Why FTB should Resisit buying now and Save instead! explained

zedyy

thread starter makes a good point

MrMalkin

pandamonia wrote: »

he advised that the money you would save over the period of the mortgage for 10 years would out weigh the money you would save when interest rates were higher. he advised that if you were on a good tracker then you should bank the money saved between your rate at the average rate or 5.5% he said to pay into a high interest savings account and by the time you need to call on this money to add to your mortgage for when it goes over 5.5% you will be much better off. not only that by the time the rate rises there will be better products on the market than now and a remortgage to a new tracker of 0.5 above or 0.5 below the baserate will be highly possible. leaving all the money you saved in the bank.

But you have no idea what interest rates or mortgage deals will be available in 2, 5 or 10 years. Nobody does. The mortgage market has been badly damaged by the financial crisis, there's no reason to assume it will recover in that time scale, nor is there reason to assume that interest rates won't top 10% (or any other number you care to dream up) for an extended period.

By far the worst thing about this recession is the fact that everyone and his dog seems to think he's an expert on the financial markets and the short and medium term future, when in reality no-one has a damn clue, least of all you. To be attempting to give advice on this subject, 'backed up' by the fact that you own a BMW and have a relative who works for HSBC is bloody irresponsible.

pandamonia

MrMalkin wrote: »

But you have no idea what interest rates or mortgage deals will be available in 2, 5 or 10 years. Nobody does. The mortgage market has been badly damaged by the financial crisis, there's no reason to assume it will recover in that time scale, nor is there reason to assume that interest rates won't top 10% (or any other number you care to dream up) for an extended period.

By far the worst thing about this recession is the fact that everyone and his dog seems to think he's an expert on the financial markets and the short and medium term future, when in reality no-one has a damn clue, least of all you. To be attempting to give advice on this subject, 'backed up' by the fact that you own a BMW and have a relative who works for HSBC is bloody irresponsible.

you sir are yet another idiot who obviously didnt read the posts. the bmw came up on a separate subject, and i have an IFA and family who work in the financial sector which have good advice, and last time i checked HSBC is the only bank with a decent share price so they must be doing something right.

Regarding interest rates they haven’t been 10% for a very long time, high interest rates will cripple the country worse than it is now. how many families in negative equity can afford 10% ? just because you have fixed at 6% you think your safe? 10% interest rates will cause a crash to the market like you would not know. how will anyone afford houses at 10% ? your home will be worth 50% of what it is today if that happens and thats hoping for the best. High interest rates are used to counter hyperinflation and if that happens then you have more to worry about than your mortgage.

so take my advice and widen your little brain and knowledge on the wider economy since there is no perfect answer to this especially fixing your mortgage.

ess0two

Panda you've said enough in this thread to indicate the idiot is YOU:money:

pandamonia

ess0two wrote: »

Panda you've said enough in this thread to indicate the idiot is YOU:money:

are you still talking??

StevieJ

Panda said
Regarding interest rates they haven’t been 10% for a very long time :rotfl:

I don't think they have been where they are now since 1694 a very very long time

MrMalkin

pandamonia wrote: »

you sir are yet another idiot who obviously didnt read the posts.

And you're a condescending !!!!! who has no idea what he's talking about.

Obviously what 1 IFA says applies to everyone in the whole country! He should be PM, forget Brown or Cameron!

StevieJ

10% interest rates will cause a crash to the market like you would not know. how will anyone afford houses at 10% ? your home will be worth 50% of what it is today if that happens and thats hoping for the best. High interest rates are used to counter hyperinflation and if that happens then you have more to worry about than your mortgage.

I think you are a little confused If we hav 10%+ interest rates it will mean that house prices are rocketing not collapsing (due to high inflation.)

pandamonia

StevieJ wrote: »

Panda said
Regarding interest rates they haven’t been 10% for a very long time :rotfl:

I don't think they have been where they are now since 1694 a very very long time

s o you think fixing at 6% will make you free from the problems that come with interest rates of 10%?

how many people in the uk can afford 10%? - if rates go this high there are 2 reasons

1) IMF bailout - see post Thatcher

2) hyperinflation - see Zimbabwe
do you think your fixed rate mortgage will help you in either of those situations?
maybe 6% fix will save you money when the rates hit 5-6% baserate. but if rates go higher than that then trouble comes in other ways.

StevieJ wrote: »

10% interest rates will cause a crash to the market like you would not know. how will anyone afford houses at 10% ? your home will be worth 50% of what it is today if that happens and thats hoping for the best. High interest rates are used to counter hyperinflation and if that happens then you have more to worry about than your mortgage.

I think you are a little confused If we hav 10%+ interest rates it will mean that house prices are rocketing not collapsing (due to high inflation.)

then what have you got to worry about? if prices are rocketing you can sell up and take the equity if you cant afford the mortgage.

StevieJ

pandamonia wrote: »

s o you think fixing at 6% will make you free from the problems that come with interest rates of 10%?

how many people in the uk can afford 10%? - if rates go this high there are 2 reasons

1) IMF bailout - see post Thatcher

2) hyperinflation - see Zimbabwe
do you think your fixed rate mortgage will help you in either of those situations?
maybe 6% fix will save you money when the rates hit 5-6% baserate. but if rates go higher than that then trouble comes in other ways.



then what have you got to worry about? if prices are rocketing you can sell up and take the equity if you cant afford the mortgage.

That is the last thing I would want to do if prices are rocketing :rotfl: BTW I would be able to afford the mortgage because I would be on a 10 year fixed rate