Ftb's Are Back!!!!!!!!!!!!!!!!!!

woody252506

pandamonia wrote: »

No it doesnt matter at all on circumstances. i think youre totally incorrect.

2 year fixed 6% means you pay a fortune with ZERO security. this mortgage leaves you overexposed in the interest rate market. Soon there will be serious inflation and when that happens interest rates rise.

do you fancy being stuck with ZERO equity on a lenders SVR?

it offers no benefits at all other than being able to buy now in a falling market.

if you cant see the danger in this then you are obviously one of the people who caused this mess of people being repossessed

also the 1.3k worth of fees for 2 year fixed?

I have to disagree. How do you know that in 2 years time interest rates will be sky high? It might be 3/4/5 years - who knows. Even the best in the business dont know so you cant be so certain as a FTB.

A financial advisor told me a year ago that where I am currently living with my parents will only see house price increases due to its location, future motorway links and new public transport systems (Trams etc) been implemented. Houses are now 20k cheaper in that very area. That was a top guy working for a very reputable financial company.

If your going to buy now, on a rate such as the one we are discussing, make sure you very comfortable with the amount you lend and make sure you get a bloody good discount on the asking price. Then your as covered as you can be if the worst case scenario happens.

confused31_2

pandamonia wrote: »

5% fixed 90% LTV for 5 years for creditworthy decent earners isnt bad lending, its very smart lending.

thats all we are asking

We are being treated as Sub Prime when personally i am AAA

so if you could get that you would start looking to buy now??

pandamonia

woody252506 wrote: »

I have to disagree. How do you know that in 2 years time interest rates will be sky high? It might be 3/4/5 years - who knows. Even the best in the business dont know so you cant be so certain as a FTB.

A financial advisor told me a year ago that where I am currently living with my parents will only see house price increases due to its location, future motorway links and new public transport systems (Trams etc) been implemented. Houses are now 20k cheaper in that very area. That was a top guy working for a very reputable financial company.

If your going to buy now, on a rate such as the one we are discussing, make sure you very comfortable with the amount you lend and make sure you get a bloody good discount on the asking price. Then your as covered as you can be if the worst case scenario happens.

the fact that you dont know what rates will be in 2 years is exactly the reason why 2 yr fixed is a bad idea.

pandamonia

confused31 wrote: »

so if you could get that you would start looking to buy now??

i would be putting offers in on about 20 houses about 15-20% below current asking in the hope of a desperate seller

confused31_2

pandamonia wrote: »

i would be putting offers in on about 20 houses about 15-20% below current asking in the hope of a desperate seller

And thats what i think a lot of people are doing now, maybe it is a blip houses wont shoot up for a few years, so you should be okay.

And like someone said a lot of people are making offers and then realising they cant get the mortgages.

pandamonia

aparently people have been refused 90% LTV for no reason, they are just on the market to make them look good to the government.

such as Lloyds banking group

woody252506

pandamonia wrote: »

the fact that you dont know what rates will be in 2 years is exactly the reason why 2 yr fixed is a bad idea.

Which is why I said its only sensible to buy now only if you can comfortably afford a rate of say 6% fixed to cover you for when that runs out if rates are higher! Ill have over £200 extra a month if thats the case as in a years time a car loan I have will have finished so I wont be paying that anymore.

In terms of offering, forget 20%. Start at 30% off if your going to go and attempt to buy. Bargain from there then and dont go much higher.

And also in terms of over 1k in fees for 2 years. The mortgage I have has no arrangment fee tied to it. The only ones to pay are standard survey fee as with any other product and an admin charge of £35.:cool:

Palm_Centro

Troll,come on Geoff Cheshire is down 13% average.

ess0two

Palm_Centro wrote: »

Troll,come on Geoff Cheshire is down 13% average.

Take it this means me?,check out the LR figures.

housesitter

pandamonia wrote: »

i can lend 150k on my own salary with most lenders

The word you are looking for is borrow.
It's not the first time you've made that mistake either.
It would aid in people taking you seriously (which needs a fair bit of help from other threads).


Oh, I agree with you that regardless of how it's done and certainly at 6% a 2 year deal is financial suicide.


I'm a FTB too and looking at hitting the ladder around 175K which gives me a house I don't see I'd ever need to move from in the future. Looing for security. I feel it goes hand in hand with prudence and saving up a large deposit.