less than 2 x joint salary... (we also have unblemished credit history etc etc and happy to be grilled by bank manager) yet the only 25 year offer is at 5.98%!!! the best 10 year fix is 5.19%. i could get a 2 year tracker at 2.39% - compare this to september 08 when i was offered lifetime tracker at base rate plus 0.79%. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 30, 2009 Share Posted June 30, 2009 i just had a look - if i was to buy we'd have around 25% LTV and less than 2 x joint salary... (we also have unblemished credit history etc etc and happy to be grilled by bank manager)yet the only 25 year offer is at 5.98%!!! the best 10 year fix is 5.19%. i could get a 2 year tracker at 2.39% - compare this to september 08 when i was offered lifetime tracker at base rate plus 0.79%. It's all up and down, topy turvy like, know wha' I mean, like? Quote Link to comment Share on other sites More sharing options...
eric pebble Posted June 30, 2009 Share Posted June 30, 2009 , Quote Link to comment Share on other sites More sharing options...
impatient_mug Posted June 30, 2009 Share Posted June 30, 2009 Sorry, was a double post - my ISP decided that they would deliver data if and when they felt like it that night :-) Quote Link to comment Share on other sites More sharing options...
anteros Posted June 30, 2009 Share Posted June 30, 2009 If you want historic lending multiples, accept the criteria that come with them. Sounds good, it means people will have to seriously think before making the largest commitment they will probably ever make. I know a (rather stupid) couple who started going out, bought together within a year, and then they fell out, still together cannot sell, and neither can afford to rent. If they had been required to proove that they could save this wouldn't have happened as there wouldn't have been this 'need' to buy ASAP due to ever escalating house prices. Quote Link to comment Share on other sites More sharing options...
ader Posted June 30, 2009 Share Posted June 30, 2009 yet the only 25 year offer is at 5.98%!!! Sounds like a good deal to me! The average mortgage interest rate your parents and grandparents paid over the lifetime of their mortgages was nearer 10% In 2 years time this will seem very cheap. IMHO of course Quote Link to comment Share on other sites More sharing options...
The Devils Advocaat Posted June 30, 2009 Share Posted June 30, 2009 Sounds like a good deal to me!The average mortgage interest rate your parents and grandparents paid over the lifetime of their mortgages was nearer 10% In 2 years time this will seem very cheap. IMHO of course House prices are too high, but I dont think interest rates of 10% are even remotely likely. 1970 to 2000 was a historical anomaly. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 1, 2009 Share Posted July 1, 2009 Sounds like a good deal to me!The average mortgage interest rate your parents and grandparents paid over the lifetime of their mortgages was nearer 10% In 2 years time this will seem very cheap. IMHO of course Yes - but our parents bought their properties for A QUARTER of what they cost now in real times.... So that blows that one out of the water... Quote Link to comment Share on other sites More sharing options...
Kazuya Posted July 1, 2009 Share Posted July 1, 2009 Sounds like a good deal to me!The average mortgage interest rate your parents and grandparents paid over the lifetime of their mortgages was nearer 10% In 2 years time this will seem very cheap. IMHO of course Their mortgage interest rates were also for much lower house prices hence lower monthly payments. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 1, 2009 Share Posted July 1, 2009 (edited) Their mortgage interest rates were also for much lower house prices hence lower monthly payments. Snap Kazuya! I HATE it when I hear people like that thick slag krustie trot out this "interest rates have never been so low" cr@p.... PRICES HAVE NEVER, EVER BEEN SO HIGH, STUPID! AND THE COST AS IT IS NOW HAS NEVER, EVER, EVER BEEN SO LUDICROUS!!!!!! :angry: :angry: Edited July 1, 2009 by eric pebble Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 1, 2009 Share Posted July 1, 2009 Too true Eric btw - I meant "real terms". Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 1, 2009 Share Posted July 1, 2009 Their mortgage interest rates were also for much lower house prices hence lower monthly payments. You're not allowed to state the obvious.... it's too complicated.... Quote Link to comment Share on other sites More sharing options...
Pindar Posted July 1, 2009 Share Posted July 1, 2009 And I thought it was just because they wanted to be responsible lenders. I thought they already were responsible lenders. It said so in the smallprint. Quote Link to comment Share on other sites More sharing options...
ccc Posted July 1, 2009 Share Posted July 1, 2009 House prices are too high, but I dont think interest rates of 10% are even remotely likely.1970 to 2000 was a historical anomaly. Very true. Luckily enough we have turned our back on that FIAT debt based monetary system that led to all this mess. Just thank goodness we still don't use a system where the money supply can be increased infinitely based on nothing more than a promise to pay. Just as well that 39 year anomoly is well and truly finished. Oh wait a second - it is not. The anomoly has become the norm. Woops.... Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted July 1, 2009 Share Posted July 1, 2009 Sounds like a good deal to me!The average mortgage interest rate your parents and grandparents paid over the lifetime of their mortgages was nearer 10% In 2 years time this will seem very cheap. IMHO of course Perhaps its a good deal! But not taking out mortgage on a house thats still on market at MORE THAN 2007 prices as all houses we are looking at around here (NW London) are. Also I wouldn't go into a 25 year fix as I'd want to pay mortgage down within 10 years. I am hoping that in 2 years time the houses will seem very cheap! As we have a good STR fund, if prices actually come down mortgage will only be less 20% LTV and aroound 1x joint income and then I will not mind at all if the rate is 10%. Am hoping that this sort of rate would bother everyone else! re: my parents, interestingly they never had a mortgage, and have never borrowed money. Both set of parents had managed to save around £5k each for them and my grandfather hated the idea of borrowing and he didn't want them to have a mortgage as all the mortgages then (early 1970s) were fixed and inflexible they took out a bank loan instead and paid it off by living frugally for a few years. My parents bought their house (4 bed detached) in 1972 when they got married in 1972 for £15k and have just sold for £490k. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 2, 2009 Share Posted July 2, 2009 ............/ My parents bought their house (4 bed detached) in 1972 when they got married in 1972 for £15k and have just sold for £490k. Which is why we are F*CKED today...... Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted July 2, 2009 Share Posted July 2, 2009 Very true. Luckily enough we have turned our back on that FIAT debt based monetary system that led to all this mess. Just thank goodness we still don't use a system where the money supply can be increased infinitely based on nothing more than a promise to pay. Just as well that 39 year anomoly is well and truly finished. Oh wait a second - it is not. The anomoly has become the norm. Woops.... LOL just as well we gave up debasing our currency else we would be in a complete mess now wouldn't we. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 2, 2009 Share Posted July 2, 2009 LOL just as well we gave up debasing our currency else we would be in a complete mess now wouldn't we. Yup. The genie is out of the bottle. We've reached the end of the road. Quote Link to comment Share on other sites More sharing options...
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