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Co-Operative Have Pulled Their 10Year Mortgage Fix


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Laugh all you like guys - not every HPCer will be buying outright. As an example... borrow 120k pay back interest and put aside 1k a month = 120k to clear mortgage at end of fix. Mortgages + good housekeeping is not necessarily a bad thing ;)

dumb frack.

you have 1000 per month spare, that means an extra 200K on your purchase price.

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dumb frack.

you have 1000 per month spare, that means an extra 200K on your purchase price.

Yes and no. We have 3000 per month spare and that's out with the 500 interest charge and 1000 for running the household. that's 600k on the purchase price if you want to be a debt slave for ever. The house is more than adequate to bring up our young family so it's not a foot on the ladder as we are setting roots.

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dumb frack.

you have 1000 per month spare, that means an extra 200K on your purchase price.

People just do not remember what paying rates like 9% is like. But during the next few years some will find out. So they thought a £250k Loan at 5 times salary was great. But when they have to pay 9% it will cost £2100 per month. Not too many people can manage to pay out £25200 pa before any other bills. And what's more, in the SE many houses between £250-300k are relatively modest semis or even terraced. If it is rented the LL will be sorely out of pocket. The rent might be £1000 to 1300 pm max on these homes.

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People just do not remember what paying rates like 9% is like. But during the next few years some will find out. So they thought a £250k Loan at 5 times salary was great. But when they have to pay 9% it will cost £2100 per month. Not too many people can manage to pay out £25200 pa before any other bills. And what's more, in the SE many houses between £250-300k are relatively modest semis or even terraced. If it is rented the LL will be sorely out of pocket. The rent might be £1000 to 1300 pm max on these homes.

As much as I love the idea of 9% IRs it would destroy the UK at the moment.

Let's face it - it ain't gonna happen any time in the future - it would bring the banks down again.

The way I see it, it really is different this time.

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People just do not remember what paying rates like 9% is like. But during the next few years some will find out. So they thought a £250k Loan at 5 times salary was great. But when they have to pay 9% it will cost £2100 per month. Not too many people can manage to pay out £25200 pa before any other bills. And what's more, in the SE many houses between £250-300k are relatively modest semis or even terraced. If it is rented the LL will be sorely out of pocket. The rent might be £1000 to 1300 pm max on these homes.

Then it'll be Time To Raise The Rents.

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People just do not remember what paying rates like 9% is like. But during the next few years some will find out. So they thought a £250k Loan at 5 times salary was great. But when they have to pay 9% it will cost £2100 per month. Not too many people can manage to pay out £25200 pa before any other bills. And what's more, in the SE many houses between £250-300k are relatively modest semis or even terraced. If it is rented the LL will be sorely out of pocket. The rent might be £1000 to 1300 pm max on these homes.

4.5% will be our 9% not in the next 5 years mind!

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As much as I love the idea of 9% IRs it would destroy the UK at the moment.

Let's face it - it ain't gonna happen any time in the future - it would bring the banks down again.

The way I see it, it really is different this time.

Whatever the BOE do with the base rate is irrelevant. The banks will want to charge a positive real interest rate, so if inflation gets to 7% mortgage rates may be 9%. Also remember that the banks currently need higher than normal margins to rebuild their balance after the credit crunch, and this will only get worse as house prices fall / defaults rise.

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Whatever the BOE do with the base rate is irrelevant. The banks will want to charge a positive real interest rate, so if inflation gets to 7% mortgage rates may be 9%. Also remember that the banks currently need higher than normal margins to rebuild their balance after the credit crunch, and this will only get worse as house prices fall / defaults rise.

As a result 100,000s of UK 'home owners' go bankrupt in less than 12 months...

What do you think the UK banks will do with 100,000s of empty properties???

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As a result 100,000s of UK 'home owners' go bankrupt in less than 12 months...

What do you think the UK banks will do with 100,000s of empty properties???

I guarantee that they'll set up a joint initiative with our corrupt government to offer FTBers a step on the fabled ladder through another glorified homebuy scheme. This time it won't just be open to key service worker but anyone who can demonstrable show they have a pulse. So the sheep will effectively rent from the banks whilst paying for the upkeep. The end game cometh!!

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I guarantee that they'll set up a joint initiative with our corrupt government to offer FTBers a step on the fabled ladder through another glorified homebuy scheme. This time it won't just be open to key service worker but anyone who can demonstrable show they have a pulse. So the sheep will effectively rent from the banks whilst paying for the upkeep. The end game cometh!!

You've just contradicted yourself here...

The rapid crash will be bad for the UK banks, therefore it won't be allowed by the UK banks (didn't the 2008 teach you something!).

Firstly, they will completely destroy the pound, then they'll go for the 70s style inflation...

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You've just contradicted yourself here...

The rapid crash will be bad for the UK banks, therefore it won't be allowed by the UK banks (didn't the 2008 teach you something!).

Firstly, they will completely destroy the pound, then they'll go for the 70s style inflation...

I don't see how renting out 100,000s of houses at say 3% allowing the banks to have on paper at least a full 100% bookvalue is a contradiction. It's not like they'll have to maintain them and as others have established a BTL would be very fortune to clear 3% today, they will. Inflation will do the rest - it won't be 70s style we'll just get poorer.

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As a result 100,000s of UK 'home owners' go bankrupt in less than 12 months...

What do you think the UK banks will do with 100,000s of empty properties???

selling them would be a cinch...there is a shortage dontchaknow.

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