getdoon_weebobby Posted September 17, 2009 Share Posted September 17, 2009 (edited) ...if they want to put a floor under the market? Edited September 17, 2009 by getdoon_weebobby Quote Link to comment Share on other sites More sharing options...
Patfig Posted September 17, 2009 Share Posted September 17, 2009 ...if they want to put a floor under the market? Beat me to it Wee Man, I was juts thinking the very same thing Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
workingnomad Posted September 17, 2009 Share Posted September 17, 2009 Why wouldn't the Government just hand out £10,000 to everyone? Quote Link to comment Share on other sites More sharing options...
Patfig Posted September 17, 2009 Share Posted September 17, 2009 Are there any 25 years fixed rates out there? Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted September 17, 2009 Author Share Posted September 17, 2009 Are there any 25 years fixed rates out there? dont think there are many 10 yr even Quote Link to comment Share on other sites More sharing options...
kilroy Posted September 17, 2009 Share Posted September 17, 2009 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 Quote Link to comment Share on other sites More sharing options...
Patfig Posted September 17, 2009 Share Posted September 17, 2009 dont think there are many 10 yr even A gap in the market Quote Link to comment Share on other sites More sharing options...
Rachman Posted September 17, 2009 Share Posted September 17, 2009 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)] Quote Link to comment Share on other sites More sharing options...
Si1 Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted September 17, 2009 Share Posted September 17, 2009 Ironically I was looking at that product offered by Woolwich before the "crash". Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted September 17, 2009 Author Share Posted September 17, 2009 (edited) 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 September 17, 2009 by getdoon_weebobby Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted September 17, 2009 Author Share Posted September 17, 2009 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 Quote Link to comment Share on other sites More sharing options...
Rachman Posted September 17, 2009 Share Posted September 17, 2009 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.... ? Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted September 17, 2009 Author Share Posted September 17, 2009 (edited) 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 September 17, 2009 by getdoon_weebobby Quote Link to comment Share on other sites More sharing options...
Patfig Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted September 17, 2009 Share Posted September 17, 2009 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? Quote Link to comment Share on other sites More sharing options...
swissy_fit Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
RandomBear Posted September 17, 2009 Share Posted September 17, 2009 Makes more margin for banks if you churn your mortgage every 2-5 years doesn't it... Quote Link to comment Share on other sites More sharing options...
Sybil13 Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted September 17, 2009 Author Share Posted September 17, 2009 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 Quote Link to comment Share on other sites More sharing options...
RandomBear Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
swissy_fit Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
Smog Posted September 17, 2009 Share Posted September 17, 2009 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. Quote Link to comment Share on other sites More sharing options...
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