Buying

[BoredTrainBuilder]

After considerable thought and brainwashing from the wife I'm now buying in Hampton Hill - £490k, of which £300k is mortgage (I propose a First Direct offset, anyone got any better ideas?), the rest capital. Our renting experience has been miserable what with crappy (but well meaning) landlords and flowery curtains. I work too hard to have to put up with that indefinitely.

Medium term scenario is that, I think, London will continue to ride the globalisation curve and therefore property here will continue to accelerate in value. I wouldn't be buying in Wrexham.

In the longer term I know that there will be a reversion to mean - which is great since I will be able therefore to buy an even bigger place!

Unlike the cliched HPCers of old this is not a farewell, I shall continue to goad you all (especially RB) as long as I can be bothered.

[Guest Charlie The Tramp]

After considerable thought and brainwashing from the wife I'm now buying in Hampton Hill - £490k, of which £300k is mortgage (I propose a First Direct offset, anyone got any better ideas?), the rest capital.

I visited Hampton and Hampton Hill regularly when working, having many customers there. No disrespect but there was something about the areas I didn`t like, very hard to pin the reasons why, but being a boating person I must say I liked the close proximity to the Thames. Anyhow, good luck and I wish you well.

[Guest xeouialp]

After considerable thought and brainwashing from the wife I'm now buying in Hampton Hill - £490k, of which £300k is mortgage (I propose a First Direct offset, anyone got any better ideas?), the rest capital. Our renting experience has been miserable what with crappy (but well meaning) landlords and flowery curtains. I work too hard to have to put up with that indefinitely.

Medium term scenario is that, I think, London will continue to ride the globalisation curve and therefore property here will continue to accelerate in value. I wouldn't be buying in Wrexham.

In the longer term I know that there will be a reversion to mean - which is great since I will be able therefore to buy an even bigger place!

Unlike the cliched HPCers of old this is not a farewell, I shall continue to goad you all (especially RB) as long as I can be bothered.

Congratulations on being the last buyer to bite at the very end of the third peak of our famous Triple Top! I suppose somebody had to, or we would never have got here. Now please grip the safety bar as tightly as possible for the ride ahead.

[Europa]

Congratulations on being the last buyer to bite at the very end of the third peak of our famous Triple Top! I suppose somebody had to, or we would never have got here. Now please grip the safety bar as tightly as possible for the ride ahead.

Really?

First of all it was a peak, then a double top, and now (apparently) a triple top. Alternatively, you could view it as the continuation of an upward trajectory.

Also, I was under the impression that 2003 was the "peak"... or possible 2004... no, 2005... erm

[Guest xeouialp]

Really?

First of all it was a peak, then a double top, and now (apparently) a triple top. Alternatively, you could view it as the continuation of an upward trajectory.

Also, I was under the impression that 2003 was the "peak"... or possible 2004... no, 2005... erm

It's just a figure of speech. Don't take it literally.

[Pluto]

After considerable thought and brainwashing from the wife I'm now buying in Hampton Hill - £490k, of which £300k is mortgage (I propose a First Direct offset, anyone got any better ideas?), the rest capital. Our renting experience has been miserable what with crappy (but well meaning) landlords and flowery curtains. I work too hard to have to put up with that indefinitely.

Medium term scenario is that, I think, London will continue to ride the globalisation curve and therefore property here will continue to accelerate in value. I wouldn't be buying in Wrexham.

In the longer term I know that there will be a reversion to mean - which is great since I will be able therefore to buy an even bigger place!

Unlike the cliched HPCers of old this is not a farewell, I shall continue to goad you all (especially RB) as long as I can be bothered.

300K mortgage - that's rediculous.

[laurejon]

300k that is some type of mortgage.

Can I be rude and ask what your annual earnings are to raise this, and do you both work?.

[Pluto]

300k that is some type of mortgage.

Can I be rude and ask what your annual earnings are to raise this, and do you both work?.

Interest rates are 4.75% for f**&s sake. After the inflation numbers today there is a distinct possibility they are going to 5% this year. Next year in my opinion they will hit 6% in the UK.

Inflation is brewing everywhere, and these quaint 1/4 point hikes are not doing anything here or in the US.

If you are taking out a mortgage now you need to realise that interest rates could double. And even so that will still have your rates less than 10%.

I hear a lot of folk talking about globalization and how it is allowing property to increase all over the globe. This is fiction - low interest rates is causing all ASSETS to go balistic - not just property.

I can see the start of Hyperinflation in the UK, to fight hyperinflation they need to implement Volcker's policies of the US in the 70's. Interest rates in the US reached 21% before inflation was tamed.

http://findarticles.com/p/articles/mi_qa36...501/ai_n9467621

Volcker, in office only two months, took the radical step of switching Fed policy from targeting interest rates to targeting the money supply. The days of "easy credit"turned into the days of "very expensive credit." The prime lending rate exceeded 21 percent. Unemployment reached double digits in some months. The dollar depreciated significantly in world foreign exchange markets, dicker's tough medicine led to not one, but two, reccssions before prices finally stabilized.

