Notting Hell Posted April 19 Share Posted April 19 Just now, Sackboii said: Haven't they already ? They're called a HMO. Yes, but can you get a "three-way" mortgage for purchase, rather than rent? Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 19 Share Posted April 19 Just now, Notting Hell said: Yes, but can you get a "three-way" mortgage for purchase, rather than rent? Yes. A Limited Company with three or more directors I guess. Throw in a cheap BTL mortgage or five and multiple HMO's are rakin' it in. Mad gainz, init. Quote Link to comment Share on other sites More sharing options...
Dreamcasting Posted April 19 Share Posted April 19 4 minutes ago, The Angry Capitalist said: Gold is going to $5,000 an ounce just based on what has already been printed. If we have another round of bailouts you are looking at anywhere between $10,000 - $50,000 an ounce. Gold was supposed to hit $5k over 10 years ago. Then when it didn't happen, it was a "sure bet" to hit $10k. Welcome to the world of Peter Schiff. Quote Link to comment Share on other sites More sharing options...
Dreamcasting Posted April 19 Share Posted April 19 4 minutes ago, The Angry Capitalist said: Gold is going to $5,000 an ounce just based on what has already been printed. If we have another round of bailouts you are looking at anywhere between $10,000 - $50,000 an ounce. Gold was supposed to hit $5k over 10 years ago. Then when it didn't happen, it was a "sure bet" to hit $10k. Welcome to the world of Peter Schiff. Quote Link to comment Share on other sites More sharing options...
Notting Hell Posted April 19 Share Posted April 19 4 minutes ago, Sackboii said: Yes. A Limited Company with three or more directors I guess. Throw in a cheap BTL mortgage or five and multiple HMO's are rakin' it in. Mad gainz, init. Yes, but for a residential purchase I mean. As a "family" perhaps. Quote Link to comment Share on other sites More sharing options...
Stewy Posted April 19 Share Posted April 19 29 minutes ago, Dreamcasting said: Gold was supposed to hit $5k over 10 years ago. Then when it didn't happen, it was a "sure bet" to hit $10k. Welcome to the world of Peter Schiff. Inflation was supposed to hit 20% this year. Then when it didn't...tantrums started. Just You Wait, Just You Wait. 2025 😡 All over the online disastersphere, crazed men are doubling down on their predictions of chaos and disaster while the whole world is making pretty around and ignoring them. 2024 is shaping up great. Growth, positivity abounds, low inflation, happiness and spring blooms showing 🌱 No time for negativity here. ✓ Quote Link to comment Share on other sites More sharing options...
scottbeard Posted April 19 Share Posted April 19 26 minutes ago, dugsbody said: People will pay what they can afford per month. Offering 40 year mortgages decreases the monthly payment, allowing people to bid higher prices while keeping the payment the same as a 25 year mortgage. So extended terms are a contributing factor to pushing prices up. They'll soon be priced in as the norm, and won't be helping anyone. Then you'll need 50 year mortgages. This is absolutely true of course - but the impact, at higher interest rates, is almost nothing. A £200k mortgage at 8% interest over 25 years is £1,543 pm A £222k mortgage at 8% interest over 40 years is £1,543pm So in other words extending the mortgage by 15 years only allows you to bid up the price by another 10%ish. It's only at low interest rates that it makes HPI go bananas. I don't know about you, but i don't think i'd want to genuinely pay a mortgage for 15 more years just to be able to up my bid by 10%. However, i might want to have a 40 year mortgage just for the time being to allow that 10% bid, with a few to changing it later, say when i re-mortgage or upsize. So no - I don't really want to see everyone paying interest for longer, but I also don't like the idea of banning something that some people will find helpful. Quote Link to comment Share on other sites More sharing options...
