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OK - opinions please?!
Comments
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well we knocked of 15 grand - 10%. She wouldn't take less - we tried. I'm ok with the price we are paying - it's just if over the next 5 years it halves in value?
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If you are worried about that, then don't buyKavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
I've always been told that negative equity only exists on paper, so if you ain't selling, it's hypothetical.
How does that translate though to the end of a fixed term deal then?
In theory, when my 5yr fixed is up, if my house is worth less than I paid, am I f**ked?
Follow on rate is critical to getting a good deal,
a lot of peole ignore this focusing on the main part of the deal on the asumption they can remortgage cheaply.0 -
getmore4less wrote: »Follow on rate is critical to getting a good deal,
a lot of peole ignore this focusing on the main part of the deal on the asumption they can remortgage cheaply.
How is he going to know what the follow on rate is going to be? If it's variable, it's going to change between now and 5 years and that means the figures on a quote are pointless. I think a better idea is to look at what the payments would be on a mortgage of around 8%.0 -
How is he going to know what the follow on rate is going to be? If it's variable, it's going to change between now and 5 years and that means the figures on a quote are pointless. I think a better idea is to look at what the payments would be on a mortgage of around 8%.
Follow on rate relative to others products is what is important to establishing the best deal.
You must look at the follow on rate, you may not know the exact rate but will know it relative to others(allthough for ay SVR there are other factors not all have followed the rate cuts down).
Plenty of products have had good follow on tracker rates that give a relative level of certainty over a SVR that could be anything.
A lot of those follow on rates are actually a lot better that anything available today as a tracker since the spreads over base have increased.
Many should have looked at these when considering deals, the fixed part may have been a little higher .1/.2% but with a good follow on you reduce risks relatve to a product with high rates.
Having a guess at the region variable follow ons are likely to be is sensible one thing for sure is any other deal will be around the same level at the time and getting a good follow on rate can avoid the costs of switching.0 -
getmore4less wrote: »Follow on rate relative to others products is what is important to establishing the best deal.
You must look at the follow on rate, you may not know the exact rate but will know it relative to others(allthough for ay SVR there are other factors not all have followed the rate cuts down).
Plenty of products have had good follow on tracker rates that give a relative level of certainty over a SVR that could be anything.
A lot of those follow on rates are actually a lot better that anything available today as a tracker since the spreads over base have increased.
Many should have looked at these when considering deals, the fixed part may have been a little higher .1/.2% but with a good follow on you reduce risks relatve to a product with high rates.
Having a guess at the region variable follow ons are likely to be is sensible one thing for sure is any other deal will be around the same level at the time and getting a good follow on rate can avoid the costs of switching.
It doesn't matter what the rate is relative to what others are. What matters is what they will be paying. Allowing for a higher interest rate at something a bit over the average for the last 10/15 years has got to be better.
If they look at the follow on rate, even a follow on rate in comparison to other lenders follow on rate, that will give them an unrealistically low rate to budget for.0 -
It doesn't matter what the rate is relative to what others are. What matters is what they will be paying. Allowing for a higher interest rate at something a bit over the average for the last 10/15 years has got to be better.
If they look at the follow on rate, even a follow on rate in comparison to other lenders follow on rate, that will give them an unrealistically low rate to budget for.
I did not say use the rates to set your budget.
The follow on rates can make a big difference to overall cost and are important.0 -
getmore4less wrote: »I did not say use the rates to set your budget.
The follow on rates can make a big difference to overall cost and are important.
You haven't a clue what you are talking about have you? First you indicate they need disciplining when then never indicated they needed it, then you tell them to look at the follow on rate when the rate is likely to change a lot between now and when it kicks in.
There seems to be a lot of unqualified experts on this site who know f-all!!!0 -
At the end of the fix we go on to the SVR - but makes sense to me that what the rate is now is irrelevant as it will
be different in 5 years. Had a play on 'whatsthecost' and looked at the cost of mortgage on 10% - it made my eyes water (£1050) but we could do it if we had to. Looked at 15% -(£1500) think that would be the end if us!
If my understanding is correct - we'll watch what is going on 3/4 years in to our fixed and if we don't like the way things are looking - look at whether it is worth paying to get out of our fixed and jumping to a 10 year fixed to weather any impending storm. Does that seem like a good idea? I'm basically making it up as I go a long!!
After a weekend of worrying about bl**dy bulltraps, we decided b*lls to it - we want a house, we're sick of renting and the house ticks ALL our boxes - it's now or never. We may live to regret it, but as long as we can pay the mortgage, we'll be paying our mortgage - not the landlords (already paid 30 grand off his mortgage - enough is enough!).0 -
ANOTHER question
Current mortage AIP 5 yr fixed - 5.25% = £670 give or take a month
Still waiting on the offer (Leeds BS)
just seen Skipton - 10yr - 6.44% = £750 give or take a month.
Wondering whether to apply for the Skipton as well and if we get it . go with them - if not go with the Leeds.
Can you make more than one application?
What do people think? cheaper 5 year or more expensive 10? 0
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