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Just noticed this from the Co-Op Bank.....

Details

You do need a 25% deposit but that does seem like a fantastic deal compared to anything else available. Will be interesting to see if the other banks follow.

I just fixed with my existing mortgage supplier, Santander. Was on the SVR (4.24) after being on a tracker for 2 years and was quite pleased to be offered 4.6% with no fees for a 5 year fixed.

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Just noticed this from the Co-Op Bank.....

Details

You do need a 25% deposit but that does seem like a fantastic deal compared to anything else available. Will be interesting to see if the other banks follow.

Whats the % rate for the remaining 20 years and then we can decide if its a fantastic deal or not? wink.gif

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Whats the % rate for the remaining 20 years and then we can decide if its a fantastic deal or not? wink.gif

Who knows what the rate will be in 5 year! What I do know is that at that rate (where I live) I could fix my interest payment (rent!) for a 4 bed house at a lower monthly payment than the rent for a 2 bed cottage.... that sounds compelling.

If the 10 year rate goes below 5% then the same situation as I describe above ca be secured for double the length of time......

My point is that nobody knows what the world will look like in 5 or 10 years time, however if you can secure fixed finance for a house twice the size of what the equivalent would cost in rent it does start to make sense..... to me anyway!

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Who knows what the rate will be in 5 year! What I do know is that at that rate (where I live) I could fix my interest payment (rent!) for a 4 bed house at a lower monthly payment than the rent for a 2 bed cottage.... that sounds compelling.

Back it up with links or its hokum :)

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Back it up with links or its hokum :)

I never really get the 'back it up or you're lying'!! Why would I lie when I am just putting a scenario out there...

Anyway....

2 bed cottage to rent - £1350

2 bed cottage

4 bed house - £550k - which would be a £412k mortgage at 75% LTV - which is about £1371 in interest a month

4 bed house

I could find better examples as these aren't in exactly the same postcode...but I dont have the time right now

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I never really get the 'back it up or you're lying'!! Why would I lie when I am just putting a scenario out there...

Anyway....

2 bed cottage to rent - £1350

2 bed cottage

4 bed house - £550k - which would be a £412k mortgage at 75% LTV - which is about £1371 in interest a month

4 bed house

I could find better examples as these aren't in exactly the same postcode...but I dont have the time right now

Yeah, but you don't need a £138,000 deposit to live in the cottage.

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Yeah, but you don't need a £138,000 deposit to live in the cottage.

Precisely, and the interest and investment gain you could get on £138K is not insubstantial.

I'd say this is all about stability and risk. You could lose a fortune by buying the house as looking back in June 2020 you might have taken a £100K hit on the price, but you could also put the £100K into gold and buy the whole street in 10 years time. Or gold could tank or get tax-raped and you'd wished you'd spared yourself the hassle and just bought the house and enjoyed living in it.

Personally though, I wouldn't take out a £400K mortgage just as the world's about to go to hell.

Gold and some other interesting investment would be much more fun.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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