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EmmaRoid

Nationwide Jan 2014 +0.7%

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Is there any reaction on currency markets- pound strengthening in anticipation of rate rises?

£ looks to be pretty flat against the $ right now at $1.659. An increase, but only a slight one.

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Matthew Pointon (@matpointon) tweeted at 8:24 am on Wed, Jan 29, 2014:

Interesting fact from the #Nationwide release - over half of new mortgages are now for terms of over 25 years.

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What caught my eye was the rising number of FTBs as a portion of the mortgage market and the very conservative figures, median income £37k, 80% LTV, <4x multiples. Suspect its the old CML joint/single confusion.

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Typical FTB pitting down a 20% deposit - £30k.

could that be HTBv1?

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could that be HTBv1?

Don't think so.

HTB1 is under 2% of all property transactions. Assuming 3/4 transactions are mortgaged and 40% ish of mortgages are for FTBs, HTB1 still doesn't amount to much.

Less than 10% of FTB market?

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Matthew Pointon (@matpointon) tweeted at 8:24 am on Wed, Jan 29, 2014:

Interesting fact from the #Nationwide release - over half of new mortgages are now for terms of over 25 years.

(

)

What caught my eye was the rising number of FTBs as a portion of the mortgage market and the very conservative figures, median income £37k, 80% LTV, <4x multiples. Suspect its the old CML joint/single confusion.

One of their reports last year said the average term had moved from 25 to 28 years.

I've seen HTB "up to 35 years". They used the monthly payments to make buying look cheaper than renting. No mention of the extra mortgage interest of course.

When we get to 50 year mortgages, if the low is 30 years, the average could 40+ years?

Then equity release when you stop working, so 70% to 100% of the equity goes while receiving only 30% of it to spend. No inheritance for the children means they stay on the hamster wheel, with nothing to help clear their debt. The amount of interest paid buying and releasing is going to be astronomical.

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One of their reports last year said the average term had moved from 25 to 28 years.

I've seen HTB "up to 35 years". They used the monthly payments to make buying look cheaper than renting. No mention of the extra mortgage interest of course.

When we get to 50 year mortgages, if the low is 30 years, the average could 40+ years?

Then equity release when you stop working, so 70% to 100% of the equity goes while receiving only 30% of it to spend. No inheritance for the children means they stay on the hamster wheel, with nothing to help clear their debt. The amount of interest paid buying and releasing is going to be astronomical.

Ye of little faith. These are just savvy entrepreneurs who are being discriminated against by the withdrawal of unfairly maligned IO products. They'll be paying off their mortgages in double quick time, not using the extended term.

Just ask jonpo.

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Matthew Pointon (@matpointon) tweeted at 8:24 am on Wed, Jan 29, 2014:

Interesting fact from the #Nationwide release - over half of new mortgages are now for terms of over 25 years.

(

)

What caught my eye was the rising number of FTBs as a portion of the mortgage market and the very conservative figures, median income £37k, 80% LTV, <4x multiples. Suspect its the old CML joint/single confusion.

So people can only afford to buy with a 30+ year mortgage?

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Ye of little faith. These are just savvy entrepreneurs who are being discriminated against by the withdrawal of unfairly maligned IO products. They'll be paying off their mortgages in double quick time, not using the extended term.

Just ask jonpo.

:D

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Prices just 4% below peak 2007! So a new peak this year is a given.

Most expensive houses, ever. I wonder if the Tories will add that boast to their election manifesto?

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Just ask jonpo.

Credit conditions can and do change.. but mortgage term tends to be driven by working lifetime.. so the older you are the less term you have to repay.. this starts to be a problem if first time buyers are in their 30s... but what no one has mentioned yet is that repayment mortgages are front loaded and constantly reducing the leverage/principle so after 10-15 years the repayments will be much lower compared to rent which are constantly adjusting for inflation so as to remain static in real terms.

of course there is a wide range of products even now and terms can be reduced or increased with overpayments.. flexible offset mortgages.. switching porting etc ...

Edited to add:

This rise of 0.7% surely indicative of a sharply falling prices... massive repossessions and the total implosion of credit availability no ?

Edited by jonpo

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Credit conditions can and do change.. but mortgage term tends to be driven by working lifetime.. so the older you are the less term you have to repay.. this starts to be a problem if first time buyers are in their 30s... but what no one has mentioned yet is that repayment mortgages are front loaded and constantly reducing the leverage/principle so after 10-15 years the repayments will be much lower compared to rent which are constantly adjusting for inflation so as to remain static in real terms.

of course there is a wide range of products even now and terms can be reduced or increased with overpayments.. flexible offset mortgages.. switching porting etc ...

Edited to add:

This rise of 0.7% surely indicative of a sharply falling prices... massive repossessions and the total implosion of credit availability no ?

Mortgage repayments are not "front-loaded", (whatever the ****** that means) in the way you seem to be saying. And in a low rate, low wage inflation environment the mechanism you are badly trying to describe has far less effect.

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Certainly seeing asking price rises of about 15% from only a few months ago in my search area.

http://www.rightmove.co.uk/property-for-sale/property-42669151.html

200K for the above slave box, id say its worth less then half of that.

:huh: You can get a four bed detached for considerably less in my part of Wales.

Edit to add

http://www.rightmove.co.uk/property-for-sale/property-23596158.html 4 bed detached

http://www.rightmove.co.uk/property-for-sale/property-43520519.html 4 bed semi

Edited by Mr. Miyagi

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Mortgage repayments are not "front-loaded", (whatever the ****** that means) in the way you seem to be saying. And in a low rate, low wage inflation environment the mechanism you are badly trying to describe has far less effect.

Overstretching to get a mortgage in that environment is a recipe for disaster IMO.

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Sales volumes being what they are there are many of these types of seller going to be disappointed IMO.

They do seem to be selling and prices are close to asking.

This one was for sale last year with a different agent at around 175K, i offered 150K last week and was told to clear off ... apparently several others have put in similar bids.

http://www.rightmove.co.uk/property-for-sale/property-41283658.html

This one sold for 145K in June and has now sold STC at around 200K after a splash of paint and a new carpet

http://www.rightmove.co.uk/property-for-sale/property-43515416.html

There is literally bugger all of anything even resembling value and my search area is from Christchurch all the way through to Basingstoke.

Good to know that working my balls off on oil rigs and going to shytholes around the globe has paid off!

I was mocking those on Benefits Street yesterday but in reality it is i that is the idiot thinking working pays.

Edited by BananaMan

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Sales volumes being what they are there are many of these types of seller going to be disappointed IMO.

Sales volumes are up 32% year-on-year and expected to increase further.

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