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Bruce Banner

Affordable Mortgages

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you are forgetting that we need more cheap credit to get us out of the problems created by too much cheap credit.

prices have to come down, there have to be some losers.

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... who will be able to afford to service their mortgage when rates return to some semblance of normality?

I am paying 2.5% fixed on a £0.29 outstanding mortgage. It has another 22 years to run. I thought about paying it off, but it would cost me more in postage and aggro than letting it run. It is also good for my credit score. And I avoid paying safekeeping fees on the deeds. I daren't pay it off. Oh, I can MEW at 2.5% for a couple of hundred thousand if I ever need it. I worked and saved hard to get here, for a long time.

What I am pointing out is that not all mortgagees have 7x salary, 3 kids, and an Audi on payments. An awful lot of mortgagees owe almost nothing, and correspondingly a few owe a lot. When I took my mortgage it was 6x salary, but that was a long time ago. 10 years of stagnation and many people will come through with their home ownership intact.

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An affordable mortgage is one that you can afford to service.

So who will be able to afford to service their mortgage when rates return to some semblance of normality?

Those who borrowed 3.5 times their salary or less?

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I am paying 2.5% fixed on a £0.29 outstanding mortgage. It has another 22 years to run. I thought about paying it off, but it would cost me more in postage and aggro than letting it run. It is also good for my credit score. And I avoid paying safekeeping fees on the deeds. I daren't pay it off. Oh, I can MEW at 2.5% for a couple of hundred thousand if I ever need it. I worked and saved hard to get here, for a long time.

What I am pointing out is that not all mortgagees have 7x salary, 3 kids, and an Audi on payments. An awful lot of mortgagees owe almost nothing, and correspondingly a few owe a lot. When I took my mortgage it was 6x salary, but that was a long time ago. 10 years of stagnation and many people will come through with their home ownership intact.

wow, a post about a person with little debt, being able to service, little debt, suggesting that little debt, is easy to service.

amazing the incites one can learn on HPC

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wow, a post about a person with little debt, being able to service, little debt, suggesting that little debt, is easy to service.

amazing the incites one can learn on HPC

One could learn that it's insights for a start.

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An affordable mortgage is one that you can afford to service.

So who will be able to afford to service their mortgage when rates return to some semblance of normality?

Yes. But I overpay and bought before HPI got silly ( 2001 ).

About 6 months ago before I changed to an offset mortgage I made a big spreadsheet to work out if it was worth changing. I included interest rate variation ( assuming it was constant ) and came to the conclusion that overpayment is a great way of dodging the hurt of high interest rates. IIRC I figured I would be unaffected up to a rate of 15% which is far beyond normal but still happened in living memory. I didn't bother checking any higher.

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One could learn that it's insights for a start.

depends if that was the meaning I was trying to convey.

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Yes. But I overpay and bought before HPI got silly ( 2001 ).

About 6 months ago before I changed to an offset mortgage I made a big spreadsheet to work out if it was worth changing. I included interest rate variation ( assuming it was constant ) and came to the conclusion that overpayment is a great way of dodging the hurt of high interest rates. IIRC I figured I would be unaffected up to a rate of 15% which is far beyond normal but still happened in living memory. I didn't bother checking any higher.

I had a mortgage at the time that interest rates touched 15%.

My strategy was to act on letters from the bank asking me to increase my standing order and ignore those seeking a decrease.

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  • 312 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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