Quarter of Brits on interest only mortgages

Really2

Graham_Devon wrote: »

Just to point out HPI is NOT guaranteed....



So someone bought in 1989. Their 25 year mortgage therefore ends in 2014.

Is it absolutely guaranteed that the house will be worth more than in 1989?

Likely, but if you look at the undershoot in 1982, compare it with the undershoot in 1996, it COULD roughly mean there is an undershoot to about £100,000 this time.

So in 1989 house was bought for £110,000. 2014 comes, and we have hit rock bottom. Houses now worth £100,000.

So this guarentee is suddenly flawed.

All of the above is obviously based on where the market goes from here, but IS based on where the market has been in history.

That graph is "real prices" not nominal!!!!(again.:rolleyes:)
so if they took out a mortgage in 1989 it would be nominal also

The average house price as stated an unbeliveable amount of times before was not around £100K, that is an inflation adjusted price. (it would have been around £63K max nominal, look at the link.)
http://www.mortgageguideuk.co.uk/housing/uk-house-price-index.html

so why keep harping on about that graph when it does not state nominal growth and decline? You know nominal prices are only of interest when buying and then selling.

JonnyBravo

Really2 wrote: »

That graph is "real prices" not nominal!!!!(again.:rolleyes:)
so if they took out a mortgage in 1989 it would be nominal also

Unfortunately Graham gets a little confused when it comes to numbers. I've had to explain it to him about averages more than once. He seems to forget stuff.
Perhaps Graham really does think the average house price in '78 was over £60k???
The real question though is would that be the mean, median or modal figure? :rotfl:

michaels

Some in Birm Midshires 6.4% fixed rate savings account taken out last November (OK this will expire in 3 months), balance in Newcastle 5% 5yr bond with 90 withdrawal notice with spending money in A&L and Abbey 6% current accounts and LTSB 4% current accounts all either in ISAs or in wife's name as she is only working at home at the moment.

Only difficultly is that funds are now so large from profit made from having an IO mortgage and not paying it off that wife is in to special 10% savings tax band now.

I have never known a time when the best paying savings account (gross) does not exceed the cheapest mortgage account by at least 75 basis points - obviously things are even better right now for those sensible enough not to repay their mortgage.

bluey890 wrote: »

What product are you receiving 6% net from?

Pobby

PasturesOld wrote: »

Good night pobby, maybe we can have a reasoned debate tomorrow when you are clean

What are you on about?

shakerbaby

Pobby wrote: »

What are you on about?

Ignore the sockie, we all know who it really is anyway and they are far from a pleasant character.

Really2

chucky wrote: »

why do you persist?? why is it of so much interest to you?
why do you follow my every post - is that one of the reasons you come on here for??

here's my answer "I come here to have fun, chew the fat, discuss things, learn stuff. [STRIKE]And have made internet friends[/STRIKE]".

I find the behaviour slightly worrying myself (having been the focus of it last week). Not sure why Mewbie as gone all militant on some of the "bulls"

But the stalking behaviour is a bit odd and worrying.
It is a forum to debate, not a stalking ground if you don't agree with someone.

ninky_2

30 percent of all Brits don't even live in their own home (mortgaged or otherwise). Is renting off the bank worse than renting off a landlord? especially if you are paying less in interest than you would in rent.

Pobby

Have to admit. I was very anti IO mortgages, except in the case of emergency, however there is some well thought out arguments for why some people have them. Now that`s what a forum should be about. Giving a different perspective.

HAMISH_MCTAVISH

Pobby wrote: »

Have to admit. I was very anti IO mortgages, except in the case of emergency, however there is some well thought out arguments for why some people have them. Now that`s what a forum should be about. Giving a different perspective.

I'm actually anti-I/O as well, but I do accept there are some circumstances where it makes sense.

nearlynew

HAMISH_MCTAVISH wrote: »

I'm actually anti-I/O as well, but I do accept there are some circumstances where it makes sense.

Like contributing to house price inflation you mean ?