Mortgage annoyance!

[KeithD]

.....if you rent the moneys gone......

Not quite that black & white.....Rent is much lower than a mortage, and your first 5+ years of a mortgage is also money gone.

You are also responsible for your repairs, rented get free double glazing, central heating, repairs included, etc,

You also have the convenience factor of being able to move when you want without paying a bank fine.

...and on top of that, 10,000's are now trapped in mortgages paying 15%+ over the odds .....and many of those will be losing jobs, and lose the house, and all payments.

Plus when paying rent, with councils, and some housing associations, after a set number of years you can buy the property at a reduced market rate of up to 40% in some cases.

[Piamed]

Try HSBC, they do 1.95% above BOE which gives you 3.45%. But require 40% deposit, booking fee of £799.

How is PIA doing? eating more than you now?

Cheers

Hey buddy! Pia is easily eating twice as much as me now ;-) Having itchy tummy and swollen hands and tingling feet also. How is that lovely Aaren doing and Jassmine? Hope your mum is having a great time, in spite of the weather.

[somebody]

Not quite that black & white.....Rent is much lower than a mortage, and your first 5+ years of a mortgage is also money gone.

You are also responsible for your repairs, rented get free double glazing, central heating, repairs included, etc,

You also have the convenience factor of being able to move when you want without paying a bank fine.

...and on top of that, 10,000's are now trapped in mortgages paying 15%+ over the odds .....and many of those will be losing jobs, and lose the house, and all payments.

Plus when paying rent, with councils, and some housing associations, after a set number of years you can buy the property at a reduced market rate of up to 40% in some cases.

Yep agree with that so why i suggested shared ownership if the aim is to own a propety.Which is done though housing associations some offer deals like you mention with the shared ownership.

Problem with rented and getting repairs done is when times are hard and vaule is dropping so do repairs it seems from what I have heard from friends. Before the landlord would rush out, now theres a delay and bodges are performed etc.

But if your paying to much for a house thats just like any other purchase. You make a judgement if you can afford it and if its value for money for you.
I bought a propety in the last low and missed out on all the silly prices and saved my money. Im sure i lost out on a huge "profit" as well, but I would have needed more to upscale if we moved so a bigger burden.
The Wife and I are now luckily in the sitaution where whatever the flat is worth and the saved deposit is more than we need even with huge deposits for decent deals. We lived frugally and saved hard always hard the cheaper option as opposed to many who are now the ones complaining about there 125 percentage mortages and self certifed nightmares.

From speaking to older people at work and where have you. Those that did ok were those that saved and saved so had smaller ratio mortages.

Many people like parents had a tough time in the past where they had negative equity or crazy payments but in the long run they got though them and now have bought the house and for the last ten years had no rent or mortage to pay. As they never remoratged, paid off as quickly as possible and live within their means.

As you say overexceeding your budget is silly just like buying a car or handbag at a price you cant afford to budget for the particular item.

At the end of the day if you cant afford a new mercedes you dont buy one you buy some thing in your price range or rent one if you only need for a while.


At present you can get new bulids for cost price if you haggle so if you wanna stay in that area then I would say a ok deal.

[KeithD]

Banks have been handing out 100% mortgages than included all the taxes, fees, etc So the idiots who took advantage of that end up paying double everything

[somebody]

Banks have been handing out 100% mortgages than included all the taxes, fees, etc So the idiots who took advantage of that end up paying double everything

Although stupid when younger I learned to pick up why people do things a certain way. As Engineer comes naturally sometimes you wonder why you do some time consuming steps but you soon learn there is a reason when you miss them out and everything goes wrong.

So Jay and Zobel learn from those with nothing to gain from you moving or staying and those who have memories of previous propety crashs. Find out what they learned. Like you im to young but did a lot of reading and listening and will continue to do so.

