Why interest rates will surge upwards.

pandamonia

chucky wrote: »

if you can afford it why are you complaining about property values then?


your age is irrelevant to this unless you are trying to impress someone with this comment.


it has done nothing to do with what they have increased by in the past - they can decrease by less or even decrease by even more. dependant on unemployment, the number of reposessions in your local area and even the desirability of your area; probably a couple of other factors too.

Chucky you are just an idiot.

dont pick out parts of my post and ignore others.

did you miss what i said about it not being fair to people on average wage.

just because i can afford it doesnt make it right.

in fact i should be able to buy a 4 bed detatched with my money but i cant.

only way i can think of making this more affordable is to have it over 15 years instead of 25 so i pay less interest

kt63_2

There's a nice detatched house on the market locally with 7 bedrooms and 10 acres of gardens landscaped by Capability Brown on the market for £2,000,000. I reckon I should be able to afford it on my salary, but I can't. Mind you, if prices drop as much as they are predicting on HPC I should be able to part-exchange my bike for it in about 18 months time.

chucky

pandamonia wrote: »

Chucky you are just an idiot.

dont pick out parts of my post and ignore others.

did you miss what i said about it not being fair to people on average wage.

just because i can afford it doesnt make it right.

in fact i should be able to buy a 4 bed detatched with my money but i cant.

only way i can think of making this more affordable is to have it over 15 years instead of 25 so i pay less interest

i answered all detail in your post, there was no mention of average wage, i'll let you go back and edit at will.

you struggle to understand or even grasp the basic concepts of buying a house and a mortgage.

reducing ther term of the debt reduces the total interest payable, not the monthly interest payments but increases the repayments of capital. which in turn means higher monthly repayments over 15 years - so how is this affordable!?

pandamonia

chucky wrote: »

i answered all detail in your post, there was no mention of average wage, i'll let you go back and edit at will.

you struggle to understand or even grasp the basic concepts of buying a house and a mortgage.

reducing ther term of the debt reduces the total interest payable, not the monthly interest payments but increases the repayments of capital. which in turn means higher monthly repayments over 15 years - so how is this affordable!?

I understand how it works, personally im buying a 130k house over 15 years rather than 25 so i can pay down equity faster.

i think this is smarter than buying a 160k house over 25 years?

There seems to be this culture of lending the MAX ammount over the MAX ammount of time. which i am going to personally buck

Dithering_Dad

pandamonia wrote: »

I understand how it works, personally im buying a 130k house over 15 years rather than 25 so i can pay down equity faster.

i think this is smarter than buying a 160k house over 25 years?

There seems to be this culture of lending the MAX ammount over the MAX ammount of time. which i am going to personally buck

You needn't commit yourself to huge monthly payments in order to reduce your mortgage. In many ways you're restricting your options if anything goes wrong (i.e. sickness or injury) or children turn up on the scene.

Better to get your mortgage over 25 years, especially as you're so young and then to make monthly overpayments or lump sum payments as and when you can afford them. That way if you have a reduction in your income you can stop or reduce your overpayments at your own leisure, without having to go to the bank, cap in hand, and asking them to extend the term (and paying a large fee for 'admin'). You might also find that when interest rates go up, especially if you have a fixed rate, you make more money in a high interest savings account than you do by paying down your mortgage. You could therefore redirect your voluntary overpayments into a savings account and then every year or so you can make larger overpayments (due to the higher interest rate) onto your mortgage account that you would have made simply by making direct overpayments.

I'm currently overpaying at the moment and in a support group for mortgage overpayers over on the MFW (Mortgage Free Wannabe) board. That's the place to go when you finally buy your house and want to blitz the mortgage.

chrisclipson

Deleted_User wrote: »

Now we know, now we know.

As an aside, whoever can tell me where the above saying is from gets 10 pointless imaginary points!

If no-one wants the pointless imaginary points, can I have them for recognising a quote from Mitchell & Webb? Otherwise I might have to call you an aunt