July house purchase lending up on a year ago for first time in over two years

Harry_Powell

carolt wrote: »

Yes, but I have that already, renting.

I'm not interested in 'beating the banks' - not quite clear what that is? - but beating my rental payments, by sufficient amounts to allow for the other costs of home ownership.

Obviously, if I was convinced house prices wrre about to shoot up, or I was desperate to move at any cost, then I might be less worried about getting good value for money on a long-term fix, and might be prepared to go easier on this.
But as I'm not, and I'm not, I'm not.

Do you live in LA accomodation or have some sort of rent agreement in place? We've moved twice due to disproportionate increases in rent, so I'd be interested to know if there was any way to fix our rent.

Beating the banks is where people take out fixes because they feel we are in or about to be in a period of rising BoE rates and hope to end up with a mortgage rate that is less than the SVR or the holy grail, less than the BoE rate. It seldom works because the banks have more of an idea of rate movements than Joe Public do.

As far as beating your rent, you'd have to look at the how much you're currently paying in rent as opposed to what you'd have to pay on a similar sized/located house, factoring in maintenance, mortgage payments, valuation fees, arrangement fees, buildings insurance, conveyancing fees, stamp duty (if any) and what you'll lose on interest on your deposit.

TBH, if you're waiting for the cost of buying to be less than the cost of renting then you'll never buy, surely?

Jonbvn

carolt wrote: »

Yes, but I have that already, renting.

For 10 years???:rotfl:

IveSeenTheLight

carolt wrote: »

But that 4.7% rate is clearly just a short term fix - all the longer term fixes are much higher.

If I could lock into 4.7% for a minimum of 10 years, pref 15% (fully portable, obviously, in case I want to move in that time), I'd seriously think of buying too.

But, AFAIK, I can't.

I would not want a 10 year 15% mortgage

Just did a quick search and Britannia offer long term fixes that are competative against the last decade average.
10 year fix from 5.49% and 15 year from 6.49%
They even do a 10% deposit option
These long term fixes even carry a £0 arrangement fee
http://www.britannia.co.uk/home/_site/channels/mortgage/products/long-term-fixed-rates.html

The average of people however fix for 5 years and Britannia offer a 5 year fix from 4.99%
http://www.britannia.co.uk/home/_site/channels/mortgage/products/medium-term-fixed-rates.html

HSBC also offer a 5 year fix from 4.95%
http://www.hsbc.co.uk/1/2/personal/mortgages/remortgage/fixed-rate;jsessionid=00004eLPt9AveZ3Ujsxfl9txN8A:12c58t9vd

Graham_Devon

IveSeenTheLight wrote: »

I would not want a 10 year 15% mortgage

Just did a quick search and Britannia offer long term fixes that are competative against the last decade average.
10 year fix from 5.49% and 15 year from 6.49%
They even do a 10% deposit option
These long term fixes even carry a £0 arrangement fee
http://www.britannia.co.uk/home/_site/channels/mortgage/products/long-term-fixed-rates.html

The average of people however fix for 5 years and Britannia offer a 5 year fix from 4.99%
http://www.britannia.co.uk/home/_site/channels/mortgage/products/medium-term-fixed-rates.html

HSBC also offer a 5 year fix from 4.95%
http://www.hsbc.co.uk/1/2/personal/mortgages/remortgage/fixed-rate;jsessionid=00004eLPt9AveZ3Ujsxfl9txN8A:12c58t9vd

Just wanted to say thanks for these, I'm actually going ot look into them myself.

carolt

Jonbvn wrote: »

For 10 years???:rotfl:

For the record, my rent has basically not gone up for equivalent types of properties in the last 10 years, no.

I can't compare on one specific property, as I've moved in those last 10 years, but the maisonette I rented in 2001-2003 (so starting 8 years ago - near enough 10 years) now rents for exactly the same we paid then - I know because I've looked, out of idle curiosity - there's a whole street there, of identical maisonettes, so it's easy to tell.

Whilst I can't guarantee my rental payments will stay the same for the next ten years, obviously, I don't feel the need to fix them in the same way, as I would if I had a mortgage, as I have the freedom to move if I rent, either to a cheaper area or cheaper type of property, if I find I can't afford the rent.

