Wednesday, February 11, 2015

For a minute, I thought UK government were trying tp pump up

It's the best time EVER to take out a mortgage

The next six months could prove the best time in history to take out a mortgage, experts claimed yesterday. They said a price war between lenders will make it the perfect opportunity for homebuyers or anyone remortgaging.

Posted by hpwatcher @ 09:56 AM (4420 views)
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9 thoughts on “For a minute, I thought UK government were trying tp pump up

  • But the worst time EVER to buy a house!

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  • The next headline – “The mortgage price war that broke the banks”

    Bank’s don’t care about long term profit, they will be bailed.

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  • The depressing thing is that the lazy press simply reproduces the press-releases issued by the mortgage industry – no one applies any sensible analysis.

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  • “And, while mortgages are cheap, steep property prices mean home ownership is still out of reach for many.” No mention here that these two things could be related.

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  • Average wage 1980 6000.00 pounds, average wage 2014 circa 25000.00 pounds

    6000
    6264
    6539.616
    6827.359104
    7127.762905
    7441.384472
    7768.805389
    8110.632826
    8467.500671
    8840.0707
    9229.033811
    9635.111299
    10059.0562
    10501.65467
    10963.72747
    11446.13148
    11949.76127
    12475.55076
    13024.475
    13597.5519
    14195.84418
    14820.46132
    15472.56162
    16153.35433
    16864.10192
    17606.12241
    18380.7918
    19189.54663
    20033.88669
    20915.3777
    21835.65432
    22796.42311
    23799.46573
    24846.64222

    4.4% wage inflation 1980 to 2014, wow..I wonder what the figures are since 2009 Not adjusted for inflation…

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  • Price in 1980 was £23,000.

    Base rate in 1980 was around 14%.

    To borrow £23,000 at 16% (base rate + 2%) over 25 years costs £313 Per month.

    Price in December 2014 was £180,000.00

    To borrow £180,000.00 at 2.5% (base rate + 2%) over 25 years costs £808.00 Per month.

    Divide that amount by 4.4 to take into account wage inflation of 6k to 25k and in 1980’s money then it costs £183.63 per month.

    Thats a big saving of £130.00 pounds a month in 1980’s money but in todays moneys its a whopping £807.972 per month.

    Interest rates are going no where for a very very long time, me thinks its time to buy…..lol

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  • I think in 1980 the average wage was closer to the median wage that it is now.

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  • Is there any historic precedent for asset prices to continue to rise in a deflationary environment over a longer time frame, especially assets that are over valued across a number of metrics. I’d be interested to hear some considered opinions and examples. In the UK we have a fascination with interest rates as opposed to the overall debt. Its pretty clear that the Central London casino pricing wont go on forever with the increasing worldwide geopolitical problems. However, in times of crisis money flocks to the least dirty shirt and London may still be an attraction in the shorter term or it may already have peaked. But if you buy a house, you have to consider a 10, 15, 20 year time frame, not a 3 year or 5 year interest rate fix.

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  • Never been a better time to take out a mortgage if you bought when prices were based on grownups’ interest rates and not the stuff that we get from the Bank of Toyland… I’m in line for a £200 drop in my payment upon remortgage but the estimated rent on my place has gone up.

    A market where what you pay is based on what happened 20 years ago is ridiculous. Other assets like shares are wildly different prices today compared to 20 years ago because the company in question is unrecognisable to what it was back then – real value/new assets have been created. A house on the other hand has barely changed at all and in most cases is actually in slightly worse shape as it is a depreciating asset.

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