Tuesday, March 3, 2009
Maths never a VI strong point
An article showing how lucky martgage payers can save up to £9,000 on a £200,000 mortgage due to the low interest rate. Wow wee. Since houses have fallen 20% from peak already, a £300,000 house will have lost you around £60,000 to date. Given that most people say another 15% is on the way (I say another 20-25%) then now is a good a time as any to get out before you lose another iro £35,000. So with a total loss of around £85,000 (allowing for "saved" interest), what kind of advice are banks giving when they tell their customers to "take advantage of the lower rates" that isn't in their own interest?