The real price of a mortgage: 6.49%

chucky

the_ash_and_the_oak wrote: »

pretty much agree w this - a rate is neither high nor low without the context of the capital outlay

(tho judged purely on its own terms 6.49 would probably describe 6.49 as average - over the long term)

can you explain to graham please - he struggles with the basics

chucky

Graham_Devon wrote: »

Mr "I'm not a bull, oh no not me" Purch.

Who's complained? Only I asked chucky the same question, though he declined to answer.

no, no you can't do your usual turnaround on this one Graham "I Look For An Argument With Everybody Who Disagrees With Me" Devon.

it's quite siomple you don't understand the replationship between the BOE base rate and mortgage rates. you don't understand how Libor works and you defintely don't understand what Swap rates are used for

i refer you to ISTL signature
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:

Thrugelmir

StevieJ wrote: »

You mean pragmatists who have paid over 15% in the past.

Which is better, a mortgage interest rate of 15% with inflation at 18% ?

or.

Inflation at 2% with a mortgage interest rate of 6% ?

kennyboy66_2

Thrugelmir wrote: »

Which is better, a mortgage interest rate of 15% with inflation at 18% ?

or.

Inflation at 2% with a mortgage interest rate of 6% ?

Well it depends on what your prospective wage inflation is plus a whole host of other things.

Thrugelmir

kennyboy66 wrote: »

Well it depends on what your prospective wage inflation is plus a whole host of other things.

For a high percentage of people historically, inflation was the benchmark for wage negotiations.

purch

For a high percentage of people historically, inflation was the benchmark for wage negotiations

In the future, it'll be managing to keep your Job which will be the benchmark :eek:

StevieJ

Thrugelmir wrote: »

For a high percentage of people historically, inflation was the benchmark for wage negotiations.

Key word 'historically':eek:

purch

Which is better, a mortgage interest rate of 15% with inflation at 18% ?

or.

Inflation at 2% with a mortgage interest rate of 6% ?

Hang on, I've mislaid by book on the Devonian School of Economics......

I'll be back.

the_ash_and_the_oak

Things are different now perhaps

Will be interesting to see how future wage negotiations go without the clout of organized labouras a significant factor

StevieJ

the_ash_and_the_oak wrote: »

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

You wrote 'I'd rather borrow (hypothetically) when rates were 10% than 6.49% (given the damage that I think 10% would do to prices)'

So I take it you would rather take out a mortgage when house prices are going to collapse Have I understood your point correctly, or did you mean that the 10% related to a high inflation rate and high HPI?