Also dont treat your House as a profit/loss item, its your home you dont wanna lose loads of money on itand nice to make money. But more importantly you want a house for as long as you need it which fulfils your needs.

one house im looking at the moment, a wide boy self bulit and owned has inside pool loads of bedrooms and all mod cons. He had bentleys and every other flash car. A year or so ago the family moved out all of a sudden

Instead of over a million the house can be picked up for about 250k

If the couple had not been so over ambitous....

[benb]

Hey buddy! Pia is easily eating twice as much as me now ;-) Having itchy tummy and swollen hands and tingling feet also. How is that lovely Aaren doing and Jassmine? Hope your mum is having a great time, in spite of the weather.

Wow, that is plenty and good! Don't miss Pia's regular walks even if its cold. I was told that regular exercise makes it easier to deliver later. Aaren is doing superb and growing fast. My house temperature was previously set to 20 and because of mum and Aaren, its now 22 which makes it comfy for them.

Cheers

[benb]

Also dont treat your House as a profit/loss item, its your home you dont wanna lose loads of money on itand nice to make money. But more importantly you want a house for as long as you need it which fulfils your needs.

Spot on!
Many think that their home is an investment which is silly. Only additional houses are investments.

Cheers

[Jay&Zobel]

Spot on!
Many think that their home is an investment which is silly. Only additional houses are investments.

Cheers

yeah...
thank you for all the comments...

that was also my thought the 1st time, why people keep on moving from place to place in order to get money from the old house... an investment...
why not stay where you want and you love and be happy... build memories and lots more...

but hey, we still dont want to lose in an investment right? that is why you call it an investment... to reap the benefits in the long run...

maybe, just save & save & save a lot of cash. do not overspend. then buy a house (maybe in CASH!!) that you think is worth livable.

thank you!!!


when it comes to renting:
Boss Keith is right. I agree with him.
Mortgage + interests and wotnot...

We never had any problems with our rented apartment. Our landlord is also a firsttime landlord. so are we, 1st time to rent & our home is also new... So got no probs at all...

Maybe, it's best to look at the newer properties if you are thinking of renting!

[benb]

yeah...
thank you for all the comments...

that was also my thought the 1st time, why people keep on moving from place to place in order to get money from the old house... an investment...
why not stay where you want and you love and be happy... build memories and lots more...

but hey, we still dont want to lose in an investment right? that is why you call it an investment... to reap the benefits in the long run...
maybe, just save & save & save a lot of cash. do not overspend. then buy a house (maybe in CASH!!) that you think is worth livable.

thank you!!!


when it comes to renting:
Boss Keith is right. I agree with him.
Mortgage + interests and wotnot...

We never had any problems with our rented apartment. Our landlord is also a firsttime landlord. so are we, 1st time to rent & our home is also new... So got no probs at all...

Maybe, it's best to look at the newer properties if you are thinking of renting!

Its not.

You can only call it investment when you move house and retain the old house for rent.
You cannot call moving to a bigger home an investment as there is no return in investment, unless maybe you rent out the rooms etc.

Perhaps, when you eventually plan to downgrade to smaller house, then maybe you can call it investment, but that is too late in life.

Cheers

[somebody]

yeah...
thank you for all the comments...

that was also my thought the 1st time, why people keep on moving from place to place in order to get money from the old house... an investment...
why not stay where you want and you love and be happy... build memories and lots more...

but hey, we still dont want to lose in an investment right? that is why you call it an investment... to reap the benefits in the long run...

maybe, just save & save & save a lot of cash. do not overspend. then buy a house (maybe in CASH!!) that you think is worth livable.

thank you!!!


when it comes to renting:
Boss Keith is right. I agree with him.
Mortgage + interests and wotnot...

We never had any problems with our rented apartment. Our landlord is also a firsttime landlord. so are we, 1st time to rent & our home is also new... So got no probs at all...

Maybe, it's best to look at the newer properties if you are thinking of renting!

Renting sounds like the best option. Then hopefully you can save, remeber even with the low rates as prices drop your still making money by saving in a savings account.

