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A Mortgage Broker Said To Me


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Are there no houses for rent? Isn't there a compromise?

IMO you are being debt pimped by a mortgage broker so short on fees that they are about to lose their own home.

Surely your children would benefit more from a parent who is not worried sick with debt than they would from avoiding being forced to share a room?

As to interest rates being stable as this level, he's half right. They won't go down.

Stay the ***k out of property until interest rates renormalise. These are emergency rates to deal with a banking crisis. It's dumb luck this happened on your watch, when you need a family home, but there's no obligation to make things worse than they already are.

Don't take financial advice from someone making a percentage on the loan.

Correct. Save as much as you can and sit back and relax.

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That's if you manage to pay off more of the principal than you lose to deflation.

so if I pay off 10 K and now owe 170 K but the value has dropped by 20 k , i need to get a new loan of a 170 k to continue pay for a house that i paid 250k for but is now worth 230K ?

Is that it ?

Not sure i understand ..

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Amongst other things

that he could get me a 5 times salary mortgage with 33 years to pay it back with a 3 year fixed rate from santander. Infact he seemed most keen to sign up as the monthly repayments would be 'only' £964 on a loan of 180K.

( Only slightly above our current rent and way less than renting a suitable house for our growing needs although whether we can get a house suitable enough for ~250k is also questionable)

He also said that if interest rates go up to 1% he is bust and so are many others .. so therefore this wont happen.

I don't know ...

what do you all think ?

we really got to buy soon. I am 42 with three growing kids .

ignore this stick look for an old wreck that hasn't got a leaky roof okay plumbing and wiring to a fashion, tell the wife too stop spending on makeup, you stop buying x box games for the kids (and yourself) give it a quick coat of magnolia and flog it to some BLT hunt then buy another and do the same really quick and then again its the same as being kicked out by a land lord but your in control of the purse just live by your means ive doen it three times since 2007 got three teenage kids and for the first time the kids have all got their own room just don't be greedy or it wont work.

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so if I pay off 10 K and now owe 170 K but the value has dropped by 20 k , i need to get a new loan of a 170 k to continue pay for a house that i paid 250k for but is now worth 230K ?

Is that it ?

Not sure i understand ..

You'll pay £10k off the principal in the first three years? I very much doubt it.

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how do you leave them sufficient cash though ? either way i have to find the best part of a £1000 a month to rent or 'buy'

Renting isnt exactly saving me money to pass on to them. The mother of one of my children has had to move 5 times in 10 years due to the various landlords selling/ letting to family/ moving back in.

surely so long as i make my payments each month my 'bought' house is more secure than a rented one. After all i have to make the rent each month and if i stop doing that i will much less secure a lot more quickly than if i am paying a mortgage

When you rent, the landlord takes the loss of capital, in this market anyway? There was a thing on Piers Morgan Tonight, with Anthony Robbins, about helping a parplegic guy see life as an opportunity, about changing his "story",and I have to say it was quite amazing. I think a lot of British people have a "blind spot" about owning property, the story is false,but they are really invested in it (so to speak) The banks and VI`s exploited this with Liar loans etc. The conversation you are having was a no brainer in 1999, 2000, 2001 etc,but to buy now with a mortgage is madness IMO,it is lose lose all the way, and won`t help your kids. You have to see big price drops,and the banks will give better deals to prudent customers in future IMO.

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thats what he said .. well 11k

just do the magnolia trick sell it as quick as you can on a transferable mortgage to a btl fool and keep repeating you'll end up with money in the pot just got to do each one quick and get quick you can paint cant you BLT landlords don't live in it them selves people like you do and their buying all the houses at the moment.

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When you rent, the landlord takes the loss of capital, in this market anyway? There was a thing on Piers Morgan Tonight, with Anthony Robbins, about helping a parplegic guy see life as an opportunity, about changing his "story",and I have to say it was quite amazing. I think a lot of British people have a "blind spot" about owning property, the story is false,but they are really invested in it (so to speak) The banks and VI`s exploited this with Liar loans etc. The conversation you are having was a no brainer in 1999, 2000, 2001 etc,but to buy now with a mortgage is madness IMO,it is lose lose all the way, and won`t help your kids. You have to see big price drops,and the banks will give better deals to prudent customers in future IMO.

when are these big price drops ?