The danger with buying is that you can be unable to sell if you find yourself in negative equity, but at the same time unable to cover your mortgage if not on a fixed rate and circumstances change or rates go up. There is far more risk involved. If I don't need to take that risk, why do it?

carolt

IveSeenTheLight wrote: »

I would not want a 10 year 15% mortgage

Just did a quick search and Britannia offer long term fixes that are competative against the last decade average.
10 year fix from 5.49% and 15 year from 6.49%
They even do a 10% deposit option
These long term fixes even carry a £0 arrangement fee
http://www.britannia.co.uk/home/_site/channels/mortgage/products/long-term-fixed-rates.html

No, I don't want a 15% fix either! :eek:

Checked out your supposed 10 year fix 'from 5.49%'.

Yes if you've got 40% stashed away. But let's face it, not many FTB's have - I certainly don't.

More realistically, you're looking at 5.89% for 25% (still a big ask for most FTB's) or 6.59% for 10%.

Still both a lot higher than I was offered in 2006.

At those rates, the cost of renting is still sufficiently cheaper than buying to prevent me feeling there's any great advanatage to buying now.

IveSeenTheLight

carolt wrote: »

For the record, my rent has basically not gone up for equivalent types of properties in the last 10 years, no.

I can't compare on one specific property, as I've moved in those last 10 years, but the maisonette I rented in 2001-2003 (so starting 8 years ago - near enough 10 years) now rents for exactly the same we paid then - I know because I've looked, out of idle curiosity - there's a whole street there, of identical maisonettes, so it's easy to tell.

Whilst I can't guarantee my rental payments will stay the same for the next ten years, obviously, I don't feel the need to fix them in the same way, as I would if I had a mortgage, as I have the freedom to move if I rent, either to a cheaper area or cheaper type of property, if I find I can't afford the rent.

The danger with buying is that you can be unable to sell if you find yourself in negative equity, but at the same time unable to cover your mortgage if not on a fixed rate and circumstances change or rates go up. There is far more risk involved. If I don't need to take that risk, why do it?

The similar rent for the last 10 years you advise could point to the fact that the landlords are happy with the rental yield and covers their mortgage payments. You could have benefited from the LL fixing his mortgage payments.

Either that or rent was extortionate 10 years ago as we have already shown that wages have gone up in the last 10 years meaning that in effect disposable income for renters has increased as less percentage is paid out in rent.

You ask "If I don't need to take that risk, why do it?", well its a personal choice.
The properties you used in your example have had at least 10 years of tenants paying the mortgage, meaning there is potentially only 15 years left.
Wouldn't it be nice to think that you only have 15 years of rent / mortgage left to pay?
Fast forward 15 years and your now rent / mortgage free and only in your early 50's.
Wouldn't that be a nice thought?

Graham_Devon

Well all those moves would have cost you a fortune in solicitors fees and possibly stamp duty just to start with...

Graham_Devon

carolt wrote: »

No, I don't want a 15% fix either! :eek:

Checked out your supposed 10 year fix 'from 5.49%'.

Yes if you've got 40% stashed away. But let's face it, not many FTB's have - I certainly don't.

More realistically, you're looking at 5.89% for 25% (still a big ask for most FTB's) or 6.59% for 10%.

Still both a lot higher than I was offered in 2006.

At those rates, the cost of renting is still sufficiently cheaper than buying to prevent me feeling there's any great advanatage to buying now.

I'm looking at it as a damn good deal tbh.

Over 10 years, whats the probability of base rates hitting 5%? Pretty high I would personally guess. Even in 3-5 years, it's a pretty high probability. 5.89% for the mortgage seems quite good.

It's all a gamble, but this is a gamble I'd personally be willing to take, and it's added a new dimension for me.

IveSeenTheLight

carolt wrote: »

No, I don't want a 15% fix either! :eek:

Checked out your supposed 10 year fix 'from 5.49%'.

Yes if you've got 40% stashed away. But let's face it, not many FTB's have - I certainly don't.

More realistically, you're looking at 5.89% for 25% (still a big ask for most FTB's) or 6.59% for 10%.

Still both a lot higher than I was offered in 2006.

At those rates, the cost of renting is still sufficiently cheaper than buying to prevent me feeling there's any great advanatage to buying now.

I knew you didn't want a 15% fix, it was clearly a typo hence my smiley.

You are looking at long term rates i.e. 10 years plus.
The CML state that the last decade, fixes were on average (average mortgage fixes are for 5 years) 5.57% and we all know that these are "long term" low rates

Try comparing like for like i.e. 5 year fixes (the average) and you will see that they are very competative.
Unlikely in my opinion to get much better.