As you can see on the news the propety issue due to many people losing jobs, the banks and proples investments being badly hit means things will not pick up for a while.

Ignore the rest of the world, think tortoise and the hare. Go at your own pace. Seriously at the moment we are house hunting and the state some people have got themselves in by over strecthing is terrible. The amounts people seem to have spent on the house and improving.

Get some serious savings at the moment its the only way to get a good mortage and generally be safe in todays enviroment. deposits between 25 percent which should have been always the minimum i belive and 40 percent in some cases sounds high but prices are dropping. As people need to move and sell so the market will adapt. So the prices will not be so scary in a few years time. Also ignore the prices in the estae agent window check the actual prices on right move etc they are nearly always much lower. Prices were silly due to some huge scams where the banks lost a lot of money but i haven't heard much coverage of in this country, by to let where people with a small amount of capital or even no capital were buying propeties like sweets. Then people got worried that they were going out of sight so tried to jump on at all costs.

Also bear in mind will you want a propety in phill or at least bulid an extension do up a realtives place? dont put all your eggs in one basket. many people with a propety in two countries have two smaller houses.

Prices in the recent past have increased but the times are a changing and it may well never happen like this again. So buying a house and it increasing quicker than inflation and intrest rates may never not happen which is why people were calling it a investment.

But do also be aware intrest rates may shoot up in the next few years. As you can see the pound is in a bad way compared to other currencies.

[Jay&Zobel]

Renting sounds like the best option. Then hopefully you can save, remeber even with the low rates as prices drop your still making money by saving in a savings account.

Get some serious savings at the moment its the only way to get a good mortage and generally be safe in todays enviroment. deposits between 25 percent which should have been always the minimum i belive and 40 percent in some cases sounds high but prices are dropping. As people need to move and sell so the market will adapt. So the prices will not be so scary in a few years time. Also ignore the prices in the estae agent window check the actual prices on right move etc

Also bear in mind will you want a propety in phill or at least bulid an extension do up a realtives place? dont put all your eggs in one basket. many people with a propety in two countries have two smaller houses.

But do also be aware intrest rates may shoot up in the next few years. As you can see the pound is in a bad way compared to other currencies.

GOOD ADVICES!!!

SAVE SAVE & SAVE I THINK IS THE BEST OPTION

[PeterB]

Only additional houses are investments.

When I bought a second house in UK, it was not intended as an investment, but as a holiday get-away. However, it did turn a profit when it came to selling!

[Belmontboy]

Although interest rates have fallen very sharply to the lowest rate in centiries, be VERY wary. Rates WILL go up again, maybe not next month or next year, but they will go up, and mortgage payers will be hit with much higher re-payments.

Just be carefull !

[KeithD]

I think you'll find the bank rates haven't gone down!

[somebody]

Although interest rates have fallen very sharply to the lowest rate in centiries, be VERY wary. Rates WILL go up again, maybe not next month or next year, but they will go up, and mortgage payers will be hit with much higher re-payments.

Just be carefull !

Word and in fact we should have not reduced them as much in the first place, would have been short term misery for many but better for the country long term imo.

[PeterB]

Indeed. I'm still not sure that I fully understand the logic. The western world is in crisis because it has been too easy to obtain credit ... why should the 'fix' be a reduction of interest rates - designed to encourage borrowing.

I think that interest rates should have been doubled, then I could have lived in an even better style to that with which I've become accustomed!

[KeithD]

Gordon is now going for Bailout II

All his other ideas have FAILED

This run is the same as a losing run in betting, if everything was working pretty well before hand, then it sorts itself out in the end, you do nothing, and just carry on doing what you usually do. The thing you DO NOT do in a betting losing run is start changing things....that is called PANIC...and makes this worse. ....aka...we now have £Billions of debt we have to pay back with higher taxes, and the results? Bugger all

[somebody]

I was yesterday with my CEO and was at a Lunch followed by a meeting with a lot of people who earn way to much and run large companies and organsations in various sectors.

