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getdoon_weebobby

Uf I Could Get A 25 Year Fix At 4.99% I Would Probably Buy

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It's a very good question. A relative of mine in the US was absolutely astounded that over here we sign up to mortgages without knowing what the interest rate will be for the whole of the term of the loan.

It also serves to remind us that taking a low rate now may well give us time to repent at leisure if rates spike northwards in a few years time.

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Why wouldn't the Government just hand out £10,000 to everyone?

WHy not? By your "logic" the US gov have been doing it for nearly 50 years

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do you mind me asking, why did you not buy a house when you could have got a 25 yr fixed rate at 4.99% mortgage (2006). You can't have everything all of the time..... - presumably you only want the deal now you see prices are down.

[these deals WERE available - Nationwide's (a BS) was 5.49% in 2007 (and it was beatable)]

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they are quite correctly trying to operate on commercial terms, and this would cost the taxpayer an arm and a leg. It would severly damage the private sector banks.

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do you mind me asking, why did you not buy a house when you could have got a 25 yr fixed rate at 4.99% mortgage (2006). You can't have everything all of the time..... - presumably you only want the deal now you see prices are down.

[these deals WERE available - Nationwide's (a BS) was 5.49% in 2007 (and it was beatable)]

i was 23 and on £12,500 a year basic salary. im now 26 , a more sensible age to be house hnting and on a much higher salary.

Edited by getdoon_weebobby

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they are quite correctly trying to operate on commercial terms, and this would cost the taxpayer an arm and a leg. It would severly damage the private sector banks.

agreed but even on a 40% deposit would their not be a margin of profit for banks to borrow over 25 years from the markts and turn it into a 25 yr fix @ 4.99% ? e

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i was 23 and on £12,500 a year basic salary. im now 26 , a more sensible age to be house hnting and on a much higher salary.
right, valid enough reasons - but why 25 years. Inflation will erode your debt and a 10 year fix is about as far as most people have gambled with before - even most of the 25 year fixes offer portability without penalty after that.

I think a longer term view is sensible, but going out to 25 years may be excessive - not least as to what might happen if you need to sell up within X years.

25 years ago, Bob Geldof was being beatified and not annoying the shti out of us, Bruce Grobelaar could hardly stand up in Rome and Richard Branson was a decent bloke starting an airline, not an expensive irritating Noel Edmonds alike.... and you were just shtting in your nappies with no idea about any of this

the world is massively different now than then - why lock yourself in for that long when you have no idea what will be happening globally or to you back then.... ?

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right, valid enough reasons - but why 25 years. Inflation will erode your debt and a 10 year fix is about as far as most people have gambled with before - even most of the 25 year fixes offer portability without penalty after that.

I think a longer term view is sensible, but going out to 25 years may be excessive - not least as to what might happen if you need to sell up within X years.

25 years ago, Bob Geldof was being beatified and not annoying the shti out of us, Bruce Grobelaar could hardly stand up in Rome and Richard Branson was a decent bloke starting an airline, not an expensive irritating Noel Edmonds alike.... and you were just shtting in your nappies with no idea about any of this

the world is massively different now than then - why lock yourself in for that long when you have no idea what will be happening globally or to you back then.... ?

its all about choices. i appreciate rates could be low for years (like japan) and / or in the longer term could be high (like the 70s). why not take some of the risk out and fix while rates are at historic lows. im not asking too much - base rate is 0.5%, and im sensibly talking 4.99%. these kind of fixes are freely available in the USA for example.

Edited by getdoon_weebobby

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right, valid enough reasons - but why 25 years. Inflation will erode your debt and a 10 year fix is about as far as most people have gambled with before - even most of the 25 year fixes offer portability without penalty after that.

I think a longer term view is sensible, but going out to 25 years may be excessive - not least as to what might happen if you need to sell up within X years.

25 years ago, Bob Geldof was being beatified and not annoying the shti out of us, Bruce Grobelaar could hardly stand up in Rome and Richard Branson was a decent bloke starting an airline, not an expensive irritating Noel Edmonds alike.... and you were just shtting in your nappies with no idea about any of this

the world is massively different now than then - why lock yourself in for that long when you have no idea what will be happening globally or to you back then.... ?

Yes in a world where no one has a crystal ball, sometimes some certainty is nice.

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right, valid enough reasons - but why 25 years. Inflation will erode your debt and a 10 year fix is about as far as most people have gambled with before - even most of the 25 year fixes offer portability without penalty after that.

Are you sure? Wage increases erode your debt, not inflation...

As for the 10 year fix, you still have a mortgage to pay after the 10 years you know. It just doesn't go away.

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It's a very good question. A relative of mine in the US was absolutely astounded that over here we sign up to mortgages without knowing what the interest rate will be for the whole of the term of the loan.

Because it works so well for them over there?

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Get a Swiss loan (if you've got a 30% deposit or more), you could fix even lower than 5%.

I can get 10 years at 2.9% if I put down 25%. Yes you read that right. I forget the 20 years figures, but they're low as well.

However if the pound went even lower against the franc (it's already at historic lows)you'd be fvcked.

Have a word with Gordon, if he'd stop all this QE and borrowing, you'd be onto an almost certain winner.

Mind you I'm not sure a Swiss bank will be that enthusiastic about a UK house purchase.

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they are quite correctly trying to operate on commercial terms, and this would cost the taxpayer an arm and a leg. It would severly damage the private sector banks.

So why can other countries do it? Daughter in France just got a 25 year fix at 4.5% and I believe in France mortgages can't go over 6.5% or something like that so that people know where they are and what they will pay, where in the UK could go up to 14% , has in the past. Madness.

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Get a Swiss loan (if you've got a 30% deposit or more), you could fix even lower than 5%.

I can get 10 years at 2.9% if I put down 25%. Yes you read that right. I forget the 20 years figures, but they're low as well.

However if the pound went even lower against the franc (it's already at historic lows)you'd be fvcked.

Have a word with Gordon, if he'd stop all this QE and borrowing, you'd be onto an almost certain winner.

Mind you I'm not sure a Swiss bank will be that enthusiastic about a UK house purchase.

yeah ive thought about a carry trade type strategy. but there are a lot of hungry hungarians just now thanks to trying the same strategy

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yeah ive thought about a carry trade type strategy. but there are a lot of hungry hungarians just now thanks to trying the same strategy

It makes sense if you have swiss denominated assets for example shares of a swiss bank that you used to work for... otherwise, not so much.

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yeah ive thought about a carry trade type strategy. but there are a lot of hungry hungarians just now thanks to trying the same strategy

Yes a CHF carry trade mortgage when your currency is at an historic high against the CHF was a very bad idea as the Hungarians have discovered. However the GBP is near historic lows against the CHF, so not an issue for you.

Like I said, you need to get the loan, then afterwards persuade the government to stop QE and silly borrowing.

Easy money to be made if you're a Tory insider, I'd say.

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I find it odd that this kind of fixed is not available in the UK when its pretty standard across the rest of Europe.... I have a 100% 15 year fixed at 3.15% - at the time I got it it was almost giving money away.

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