London home 'needs £93,000 wage'

IveSeenTheLight

the_ash_and_the_oak wrote: »

yup. tho I'd lose the use of my 10% deposit tbf. and I couldn't really find anyone giving a mortgage at 5% with only a 10% deposit. and then theres kind of the fees to factor in

HSBC do a 4.59% at 90% LTV
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/tracker-rate;jsessionid=0000dCoviyYRfdTcQ0jttLlHwBK:12c58ti63

Seems your sorted then

[edit]
Actually the do a 3.89% product at 90% LTV
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/special;jsessionid=0000dCoviyYRfdTcQ0jttLlHwBK:12c58ti63
[/edit]

the_ash_and_the_oak

IveSeenTheLight wrote: »

HSBC do a 4.59% at 90% LTV
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/tracker-rate;jsessionid=0000dCoviyYRfdTcQ0jttLlHwBK:12c58ti63

Seems your sorted then

[edit]
Actually the do a 3.89% product at 90% LTV
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/special;jsessionid=0000dCoviyYRfdTcQ0jttLlHwBK:12c58ti63
[/edit]

Well I'm already sorted and not in the market for a flat tbf

but 3.9% is pretty good though! Are these lifetime trackers? They're a brilliant way of putting your money where your mouth is imo

the_ash_and_the_oak

Actually to hand it to ISTL this is the best argument put forward yet imo. I have been comparing rent to mortgage interest mainly on fixed rates. Should we do this against these 4% trackers instead?

Really2

the_ash_and_the_oak wrote: »

but 3.9% is pretty good though! Are these lifetime trackers? They're a brilliant way of putting your money where your mouth is imo

They are but I must admit I would not touch a life time at the moment. (due to being so high over base)

But I think the HSBC one is only 2 year so should be a good rate over the discount term.

I think the best comparison is the best mortgage rate you could get at the current period as surely that is what you would go for. (or the best rate of the mortgage that suits you)

otherwise you start going down the path of accounting for everything and then buy the end of it you have tried to 2nd guess the next 25 years of IR's and rent inflation.

the_ash_and_the_oak

Really2 wrote: »

They are but I must admit I would not touch a life time at the moment. (due to being so high over base)

But I think the HSBC one is only 2 year so should be a good rate over the discount term.

I think the best comparison is the best mortgage rate you could get at the current period as surely that is what you would go for. (or the best rate of the mortgage that suits you)

otherwise you start going down the path of accounting for everything and then buy the end of it you have tried to 2nd guess the next 25 years of IR's and rent inflation.

Yes they seem a little...racey. The 2 year one seems less risky but I'm far from convinced prices will be any higher than today in 2 years time and thats a pretty short period for paying much off without a good idea of what the new rates might be at that time. I'd be kind of terrified to borrow on a tracker at the very time the BR is that low (pretty much guaranteed any changes are up rather than down!) - a tracker when rates are v high seems a better idea?

I think for a house to live in for a good long time prob doesn't matter so much. But for a flat? don't really see flats as particularly long term imo (esp if you ever want kids), so I'd prob be factoring in trading up in 5 or 6 years (could be later) and not really sure why you would take a flat on with the way the figures stack up (plus buy/sell costs)...unless you thought prices were going to rise (bull vs bear pov) or that rents were going to increase

nollag2006

Raffles99 wrote: »

Back-office guys on £50-70k would tend to live further out and commute in, eg Bedford, Harpenden because they are older, usually with families.

Hmmm.. don't think I'd put Harpenden and Bedford in the same price range.

Plenty of £1m+ houses in Harpenden, due to the good schools and upgraded Thameslink straight into the City. Lots of law and accountancy partners and City types here.

The State schools are also very good, and crime is low compared to London.

There are also some lower priced properties around Batford and Southdown, but these areas are not great, tbh.

So to be honest, you would need at least a six figure income to live in a detached house in most parts of Harpenden.

nollag2006

IveSeenTheLight wrote: »

HSBC do a 4.59% at 90% LTV
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/tracker-rate;jsessionid=0000dCoviyYRfdTcQ0jttLlHwBK:12c58ti63

Seems your sorted then

[edit]
Actually the do a 3.89% product at 90% LTV
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/special;jsessionid=0000dCoviyYRfdTcQ0jttLlHwBK:12c58ti63
[/edit]

Great to see more of these low deposit mortgages finally coming onto the market. It should help underpin the rapid price increases of the past 8 months, and allow hard pressed FTBs back into the market to get a foot on the ladder

:T