One snipet from convo stood out from a gentleman we would all know on sight from the media. He said that he felt that this was such a big issue that it should be put on a par with a world war or international disater! That the British goverment ideally should have brought in at cabinet level people required for the job regardless of party background.
Other quotes i heard from very level headed experienced people was that the Last rescue was to small and all involved knew this.

As we all have heard in the media Barclays and HSBC made wrong moves along with JP morgan and many more.

The companies are worried as they know in the long run huge super banks will emerge who will be way to powerful for any country to regulate.

Mr Admin Boss so very true that also is all i hear from anyone who comes from the city, I mean most of them are just professional gamblers if you take the title away.

Brown due to beliving his own hype and the fact most people were so happy that the problem like a overdue bill was staved off and hidden in the drawer out of site. Problem is the default bill still has to be paid off.


The whispers from the City and mayfair (where the hedge funds and rich bods banks are) I have heard that the media is downplaying the worst of it. Some of the problems are so bad they would have people queueing at the bank. They of course is no need to take out your money good ol gordon will put any losses on tic for your Grandchildren to worry about.

[benb]

Indeed. I'm still not sure that I fully understand the logic. The western world is in crisis because it has been too easy to obtain credit ... why should the 'fix' be a reduction of interest rates - designed to encourage borrowing.

I think that interest rates should have been doubled, then I could have lived in an even better style to that with which I've become accustomed!

The world will be in a very bad state, much worse than now, if interests rates were doubled etc. The aim is to escape a deep recession (& depression) and yet encourage people to save and pay off bad debts. Its tough to get the balance without some sacrifices. If we punish the banks and people, it will only make matters worse. Its true that savers are in a way helping the people in debt, but for instance, if a company goes bust, both savers and bad debt people will suffer.

We will be doomed for a good number of years if we go into deflation, so *most* of the steps taken now are justified.

This is the time where people work harder, retrain, surviving companies optimise their business operations etc, which in the long run will benefit us all (i.e. stronger economy and currency etc).

[somebody]

The world will be in a very bad state, much worse than now, if interests rates were doubled etc. The aim is to escape a deep recession (& depression) and yet encourage people to save and pay off bad debts. Its tough to get the balance without some sacrifices. If we punish the banks and people, it will only make matters worse. Its true that savers are in a way helping the people in debt, but for instance, if a company goes bust, both savers and bad debt people will suffer.

We will be doomed for a good number of years if we go into deflation, so *most* of the steps taken now are justified.

This is the time where people work harder, retrain, surviving companies optimise their business operations etc, which in the long run will benefit us all (i.e. stronger economy and currency etc).

THe low intrest rates I have heard from several sources is actually hitting the banks. many companies big and small also keep reserves which are all being hit as well by low intrest rates.

Sorry but if your being tough no nonsense trying to look long term for the country. Many people lied and took on too big a mortage, lied to get loans and credit cards. If people are let off the cycle will happen again. The UK needs to cleanse its system of bad debt and a lot of it is held by the public. These people signed agreeing to repay the debt and were aware things could go up or down surely? Many who too were trying to play the market and were "investing".

I know many took on large moratges due to thats what they needed to buy a propety, but they could have rented surely?

The country is also in a state where this summer where nearly all your purchases will be 30 percent higher. Due to the exchange rates, if you think a lot of retail operations have gone now then be prepared, for when they just cant afford to buy enough stock. Many Retail operations are going into admin so the owners can get out while the going is not to bad. Those that do carry on will in many cases buy less variety of stock and safe bets. With margin very low already how will they find any profit?

We will have stronger companies due to the sheer lack in numbers. Where will the competion come from? Many business leaders are very worried about what this means for business and for the general public. Creating new banks which can compete with the superbanks which will emerge will be very very hard.

Many of our exports come from the City and other finance companies. What will replace this with? How will the country keep the books balanced? The goverment cant have everyone working for the state surely?

Deflation is only bad if you own money and would wipe out the UK due to the incompentce that Brown has shown in the last ten years. In the good years we spent to much and didn't set aside enough for now.