TheResponsibleHouseBuyer Posted April 19 Share Posted April 19 On 4/18/2024 at 1:12 PM, The Angry Capitalist said: So a foreigner in London has agreed a 40 year (yes 40) mortgage on a 1 bed apartment in zone 2 for a price of £340,000: https://www.reddit.com/r/HousingUK/comments/1c6wyse/monthly_mortgage_1353_in_london_am_i_paying_too/ The Reddit poster claims his/her monthly payments will be £1353 at a rate of 4.69% fixed for 5 years. Despite paying a deposit of £51,000 assuming his/her figures are correct the total MINIMUM repayment over the 40 years (assuming over the term rates don't go below 4%) will be £649,440. Therefore, £700,000 will be the total repayment including the deposit but excluding fees for mortgage renewals and service charges etc. That the system is allowing these 40 year terms shows how rotten it is. These long terms should be illegal. There is no way a mortgage term should be more than 30 years and the government should pass a law stating the maximum term length. 40 years terms are nothing but serfdom and the banks will take advantage of people's financial illiteracy. The fact that the poster is asking if he or she is paying too much tells you all you need to know. Not only that these mortgage creations are very high risk but no doubt they will be sold on to third parties before they blow up in the banks faces. maybe but the answer would be they are on the ladder, but you arent... Pay half your salary each month to a landlord or a bank. Choose your poison? Quote Link to comment Share on other sites More sharing options...
Notting Hell Posted April 19 Share Posted April 19 1 hour ago, scottbeard said: This is absolutely true of course - but the impact, at higher interest rates, is almost nothing. A £200k mortgage at 8% interest over 25 years is £1,543 pm A £222k mortgage at 8% interest over 40 years is £1,543pm So in other words extending the mortgage by 15 years only allows you to bid up the price by another 10%ish. It's only at low interest rates that it makes HPI go bananas. I don't know about you, but i don't think i'd want to genuinely pay a mortgage for 15 more years just to be able to up my bid by 10%. However, i might want to have a 40 year mortgage just for the time being to allow that 10% bid, with a few to changing it later, say when i re-mortgage or upsize. So no - I don't really want to see everyone paying interest for longer, but I also don't like the idea of banning something that some people will find helpful. The way I look at house prices is "years of work until outright ownership". So if you work for 5 years to raise a deposit while renting, then pay mortgage for 40 years, the years of work until outright ownership figure is 45. c.f Boomers which was about 25. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted April 19 Author Share Posted April 19 23 minutes ago, TheResponsibleHouseBuyer said: maybe but the answer would be they are on the ladder, but you arent... Pay half your salary each month to a landlord or a bank. Choose your poison? Depends where you live. Some areas rent is still reasonable compared to places like London, Bristol, Bath, Brighton & York. Was feeling sorry for the buyer because clearly a life of servitude awaits. Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted April 19 Share Posted April 19 4 minutes ago, Notting Hell said: The way I look at house prices is "years of work until outright ownership". So if you work for 5 years to raise a deposit while renting, then pay mortgage for 40 years, the years of work until outright ownership figure is 45. c.f Boomers which was about 25. +1 and for Boomers it is about 25 against 1 salary ... it is now 45 against 2 (or approaching 2) salaries ... it's not like all FTBers are single applicatn mortgages either! Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted April 19 Share Posted April 19 2 hours ago, Stewy said: Inflation was supposed to hit 20% this year. Then when it didn't...tantrums started. Just You Wait, Just You Wait. 2025 😡 All over the online disastersphere, crazed men are doubling down on their predictions of chaos and disaster while the whole world is making pretty around and ignoring them. 2024 is shaping up great. Growth, positivity abounds, low inflation, happiness and spring blooms showing 🌱 No time for negativity here. ✓ Happiness for whom, exactly. Ah yes - you're on a 160k salary (apparently) and bought your (northern) house for cash (allegedly) ... yeah ... alrigth for you Jack. Screw my kids, ofc, I should be happy with the HPI froeva set because ... ummm ... reasons ... I am told. Quote Link to comment Share on other sites More sharing options...
Notting Hell Posted April 19 Share Posted April 19 Just now, Aidan Ap Word said: +1 and for Boomers it is about 25 against 1 salary ... it is now 45 against 2 (or approaching 2) salaries ... it's not like all FTBers are single applicatn mortgages either! Glad someone agrees with me! I think the 45 years + 2 salaries is now fully priced in. How do house prices grow from here? The next step must be "polycule" mortgages. Get another salary paying the mortgage, and you can ramp up the price of existing houses by another 50%. https://en.wiktionary.org/wiki/polycule Quote Link to comment Share on other sites More sharing options...
Notting Hell Posted April 19 Share Posted April 19 31 minutes ago, TheResponsibleHouseBuyer said: maybe but the answer would be they are on the ladder, but you arent... Pay half your salary each month to a landlord or a bank. Choose your poison? Third option is to consume the smallest amount of housing possible, and then emigrate later on. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.