The real price of a mortgage: 6.49%

the_ash_and_the_oak

Heyman wrote: »

Graham, all you're talking about is bank margins - yes the banks are currently making a killing on deals but that doesn't determine whether or not the rate is expensive.

If a loaf of bread was 45p and it cost 38p to make, but some time later it's still 45p and it costs 10p to make, that doesn't make the bread 'expensive' does it?

kinda feeling labour costs gone down in this scenario - which might make 45p seem a bit on the pricey side imo

the_ash_and_the_oak

StevieJ wrote: »

I think I will take the 6.49% high mortgage rate, you can have the low 10%

I know we've been here before but if I was in the market to be borrowing money for a house I'd rather borrow (hypothetically) when rates were 10% than 6.49% (given the damage that I think 10% would do to prices)

(btw for consistency should say that even in that hypothetical scenario it is not that higher rates such as that would cause problems for current owners per se - more it would reduce the amount available to borrow for future owners imo)

lostinrates

purch wrote: »

Only trying to help the poor lad understand what's going on.

Purch, I agree with you, this thread is asurreal, but, I'd appreciate the opportunity to read an explanation by you. (I can't remember seeing one, only your comments on others, which is a shame as you right clearly and with a sense of authority). For those of us who don't pretend to understand it all this sort of thing is helpful and educational.

JonnyBravo

Graham_Devon wrote: »

I've cut out the irrelavant guff!

You've deleted all your past posts???

JonnyBravo

Tee hee


:j

System

JonnyBravo wrote: »

You've deleted all your past posts???

http://www.instantrimshot.com/

IveSeenTheLight

the_ash_and_the_oak wrote: »

I know we've been here before but if I was in the market to be borrowing money for a house I'd rather borrow (hypothetically) when rates were 10% than 6.49% (given the damage that I think 10% would do to prices)

(btw for consistency should say that even in that hypothetical scenario it is not that higher rates such as that would cause problems for current owners per se - more it would reduce the amount available to borrow for future owners imo)

Seems stupid to me to want to borrow at 10% if 6.49% was on offer.
Not very MSE

the_ash_and_the_oak

IveSeenTheLight wrote: »

Seems stupid to me to want to borrow at 10% if 6.49% was on offer.
Not very MSE

got to agree with this tbh, tho at same time pretty sure that's not really what I said imo

IveSeenTheLight

the_ash_and_the_oak wrote: »

got to agree with this tbh, tho at same time pretty sure that's not really what I said imo

Maybe I missread what you wrote.

Trying to work it out, maybe you were referring that you would have preferred to borrow when rates were 10% i.e. lower borrowing required than now when rates are 6.49% i.e higher borrowing

Is that what you meant?

the_ash_and_the_oak

Absolute clarity on my part might have been a better approach but kinda feeling I could have only been saying one of two things tbf.

Either a ) i'd rather borrow at 10 at a time when 6.49 was no longer available or b ) I'd rather borrow at 10 when 6.49 was on offer

Pretty sure most people would correctly assume I meant a) and debate/agree/disagree w that point.

Not really sure what mileage to be gained from arguing as tho I had made point b imo