First time buyer is it the right time now?

housesitter

confused31 wrote: »

before with 55000 pound you could have borrowed nearly 500,000 pound, and on a decent rate

Yes. A decent rate now.
However WHEN interest rates ramp up towards double figures that 400K mortgage becomes a large noose around your neck.

confused31_2

I told you before about the seach engines looking for the best deals, just tell me what bank or building society are doing the 10 year fixed at 5.65?

Its becoming a regular thing now you coming out with deals that actually dont exist, try fools.com or confused .com, you seen the deal so just tell us whos it with???

What are you going to do pretend your not a first time buyer???

just tell us the truth please!!!!!!!!!!!

confused31_2

housesitter wrote: »

Yes. A decent rate now.
However WHEN interest rates ramp up towards double figures that 400K mortgage becomes a large noose around your neck.

You would get a decent rate but it would only be short term thats what im trying to tell him but he just wont listen if he goes on a 2 year fixed deal and then interest rates shoot up he will be in a right mess, thats why he needs to get realistic, and buy a house that he can get a long fixed deal, if that means him having to have 40% he will just have to buy a house that 55000 pound is 40% of which is a house for about 135000 pound.

mbga9pgf

You really are a special child!!!

http://www.britannia.co.uk/home/mortgage/fixed/10_year/index.html


I dont need you telling me anything MATE..I suggested on another thread that I was fully intending to take the 10 year fix (possibly a 5 year fix) not the other way around!

These rates are only going to go down for those lucky enough to have a 25-40% deposit (whilst prices are crashing, I am laughing :rotfl::rotfl::rotfl:)

Hows your equity looking confused?

YOU DONT NEED TO TAKE A FTB MORTGAGE EVEN IF YOU ARE A FTB... THEY ARE DIFFERENT PRODUCTS!

pinkshoes

mbga9pgf wrote: »

Because reckless attitudes like that got us into this whole sorry mess. B*gger the consequences, I want it today! Sorry, if my wife and I can save another 36K this year towards a house that is depreciating in value massively at the mo and get a much better house in a nice area in only 12-15 months time, its a no-brainer. Its also NOT ABOUT MONEY! its about getting a house similar to to the one I could have expected to purchase in 2001 before the market went absolutely completely nuts and a generation were priced out... Those days are about to end!!! Hooray!

Think I want those trainers, new plasma screen, new car, I will just stick it on the never-never and forget that 30K is a hell of a lot of money...:eek:

Hence I always use the phrase "IF YOU CAN AFFORD IT" i.e. have a large deposit saved up, no debt, and only borrowing 3x joint salary.

I don't call that irresponsible or reckless. I call it being sensible.

(I am often the first in line to tell people not to buy if they have no deposit and would need to borrow 6X salary!)

confused31_2

but you havent got a 40% deposit, unless you are going to buy a house within your budget about 135,000 pound.

Or just save for acouple of years and buy the house you want for 255000 with a 40% deposit, the houses should still be cheap then, but im not to sure whether the interest rates will be that low.

Why do you keep on showing me mortgage deals that are simply not available to you if you wish to buy a house for 255000 pounds, YOU HAVENT GOT A 40%%% DEPOSIT!!!!!!!!!!!!!!!!!!!!!!!!

But you know best can you please tell us all what will the interest rates be??

whathavewedone

I think what's really annoying is the way some people on here are giving their opinions/predictions as fact.

Eg WHEN interest rates go up to double figures.

Okay at some point in the future interest rates will almost certainly go up to double figures but it isn't looking likely in the short term.

It's one thing to say would you be able to easily afford your mortgage IF interest rates went up to double figures (although if we all worried about that we'd rent forever unless we had a huge inheritance/won the lottery) but nobody knows that interest rates will definitely rise to double figures during the period that the OP (or anyone else thinking of buying at the moment) is going to be living in their property.

Hardly anyone would be able to easily afford their mortgage if interest rates went up to double figures. You'd use savings, get second jobs, same as people did in the last recession. They weren't all repossessed.

!!!!!! the way some of you talk I wonder do you ever run the risk of crossing the road/driving a car/letting your children out of the house on their own before the age of 18?

pinkshoes

sympatex wrote: »

I wouldn't be as rosetinted about it as pinkshoes because if you make the wrong decision as a FTB you penalise yourself financially for a long time and it's not necessary because renting 6-12month AST's will provide the roof over your head (home) and flexibility to move when the time is right for that individual.

I wouldn't say I'm rosetinted, despite the name... :rolleyes:

Our mortgage is 2.4x our joint salary, and going by a smaller property that sold 100m away very recently, we have 23% equity if we sold for the same.

The cost of renting would be £150 a month more than the mortgage interest, and although we currently have 18 years left on the repayment mortgage, we're also saving £2k a month on top of that, so could potentially be mortgage free in 10 years.

Oh, and the property is big enough incase we have a kid or two, and we have no debt.

See, I'm kinda boring and sensible when it comes to money. And I have a lovely home too.:D

mbga9pgf

but you havent got a 40% deposit, unless you are going to buy a house within your budget about 135,000 pound.

Or just save for acouple of years and buy the house you want for 255000 with a 40% deposit, the houses should still be cheap then, but im not to sure whether the interest rates will be that low.

Why do you keep on showing me mortgage deals that are simply not available to you if you wish to buy a house for 255000 pounds, YOU HAVENT GOT A 40%%% DEPOSIT!!!!!!!!!!!!!!!!!!!!!!!!

No, I have a 22% deposit on 255K, in 3 months (prices falling remember) I will have 25% deposit meaning I can get this:

60% to 75% Loan to Value:

5.39% Fixed for ten years, followed by our Standard Variable Rate, currently 4.99% variable for the rest of the mortgage. The overall cost for comparison is 5.5%APR.

or, in 13 months (NOT years as you put it!!!) I can afford this:

Less than 60% Loan to Value:

4.89% Fixed for ten years, followed by our Standard Variable Rate, currently 4.99% variable for the rest of the mortgage. The overall cost for comparison is 5.2%APR.

Unless you can see IRs climbing in the next 2 years (recession.depression anyone?) which I cant, I think its going to work out perfectly!

DULLARD

confused31_2

whathavewedone wrote: »

I think what's really annoying is the way some people on here are giving their opinions/predictions as fact.

Eg WHEN interest rates go up to double figures.

Okay at some point in the future interest rates will almost certainly go up to double figures but it isn't looking likely in the short term.

It's one thing to say would you be able to easily afford your mortgage IF interest rates went up to double figures (although if we all worried about that we'd rent forever unless we had a huge inheritance/won the lottery) but nobody knows that interest rates will definitely rise to double figures during the period that the OP (or anyone else thinking of buying at the moment) is going to be living in their property.

Hardly anyone would be able to easily afford their mortgage if interest rates went up to double figures. You'd use savings, get second jobs, same as people did in the last recession. They weren't all repossessed.

!!!!!! the way some of you talk I wonder do you ever run the risk of crossing the road/driving a car/letting your children out of the house on their own before the age of 18?

You say they wasnt all repossessed, i think you will be surprised at how many people already have been repossessed now, the problem being people have really bought at the top prices in 2007, then all of a sudden a lot of them have lost their jobs or they have had to go on different deals.

Before houses were expensive when you are on about, but in 2007 some houses had gone up 300%, its shocking, and these people have these mortgages wrapped around their necks.

Its a shame some people never thought house prices would come down.