Edited October 17, 2006 by Pluto

[Guest muttley]

I can see the start of Hyperinflation in the UK, to fight hyperinflation they need to implement Volcker's policies of the US in the 70's. Interest rates in the US reached 21% before inflation was tamed.

If you're predicting hyperinflation, then taking out a 300k mortgage would seem like a very good idea!

I'm not sure I'm ready to join you yet,BTB, but good luck in your new home.

[BubblesBurst]

After considerable thought and brainwashing from the wife I'm now buying in Hampton Hill - £490k, of which £300k is mortgage (I propose a First Direct offset, anyone got any better ideas?), the rest capital. Our renting experience has been miserable what with crappy (but well meaning) landlords and flowery curtains. I work too hard to have to put up with that indefinitely.

Medium term scenario is that, I think, London will continue to ride the globalisation curve and therefore property here will continue to accelerate in value. I wouldn't be buying in Wrexham.

In the longer term I know that there will be a reversion to mean - which is great since I will be able therefore to buy an even bigger place!

Unlike the cliched HPCers of old this is not a farewell, I shall continue to goad you all (especially RB) as long as I can be bothered.

Oh No! Not another HP Crasher!

They're dropping like flies............................

But not as fast as houses are going to drop!

If it wasn't for that pesky media brain washing............

[Pluto]

If you're predicting hyperinflation, then taking out a 300k mortgage would seem like a very good idea!

I'm not sure I'm ready to join you yet,BTB, but good luck in your new home.

No, because the interest to service the debt will cripple the debtor.

[laurejon]

IO on 300K is 1250pcm at 5%, 10% is 2,500pcm, 15% is a possibility to reign in the highest triple whammy inflation bubble known in history, would take the repayments to 3,750pcm.

Thats some serious cash to stump up each and every month, set against wage deflation and the possibility of massive job losses if the rates are increased coupled with the immigration present and predicted.

If you think the Eastern Europeans are working cheaply today, then think again, in their country 7 quid a day is considered high flying.

They could drop their prices to 14 quid a day and still be considered the elite in their homeland.

[ʎqɐqɹǝʞɐɥs]

Our renting experience has been miserable what with crappy (but well meaning) landlords and flowery curtains. I work too hard to have to put up with that indefinitely.

You know there are decent flats out there to rent at a decent price. Maybe if you had rented somewhere less crappy and miserable your misses wouldn't have put the pressure on you.

You reep what you sow.

[Charles_Darke]

If you're predicting hyperinflation, then taking out a 300k mortgage would seem like a very good idea!

I'm not sure I'm ready to join you yet,BTB, but good luck in your new home.

You'd do very well in a hyperinflation scenario, especially if you take the first direct 10 year fixed offset.

IO on 300K is 1250pcm at 5%, 10% is 2,500pcm, 15% is a possibility to reign in the highest triple whammy inflation bubble known in history, would take the repayments to 3,750pcm.

Repayment on 300k is 1,878 @ 5.7% APR. A hefty chunk but might be pocket change depending on your job

If you're concerned about rates, you can fix. FD offer up to a 10 year fix (interest going down the longer you fix). I went for the 5 year fix.

3 year fixed rate offset Mortgage 5.39% for 3 years, The overall cost for comparison is 5.9% APR.

5 year fixed rate offset Mortgage, 5.49% for 5 years, The overall cost for comparison is 5.9% APR.

10 year fixed rate offset Mortgage, 5.29% for 10 years, The overall cost for comparison is 5.7% APR.

No, because the interest to service the debt will cripple the debtor.

Not if you fix your rates.

[Golden Shower]

No, because the interest to service the debt will cripple the debtor.

Unless the debt is fixed and then you're talking a bargain. What an opportunity to inflate the debt away!

In another two or three years, the bears will still be waiting for their crash and people who have bought may well find their salaries just that little bit higher and financially pulling away from the bears (while they pile AVC's into their landlords pension pots - but of course all LL's are mugs who are subsidising you ).

[PropertyGuru]

You'd do very well in a hyperinflation scenario, especially if you take the first direct 10 year fixed offset.

Repayment on 300k is 1,878 @ 5.7% APR. A hefty chunk but might be pocket change depending on your job

If you're concerned about rates, you can fix. FD offer up to a 10 year fix (interest going down the longer you fix). I went for the 5 year fix.

3 year fixed rate offset Mortgage 5.39% for 3 years, The overall cost for comparison is 5.9% APR.

5 year fixed rate offset Mortgage, 5.49% for 5 years, The overall cost for comparison is 5.9% APR.

