House prices bottomed ?

chucky

Thrugelmir wrote: »

As Lloyds controls around 30% mortgage market share. I'll use their rates.

7 Year Fix - LTV 75% - 6.39% - Fee £995
7 Year Fix - LTV 60% - 6.09% - Fee £995


Interestingly on Halifax

5 Year Fix - LTV 85% - 90% - 7.49% - Fee £995


Very quietly rates are changing as each tranche is sold out.

Expect major headlines next week.

apart from the 7.49% rates they are still better than average mortgage rates historically but not as good as the rates a few months ago.

as an example i took out a 5 year fix at 4.69% in February at 60% LTV - that would save me £28,000 (£460 a month less mortgage) in just interest payments and without re-capitilisation on a £200k property - that will net out to over 15% of the house price.

if property is to drop over 15% yes, but i can't see that happening personally - will it have been worth people not buying if they could have got those cheaper mortgage rates?

Generali

chucky wrote: »

apart from the 7.49% rates they are still better than average mortgage rates historically but not as good as the rates a few months ago.

as an example i took out a 5 year fix at 4.69% in February at 60% LTV - that would save me £28,000 (£460 a month less mortgage) in just interest payments and without re-capitilisation on a £200k property - that will net out to over 15% of the house price.

if property is to drop over 15% yes, but i can't see that happening personally - will it have been worth people not buying if they could have got those cheaper mortgage rates?

Even if property does that much (which I feel is distinctly possible) you measure losses over such a long period of time that it's immaterial unless you get reposessed or have to refinance.

chucky

Generali wrote: »

Even if property does that much (which I feel is distinctly possible) you measure losses over such a long period of time that it's immaterial unless you get reposessed or have to refinance.

yes you're right - all of these things are not even thought of.

as we see frequently on here too many people are focused on just property prices and none of the other factors, for example the paying of rent when you're waiting to buy; that could have been offset by the mortgage payments.

mewbie_2

chucky wrote: »

as an example i took out a 5 year fix at 4.69% in February at 60% LTV - that would save me £28,000 (£460 a month less mortgage) in just interest payments and without re-capitilisation on a £200k property - that will net out to over 15% of the house price.

if property is to drop over 15% yes, but i can't see that happening personally - will it have been worth people not buying if they could have got those cheaper mortgage rates?

Wow what a lot of borrowings - lol. Of course had you half a brain you could still have taken the fix, but also saved money by not buying a property at the peak - lol.

Graham_Devon

chucky wrote: »

yes you're right - all of these things are not even thought of.

as we see frequently on here too many people are focused on just property prices and none of the other factors, for example the paying of rent when you're waiting to buy; that could have been offset by the mortgage payments.

Probably because most are looking for a home, rather than an investment?

The other parts yuo are talking about do not matter when all you need is a home. The prices, however, do.

chucky

Graham_Devon wrote: »

Probably because most are looking for a home, rather than an investment?

The other parts yuo are talking about do not matter when all you need is a home. The prices, however, do.

it was my residential and i did look at all of those things - i live in a house too
i'm not saying to buy, with a combination of good house price and good rate it's a good time to for opportunities.

from looking at those rates i could be saving £460 a month by fixing 4 months ago on £200k for example - with a good discount on the house price, it's a good thing.

mewbie wrote: »

Wow what a lot of borrowings - lol. Of course had you half a brain you could still have taken the fix, but also saved money by not buying a property at the peak - lol.

it was fixed and it was in February, i know it's hard but read the post you reprobabate

mewbie_2

Hey chill Chucky. I just find it funny that you are clearly so deep in financial trouble you need to constantly try to talk up a failing market.

Graham_Devon

chucky wrote: »

you reprobabate

Ooo, harsh, one step up from a Reprobate!!

chucky

mewbie wrote: »

Hey chill Chucky. I just find it funny that you are clearly so deep in financial trouble you need to constantly try to talk up a failing market.

not at all - giving my point of view, if that's allowed with you

if you hadn't realised the forum is closed for outside life - even if it wasn't "talking up the market" as you say; would only be seen by a small amount of people.

btw - it's good that your son is back from uni, no longer paying for that flat. you get a big chunk of your salary back to yourself now don't you? lol

Graham_Devon

chucky wrote: »

it was my residential and i did look at all of those things - i live in a house too
i'm not saying to buy, with a combination of good house price and good rate it's a good time to for opportunities.

from looking at those rates i'm saving £460 a month by fixing 4 months ago - with a good discount on the house price, it's a good thing.

Right, one thing I have never said to this argument, whenever Stevie uses it, Dithering Dad used to use it and now you are using it.

You'd save even more if you didnt buy now, and bought the house at a lower price with a bigger deposit.

Plus, say prices fall another 10%. That's 15k saved on the actual house price drop (speaking averages here). At £500 a month rent, thats 30 months worth of rent, plus your cash still in the bank.

This argument of buy now, you will pay less in the long run doesn't add up at all to me.