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Debate House Prices
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BoE cuts rates to 3.0%!!!
Comments
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MissMoneypenny wrote: »This link came from the mortgages board:-
"Homeowners to miss out as tracker loan providers refuse to cut rates below a minimum"
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article4965372.ece
For HSBC it says:-
" HSBC does not have a lower threshold on its deals, but includes a caveat in its terms and conditions allowing it to not pass on rate cuts if there is a “significant” change in the mortgage market. However, a spokesman said that it was “committed to upholding the agreement with our customers”.
HSBC are one of the most sensible banks - they don't rely on the money markets to fund their lending and capital flocked to them during the first round (yes, I think there will be more before this is done) of the banking collapse recently.
They hold my foreign currency for just that reason.
Still, in the la-la land of nationalised banks funded by the taxpayer, I'm sure we will see less sensible business practices. After all, we the working public provide the money to underwrite it all.....--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
MissMoneypenny wrote: »I don't know when I can claim it. That's a good point, I'll check that.
Financially, I don't need to work. Mentally, I do.
I don't need a mortgage but mentally I do.;)
If it is years away I think you can writte it off as being a final sallery pension. They are unsustainable.:eek:0 -
And of course, interest rates will stay at current levels over the lifetime of your mortgage :rolleyes:
Current levels - the clue is in the name
Is he not talking about fixed rates?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
And of course, interest rates will stay at current levels over the lifetime of your mortgage :rolleyes:
Current levels - the clue is in the name
No I'm not saying that
- I'm just saying that there is more to the cost of house than the cost at which you buy it and that anyone buying at any time is not necessarily making the wrong decision - it's a complex gamble.
PS I do think houses will fall a lot yet and I wouldn't actually buy a house tomorrow myself ;-00 -
And of course, interest rates will stay at current levels over the lifetime of your mortgage :rolleyes:
Current levels - the clue is in the name
Yeah, that's a silly comparison. Even if rates were to majically remain at 3.5% over the term of the mortgage, salary growth would also reflect this (assuming the don't continue to fix the figures).
So buying at a lower price at a higher rate not only means less risk, but also more rapid easing of the debt burden against your earnings. Oh, and your pension scheme wouldn't suffer so much either.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Another thought.
What is this going to do on the affordabillity charts, this will surley go down now to around the 3.XX mark
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Turnbull2000 wrote: »So buying at a lower price at a higher rate not only means less risk, but also more rapid easing of the debt burden against your earnings. Oh, and your pension scheme wouldn't suffer so much either.
What happend in the early 90s then?0 -
IveSeenTheLight wrote: »Definately appreciating the interest rate drop on my BTL tracker as well.
Gordon is relying on you to go out and spend the saving. It's quite wrong of you to just reduce your borrowing.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Turnbull2000 wrote: »Yeah, that's a silly comparison. Even if rates were to majically remain at 3.5% over the term of the mortgage, salary growth would also reflect this (assuming the don't continue to fix the figures).
So buying at a lower price at a higher rate not only means less risk, but also more rapid easing of the debt burden against your earnings. Oh, and your pension scheme wouldn't suffer so much either.
Obviously, I don't think so. The point I was trying to make is that it's not necessarily a good thing to over focus on the cost of house as in the end the interest rate you pay over the life of a mortgage will have as much of an impact on the true cost of the house.
It's true that if you want to over pay your mortgage it's easy to do so with a lower debt burden. If you pay less interest this can also be used to overpay your mortgage.
Whether you think HPs will fall should be balanced with where you think interest rates are going..0
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