My Self as a saver and with no major loans or mortages would be laughing. Many pensioners who saved and went with out to provide for their futures would be in good shape.

The only people who suffer are those who own to others. But as the goverment are the worst Inflation is now their goal to reduce the amount they owe. Which will punish all those who were sensible and careful with their money.

Sorry saving a few quid a month on tracker mortages, which is good news for good people like your self isn't really going to save the nation imo.
The goverment say your go out and spend it in the shops well possibly but only if you need it most likely it will go towards debt reduction or to savings.

[benb]

THe low intrest rates I have heard from several sources is actually hitting the banks. many companies big and small also keep reserves which are all being hit as well by low intrest rates.

Sorry but if your being tough no nonsense trying to look long term for the country. Many people lied and took on too big a mortage, lied to get loans and credit cards. If people are let off the cycle will happen again. The UK needs to cleanse its system of bad debt and a lot of it is held by the public. These people signed agreeing to repay the debt and were aware things could go up or down surely? Many who too were trying to play the market and were "investing".

I know many took on large moratges due to thats what they needed to buy a propety, but they could have rented surely?

The country is also in a state where this summer where nearly all your purchases will be 30 percent higher. Due to the exchange rates, if you think a lot of retail operations have gone now then be prepared, for when they just cant afford to buy enough stock. Many Retail operations are going into admin so the owners can get out while the going is not to bad. Those that do carry on will in many cases buy less variety of stock and safe bets. With margin very low already how will they find any profit?

We will have stronger companies due to the sheer lack in numbers. Where will the competion come from? Many business leaders are very worried about what this means for business and for the general public. Creating new banks which can compete with the superbanks which will emerge will be very very hard.

Many of our exports come from the City and other finance companies. What will replace this with? How will the country keep the books balanced? The goverment cant have everyone working for the state surely?

Deflation is only bad if you own money and would wipe out the UK due to the incompentce that Brown has shown in the last ten years. In the good years we spent to much and didn't set aside enough for now.

My Self as a saver and with no major loans or mortages would be laughing. Many pensioners who saved and went with out to provide for their futures would be in good shape.

The only people who suffer are those who own to others. But as the goverment are the worst Inflation is now their goal to reduce the amount they owe. Which will punish all those who were sensible and careful with their money.

Sorry saving a few quid a month on tracker mortages, which is good news for good people like your self isn't really going to save the nation imo.
The goverment say your go out and spend it in the shops well possibly but only if you need it most likely it will go towards debt reduction or to savings.

Everyone suffers to some extend, unless you have plenty of money and don't need a job. Its not just about tracker rates, its about having credit available to everyone at an affordable rate.

ok, have you got a better solution than what the governments around the world are doing?
I don't see any other feasible way to avoid a serious recession and possibly a depression.

[PeterB]

...encourage people to save and pay off bad debts.

Okay, I'm not an economist, but I thought that increasing interest rates might achieve those aims.

I have no debts, but reducing interest rates certainly isn't encouraging me to save!

[benb]

Okay, I'm not an economist, but I thought that increasing interest rates might achieve those aims.

I have no debts, but reducing interest rates certainly isn't encouraging me to save!

Increasing interests rates too much too fast will damage the economy as there is too much debt. You increase interests rate to curb inflation. Now that people have reduced spending far too much and house prices crashing fast, interests rates need to be reduced to ensure that we do not go into deflation (which can lead to millions of job losses, depression, declining GDP etc).

There needs to be more savers like you and that cannot happen overnight - need to pay off debts first!. Lowering interests rate does not benefit the savers, but you have already gained when you sold off your properties at peak prices, high interests returns etc. There are always winners and losers in any market. Those who gambled on Gold are celebrating now. Those who gambled on real estate are probably suffering from depression.

The government needs to do more to create a balance. More programmes are required to encourage saving in the long run, prevent crazy lending, tight control on bank securities etc.

Cheers