Property Price Drop

kier333

kier333 wrote: »

I think insurance should be compulsory with a Mortgage like having building insurance, I love the Olympics and love rail more, i'm a fully qualified trades man working in Managment so work providing i'm not ill should not be a huge problem as i can always go back on the tools, everyone needs electricity.

Worse case i'll rent out the bedroom for 500pcm and live/sleep in the lounge, thats the beauty of London people will rent anything, i have in the past rented a room.

kier333

chucky wrote: »

personally i'd go for the 5 year - i've just fixed a 5 year on 4.69%, others may have a different or even a better view on it

but you need to do your own research and what suits your circumstances

I'm confused with the term of the fix, everthing says go for the 5, but then i doubt in 2 yrs if SVR will be higher that 6.79% so make me think go with the 2 (if like you i could Fix for 5 yrs at 4.69 then i would in act i'd fix the full term at that rate and just over pay 20% and have the mortgage paid by the time i'm 45) BUT I doubt it and will have to stay on the banks SVR as i guess i'll be in negative equity 2011 even though over paying 20%. In 2 yrs i will have appox 130k outstanding but recon a 1 bed with low service charge in zone 2 in a small block, well maintained with over a 100 year lease will be worth a little more. Plus subject to planning and the Freeholders permision i will do a loft conversion. However we shall see.

kier333

kier333 wrote: »

I'm confused with the term of the fix, everthing says go for the 5, but then i doubt in 2 yrs if SVR will be higher that 6.79% so make me think go with the 2 (if like you i could Fix for 5 yrs at 4.69 then i would in act i'd fix the full term at that rate and just over pay 20% and have the mortgage paid by the time i'm 45) BUT I doubt it and will have to stay on the banks SVR as i guess i'll be in negative equity 2011 even though over paying 20%. In 2 yrs i will have appox 130k outstanding but recon a 1 bed with low service charge in zone 2 in a small block, well maintained with over a 100 year lease will be worth a little more. Plus subject to planning and the Freeholders permision i will do a loft conversion. However we shall see.

Any advise of the lenght of fix would be very appriciated as i have to decide tomorrow.

pandamonia

kier333 wrote: »

Well they do unless HSBC lied to me today when adding the Mortgage to my online account!

6.79% is around average for a 90%LTV Mortgage at this time.

Does he live in a dark room!

5 year fixed 5.85% fixed from the post office.

you must live in the dark room since you know almost nothing about this subject.

i think you should get some calculators out and work out how much easier it would be to get 15% deposit so you can get a C&G or Brittania mortgage.

You seem desperate to throw your money away. prices arent going anywhere but down in the next 12 months. you would be best getting more money together.

Also last week you could get 5.69% 2 year fix for 10%

What does this tell you?

kier333

pandamonia wrote: »

5 year fixed 5.85% fixed from the post office.

you must live in the dark room since you know almost nothing about this subject.

i think you should get some calculators out and work out how much easier it would be to get 15% deposit so you can get a C&G or Brittania mortgage.

You seem desperate to throw your money away. prices arent going anywhere but down in the next 12 months. you would be best getting more money together.

Also last week you could get 5.69% 2 year fix for 10%

What does this tell you?

Point is i can afford the rate i have no problem so not an issue for me really, as i bank with HSBC had no problems getting the mortgage where i found i had problems securing from other lenders.

kier333

plus its only 0.9% whats that £70 a month, big deal wont lose any sleep over it i'll just work 2 hrs over time a month

mewbie_2

kier333 wrote: »

plus its only 0.9% whats that £70 a month, big deal wont lose any sleep over it i'll just work 2 hrs over time a month

Presumably you would lose 2 hours sleep?

pandamonia

kier333 wrote: »

plus its only 0.9% whats that £70 a month, big deal wont lose any sleep over it i'll just work 2 hrs over time a month

how big is your mortgage?

kier333

Flat is 155k putting down 18k deposit so 137k plus i'll over pay 20% ach month and no wont lose 2 hrs sleep over £70 although i'd rather it in my pocket.

kier333

Mortgage is appox a 1/4 of my monthly take home salary so think i can afford it plus once in London qualify for 3.7k pa London Living Allowance, hence making a overpayment each month of £180 roughly