Mortgage advice?

My advise is -

1. Do not get a 100% mortgage, if indeed you can get one anyway in the current climate.

2. Avoid part buy / part rent. These often turn out to be more expensive long term than a normal purchase and will take longer to pay off. I have never seen the point of these myself.
 
PapaLazaru said:
My advise is -

1. Do not get a 100% mortgage, if indeed you can get one anyway in the current climate.

2. Avoid part buy / part rent. These often turn out to be more expensive long term than a normal purchase and will take longer to pay off. I have never seen the point of these myself.
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I guess it depends how easy it is for one to save for as deposit.
 
And the Daily fail also said....

"Four More years of Rock Bottom Rates" on the 26th of July.

And had their "When will Interest Rates Rise" headline (Feb 2010) showing a list of so called experts stating that Interest Rates 'could' be anywhere from 1% to 3.5% by the end of 2011 - Most of the so called "experts" stated that Interest Rates would start increasing by the summer 2010.

As has been seen from the last 12/24/48 or even 96 months. Very few (if any) newspapers/economists or even so called knowledable finance people have a clue what is happening with Interest rates or the economy to make predictions worth reading.
 
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it's interesting that rates are so high for ftbs, leads one to think of two possible reasons.
1) they are just ripping of customers.

2) they see first time buyers as a huge risk, because house prices will fall, unemployment and interest rates go up.

I'd go for 1) as I don't think they care about 2)

anyway, good luck with it, just remember you borrow real money and you can't just cancel the contract.
 
PASONIX said:
And the Daily fail also said....

"Four More years of Rock Bottom Rates" on the 26th of July.

And had their "When will Interest Rates Rise" headline (Feb 2010) showing a list of so called experts stating that Interest Rates 'could' be anywhere from 1% to 3.5% by the end of 2011 - Most of the so called "experts" stated that Interest Rates would start increasing by the summer 2010.

As has been seen from the last 12/24/48 or even 96 months. Very few (if any) newspapers/economists or even so called knowledable finance people have a clue what is happening with Interest rates or the economy to make predictions worth reading.
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the problem is the boe make it up as they go along so really your whole life could be at the whim of the latest thinking.

one minute 2% inflation is the line, the next minute it doesn't matter any more.
 
PASONIX said:
Very few (if any) newspapers/economists or even so called knowledable finance people have a clue what is happening with Interest rates or the economy to make predictions worth reading.
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And thatis why i'm happy at 5.89% for the next 4.5 years. When we got our mortgage the only options anywhere at 15% deposit were fixed mortgages so we had no choice, but i'd rather be paying more now but a definate amount every month rather than get stung by a tracker that goes up rapidly and unexpectedly in a few years.

As i said earlier, we borrowed 185k at 5.89% for 5 years on a 85% LTV. In 5 years even if prices don't change from right now the LTV will be down near 68% because the prices went up when we bought it and we also sunk money in doing it up. If prices only go up 5% in the next 4.5 years then our LTV will be nearer 65%. Thats means we can get a much better rate of interest than we could at 85% meaning that even if the base rate goes up to 5%, we might not end up paying much more than we are at the moment.
 
Todge said:
And thatis why i'm happy at 5.89% for the next 4.5 years. When we got our mortgage the only options anywhere at 15% deposit were fixed mortgages so we had no choice, but i'd rather be paying more now but a definate amount every month rather than get stung by a tracker that goes up rapidly and unexpectedly in a few years.

As i said earlier, we borrowed 185k at 5.89% for 5 years on a 85% LTV. In 5 years even if prices don't change from right now the LTV will be down near 68% because the prices went up when we bought it and we also sunk money in doing it up. If prices only go up 5% in the next 4.5 years then our LTV will be nearer 65%. Thats means we can get a much better rate of interest than we could at 85% meaning that even if the base rate goes up to 5%, we might not end up paying much more than we are at the moment.
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sorry but prices are not going to be 5% up in 4 to 5 years. If I was you I would plan for a 30% drop and pay of equity as fast as possible. If they don't go down that much you would be even better of.
 
Slam62 said:
the problem is the boe make it up as they go along so really your whole life could be at the whim of the latest thinking.

one minute 2% inflation is the line, the next minute it doesn't matter any more.
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Except that they will have to act on inflation before too long. It's putting real pressure now on day to day life for a large percentage of the population. Living costs are rising all the time, fuel, food, utility bills. This wouldn't be so much of an issue if salaries kept pace, but...
 
jamief said:
I remember reading on there about some guy who made an offer on a house that was ~30% of the asking price. It was round about then that I stopped reading the site! Full of trolls and people who *really* don't know what they're talking about.
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yes, it's a forum for folks who haven't been able to do anything with their lives and as such can't get on the housing ladder so they all sit around bitching and pretending it's all everyone elses fault and will all come good in the end :p
 
Rotty said:
yes, it's a forum for folks who haven't been able to do anything with their lives and as such can't get on the housing ladder so they all sit around bitching and pretending it's all everyone elses fault and will all come good in the end :p
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don't suppose we'll hear from the wishful thinkers when the real situation becomes more apparent.

For what it's worth I have a nice house in a nice area and I am mortgage free plus some more.

I was just trying to give the guy some honest advice.

Just do some research and stop basing your future on hope. You may be worried, but if you face up to reality you can still be ok.

there is no money, there are no pay rises and the cost of basic items is going up, think about it.

one example:
http://www.bbc.co.uk/news/business-11053227
 
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