10 year fixed rate offset Mortgage, 5.29% for 10 years, The overall cost for comparison is 5.7% APR.

Not if you fix your rates.

perhaps you'd like to post a link to the company offering these rates so other 'drop outs' ( ) can fix too!

[BoredTrainBuilder]

If you are taking out a mortgage now you need to realise that interest rates could double. And even so that will still have your rates less than 10%.

But First Direct are offering a 10-year fix at 5.29%. So if I were concenred about hyperinflation, which I'm not, I could protect against it.

http://www.firstdirect.com/mortgages/rates.shtml

300k that is some type of mortgage.

Can I be rude and ask what your annual earnings are to raise this, and do you both work?.

You're always rude so nothing new there.

I can support the mortgage on my salary alone.

My work can be intermittent so I'll keep some capital from my 2003 STR back just in case.

Edited October 18, 2006 by BoredTrainBuilder

[munimula]

Medium term scenario is that, I think, London will continue to ride the globalisation curve and therefore property here will continue to accelerate in value.

Is that the globalisation curve currently driven largely by the US consumer that has only been financing growth by MEWing their homes (80% of consumption growth in US is from MEWing and 70% of US growth is consumption growth)?

[Charles_Darke]

perhaps you'd like to post a link to the company offering these rates so other 'drop outs' ( ) can fix too!

FD=first direct. Link already posted by OP.

My work can be intermittent so I'll keep some capital from my 2003 STR back just in case.

The FD offset will be perfect then. Just pay IO and hold cash in offset - all the benefits of a repayment mortgage but fast access to cash. You can also re-draw on the capital.

For example, if you get the 10 year fix and already have paid the mortgage by year 5, you could redraw the capital and use it to buy another property (useful if IRs increase above the fix rate).

[Mags]

I can support the mortgage on my salary alone.

So, a guaranteed salary in excess of, say, £150Kpa? Not bad! You're obviously earning way, way above average so why shouldn't you keep the bubble going and prices out of reach of those earning less than you?

[PropertyGuru]

FD=first direct. Link already posted by OP.

The FD offset will be perfect then. Just pay IO and hold cash in offset - all the benefits of a repayment mortgage but fast access to cash. You can also re-draw on the capital.

For example, if you get the 10 year fix and already have paid the mortgage by year 5, you could redraw the capital and use it to buy another property (useful if IRs increase above the fix rate).

Anyone wanting a mortgage who DOESN'T lock in that 5.29% for 10 years is MAD.

That rate will look like a gift from the Gods by the end of next year.

[BoredTrainBuilder]

You know there are decent flats out there to rent at a decent price. Maybe if you had rented somewhere less crappy and miserable your misses wouldn't have put the pressure on you.

You reep what you sow.

I have not encountered many flats in London able to accomodate a wife, pool table and four children.

So, a guaranteed salary in excess of, say, £150Kpa? Not bad! You're obviously earning way, way above average so why shouldn't you keep the bubble going and prices out of reach of those earning less than you?

Where do you get that from? It's much less than that.

Is that the globalisation curve currently driven largely by the US consumer that has only been financing growth by MEWing their homes (80% of consumption growth in US is from MEWing and 70% of US growth is consumption growth)?

No, it's the globalisation curve that's turning London into the world's most important city.

I visited Hampton and Hampton Hill regularly when working, having many customers there. No disrespect but there was something about the areas I didn`t like, very hard to pin the reasons why, but being a boating person I must say I liked the close proximity to the Thames. Anyhow, good luck and I wish you well.

There's something in this, I agree. I don't much like the area (although it's certainly better than Lewisham, say). But an equivalent priced house up the road in Richmond or even Teddington would be 50% smaller.

Edited October 18, 2006 by BoredTrainBuilder

[munimula]

No, it's the globalisation curve that's turning London into the world's most important city.

Right, based on a thriving global economy, largely driven by US consumers consumption growth.

Wake up mate, do you really think that we in the UK/London are isolated from what happens in the US?

There's something in this, I agree. I don't much like the area (although it's certainly better than Lewisham, say). But an equivalent priced house up the road in Richmond or even Teddington would be 50% smaller.

BTW - I've just moved from Hampton Wick and I really like the whole area including Hampton Hill. Lovely part of the country to live.

[Mags]

No, it's the globalisation curve that's turning London into the world's most important city.

Where on earth did you get that idea? Did Gordon tell you that?

[enworb]

Unless the debt is fixed and then you're talking a bargain. What an opportunity to inflate the debt away!

In another two or three years, the bears will still be waiting for their crash and people who have bought may well find their salaries just that little bit higher and financially pulling away from the bears (while they pile AVC's into their landlords pension pots - but of course all LL's are mugs who are subsidising you ).

Precisely. Not sure why you said "unless the debt is fixed..." Doesn't every buyer fix their mortgages at the lowest possible rate whilst also wanting the shortest redemption period