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Debate House Prices


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FTB's to struggle until prices rise....

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Comments

  • carolt
    carolt Posts: 8,531 Forumite
    HAMISH_MCTAVISH wrote: »
    No contradiction there.

    Higher LTV mortgages are available, and slowly increasing, but they'll pay much more for the priviledge than those with higher deposits.

    The fact is, someone who bought in 2007 on a 100% mortgage could have got a tracker at base + 0.5%. Whereas today someone with a 10% deposit will pay more like base plus 5%.

    Eliminating the gains from todays price falls of 10% from peak in just 2 years, and costing massively more over the life of the mortgage, because although that gap will surely narrow over time, it won't close fully until close to the next peak.

    The crash has cost FTB's a packet, despite falling prices. Unless they have a huge 25% deposit. For most though, it's been a waste of time.


    Hamish sweetie, can you answer me a question. I'd really, really like to know the answer, and I suspect I'm not the only one.

    Why do you so passionately - that you post endless posts on the subject - desire FTBs to be priced out of the market? Why does the very thought of a FTB being unable to buy fill you with glee and cause you to pepper your posts with gloating smilies? Why, if you're as successful financially as you say you are, does your happiness depend so absolutely on a segment of the population being unable to achieve what you claim you enjoy?

    I just don't get that. I really, really don't.

    Please tell us.

    We're your friends.

    We can help.

    It's OK Hamish. We won't laugh.

    We just want to help you deal with ..it, whatever it is. :)
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mr_fishbulb wrote: »
    Make up your mind!

    I just did....:D
    because although that gap will surely narrow over time, it won't close fully until the next peak.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • System
    System Posts: 178,424 Community Admin
    10,000 Posts Photogenic Name Dropper
    I don't think he desires anything of the sort, just telling it like it is. I doubt he really gives a !!!!.

    edit: @ carol.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • carolt
    carolt Posts: 8,531 Forumite
    And you really believe that, Joeskeppi? :rolleyes:
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    Part of the Furniture Combo Breaker
    HAMISH_MCTAVISH wrote: »
    The fact is, someone who bought in 2007 on a 100% mortgage could have got a tracker at base + 0.5%. Whereas today someone with a 10% deposit will pay more like base plus 5%.
    These were rates in 2007:

    11/01/2007 5.25%
    10/05/2007 5.50%
    05/07/2007 5.75%
    06/12/2007 5.50%

    So tracker base +0.5% would be between 5.75% and 6.25% depending on when in the year you got it.

    Base rate now is 0.5% so tracker would be 5.5%
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mr_fishbulb wrote: »

    So tracker base +0.5% would be between 5.75% and 6.25% depending on when in the year you got it.

    Correct.
    Base rate now is 0.5% so tracker would be 5.5%
    .

    Correct again.....

    But what has happened to the rates of those who bought in 2007 since then..... Hint: the clue is the word "tracker".;)

    No matter what happens to base rates, an FTB today is paying more above base than an FTB in 2007. In fact, an FTB on a discounted tracker is paying more than a pre-2007 SVR in most cases.

    The difference is huge.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • carolt
    carolt Posts: 8,531 Forumite
    Hamish, answer the question I put to you please, rather than witter on about trackers.
  • DaddyBear
    DaddyBear Posts: 1,208 Forumite
    HAMISH_MCTAVISH wrote: »
    Correct.


    .

    Correct again.....

    But what has happened to the rates of those who bought in 2007 since then..... Hint: the clue is the word "tracker".;)

    No matter what happens to base rates, an FTB today is paying more above base than an FTB in 2007. In fact, an FTB on a discounted tracker is paying more than a pre-2007 SVR in most cases.

    The difference is huge.

    The effect is much less for those on fixed rates.

    Didn't you say in a recent post that most people were on fixed rates???
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    carolt wrote: »
    Hamish, answer the question I put to you please, rather than witter on about trackers.

    You didn't ask a question.

    You just went off on yet another anti-Hamish rant, trying to portray my statement of fact as an anti-FTB position, or disparage my motivations without having the faintest clue what they are.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Mr.Brown_4
    Mr.Brown_4 Posts: 1,109 Forumite
    HAMISH_MCTAVISH wrote: »
    You didn't ask a question.

    You just went off on yet another anti-Hamish rant, trying to portray my statement of fact as an anti-FTB position, or disparage my motivations without having the faintest clue what they are.
    What are they then? Your motivations?
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