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It doesnt matter if a house is 200k with a 3% rate or 50k with a 15% rate

rates and prices are set to screw the maximum out of you they can get away with

high prices and low rates are the worst time to sign on the dotted ,once they have you trapped

for mega bucks and rates rise (as they will do ) they will screw you til you bleed ,evict you ,sell on to the next mug punter and chase you for what you owe for the next 12 years . Just get on with enjoying life and stay the fekk away from loansharks

Lifes too short

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Anyone paying 1300 p.m to rent that is off their nut, Brighton is just basking in the London effect at the moment, a bubble ready to explode IMO.

no doubt but that's what they go for and they dont hang around long.

We are lucky in that our landlord lives in kent and hasn't cottoned on to the stupid rents here . if he does it might just force my hand

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Anyone paying 1300 p.m to rent that is off their nut, Brighton is just basking in the London effect at the moment, a bubble ready to explode IMO.

I pay £900 p.m for a vastly superior house to that, although there are some houses like "mine" on at £1,300 p.m that let for a few months followed by a few months void and so on.

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I pay £900 p.m for a vastly superior house to that, although there are some houses like "mine" on at £1,300 p.m that let for a few months followed by a few months void and so on.

My ex has one very similar to the one posted. She pays 1200 pcm The LL says his last tenants were there for 2 years and the same for those before. My mate lived accross the road and has been friends with all the people who have lived there and the LL version adds up.

In brighton these rents are have become the norm.

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He also said that if interest rates go up to 1% he is bust and so are many others .. so therefore this wont happen.

What did he mean by this? His own mortgage or something to do with his mortgage advising business? I assume he meant that a 1% mortgage rise will break him - if so, he is screwed already.

Perhaps the interesting thing is that he is aware, from his professional capacity, just how many others will be bust when there is a 1% rise.

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My ex has one very similar to the one posted. She pays 1200 pcm The LL says his last tenants were there for 2 years and the same for those before. My mate lived accross the road and has been friends with all the people who have lived there and the LL version adds up.

In brighton these rents are have become the norm.

Well, you seem to be determined to buy now so I wish you luck. I, on the other-hand, will continue to rent until value returns to the housing market. Goodnight and I hope it works out for you.

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You'll pay £10k off the principal in the first three years? I very much doubt it.

I think you are right Bruce, unless my maths is wrong i've done a quick calculation £180,000 @ 5.3% is £963.19 per month balance at 3 years would be £173,421.34 so you would only pay off about £6500 of not the £11,000 broker said.

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What did he mean by this? His own mortgage or something to do with his mortgage advising business? I assume he meant that a 1% mortgage rise will break him - if so, he is screwed already.

Perhaps the interesting thing is that he is aware, from his professional capacity, just how many others will be bust when there is a 1% rise.

I understood it to mean that the mortgage market will be screwed .. no-one will be taking out mortgages so his industry of brokering mortgages will be bust

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I understood it to mean that the mortgage market will be screwed .. no-one will be taking out mortgages so his industry of brokering mortgages will be bust

Then doesn't that tell you how precarious the situation is if the mortgage advising industry thinks a 1% rise will putn it out of business?

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I think you are right Bruce, unless my maths is wrong i've done a quick calculation £180,000 @ 5.3% is £963.19 per month balance at 3 years would be £173,421.34 so you would only pay off about £6500 of not the £11,000 broker said.

It was calculated daily .. if that helps / makes a difference. the rate was 3.49 % (?)

(he showed me many option so that % might be off)

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Well, you seem to be determined to buy now so I wish you luck. I, on the other-hand, will continue to rent until value returns to the housing market. Goodnight and I hope it works out for you.

I am not determined to do anything . How do you figure that ? My last post was about pointing out the reality of rent where i live.

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  • 439 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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